How to start a lip balm business: Examples and a guide from top Lip Care brands

Lip chapping is a common problem. Many people use a balm to keep their lips soft and smooth. Lip balm might not be something that you would immediately consider when searching for a business opportunity. However, natural lip care is becoming a more popular product.

It is possible to market your skill of making lip balm. Hobbyists who are skilled at making creative projects can turn their passion into a side-business. For entrepreneurs just starting out, DIY lip balm can be a great idea.

You can easily adapt the recipe below to make your own natural lip balm. Homemade lip balm can be a great way to turn your creative passion into a product.

Why would you sell your own lip balms?

Consumers have become accustomed to using homemade lip balm. Grand View Research projects that the global lip-care market will reach $1.17 Billion by 2025. This is averaging 7.2% compounded annual growth.


According to market research, there has been an increase in awareness about personal care products. Lip balm demand will rise due to rising lip care issues like chapping, splitting and wrinkles. The market is expected to grow primarily through online sales.

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Lip balm can be used by everyone. It’s useful for everyone, whether you use it every day or keep it on hand for those times when your lips are dry. In fact, one study reported that crafts to create and sell. Lip balm searches are expanding all over the world, including in Australia, Singapore, India, USA, and the United Kingdom.


Lip balm is an excellent product for entrepreneurs looking to expand their business. There are many benefits to starting a lip balm business, such as:

    • It is easy to make. Making lip balm doesn’t require pricey materials. Some sources claim DIY lip balm costs around $0.12 per tube.
  • International interest. There are no borders for balms and other lip products. The world is showing clear interest in balm. It is also easy to ship.
  • It’s easy to make DIY crafts. It’s easy to make homemade lip balm. It’s easy to make homemade lip balm, as you can see from the below formula.
  • It’s easy to personalize. It’s easy to customize lip care products and distinguish yourself from your competitors by using a variety of bases and scents.

You can make lip balm as a side hustle. Because of the low profit margins, it may not be financially feasible to start your own lip balm business. You can expand your business to other skin and body care products.

This route is taken by many brands like Meow Myow Tweet to promote a more sustainable lifestyle. You can find lip balms such as the Coconut Cacao vegan butter balm below and a variety of other products for your face.


Lip balm can be a lucrative venture if done correctly. You can make any kind of lip balm you want. It’s also a great creative outlet. You can expand your product line if you wish to go beyond lip balm.

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Different types of homemade lip balm

We’ve seen that natural lip balm is in sufficient demand to support a new line of homemade lip balms. Let’s now look at the different types you can make.

There are many types of natural lip balms, but these are the most well-known and widely available.


Source: The Beeswax Co

Beeswax is a popular choice when it comes to natural ingredients to make your lip balm. Beeswax is the base of Burt’s Bees natural lip balm, which is a popular brand.

You can also order beeswax pellets easily, they mix well with other ingredients and are fairly inexpensive (you can get one-pound of beeswax pearls/pastilles starting at $9).


Source: Evolution of Smooth

Natural lip balms are generally used to prevent chapped lips. However, many people also love to add color to their mouths.

Tinted lip balms come in a wide range of colors. You can make a variety of shades with a little bit of lipstick or mica powder.


Source: Burt’s Bees

Many natural lip balms can be used to soothe chapped lips or dry skin. Camphor and menthol are two of the most popular ingredients, which help relieve dry lips.

You can make your own homemade lip balm by adding essential oils to the recipe. This will allow you to include other healing properties, like lavender for stress relief.

You should read the regulations of the Food and Drug Administration (FDA) for cosmetic packaging and labeling if you sell medicated lip balm. The FDA regulates cosmetics. They have strict rules about how to package and market lip balm products. When you start a lip balm business, it is important to comply with all laws.


Source: Lord Jones

Cannabidiol, or CBD (cannabinoids) is found in cannabis plants. CBD is not a “high” like tetrahydrocannabinol, but it can provide skin benefits such as moisturizing chapped lips and repairing dry skin.

CBD is not the main ingredient in the lip balm. CBD is often added to other ingredients such as beeswax and coconut oil to make the final product. These are the indicators of safety and quality when you make CBD-infused lipbalm.

  • Made from US-grown hemp
  • No pesticides, heavy metallics or molds
  • It contains no more than 0.3% THC
  • A company that can provide proof of third-party testing done by an ISO17025-compliant laboratory


Vegan lip balms do not contain animal byproducts. They are for people who don’t eat or use foods or products derived from animals.

