Grow your business

How Much Does it Cost to Start a Soap Business

Written by:
| Updated:
February 5, 2025
How much to start a soap business
SHARE THIS BLOG

Tolu stood in her small kitchen, staring at the neatly arranged oils, fragrances, and moulds on her counter. She had spent weeks researching how to make soap. She even watched countless videos and tested a few batches. The results were promising—creamy bars with a rich lather and a scent that lingered long after use. Her friends loved them, and a few had even offered to buy. But despite watching countless videos, none have explained how much it will cost to start a soap business.

Reality set in. How much would it actually cost? Could she afford to start with the little savings she had? What equipment was necessary, and what could wait? She had no idea.

If you’ve ever thought about making and selling soap, you’ve probably asked similar questions. Many new business owners struggle with costs at the beginning. Some overestimate and give up before they start, while others jump in blindly and run out of money too soon.

This article will break down the actual costs of starting a soap business. You’ll learn what you need, what you can skip, and how to start small without wasting money. By the end, you’ll know exactly how much to start a soap business and what to expect at each stage.

See Also: Soap Making Business in Nigeria – A Guide for Beginners

Factors That Affect How Much to Start a Soap Business

Starting a soap business seems simple at first. You buy ingredients, make soap, and sell. However, the actual cost depends on several factors. Some people start with a few thousand naira, while others invest much more. Therefore, understanding these factors will help you plan wisely and avoid unnecessary expenses.

Advertisement

1. Scale of the Business

Are you making soap for personal sales or full-scale production? A home-based setup costs much less than renting a workspace. On the other hand, if you plan to supply supermarkets or stores, you’ll need larger equipment and bulk ingredients. Naturally, the bigger the operation, the higher the startup cost.

2. Type of Soap You Want to Sell

Soap comes in many varieties. Some are simple, while others require premium ingredients.

  • Basic soaps: Made with oils, lye, and water. These cost the least to produce.
  • Organic or herbal soaps: Require essential oils, plant-based additives, and natural colourants, which cost more.
  • Luxury soaps: Include rare oils, butter, and high-end fragrances. Although these are expensive, they sell at higher prices.
  • Medicated soaps: Contain antibacterial agents or special ingredients for skin conditions. In some cases, certification is required, adding to the cost.

3. Production Method

The method you choose affects both the cost and complexity of production.

  • Melt and Pour: This is the cheapest option. You buy a soap base, melt it, add fragrance, and pour it into moulds. It’s beginner-friendly, but it limits creativity.
  • Cold Process: This requires more equipment and waiting time. Since the soap cures for weeks before use, it takes longer, but you control every ingredient.
  • Hot Process: This method is similar to cold process but faster. However, it needs extra equipment like a slow cooker or double boiler.

4. Legal and Regulatory Requirements

Business registration and approval from regulatory bodies cost money. If you plan to sell at a large scale, you may need certification to meet safety standards. As a result, this ensures your soap is safe for the market and builds trust with customers.

Each of these factors plays a role in how much to start a soap business. A small-scale producer can start with little money, while a larger operation requires a bigger investment. In the next section, we will break down the exact costs for each part of the business.

See Also: Everything You Need to Know before Starting a Soap Business

Essential Startup Costs: A Detailed Breakdown

Now that you understand the factors that affect how much to start a soap business, let’s break down the actual costs. Some expenses are necessary, while others depend on the size of your business. Knowing where your money will go helps you plan wisely and avoid waste.

1. Equipment and Tools

Soap-making requires basic tools, but you don’t need expensive machines to get started. The following items are essential:

  • Soap moulds – Plastic or silicone moulds work well for beginners. Wooden moulds lined with parchment paper are also an option.
  • Mixing bowls and measuring cups – Stainless steel or heat-resistant plastic is best. Glass can break when exposed to extreme heat.
  • Digital scale – Precise measurements prevent mistakes. A good scale is necessary for consistent results.
  • Stick blender – This speeds up the mixing process, reducing the time needed to blend oils and lye.
  • Thermometer – Helps monitor temperatures when mixing oils and lye.
  • Safety gear – Gloves, goggles, and masks protect against burns and irritation.

Estimated Cost: Depending on quality, basic equipment costs between ₦15,000 and ₦50,000. However, you can start with less by using household items.

2. Raw Materials and Ingredients

The ingredients you choose will determine how much to start a soap business. Higher-quality oils and fragrances increase costs, but they also allow you to charge premium prices.

