How To Start A Lip Balm Business, An Ultimate Guide For 2022

Apr 25, 2022


Chapped lips are a common problem. We all use balms or sticks daily to maintain our lips smooth and soft. Although lip balms may appear to be not something you’d think about when you’re looking for an opportunity to start a business, the increasing demand for natural cosmetics for your lips makes this an attractive product concept.

How To Start A Lip Balm Business

Believe you heard it right, knowing the art of making lip balm can be a lucrative ability. DIY lip balms are an ideal product for budding entrepreneurs seeking a new idea to create an enterprise around. The avid DIYers who can concoct various creative ideas can harness their passion for making it into a side business.

It’s simple to follow the recipe below and modify it to make your lip balm for sale. Because the ingredients are cheap and straightforward to prepare in the kitchen, making your lip balm is an excellent way to convert your passion for creativity into a finished product.

Why should you market homemade lips balm?

Lip balms made from scratch have become an essential lip product for the general public. Grand View Research forecasts the global market for lip care to grow to $1.17 billion in 2025, with an average 7.2 percent compounded growth rate.


The market research firm notes a rise in awareness of cosmetic products for personal use. Lip care concerns rising like chapping, wrinkles, and splitting are predicted to increase the lip balms’ market. The study also projects online sales as the primary distribution channel for newcomers to the market.

Lip balm is suitable for all. If you apply it regularly and carry it around whenever your lips get dry, It’s an excellent product for those who use it. One study reported that 65.9 percent of people daily apply the balm on their lips.

Google Trends has shown consistent interest in lip balms over the last five years. People look for lip balms most during the winter and fall months. The increase in demand for lip balms begins around mid-October and ends around March. The lip care industry has an opportunity to increase sales before the summer season arrives.


Because lip balm serves a universal use, it can be sold everywhere, making it among the most effective crafts to make and sell. Lip balm searches are abound worldwide and span from Singapore to the United Kingdom, India, the United States, and Australia.

If you’re an entrepreneur seeking an innovative product to sell, the lip balm is an ideal choice. The business of selling lip balms has many advantages, including:

  • Making lip balm doesn’t require expensive materials. It’s low-cost to make. Some sources say DIY lip balms cost about $0.12 each tube.
  • The world is abuzz with interest. Balm and other products for the lips are not restricted by geography. There’s an apparent interest throughout the globe. It’s also a product that is easy to deliver.
  • An easy DIY craft that you can learn. The recipe for making the lip balm at home is straightforward to master, as you’ll find in the recipe below.
  • It’s easy to modify. With so many bases and fragrances available, it’s simple to personalize products for your lips and distinguish yourself from your competitors.

Making lip balm is a skill you could make into a lucrative income stream. It may not be profitable to begin an enterprise for lip balm by itself, as the margins for profit aren’t high. However, you can expand quickly to include other skin and body care products.

As with Meow Meow Tweet, Many companies follow this approach to help create a more eco-friendly lifestyle. It has lip balm similar to that Coconut Cacao vegan balm below and a variety of products that compliment your skincare.

Lip balms can be profitable if executed correctly. It’s a fantastic outlet for creativity because you can create any lip balm. You can also quickly expand into other categories of products when you’re looking to expand beyond the lip balm category.


Different types of homemade lip balm

After discovering that natural lip balms provide adequate demand to create a brand new lip balm, We’ll look at the different kinds of lip balms you could try to recreate.

While many kinds of lip balms are made from natural ingredients, These are the most well-known and popular kinds available today on the shelves.


Source: The Beeswax Co


When selecting the most natural ingredients for your lip balm base, beeswax is one of the most popular ingredients. It is one of the adored names of natural lip balms. Burt’s Bees is made from beeswax.

Beeswax pellets are simple to purchase and blend easily with various other components, and are not expensive (you can buy just one pound of beeswax pearls/pastilles at around nine dollars ).


Source: Evolution of Smooth

While the natural balm for your lips is typically used to prevent or treat chapped lips, many of us also want to add a splash of color to our lips while we’re doing it.

