Research on World Agricultural Economy

CBD Oil Concentration and Hemp Flower Drying Preferences of U.S. Consumers

Benjamin Jacobs

University of Arkansas and Ghent University

Michael Peter Popp

Economics and Agribusiness, University of Arkansas, USA

Sunjin Ahn

Sunjin Ahn is a Research Scientist in the Department of Agricultural Economis and Agribusiness at the University of Arkansas

Wim Verbeke

Prof. Dr. Wim Verbeke is a Professor in the Department of Agricultural Economics, Faculty of Bioscience Engineering, Coupure Links 653, Blok A, Ghent University, 9000 Ghent, Belgium

Brandon McFadden

Brandon R. McFadden is the Tyson Chair for Food Policy in the Department of Agricultural Economics and Agribusiness, 405 N Campus Dr., Department of Agricultural Economics and Agribusiness, 217 Agriculture Building, Fayetteville, AR, 72701, USA.

Tyler Mark

Tyler B. Mark is an Associate Professor in the Department of Agricultural Economics at University of Kentucky, 417 Charles E. Barnhart Building, Lexington, KY, 40546-0276, USA.

Adam Rabinowitz

Adam N. Rabinowitz is an Assistant Professor in the Department of Agricultural Economics and Rural Sociology at Auburn University, 209A Comer Hall, Auburn, AL, 36849, USA.

Benjamin Campbell

Benjamin L. Campbell is an Associate Professor in the Department of Agricultural and Applied Economics at the University of Georgia, 208B Conner Hall, 147 Cedar St., Athens, GA, 30602, USA.

DOI: https://doi.org/10.36956/rwae.v5i1.986

Received: 19 November 2023; Published: 31 March 2024

Abstract

The method used to dry hemp flowers can impact the concentration of cannabidiol (CBD) and other quality characteristics like mold levels in CBD oil. Understanding consumer preferences is vital for hemp producers and processors because there is variation in drying time, energy use, and capital investment between potential drying methods. This research assesses willingness to pay (WTP) for CBD oil at varying CBD content (mg per 1-oz.(30 mL) bottle) and drying methods to better understand consumer preferences and how consumers make tradeoffs between CBD oil attributes. Specifically, the authors elicit preferences toward drying using: i) controlled ambient conditions (air-drying), ii) infrared radiation (IR), and iii) freeze-drying or lyophilization. Few statistically significant WTP differences between CBD oils, when marketed at average attribute levels, were found for higher or lower CBD concentration or drying method. An exception was respondents 55 years of age or older who had a higher WTP for CBD oil with greater CBD content (2,500 mg) and also preferred the freezedried product over the baseline of a conventionally air-dried product with 1,000 mg of CBD. The lack of distinct preferences among the majority of consumers suggests that producers and processors can choose alternative drying methods based on their cost, time, and energy constraints without risking a WTP penalty. The findings indicate that consumers do not have well-formed preferences for CBD oil as it is a relatively novel product. Yet, the results suggest that consumers may interpret higher prices to reflect higher quality/product safety, thereby offering perceived quality assurance.

Keywords: Cannabidiol (CBD), Hemp flower drying, CBD oil, CBD concentration, Choice experiment

References