How Much Does It Cost To Start A Natural Beauty Product Business? (In 2024)
Looking to start a natural beauty product business?
But curious about:
- how much it costs to start a natural beauty product business?
- what are the typical natural beauty product business startup costs?
- or the actual cost of starting natural beauty product businesses?
Well, we have the data to prove it, supported by real natural beauty product businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a natural beauty product business?
Based on our data reported by actual natural beauty product business founders, the average cost of starting a natural beauty product business is between $200 and $300,000.
Additionally, our data shows that the the median startup costs for a natural beauty product business are around $20K.
Remember, though, not all natural beauty product businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of natural beauty product businesses
Real World Examples: How much does it cost to start a natural beauty product business?
We asked real natural beauty product business founders and business owners how much it actually cost to get started?
Here is what they said:
Tony & Faye Ouyang
Founder of Doppeltree ($70K/month)
"The initial cost to launch our coffee filter bag was around $800; $640 for product + product inserts/packaging, $53.25 to design our first logo, $12.95 for a month of Canva to do our own design, and the remainder miscellaneous. For our eye mask launch 5 months later we invested about $2,000, primary because the MOQ (minimum order quantity) was higher."
Tony and Faye are the founders of Doppeltree, an all-natural self-care product company that helps people take a moment out of their day to look and feel better.
Mel young
Founder of Flowerdale Valley ($5K/month)
"My business didn’t make any profit for almost 3 years, so I still had 2 part-time jobs at this time as well. Most Businesses take quite some time to become profitable and quite a lot of mistakes are made when setting up a business."
Mel is the founder of Flowerdale Valley, a skincare business that she started in Flowerdale, Victoria, Australia, using ingredients from her own farm.
Dr. Garima Jain
Founder of Raganaturals LLC ($10K/month)
"Initial financing all came from our savings. Thankfully my husband had a stable income and later on, we made sure our business is financing itself."
Dr. Garima Jain is the founder of RaGaNaturals, a skincare business that produces natural, chemical-free personal care products.
Kristie Chee
Founder of Olakino Skincare ($4K/month)
"Approximately $18,000 was used to purchase ingredients needed for formulations, $5,000 for office supplies and equipment, $7,000 for packaging and shipping materials, and approximately $5,000 for lab equipment."
Kristie Chee is the founder of Olakino skincare products, a 100% non-toxic skincare and makeup brand based in Hawaii.
Dr. KeShawn L. Haynes
Founder of ELLIE Cosmetics ($750/month)
"I purchased about $150 of packaging and hoped for the best."
Dr. KeShawn Haynes is the founder of KLH Industries, LLC, a small manufacturing company that produces the cosmetics brand ELLIE Cosmetics.
Danna Norek
Founder of Aura Sensory ($2K/month)
"The costs of designing my first core set of products were minimal, but not insignificant. Costs on equipment, ingredients, wasted batches through experimentation, the energy costs expended to make the product, and the initial packaging and labeling were in the arena of $800. Factoring in the decisions that didn’t go so well, such as labels, bottles, and packaging that just didn’t fit the look and functionality I was going for, the total cost for initial product design and manufacturing may have just tipped $1,500."
Danna Norek is the founder of Aura Sensory, a skincare and haircare business offering high-quality, affordable products.
Kyle LaFond
Founder of American Provenance ($80K/month)
"Our launch was entirely self-funded. $20,000 came from my personal savings, and I borrowed $10,000 from friends and family to get started."
Kyle LaFond is the founder of American Provenance, a natural products manufacturing company started in 2015 that has now eclipsed $3M in lifetime revenue.
Nick Bey
Founder of Bey Moss ($100K/month)
"Our start-up costs were $200 for the wholesale sea moss we purchased which we sold all together for $2,000. We scaled the company for the first 6 months from just sales alone. Our costs for legalities came later down the road and have been under $10,000."
Nick Bey is the founder of Bey Moss, an e-commerce platform started in January 2020 that sells sea moss-infused health and beauty products.
Diane German
Founder of Hair Fetish ($7K/month)
"This launch was about 6 grand in total."
Diane German is the founder of Hair Fetish LLC, a salon and hair products business that made over $90k as of 2020.