  • Oils and butter – Common choices include coconut oil, palm oil, olive oil, and shea butter. These form the base of most soaps.
  • Lye (Sodium Hydroxide) – This is essential for solid soap. Without it, oils won’t turn into soap.
  • Distilled water – Used to dissolve lye and prevent contamination from tap water minerals.
  • Essential oils and fragrance oils – These add scent to the soap. Essential oils cost more but are natural, while fragrance oils are more affordable.
  • Natural additives – Honey, oatmeal, aloe vera, and herbs provide skin benefits and improve the soap’s appeal.
  • Colourants – Micas, clays, and natural powders like turmeric or charcoal give soap a unique look.

Estimated Cost: A small batch of ingredients costs between ₦20,000 and ₦80,000, depending on quality and quantity. Buying in bulk reduces costs over time.

3. Business Registration and Licensing

If you plan to sell at a large scale, registering your business is important. Customers trust businesses that operate legally. Depending on your location and business model, you may need:

  • Business name registration – This helps you open a bank account and operate formally.
  • Regulatory approval – If you sell in supermarkets or pharmacies, your soap may need certification from health agencies.
  • Trademark registration – If you want to protect your brand name and logo, this adds extra cost.

Estimated Cost: Registration fees range from ₦10,000 to ₦50,000, depending on requirements.

Ready to register your business? Entrepreneurs.ng can help you make the process easy. Click here to start.

4. Branding and Packaging

Good branding makes your soap stand out. Simple packaging works, but a well-designed label adds professionalism.

  • Labels and stickers – These provide product information and branding.
  • Packaging materials – Options include paper wraps, plastic wraps, or eco-friendly boxes.
  • Custom branding – If you hire a designer, this increases costs.

Estimated Cost: Basic packaging starts at ₦5,000, while custom designs can cost over ₦30,000.

5. Marketing and Sales Costs

Even the best soap won’t sell itself. To attract customers, you need a marketing plan.

  • Social media marketing – Posting on platforms like Instagram and Facebook helps reach buyers.
  • Online store setup – Selling on platforms like WhatsApp, Jiji, or personal websites expands your reach.
  • Advertising – Running paid ads increases visibility and brings in more customers.

Estimated Cost: Free marketing methods cost nothing but time. However, paid promotions range from ₦5,000 to ₦50,000 per month.

6. Rent and Utilities (If Not Home-Based)

Running the business from home saves money. However, if you need a separate space, rental costs apply.

  • Workshop or production space – Renting a small space increases expenses but allows higher production.
  • Electricity and water – Soap-making involves heating oils and cleaning equipment, which increases utility costs.

Estimated Cost: Monthly rent ranges from ₦20,000 to ₦150,000, depending on location and size.

7. Miscellaneous Expenses

Running a soap business involves small but important costs. These include:

  • Shipping and delivery fees – If you sell online, you’ll need to factor in logistics.
  • Business insurance – Protects against losses, though not mandatory.
  • Training and workshops – Learning from experienced soap makers improves skills and business knowledge.

How much to start a soap business depends on your budget and goals. A small-scale setup costs as little as ₦50,000, while a mid-sized business may need ₦200,000 or more. Large-scale production requires a bigger investment but also has higher profit potential.

In the next section, we’ll compare startup costs for different business sizes, so you can decide what works best for you.

Estimated Budget for Different Levels of a Soap Business

The amount needed to start a soap business depends on how large you want to begin. Some people start with a few bars at home, while others invest in bulk production. Below is a breakdown of the estimated costs for different levels of soap making.

1. Small-Scale Home-Based Business (₦50,000 – ₦150,000)

This is the best option for beginners with limited capital. It requires minimal equipment and allows you to start from your kitchen.

  • Equipment and tools – ₦15,000 – ₦50,000
  • Raw materials for first batch – ₦20,000 – ₦80,000
  • Packaging and branding – ₦5,000 – ₦15,000
  • Marketing (basic social media ads) – ₦5,000 – ₦20,000
  • Miscellaneous expenses – ₦5,000 – ₦10,000

Since production is small, rent and business registration may not be necessary at this stage. Selling through social media, word-of-mouth, and local markets helps keep costs low.

2. Mid-Sized Local Production (₦200,000 – ₦500,000)

At this level, production increases, requiring better equipment, packaging, and marketing efforts. A rented workspace may also be necessary.

  • Upgraded equipment and tools – ₦50,000 – ₦150,000
  • Raw materials for bulk production – ₦80,000 – ₦200,000
  • Business registration and legal requirements – ₦20,000 – ₦50,000
  • Branding and professional packaging – ₦30,000 – ₦80,000
  • Marketing and promotions – ₦20,000 – ₦50,000
  • Rent and utilities (if needed) – ₦20,000 – ₦100,000

With larger production, soaps can be supplied to supermarkets, beauty stores, and online marketplaces. This requires more investment but also increases profits.

