The Soaring Cost of Raw Materials: How It's Impacting the Bath and Beauty Industry — Especially Small Businesses
The bath and body industry has always had a close relationship with natural ingredients. From coconut oil and shea butter to essential oils and botanical extracts, small businesses have built their brands around the purity and authenticity of these raw materials. But lately, sourcing these ingredients has become a serious challenge.
Prices for key materials like coconut oil have skyrocketed over the past year. Factors like climate change, labor shortages, supply chain disruptions, and rising transportation costs have all pushed prices to historic highs. For example, coconut oil — a staple ingredient in soaps, lotions, and hair care products — has seen price increases of over 30% in some markets.
Why the Price Spike Matters
For small businesses, this isn't just a bump in the road — it's a major hurdle. Unlike large corporations that can hedge their supply costs or place bulk orders at discounted rates, small and indie brands often operate with tight margins and limited buying power. Every increase in material cost eats directly into profitability.
Many small bath and body companies have already had to make tough choices: raise retail prices, reduce product sizes, or absorb costs and sacrifice margins. Each choice carries risks — whether it's losing customers to sticker shock, hurting the brand image, or threatening long-term sustainability.
The Bigger Picture
This raw material crunch isn't just a short-term blip. Industry analysts predict that volatility in key natural ingredients could continue for several years as global demand grows and climate-related disruptions become more frequent.
For small brands committed to natural, ethically sourced ingredients, this could mean finding creative ways to adapt — whether that's diversifying suppliers, reformulating products, or offering "limited harvest" lines that pass the story (and cost) of scarcity on to customers.
A Call for Support
As consumers, we have an opportunity to support the small businesses that have championed quality, sustainability, and handmade craftsmanship for years. That $2 or $5 increase on your favourite soap or body butter isn't just inflation — it's a lifeline for the people and values behind the product.
Next time you're stocking up on bath and beauty essentials, consider where your dollars go. A little extra support now could make all the difference in keeping your favourite small brands alive and thriving.
In a world of uncertainty, small business resilience starts with us.
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