From being valued at just over $1 billion in 2014 to more than $8 billion in 2019, the CBD industry has expanded rapidly.

But so much growth so quickly has led to misconceptions surrounding products containing CBD. Never is this more obvious than when examining a CBD label.

The FDA has strict rules about labeling CBD products. And knowing how to read labels is one of the best ways to avoid a suboptimal purchase. That’s why we’re guiding you through everything you need to know to understand labels on CBD products.

Ready to start making more informed decisions about your CBD products? Then this guide is for you.

CBD Label 101

It may surprise you that the first thing we recommend when picking up a new CBD product is to research the brand. Already, a few CBD companies have received warnings from the FDA regarding misleading customers about their products. To avoid one of these scammers, make sure you take a quick look at their company website.

The brand name should always be printed on the bottle and will usually be the largest font on the label. Search the company on Google and pay special attention to whether the brand performs lab testing. Preferably, your CBD product should be tested by a third-party lab to avoid conflicts of interest.

If the product is not lab-tested, avoid it at all costs. Another important quality to search the company website for is how the CBD is extracted. CO2 extraction is generally thought of as the industry standard. Here are some other basic qualities to look at when inspecting your CBD product label:

How to Properly Store CBD

Storage instructions should be printed clearly on the label of your CBD products. Make sure to follow these to ensure your products stay fresh and safe for consumption.

How Much CBD Should I take?

As more CBD research emerges, CBD brands are getting better at serving recommendations. Some companies print these on the bottle. But even if your CBD products do come with a serving guide, we always suggest speaking to your physician about how much you should take.

How Much Actual CBD is in Your Product?

One of the most important qualities of your CBD product is determining the amount of active ingredient it contains. Determining CBD content is one of the best things you can do to rule out a poor product. Some companies CBD products have low levels of CBD so they try and get around this by labeling their product “Hemp Extract.” If the label says “Hemp Extract” check to see how much CBD is actually in the product.

CBD Tinctures (aka “CBD Oils”)

When examining the label of your favorite CBD oil or tincture, pay attention to the CBD content. Most brands print this number on the front of the bottle. Content usually ranges between 100 and 1000 mg, which describes the amount of CBD in the entire bottle. Again, if the bottle is labeled “Hemp Extract,” check to see how much CBD the bottle actually contains. A 1000mg Hemp Extract may only contain 500mg of CBD with the remainder being “Extract.”

To determine the CBD content per dose, simply divide the mg per bottle by the amount of servings. This will give you a rough estimate of the CBD concentration per 1 ml dropper of your product. You can also apply this equation to vape oil and other liquid CBD products.

CBD Capsules, Softgels, and Other Edibles

CBD capsules or softgels are some of the easiest CBD products to understand. Most brands will list the CBD content per capsule. But all brands should at the very least list the CBD content per bottle.

Some companies go a step further by listing both values. For example, our premium CBD soft gels contain 750 mg per bottle. But they also list the per capsule concentration of 25 mg per softgel. When evaluating CBD softgels, look for a brand that has a high absorption rate like Palm Organix™

Examining CBD content in edibles like CBD gummies is nearly the same as for capsules. Most brands will list either the CBD content per package, CBD content per edible, or both.

CBD Topicals

CBD balms and topicals are most typically found labeled with CBD content per bottle or jar of topical product. When comparing products, always determine the amount of CBD per ounce of product. That way, you can choose the CBD concentration that best suits your needs.

For instance, our CBD Face Mask contains 10 mg per mask, while our CBD Cream + Camphor Lotion contains 50 mg CBD per 1 oz lotion. Palm Organix™ CBD Salve is highly concentrated a 450mg per 1 oz,.If you’re new to CBD, you might want to start with a lower concentration CBD topical or use a smaller amount of a stronger formula.

What Else Gets Added to My CBD Bottle?

Unless you’re purchasing a 100% pure CBD isolate, you can be sure your product will have a few added ingredients. Here are the ones to look out for.

