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The legal cannabis industry is one of the fastest-growing new markets in the United States. In 2019 it was estimated to be worth 13.6 billion, according to New Frontier Data.  In 2020 the global market value rose to 20 billion, and in 2021 it hit  37.4 billion. Their research also says that by 2025 the industry will make 30 billion annually in the US alone.

Needless to say, the cannabis industry is incredibly profitable and will likely be around for a very long time.

But there are some things you need to know about Hemp Oil Companies.


What Does A Hemp Oil Company Do?

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Creating CBD oil is a time-consuming process that every good hemp oil company does lovingly. Here are the steps involved.




Planting The Hemp


The soil is prepped and checked for herbicides before the hemp seeds are planted. Hemp is a great plant because it allows crops to be grown extremely close together – as near as four inches! This provides for a higher yield while using less land. Growing hemp restores nutrients to overfarmed soil. This is due to the large amount of biomass it produces.

The Harvest

Cannabinoids are most typically found in the resin glands of the plant’s trichome. That is the hemp plant’s blossom.


Depending on the state’s climate, the plants are often harvested around October. Every hemp oil company has to have a sample of their crop analyzed and approved before harvesting it. Their state’s agriculture department ensures their hemp is at 0.3% THC as per federal standards.


After being harvested, the plants are air-dried in a well-ventilated area for 3-4 weeks.  The hemp plants’ flowers get shipped to manufacturers to have the cannabinoids extracted.



The next step is extraction.

Extraction is the process of removing CBD from the hemp plant and converting it into a useful form.

There are several extraction processes, and each yields a somewhat different final result. However, The raw extract will always have a thick oily texture with a very dark, almost black colour.

Here’s a rundown of the most popular extraction methods:

Ethanol Extraction

Ethanol extraction involves soaking the hemp plant in high-grain alcohol. This process extracts the plant’s  CBD oil. It’s the most popular extraction method.


CO2 Extraction

CO2 extraction isolates cannabinoids using carbon dioxide at extremely low temperatures. After being supercooled and condensed,  it doesn’t leave behind chemicals or residue.  This process requires heavy machinery, but the result is safe and effective.

Oil Extraction

The oil method is popular among do-it-yourselfers.

It involves heating the hemp plant in a carrier oil such as olive oil. This process extracts the cannabinoids from the plant.


Creating The Products!


This is the step where the hemp oil company creates their oils, Topicals capsules and other products.


Third-Party Testing.


Every reputable hemp oil company has a certificate of analysis from third-party testing.


Third-party testing refers to testing a CBD brand’s goods by an unaffiliated laboratory.


Following production, most CBD producers submit samples from each batch for testing. The testing firms provide a report explaining the results.


The goal of impartial third-party testing is to:

  • Identify cannabinoids present in the product.
  • Prove that it’s free from harmful contaminants


Producing quality CBD products is time-consuming, but brands like Colorado CBD commit to providing you with premium hemp products. Explore our collection to enjoy the best organic CBD products on the market!


Photo by Shelby Ireland on Unsplash

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