3. Large-Scale Manufacturing (₦1 Million and Above)

For those looking to enter the market as a major supplier, a full manufacturing setup is required.

  • Industrial soap-making equipment – ₦300,000 – ₦1,000,000+
  • Raw materials for large-scale production – ₦500,000 and above
  • Regulatory certifications and compliance – ₦50,000 – ₦200,000
  • Branding and custom packaging – ₦100,000 – ₦500,000
  • Marketing, distribution, and sales network – ₦200,000 and above
  • Warehouse or factory space rental – ₦500,000 and above

This level involves supplying large retailers, exporting, and possibly hiring staff. While the investment is high, profits are also much larger.

How to Start a Soap Business on a Budget

Starting small and spending wisely can help reduce costs without affecting product quality. Many successful soap makers began with limited funds and scaled up gradually.

1. Use Household Items as Equipment

Instead of buying new tools, use what you already have. Plastic containers work as mixing bowls, and wooden spoons can replace expensive stirrers. A kitchen thermometer and an old blender serve just as well as professional equipment.

2. Buy Ingredients in Small Quantities

Purchasing oils, lye, and fragrances in bulk saves money long-term, but it isn’t always possible for beginners. Start with small packs to avoid waste. As sales increase, profits can fund larger purchases.

3. Keep Packaging Simple

Fancy packaging looks great but costs a lot. Instead of custom boxes, use paper wraps or simple plastic bags. Handmade labels printed at home can still look professional with the right design.

4. Sell Through Free Channels

Renting a shop or setting up an expensive website isn’t necessary at first. Sell through WhatsApp, Instagram, Facebook, and local markets. Friends and family can also help spread the word.

5. Reinvent Profits Instead of Borrowing

Taking a loan may seem like a quick way to start big, but it adds financial pressure. Reinvesting profits allows steady growth without debt. Producing a few bars, selling them, and using the earnings to make more is a safer approach.

Tips for a Profitable Soap Business

Making soap is one thing, but turning it into a profitable business requires smart strategies. A great product alone won’t guarantee success. Marketing, branding, and pricing all play a role in attracting customers and increasing sales.

1. Choose a Profitable Niche

Instead of making general soaps, focus on a specific market. Some buyers prefer organic ingredients, while others want soaps for sensitive skin. Popular niches include:

  • Herbal and organic soaps – Made with plant-based oils and essential oils.
  • Luxury soaps – Infused with shea butter, cocoa butter, and high-end fragrances.
  • Medicated soaps – Formulated for acne, eczema, or antibacterial protection.
  • Gift soaps – Beautifully designed soaps for special occasions.

A unique niche makes it easier to stand out and charge higher prices.

2. Price for Profit, Not Just Sales

Selling at low prices may attract customers, but it won’t keep the business running. Consider all costs, including ingredients, packaging, and marketing. Then, add a reasonable profit margin. Customers often associate higher prices with better quality, so pricing too low may hurt sales.

3. Build a Strong Brand

Branding goes beyond a name and logo. It includes packaging, messaging, and how customers perceive the product. A soap with an attractive label and a clear story sells better than a plain, unbranded one.

4. Market Consistently

A great soap that no one knows about won’t sell. Posting regularly on social media, running promotions, and using customer reviews for credibility all help attract buyers. Offering discounts for referrals encourages existing customers to bring in new ones.

5. Expand Sales Channels

Selling in only one place limits growth. Instead of relying only on direct sales, consider:

  • Supermarkets and beauty stores – Approach local retailers to stock your soaps.
  • Online marketplaces – Sell on Jiji, Konga, or other platforms.
  • Corporate and bulk orders – Offer gift soaps for weddings, hotels, and event souvenirs.

The more ways people can buy, the higher the chances of making consistent sales.

Key Takeaways from How Much to Start a Soap Business

Starting a soap business doesn’t have to cost a fortune. With the right approach, anyone can begin small and grow over time.

  • Costs depend on the business size – A home-based setup costs as little as ₦50,000, while large-scale production requires ₦1 million or more.
  • Basic equipment is affordable – Many household items can replace expensive tools.
  • Raw materials vary in price – Higher-quality oils and additives increase costs but allow premium pricing.
  • Branding and packaging affect sales – Simple packaging works, but well-branded products attract more customers.
  • Marketing is essential – Selling through social media and local markets helps build a customer base without large investments.
  • Reinvesting profits ensures growth – Starting small and scaling up reduces financial risk.