Will I get High or Fail a Drug Screening Test From CBD?

A common ingredient in CBD products is THC. Federal and the majority of state laws allow up to 0.3% THC concentration in CBD products, which is why you may see small THC concentrations in some CBD brand products. However, many companies like Palm Organix™ offer completely THC-free CBD products which are known as Broad Spectrum CBD It is widely believed that Broad Spectrum products are the best CBD products as they contain all the beneficial cannabinoids, terpenes, and flavonoids however the THC is intentionally removed. The result is all the benefits of the cannabis plants without any of the negative psychoactive side effects of THC.


Especially common in “full-spectrum” or “broad-spectrum” products, phytocannabinoids are non-THC cannabinoids found in hemp. Full or Broad-spectrum products may also be referred to as containing the whole plant. You can contrast both of these with CBD isolates, which contain 100% pure CBD molecules and absolutely nothing else. Isolates tend to be the least desirable as they do not contain all the other beneficial cannabinoids, terpenes, or flavonoids.

It is good to note that broad Spectrum and full-spectrum and whole-plant CBD products may actually confer significantly greater benefits than isolates. Research suggests that phytocannabinoids and added terpenes can help increase absorption of CBD resulting in an entourage effect. That means you’ll feel the effects of your product faster and with smaller amounts.

Terpenes and Other Flavors

Terpenes and other flavor compounds are commonly used in ingestible CBD products like CBD tinctures and edible gummies. If you’re sensitive to synthetic flavor compounds, choose a product with 100% natural terpenes for flavor. You may also see terpenes referred to as essential oils in the ingredient list.

Sweeteners, Preservatives, and Other Oils

In addition to phytocannabinoids and terpenes, CBD products are often combined with sweeteners, preservatives, and high-fat oils.

The oils help boost the absorption of the product since CBD is very fat-soluble. Sweeteners help improve the flavor of products like edible gummies and tinctures. And preservatives are found in ingestible CBD products to increase their shelf life so you can enjoy them longer.

Where Should I go to Buy a High-Quality CBD Product?

By now, you should be an expert at reading your favorite product’s CBD label. What comes next? Finding a high-quality CBD product that you don’t have to stress about.

We at Palm Organix™ firmly believe that not all CBD products are created equal. If you’re looking for the highest-quality CBD gummies, topicals, tinctures, and other products on the market, check out our incredible products today.

About the author:


Alex Herrera is a multi-faceted, seasoned financial services professional, entrepreneur, investor, and CEO/Operator with over twenty-five years of corporate leadership and startup experience.
A visionary, creative and results-driven leader, Alex has demonstrated a strong and consistent track record of managing risk while generating high-growth returns on investments under his management. His analytical, communication and interpersonal sales skills, honed over time, have resulted in a unique reputation for identifying integrated financial and business solutions to complex business problems and marketplace opportunities both quickly and effectively.
Alex is a former member of The American Stock Exchange and The New York Stock Exchange and served as Senior Floor Official for the NYSE. As Senior Managing Director for leading Wall Street firms such as Bear Wagner and Labranche & Co., his responsibilities included leading all trading operations, setting strategic direction, ensuring compliance and enhancing overall company profitability. In his last corporate position heading Labranche, Alex was responsible for $800 million of assets under management and led a staff of 300 professionals.
Since leaving Wall Street, Alex has built a successful consulting/Third Party Marketing business that marries early-stage companies seeking funding with raising capital for multiple software startup companies, private equity, and hedge funds. To date, he has raised over $200 million across numerous projects in many tech product and service segments.
Most recently, in the summer of 2018, recognizing the likely passing of the Farm Bill Act of 2018, and the enormous opportunity in the CBD industry, and not being able to find an existing CBD company to invest in that met his high standards, Alex launched Palm Organix and has grown the company to become a leader in the retail, e-commerce and wholesaling of Premium ZERO THC CBD products.
A graduate of Pennsylvania State University, Alex holds FINRA licenses 4, 7, 24, 55 & 63.

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