How Much Does It Cost To Start A Soap Business? (In 2024)
Looking to start a soap business?
But curious about:
- how much it costs to start a soap business?
- what are the typical soap business startup costs?
- or the actual cost of starting soap businesses?
Well, we have the data to prove it, supported by real soap businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a soap business?
Based on our data reported by actual soap business founders, the average cost of starting a soap business is between $200 and $2,500,000.
Additionally, our data shows that the the median startup costs for a soap business are around $1.75K.
Remember, though, not all soap businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of soap businesses
Real World Examples: How much does it cost to start a soap business?
We asked real soap business founders and business owners how much it actually cost to get started?
Here is what they said:
Danielle Vincent
Founder of Outlaw ($380K/month)
"We started making the soap in January of 2013 and launched our business in March of the same year, with a meager $13.72 of supplies from the grocery store (I think our total start-up costs were a couple hundred dollars)."
Danielle Vincent is the founder of Outlaw Soaps, a unique soap business that started in 2013 and generates an average of $23,000 per month.
Angela Carillo
Founder of Alegna Soap ($5K/month)
"I’m proud of the fact that I never took out a loan for Alegna Soap®. I self-financed and kept my day job."
Angela Carillo is the founder of Alegna Soap, a soap-making business that produces custom private label soaps, sells online, and teaches soap-making classes.
Sandy Engels
Founder of The Purple Sage ($4K/month)
"My first website design was roughly $1500, which spread over a few months was affordable."
Sandy Engels is the founder of The Purple Sage, a soap, lotion, and bubble bath business that averages $2,800 per month.
Kelly Perkins
Founder of Spinster Sisters Co. ($125K/month)
"I bootstrapped the company for the first 9 years, to land at $1.3M in sales."
Kelly Perkins is the founder of Spinster Sisters Co, a natural skin and personal care business that started in 2012, known for its commitment to sustainability and health-conscious products.
David Watkins
Founder of Dirty Labs ($20K/month)
"The final product is 97%+ biobased, completely free of all California Prop. 65 chemicals of concern, EU listed fragrance allergens and is readily biodegradable. ... In addition to that, having our own labs and R&D in-house really helped us keep our initial costs down for an undertaking of this size."
David Watkins is the founder of Dirty Labs, an innovative cleaning products company that started in 2020 and focuses on creating safe, sustainable, and effective cleaning solutions.
Koko Hayashi
Founder of Mirai Clinical ($100K/month)
"It can also cost anywhere from $10,000 to $30,000 or more depending on the products."
Koko is the founder of Mirai Clinical, an eCommerce business focusing on deodorizing body, hair, and home care products, including their star product, Persimmon soap.
Warnisha Foster
Founder of Kiss My Crown Essentials ($1.2K/month)
"Although, I had saved up money to make this move it was a leap of faith for me."
Warnisha Foster is the founder of Kiss My Crown Essentials, a homemade organic soap brand started in 2020 that quickly gained popularity.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful soap businesses that you can learn from.
Starting a soap business - what you should know:
Beginning a soap business involves understanding various costs and making strategic decisions to optimize your budget.
Initial Equipment and Supplies
Purchasing the necessary equipment and supplies can range from $500 to $2,000, depending on the type and quality of materials you choose. For example, a basic soap-making kit with molds, essential oils, and a few other ingredients might cost around $500, while investing in higher-quality oils, botanicals, and custom molds could push your initial investment closer to $2,000.
Production Volume and Batch Sizes
Larger production volumes can reduce the per-unit cost of your soap due to economies of scale. Home-based soap makers producing small batches may see costs of $2 to $5 per bar, primarily driven by the small quantity of supplies purchased at retail prices. However, scaling up operations and buying in bulk can lower the cost to $0.50 to $1.50 per bar.
Branding and Packaging
Branding and packaging play a significant role in attracting customers but can also impact your budget significantly. Basic packaging solutions may cost between $0.25 and $0.50 per unit, while custom labels, sustainable packaging, and more sophisticated designs can range from $1 to $3 per unit. High-end, eco-friendly packaging can elevate your brand but be prepared for the potential added expense.
Licenses and Insurance
Operating legally requires appropriate licenses and insurance, which can vary widely based on location. Business licenses might cost between $50 and $400 annually, while liability insurance can range from $300 to $1,500 per year. These costs are essential but often overlooked by new entrepreneurs, so factor them into your budget.
Marketing Expenses
Effective marketing is crucial for success. Initial marketing efforts such as social media advertising, website creation, and promotional materials might cost anywhere from $500 to $5,000, depending on the scope and scale of your campaigns. Digital marketing, SEO optimization, and influencer partnerships can further drive costs but also enhance your reach and sales potential.
Potential Costs of Starting a Soap Business
Starting a soap business involves several upfront and ongoing costs, ranging from materials and equipment to marketing and operational expenses. Below is a detailed breakdown of the potential costs you may encounter.
| Category | Item | Estimated Cost |
|---|---|---|
| Materials | Oils (e.g., olive, coconut) | $3 - $7 per pound |
| Lye | $2 - $3 per pound | |
| Essential oils & fragrances | $10 - $50 per ounce | |
| Natural colorants | $5 - $15 per ounce | |
| Packaging materials (boxes, bags, labels) | $0.50 - $2 per unit | |
| Equipment | Soap molds | $10 - $100 each |
| Mixing bowls & containers | $20 - $50 | |
| Stick blender | $20 - $40 | |
| Thermometer | $10 - $20 | |
| Scales | $15 - $30 | |
| Safety gear (gloves, goggles) | $20 - $50 | |
| Labor Costs | Wages for hired help | $10 - $25 per hour |
| Licenses and Permits | Business license | $50 - $500 annually |
| Manufacturing permits | $100 - $1,000 annually | |
| Facilities | Rent for production space | $500 - $2,500 per month |
| Utilities (electricity, water) | $50 - $200 per month | |
| Marketing & Sales | Website creation & hosting | $100 - $500 initial, $10 - $50 monthly |
| Social media advertising | $50 - $500 per month | |
| Business cards, brochures | $50 - $200 | |
| Trade show fees | $200 - $1,000 per event | |
| Insurance | Liability insurance | $300 - $1,500 annually |
| Contingency | Miscellaneous & unexpected expenses | $200 - $1,000 |
This table outlines both one-time and recurring costs involved in starting and maintaining a soap business, offering a comprehensive guide for budgeting and financial planning.
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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.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