Anyone serious about starting can take the first step with minimal capital. The most important thing is to start, sell, and improve along the way.

Conclusion

Starting a soap business is one of the most affordable ways to become an entrepreneur. In fact, with as little as ₦50,000, a home-based setup is possible. On the other hand, those who want to expand into bulk production will need more capital. However, careful planning helps reduce unnecessary expenses and prevents overspending.

More importantly, the key to success is starting with what you have. Instead of waiting for perfect conditions, buying only the essentials, keeping packaging simple, and using free marketing channels all help lower costs. At the same time, as sales grow, reinvesting profits allows steady expansion without financial pressure.

Ultimately, every successful business starts somewhere. No matter how small the first step seems, taking action is what matters most.

Want to partner with us to start or take your business to the next level? See how we can help you:

Key Takeaways on How Much to Start a Soap Business

Many aspiring entrepreneurs want to know how much to start a soap business, but the answer depends on different factors. From equipment to ingredients, every cost adds up. However, starting small and growing steadily makes the process easier. Below are the most important points to remember.

How much does it cost to start a small soap business?

A small-scale soap business can start with as little as ₦50,000. This covers basic equipment, raw materials, packaging, and marketing. However, if you plan to produce in larger quantities, costs may rise to ₦200,000 or more.

What are the most important startup costs?

Several expenses must be considered when setting up a soap business. These include:

  • Soap-making equipment – Moulds, mixing bowls, a stick blender, and a digital scale.
  • Raw materials – Oils, lye, fragrance, colourants, and additives.
  • Branding and packaging – Labels, wraps, and containers.
  • Marketing and advertising – Social media promotions and customer outreach.

How can I reduce costs when starting out?

New entrepreneurs can save money by using household items instead of buying new equipment. Additionally, starting with small ingredient batches and reinvesting profits prevents overspending. Selling through free platforms like social media also reduces expenses.

Is soap making a profitable business?

Yes, soap making is highly profitable, especially for those who target the right customers. Selling niche soaps, such as herbal, luxury, or medicated varieties, allows for higher pricing and better profit margins. Furthermore, good branding and effective marketing increase sales.

What is the best way to grow a soap business?

Scaling up requires strategic planning. First, reinvesting profits helps expand production without debt. Next, improving product quality attracts more customers. Lastly, selling through multiple channels, such as supermarkets and online marketplaces, ensures steady growth.

Understanding these key points makes it easier to plan and succeed in the soap business. Most importantly, taking action and learning from experience will always bring better results.

SHARE THIS BLOG

Ready to launch your dream business? Join the paid Entrepreneur 30/30 – Start Your Business in 30 Days Programme and turn your idea into reality alongside other entrepreneurs with expert mentorship. Click to register now!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

ABOUT THE AUTHOR

Aminat Sanni-Kamal

Aminat Sanni-Kamal is a legal professional and content strategist with over five years of experience in content creation, writing, and editorial management. As the Associate Managing Editor at Entrepreneurs.ng, she works with the editorial team in delivering high-impact content that informs, empowers, and inspires entrepreneurs and business enthusiasts across various industries. With a Bachelor of Laws (LL.B) degree and a Barrister at Law (B.L.) qualification, Aminat Sanni-Kamal combines a strong legal background with a passion for storytelling to produce content that is both insightful and sound. In this role, Aminat Sanni-Kamal ensures content excellence, manages editorial processes, and contributes to the platform’s growth by aligning strategic content with the needs of the entrepreneurial community. Aminat Sanni-Kamal is committed to fostering innovation and promoting entrepreneurial success stories, positioning Entrepreneurs.ng as a leading resource for actionable business knowledge and growth strategies.

Related posts

This is how we can help you

Entrepreneurs work with established businesses, aspiring entrepreneurs, and those looking to scale across various industries—product-based, service-based, and beyond. We serve clients across Africa and globally, wherever you are.

Entrepreneurs Success Blueprint Program

Ask an expert

Shared and virtual offices

Entrepreneur books and courses

Reach our Audience, Accelerate your Business Growth.

Over the past 9 years we’ve reached over a million Entrepreneurs yearly. Let us put your business in front of our audience through a tailored SEO Centric and Newsletter strategy that will get you results.

Get our Best Content in your Inbox

Join 20k+ entrepreneurs for  strategies and resources you could ever need to launch, grow and scale your business — straight to your email!

Entrepreneurs Sign Up

Entrepreneurs.ng only uses this info to send content and updates. You may unsubscribe anytime.