Many tinted lip balms come in a myriad of shades. From oranges to pinks to reds, purples, and all between, you can make your custom shades with just a tiny amount of lipstick with your recipe or mica powder of your choice color.


Source: Burt’s Bees

To treat dry or chapped lips, various natural lip balms have ingredients to ease the pain of cracked skin. The most commonly used ingredients are camphor and menthol, which alleviate the dryness of the lips.

Homemade lip balm makers can also incorporate a range of essential oils into their recipes to enhance their healing properties, like lavender to help ease stress.

If you’re selling medicated cosmetic lip balms, it is important to know the Food and Drug Administration’s (FDA) guidelines for cosmetics packaging and labeling. The FDA regulates cosmetics. They are extremely strict in how you label and package lip balms. It is not a good idea to risk being penalized for not observing the law when you start your own lip balm business.


Source: Lord Jones

Cannabidiol (CBD) is one cannabinoid present inside cannabis. Contrary to THC, also known as tetrahydrocannabinol (THC), CBD doesn’t provide you with a “high.” But it does provide some benefits for your skin, such as the ability to moisturize dry and chapped lips.

CBD isn’t the sole ingredient in your lip balm. The final product is usually made up of other elements such as kokum butter, beeswax coconut oil, hemp seed oil. If you decide to make CBD-infused lip balms, look for these indicators of quality and safety:

  • Made from US-grown hemp
  • Free of heavy metals, pesticides, and molds
  • Does not contain more than 0.3 percent THC
  • Created by a company that provides evidence of testing conducted by an ISO17025-compliant laboratory


Vegan lip balms are free of animal byproducts or ingredients in their formulations. They are aimed at those who don’t eat or use other products made from animals, either because of preferences or medical reasons.

The lip balms contain coconut oil and sunflower oils, cocoa butter vitamin E and jojoba oils, and calendula flower extracts to moisturize and protect lips. They may even be drugged with SPF to protect the lips from wind and sun damage.

Hurraw! Balm, for instance. The company makes organic, raw, vegan balms that are fair trade and organic. It offers all kinds of tinted balms, from ayurvedic and medicated balms and traditional styles made with natural ingredients.

How do you make lip balm?

Although there are numerous varieties of lip balms that you can make yourself that you can make, we’ve put together a DIY lip balm recipe below to make your own. Switch out the base beeswax base, add your favorite oil of choice, then add tints of color to customize the recipe to suit your needs.

Gather your ingredients

Before starting, you’ll need to put together the necessary ingredients, which include:

  • Beeswax. You can buy beeswax as pearl or pastille from vendors such as Bulk Apothecary.
  • Shea butter. Get some creamy raw shea butter to make your balm base. You can get it from Bulk Apothecary as well as Amazon.
  • Coconut oil. Purchase this ingredient at your local supermarket retailer or a bulk buying retailer like Costco and Amazon.
  • Essential oils. What scent do you like to make your lip balm? The most popular essential oils for lip balms include peppermint vanilla, lemon, lavender, and grapefruit. It is possible to discover a wide selection of essential oils in most discount shops (think Walmart or Target) and health and wellness shops or on Amazon.
  • Mica powder. To make your lip balm a beautiful rosy hue buy mica powder on Amazon and Bulk Apothecary.
  • Containers for lip balm. Find containers to store your homemade lip balm, whether you prefer lip balm tubes or Tins.

Combine ingredients

Take the beeswax(beeswax), shea butter, and coconut oil, and place them into the top pot of the double boiler. Pour tap water into the lower of the pot. Set this dual cooker on the stove and switch the temperature to medium-high.

After all, the ingredients begin to get a little hot, using a spatula or wooden spoon, stir and mix.

Add your scent

Take the double boiler off the direct heat when all base ingredients have been melted and well incorporated. Place the top pot over the bottom one that contains the water to keep the temperature of the components (and keep the balm base from solidifying). ).

Once the double boiler has been removed from direct heat, you can add some drops of your preferred essential oil. Mix in 5-10 drops at first, then check the fragrance. You can add more essential oils according to your personal preference.

Add your lip balm color.