Nabiulla Ahmed
Founder of Real Drop Enterprises ($2K/month)
"We have financed the whole business from our pockets. No loans, no fundraising, and no capitalist funding. The licensing and paperwork were a bit expensive but once we got started it was all good."
Nabiulla is the founder of RealDrop Natural Oil, a natural oil business that focuses on healthier alternatives for hair, skin, and health care products.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful natural beauty product businesses that you can learn from.
Starting a natural beauty product business - what you should know:
Starting a natural beauty product business can offer potential profitability, but it's essential to understand the factors that influence costs.
Ingredient Costs
The cost of natural ingredients can greatly vary. Basic oils like coconut or olive oil may cost about $10 to $15 per gallon. However, exotic essential oils such as rose or sandalwood can range from $100 to $300 per ounce. Sourcing bulk quantities can reduce costs, but the quality and origin of the ingredients also play a significant role in pricing.
Packaging and Labeling
Packaging can be a substantial expense. Eco-friendly packaging options like glass bottles or biodegradable materials are pricier than plastic equivalents. Glass jars range from $1 to $2 per unit, while high-quality, sustainable packaging can be $2 to $5 per unit. Custom labels can add another $0.50 to $1 per unit, depending on the design and quantity.
Production Equipment
Investing in production equipment will also impact your budget. Basic hand mixers and small batch units might cost around $100 to $500. For larger scale production, industrial mixers and filling machines can range from $2,000 to $10,000. Leasing equipment is an option to consider if initial costs are a concern.
Regulatory Compliance
Natural beauty products must adhere to stringent regulatory guidelines. Securing necessary certifications, such as USDA Organic or Leaping Bunny Certified, can cost anywhere from $250 to $500 initially, with annual renewal fees ranging from $100 to $200. Budgeting for lab testing to ensure product safety and efficacy is also important and can cost approximately $500 to $1,000 per batch.
Understanding these cost elements will help you create a comprehensive budget and navigate the complexities of starting your natural beauty product business.
Potential Costs of Starting a Natural Beauty Product Business
Starting a natural beauty product business involves various costs, ranging from initial setup fees to ongoing operational expenses. Below is a detailed breakdown of the potential costs you may incur:
| Expense Category | Item Description | Estimated Cost ($) |
|---|---|---|
| Business Formation | Legal Fees for Business Registration | $200 - $2,000 |
| Business License and Permits | $100 - $500 | |
| Trademark Registration | $225 - $600 | |
| Product Development | Ingredient Sourcing (organic essential oils, etc.) | $500 - $5,000 per batch |
| Packaging and Label Design | $1,000 - $5,000 | |
| Product Testing and Certification | $300 - $2,000 per product | |
| Formulation Consultant | $100 - $250 per hour | |
| Manufacturing | Small Batch Production Equipment (mixers, bottles, etc.) | $2,000 - $10,000 |
| Outsourced Manufacturing | $2,500 - $10,000 per batch | |
| Branding & Marketing | Logo and Branding Design | $500 - $2,000 |
| Website Development and Hosting | $200 - $5,000 (setup) | |
| SEO and Digital Marketing | $300 - $1,500 per month | |
| Social Media Advertising | $100 - $1,000 per campaign | |
| Retail & Distribution | E-commerce Platform Fees (Shopify, WooCommerce, etc.) | $29 - $299 per month |
| Wholesale Distribution Costs (if applicable) | $1,000 - $5,000 | |
| Shipping and Fulfillment | $2 - $10 per order | |
| Office & Admin | Office Space/ Rent | $500 - $2,500 per month |
| Office Supplies | $50 - $300 | |
| Employee Wages (if any) | $25,000 - $50,000 per year | |
| Accounting and Bookkeeping Services | $100 - $500 per month | |
| Insurance | General Liability Insurance | $500 - $2,000 per year |
| Product Liability Insurance | $1,000 - $5,000 per year | |
| Miscellaneous | Legal Advice/ Lawyer Fees | $100 - $500 per hour |
| Contingency Fund | 10% of total initial costs |
These figures provide a comprehensive overview of the costs you can expect when starting a natural beauty product business. It's essential to budget accordingly and plan for these expenses to ensure a successful launch and sustainable growth.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
