Who would’ve that a product as small and as essential as a soap could have the capability of being organic, profitable and a huge business opportunity for you indeed
The global organic soap market stood at a whooping $222.3 million in the FY 2018 contributing to
It’s benefits to skin,
To building a substantial environment because of its organic production process and
Soap’s ability to give the skin the perks and advantages of natural ingredients, oils and fragrance.
Moreover, the investment involved in producing organic soap making and the profit margins because of the consumer niche it attracts has increased the scope of this business India.
Also, the large availability of natural ingredients required in an organic soap like saffron, green tea, neem etc the major produce by India has also increased the exports of this product globally.
Its time you wash your hands with this organic soap business opportunity
Market potential and uses
An organic soap is a body cleanser which avoids usage of any toxic and artificial dyes, perfumes and additives in its production but rather uses natural ingredients like essential oils, flavoured fruit essence etc
The market potential for this organic soap business is vast contributing to the diversion in demand for naturally produced soap to offset the skin anomalies because of the artificial dyes, colour and fragrance used in the regular soaps
Moreover, the backlashes on few products which offer skin whitening and brightening perks has offended a large niche of consumers and diverted them towards the organically produced beauty products which has practical and long lasting rewards
The market potential for this product can further be elaborated on the following basis
On the basis of types of oils used in soaps
Beeswax
Cocoa butter
Coconut oil
Olive oil
Palm oil
Soya bean oil
Shea butter
Sweet almond oil
On the basis of botanicals
Herbs and flowers
Roots
Exfoliant
Dried fruits and spices
Botanical oils
Process of organic soap making
Melt solid oil
Make lye and water solution
Set temperature
Decide batch size
Add sugars and Colors
Bring soap to trace and add it to it
Super fatting
Add antioxidants
Moulding
Insulating the soap
Cutting
Cold press
Licenses required
The licenses required to set this business up is
MSME registration
Filing the application form 31
Approval under pharmacy act, 1948
Trade license
GST registration
Investment required
The investment required to set this organic soap business is ₹1lakh – ₹ 2.5 lakhs
Profits made
The profits one can earn from this organic soap business are ₹50000-₹1 lakhs
Target consumers
The target consumers for this business are as follows
Retail cosmetic stores: The retail cosmetic stores require the organic soaps to meet the demand of the skin and beauty conscious consumers who have sensitive skin and other skin anomalies or simply prefer organic soaps over artificial ones
Organic retail stores: The organic retail stores which deal in a variety of organic products could be your target customers to attract all the organic demand available while making them aware of the goodness and organic elements in soaps as well
Online beauty and cosmetic stores: The online beauty and cosmetic stores like Nykaa could be a large platform to attract the online cosmetic shoppers who are looking forward to experiment with new products
Fashion bloggers and influencers: The fashion bloggers and influencers make use of organic soaps as a part of their face routine tans also influencers their followers and fans thereby being another huge target consumers
Area required
The area required to start up this organic soap making business is 500-1000 sq ft
Raw materials required
The raw materials required to set this business up are
The machinery required to set this organic soap business is
Soap cutting and slicing machine
Mixer/grinder
Soap moulding machine
Packaging machine
Manpower required
The manpower required for this business is as follows
2 skilled workers
2 unskilled workers
Moreover, ample training in terms of the following must also be provided with
Equipment usage
Safety and precautions
Business model and growth
The business model of this organic soap business can be defined using these four variants
Value proposition: The value which this business is likely to provide to you is
Easily available raw material
Low investment
Larger consumer target
Target consumers: The target consumers which this business is likely to bring to you is
Social media and fashion bloggers
Online beauty stores
Organic stores
Cosmetic retail and wholesale
Competitor review: The competition to your organic business would be
Unorganised organic soap makers
The body shop
Forest essentials etc
Marketing strategy: The marketing strategy that can be implemented by your business is
Advertising: through tv commercials and brand ambassadors
Tie ups : tie ups with fashions bloggers and social media influencers
Sales promotion: through sample promotion for beauty and make up, face tutorial workshops
Growth
The organic soap making business has the potential and has witnessed the following growth prospects
The organic soap making business has accounted for more than 70.0 of the global revenue in 2018
Moreover, the suppression of artificial dyes and chemicals in soaps have made consumers shift from regular to organic soaps
Profit margin
The profit margin which this business is likely to yield to you is 20%
Suggestions
It’s time to get some organic income coming in through this business and here’s why
Firstly, the organic soap business comes with low investment, easily available raw materials and higher profit margin
Secondly, because of the increased availability of natural ingredients of India the global demand for organic soaps from this country has been increasing as well
Lastly, it comes with low manpower and operational requirements