After you’ve put on your fragrance of choice, It’s an ideal time to include a dash of color to the balm’s lip. Add the mica powder or a small amount of liquid lipstick to the base of the balm. Stir to mix the color in the mixture. Add additional lipstick or powder to increase the darkness of the mixture according to your preferences.

Once the mixture has been mixed, pour it into a pipette or dropper.

Finish off your homemade lip balm

After the balm has been mixed in your dropper or pipette, put the balm in your chapstick tubes or tins. Let them cool to room temperatures for a few hours.

Once the balm has cool to an ambient temperature, you’re ready to market the newly-created lipstick tinted!

Strategies for starting the business of lip balm

Once you’ve figured out what you can do to create lip balm, it’s time to look at ways to begin starting your own business to sell it.

Study the market

A profitable business in lip balm will not result from hard work. Consider a niche in the market that’s not getting fulfilled or a market you’d like to capture through your products. This will allow you to attract buyers interested in purchasing your product.

Some ideas:

  • Traditional lip balms can be carried around and applied during your day. It’s Burt’s Bees, or ChapStick is your rival.
  • Sustainable and organic. They are for eco-conscious customers. They’re often vegan and free of animal cruelty, expected to make up an estimated $20.8 billion business in 2025.
  • The most luxurious. These balms are targeted at high-end clients and are often posted via social media. They use top-quality, natural ingredients and are priced higher. Competitors include Dior, YSL, La Mer, etc.

While conducting market research, consider other products you can offer in addition to lip balm. It’s challenging for businesses to profit by selling lip balms alone. Many brands also provide other skincare or body products, such as lotions, scrubs, soaps, etc.

SUGAR Cosmetics, as an example, offers lip balm as well as lipstick scrubs, makeup including lip gloss, and many more items that could be created and sold online.

You can offer up-sells to customers based upon previous purchases of lip balms, make scent-specific bundles and expand your reach by expanding your line of products.

Select a memorable lip balm company name

If it appears that you have found a market that is niche and the right products to market, You’re now ready to begin designing your branding. This is when you need to choose a business identity and name. Customers prefer brands that have an engaging story, and therefore incorporating it with your logo and name will draw interest.

An easy method of finding the name of a lip balm company is to use Shopify’s cosmetic company name generator. Enter keywords for your company, such as “sky,” and the generator will come up with names for your business and immediately verify your store’s availability of domain names online.

Write a business strategy.

A business plan is a foundation for your entire path as an entrepreneur and lip balm business owner. Consider: What is the ultimate goal of my products? Am I looking to become an established brand sold in stores such as Anthropologie? Do I want to establish an independent brand sold in large stores like Target and Walmart? Would I like to become an exclusive brand sold at my store’s retail and online store?

Find your purpose and be aware of it as you build the brand.

Free: Business Plan Template

Business planning is typically employed to obtain financing. However, many entrepreneurs appreciate writing their plans even if they don’t collaborate with investors. We’ve created an unpaid business plan template to help you start your journey.

Download the template today

Be aware of manufacturing and packaging methods. In the region you’re operating your business, you’ll have to adhere to local safety and health standards before selling your lip balms to the general public. It’s a good idea to investigate any business licenses that you’ll need to market your products in your local area.

If you’re selling your products in the United States, an excellent place to start is FDA’s Small Business & Homemade Cosmetics Fact Sheet. Read the European Commission’s guide to cosmetics regulations if you’re selling products in Europe and within the United Kingdom.

How do you market your lip balm-based business made from your own

Once you’ve got the guidelines for your lipstick recipe, you can begin turning your product into a commercial. One of the main avenues to reach potential buyers for your homemade lip balm is the internet.


There are many channels that you can browse for your handmade lip balm. The initial step in establishing your online brand is setting up your store online. Then you have a digital space to showcase your hand-crafted products and a central point to direct any traffic you get from other channels.

