Starting a lip balm business is one of the smartest home businesses you can launch in 2026. The market is growing fast. People want natural products. And you can start with just £60-150.
This guide shows you exactly how to make lip balm. We cover ingredients, suppliers, costs, and how to sell online.
The UK lip care market is worth over £120 million. People buy lip balm year-round. Winter brings chapped lips. Summer brings sun protection needs.
Your profit margins are huge. A lip balm costs £0.80-1.20 to make. You sell it for £4-8. That's 300-700% profit.
The business is simple. No complex machinery. No huge startup costs. You work from your kitchen table.
Beeswax - This creates the solid structure. Buy from Gracefruit (£15 for 1kg). One kilo makes about 500 lip balms.
Carrier oils - These moisturise lips. Coconut oil costs £8 per 500ml at Gracefruit. Sweet almond oil costs £12 per 500ml. Jojoba oil costs £18 per 500ml.
Butters - These add richness. Shea butter costs £6 per 250g. Cocoa butter costs £8 per 250g.
Essential oils - For scent and flavour. Peppermint costs £8 for 10ml. Vanilla costs £12 for 10ml. Use 1-2% of total weight.
Vitamin E - Natural preservative. Costs £6 for 50ml. Use 0.5% of total weight.
Natural colorants - Beetroot powder for pink, turmeric for yellow. Cost £5-8 each.
Digital scales - Must weigh to 0.1g accuracy. Buy from Amazon for £25.
Double boiler - Heat ingredients gently. Buy from John Lewis for £35. Or use a glass bowl over a saucepan.
Thermometer - Monitor temperature. Digital probe type costs £12.
Lip balm tubes - Buy from Valley Mist or Gracefruit. Cost £0.15-0.30 each.
Stirring tools - Glass rods or wooden spoons. Cost £8-15.
Labels - Design your own and print. Cost £0.05 per label.
Total startup cost: £60-150
1. Prep your workspace - Clean everything with rubbing alcohol. Lay out tubes on a tray.
2. Melt the wax - Put beeswax in double boiler. Heat to 65°C. Stir until melted.
3. Add oils and butter - Mix in carrier oils and butter. Heat to 75°C. Stir well.
4. Remove from heat - Take off heat. Let cool to 60°C.
5. Add extras - Stir in essential oils and vitamin E.
6. Pour quickly - Pour into tubes immediately. Work fast before it sets.
7. Cool and cap - Let cool for 2 hours. Add caps and labels.
Gracefruit (gracefruit.com) - Best overall supplier. Wide range. Fast UK delivery. Excellent quality.
Aromantic (aromantic.co.uk) - Good for organic ingredients. Higher prices but premium quality.
The Soapery (thesoapery.co.uk) - Natural focus. Good value. Popular with small businesses.
Naturally Balmy (naturallybalmy.co.uk) - UK manufacturer. Ready-made bases available. Good for beginners.
Valley Mist (valleymist.co.uk) - Packaging and tubes. Zero-waste options. UK made.
Order online. Most offer free delivery over £50.
Sell a £5 lip balm that costs £1.20 to make. Your profit is £3.80. That's 316% markup.
Sell 50 lip balms per month. Your profit is £190. Sell 200 per month and earn £760 profit.
Standard tubes - 4.5ml capacity. Cost £0.15-0.20. Most popular size.
Jumbo tubes - 8ml capacity. Cost £0.25-0.35. Premium option.
Cardboard tubes - Eco-friendly. Cost £0.30-0.40. Great for green marketing.
Design simple labels. Include:
Use Canva for design. Print on waterproof vinyl. Cost £0.05 per label.
Create a brand story. "Handmade in Yorkshire using organic ingredients." People pay more for stories.
Best sellers:
Seasonal options:
Test small batches first. Ask friends and family for feedback.
Register as sole trader with HMRC. Free to register. Pay tax on profits over £12,570.
Lip balms are cosmetics. You need:
Hire a cosmetic chemist. Costs £300-500 per product. Or use a service like Cosmiko.
Get public liability insurance. Costs £50-150 per year. Protects against product claims.
Not required for cosmetics. But good practice to get Level 2 Food Hygiene certificate. Shows customers you care about safety.
Your own website - Build with Astrocart. Free until £2,500/month in sales. All tools built in. No app fees.
Etsy - 6.5% fees plus payment processing. Good for handmade positioning.
Amazon - Higher fees but massive reach. Good for volume sales.
Facebook Marketplace - Local sales. No fees.
Farmers markets - £20-40 stall fee. Meet customers face-to-face.
Independent shops - Health food stores, gift shops. Wholesale at 50% retail price.
Craft fairs - £15-50 table fee. Great for testing new products.
Salons and spas - Premium positioning. Higher prices.
Instagram - Perfect for lip balm photos. Use hashtags like #handmadelipbalm #naturalskincare.
TikTok - Show your making process. Behind-the-scenes videos work well.
Facebook - Join local selling groups. Share in skincare communities.
Blog about lip care tips. "How to heal chapped lips naturally." Include your lip balms as solutions.
Share ingredient stories. "Why we use Cornish beeswax." People love local connections.
Collect emails at markets and online. Send seasonal tips and new product alerts. Astrocart includes email marketing tools.
Partner with local beauty therapists. They recommend your lip balms to clients.
Team up with other makers. Cross-promote each other's products.
Winter - "Protect against harsh winds"
Summer - "SPF protection for outdoor adventures"
Valentine's - "Kiss-ready lips"
Christmas - "Perfect stocking fillers"
Skipping testing - Always test new recipes on yourself and friends first.
Wrong pricing - Don't price too low. Handmade products deserve premium pricing.
No product liability - Get proper insurance and safety assessments.
Inconsistent quality - Weigh ingredients precisely. Keep detailed records.
Poor photos - Invest in good product photography. Lighting matters.
Ignoring regulations - UK cosmetic laws are strict. Follow them properly.
Most new beauty businesses struggle with complicated websites and expensive apps. You need payment processing, email marketing, inventory management, and analytics.
Other platforms charge monthly fees plus app costs. Popular platforms cost £25/month plus apps. Open-source options need hosting, plugins, and maintenance.
Astrocart includes everything you need:
Best part? It's free until you hit £2,500 per month in sales. Perfect for starting small and growing big.
Your lip balm business can be profitable from day one. But only if you focus on making great products instead of wrestling with complicated websites.
The lip balm business works because everyone needs lip care. Your profit margins are excellent. The startup costs are low.
Start with basic flavours. Test at local markets. Build your online presence with Astrocart.
Most importantly, start now. Every day you wait is revenue you're missing.
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Written by
Part of the Astrocart team, helping UK businesses build and grow their online stores with the e-commerce operating system.
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