These lip balms contain ingredients such as coconut oil, sunflower oil and cocoa butter to moisturize and protect the lips. You can also get them medicated with SPF to protect your lips from the sun and wind.

Hurraw! Take Balm, for instance. This brand offers vegan, organic, fair trade, and raw balms. The brand offers everything, from tinted to medicated and ayurvedic balms, to classic styles made with all-natural ingredients.


How to make lipbalm

There are many types of homemade lip balms, but we offer a DIY recipe for lip balm that you can use. You can modify the base base with your favorite essential oils or add color to make it your own.

Get your ingredients


Before you can get started, it’s important to gather all the ingredients.

  • Beeswax. Bulk Apothecary sells beeswax in pastille or pearl form.
  • Shea butter. Get some creamy, raw shea butter from Bulk Apothecary and Amazon.
  • Coconut oil. You can buy this ingredient at your local grocery store, bulk-buying retailer like Costco, or Amazon.
  • Essential oils. You can find essential oils in a variety of stores, including Walmart and Target, as well as online at Amazon. Peppermint, lavender and grapefruit are all popular essential oils for lip balm.
  • Mica powder. To make your homemade lip balm more rosy, you can purchase mica powder from Amazon or Bulk Pothecary.
  • Lip balm containers. You can get containers for homemade lip balm. TinsTins.

Combine ingredients


Put the coconut oil, beeswax and shea butter in a pot. Tap water can be added to the bottom pot. Turn the heat up to medium-high and place the double boiler on the stove.

After all ingredients have melted in the pot use a spatula to stir them together.

Add your scent


After all base ingredients have been melted, combine them well. Then remove the double boiler. To maintain the temperature of all the ingredients and prevent the balm base from hardening, keep the top pot over the bottom pot.

Once the double boiler has been removed from direct heat, add a few drops to the mixture. Start by adding five to ten drops of essential oil to the mixture. Then, test the fragrance. You can add more essential oils to suit your taste.

Add your lip balm color


Once you have added your chosen scent, it is time to add some color to your lip balm. Add a little bit of mica powder or lipstick to the base of your balm. Stir the mixture to incorporate the color. To darken the color, slowly add lipstick or powder.

After the mixture has been combined, scoop the balm into either a pipette ou a dropper.

Your homemade lip balm is complete


After the balm mixture has been mixed in your dropper or pipette, you can transfer it to your chapstick tubes or tins. Let them cool at room temperature for several hour.

Once the balm is at room temperature, you can sell your newly-created tinted lipbalm.

How to start a lip balm company

Now that you’re able to make lip balm yourself, let’s see how you can sell it.

Do your research on the market

Hard work is not enough to make a lip balm business a success. Consider a niche market in which your products aren’t currently being sold or a market where you would like to be a part of. This will allow you to attract customers who are interested in your products.

Here are some ideas:

  • This is a classic lip balm. You can carry them around with you and use them throughout the day. Your competitors will be Burt’s Bees and ChapStick.
  • These are organic and sustainable. These products are suitable for eco-friendly buyers. These products are usually vegan and cruelty-free. This industry is expected to grow to $20.8 million by 2025.
  • Luxury. These balms are for high-end customers. They are often shared on social media. These balms are made with premium ingredients and have higher prices. Competitors include Dior, YSL, La Mer, etc.

Consider other products that you might offer in addition to lip balm when doing market research. It is very rare for a business that sells lip balm only. Many brands sell skin or body care products such as soaps, lotions, and scrubs.

SUGAR Cosmetics sells lip balm but also makeup and other items that can be made online.


Customers can be up-sold based on their past purchases of lip balms. You can also create scent-centric bundles and reach new customers by expanding your product range.

Name your lip balm business after a catchy name

You’re ready for your brand planning if you have found a niche market with good products. This will require you to choose a business name, and a logo. Customers love brands that tell a compelling story. This is why it’s important to tie your logo and name with the story.

Shopify’s cosmetic name generator is a great way to find a business name for lip balm. Enter a keyword, such as “sky”, and the generator will generate business names and check for domain availability for your online shop.


Create a business plan

The business plan will guide you throughout your journey as a business owner and lip balm manufacturer. Ask yourself this question: What is my big goal? Is it to become a household name in shops like Anthropolgie or a private label? Or, do I want to make a private brand for large stores like Target and Walmart? Do I want my premium brand to only be sold in my online and retail stores?

When creating your brand, think about your goals and remember them.