While an online store can be the ideal starting point for selling your lip balm, There are many other avenues to consider, such as:

  • Instagram. This is definitely among the platforms on social media that make the best sense for handmade items such as DIY lip balm. Create stunning images of your product to share with your followers, Connect with brand ambassadors to develop an influencer marketing plan, and provide behind-the-scenes glimpses of the process of making and using your lip balm.
  • Pinterest. There are plenty of cosmetics and beauty products on Pinterest. Aside from being a visual social media website, Pinterest is a fantastic way to increase your visibility. The creation of beautiful images on Pinterest will help you attract new customers.
  • Snapchat. with active users of more than around 200 million users, Snapchat can be another great social network to boost your visibility. You can display your company’s persona and share suggestions, tricks, and tips relevant to your clients.
  • Contests and giveaways. Although it might seem strange to offer items for free to attract more customers, Many retailers have developed efficient strategies around prizes and competitions. They can help you expand the number of customers, introduce the products you sell to potential customers and expand your business by gaining new customers.
  • Marketing via email. Provide news, special offers, and details about product launches directly to your customers’ inboxes. Create email marketing campaigns that boost return customers, provide specific product recommendations and build customer loyalty.


Although many businesses may begin in the online space but don’t forget about the value of in-person sales. To attract new customers and try out new ways to earn income, you can consider establishing face-to-face sales opportunities with your customers.

DIY lip balms, whether as an individual product or part of a collection of products, can be packaged beautifully and displayed to make sales in person. It doesn’t matter if you want to create an exhibit at craft fairs in your area or go to flea and farmer’s markets. Homemade lip balm makers have abundant opportunities to make the most of selling in person.

Or, if you’re more inclined to try temporary retail, you could start the business yourself. Pop-up store or even a “pop-in” shop at a cosmetics or beauty retailer.

On these occasions, you can connect face-to-face with customers from retail, but you will also be able to talk with wholesale buyers you might be interested in.

If that’s not enough, there are numerous other reasons why homemade lip balm producers should think about selling their products in person:

  • Being a part of a community of crafters and entrepreneurs. Engaging your clients might be your top priority, no. 1, but getting to know other entrepreneurs is a significant advantage. You will gain inspiration or develop new ideas for products and marketing strategies.
  • Find wholesale buyers. In-person sales allow retailers to identify potential wholesalers for their products made by hand. This will enable you to introduce your unique lip balm in already-established stores and be in front of their already established customers.
  • Experimentation. Are you thinking of an innovative product or a different way to set up your booth? One advantage of selling in person over online is experimenting and getting instant feedback. When you have customer interactions on the spot during a festival or pop-up shop, you can offer demonstrations, respond to customer inquiries immediately and assess whether a brand new product or marketing strategy is effective.
  • Make sure you have an email list and social channels with your brand. In-person sales enable you to remain in contact with your clients long after the sale. In-person interactions allow you to convince prospective and current customers to sign up for your email newsletter and follow your social media channels to receive regular updates and news from your business.

Beginning your journey into sales in person isn’t necessarily a daunting task. Conducting some due diligence will help you prepare yourself (and your business’s bottom line) to be successful. Read our guide on how to master the selling experience in person and do some research about how mobile point-of-sale solutions such as Shopify POS can help you sell wherever you want.

Building a successful lip balm business

If you’re confident in the making of lip balm, it’s time to create your own business. You can scratch your creativity by making your recipe and then employ the strategies above to get your homemade products before potential buyers.

Shortly, you’ll begin to appreciate the advantages of running your own lip balm business and reap the benefits of a profitable company and more revenue.

Are you able to earn profit selling lip balms?

Many brands earn money by selling lip balms online and in person. Brands may also extend their product range to include cosmetic and body products to draw new customers and boost sales. It is essential to conduct market research to discover what kinds of balms are available and who’s buying these. Make sure you create a unique product to appeal to that particular audience.

How much does homemade lip balm sell for?

Lip balm can be sold for as little as $1.50 per tube and up to $10 for unique variants. Keep the price of your lip balm between $3 and $4 per tube to stay in the market. Give bundle backs to boost your order’s value and make more money selling lip balm online.

Does lip balm need FDA approval?

Cosmetics and their ingredients don’t require FDA approval before the market. Therefore, you can make lip balms and sell them without obtaining authorization from the federal government. But the FDA may take action against products available on the market that don’t meet the requirements outlined in their guidelines.