soap manufacturing business

How To Start A Profitable Herbal Soap Making Business

Herbal soap is a natural alternative to chemical soaps. However, one can use herbal soap in two ways. One is for skin and another for hairs. Both are very popular in the Indian market. Furthermore, the quality herbal soaps have good export potential.

India is a land of valuable medicinal herbs. Thus the raw materials are easily available throughout the country. The manufacturing setup doesn’t demand a lot of investment. Rather, a low-cost, small-scale unit gives equal profit. Thus, we can say the herbal soap manufacturing business is profitable.

Is Herbal Soap Business Profitable?

Herbal soaps are gaining popularity day by day. Increasing health consciousness is the major driving factor for this. In addition, people are becoming conscious about their looks and style. And herbal soap is very effective in preventing early aging.

Due to the chemical presence, normal soaps are responsible for fine lines that end with early aging. In the soap industry, the popular segment has witnessed maximum growth within toilet soaps and it is the category driver. Recent phenomena in aromatherapy, ayurvedic treatment are also responsible for the growth of this industry.

According to a report of the Associated Chambers of Commerce and Industry (ASSOCHAM), the domestic herbal industry will grow rapidly in the coming years. In addition, we can expect the size of the domestic market will rise to Rs. 15,000 crore, reflecting a compound growth rate of over 20 percent.

European Union is the biggest market with a share of 45% of the total herbal market. However, North America accounts for 11%, Japan 16%, ASEAN countries 19%, and the rest of the European Union 4.1%. The forecast is that the global market for herbal products is expected to be $5 Trillion by 2050.

Herbal remedies would become increasingly important especially in developing countries. India, with its biodiversity, has a
tremendous potential and advantage in this emerging area.

Advantages Of Herbal Soap

  • First of all, herbal soaps remove dandruff from the hair
  • They prevent prickly heat
  • They have antiseptic properties
  • In addition, they act as body deodorizers preventing any foul odour coming from the body
  • They beautify the skin
  • They do not bleach the colour of the hair
  • Finally, they are not corrosive to the skin and do not remove the essential oils from the

License & Registration For Herbal Soap Making Business

For herbal soap manufacturing, you must obtain different licenses and registration from the Govt. authority.

  • First of all, register your business with ROC
  • Obtain Trade License from local Municipal authority
  • Apply for Udyog Aadhaar MSME online registration.
  • Get GST Registration.
  • Obtain Factory License
  • In addition, the manufacturing, distribution, and sale of cosmetic products in India are regulated by provisions under the Drug and Cosmetics Act, 1940. Check your state law regarding this.
  • Finally, we will advise you to check the specific licenses and permits of your state before starting the business.

Related: Best GST Software for Small Businesses

Raw Materials For Herbal Soap

First of all, you must obtain a commercially feasible manufacturing technology. Then you will need to source the raw materials. There is a number of raw materials you can use. However, here you can find a list of required raw materials for herbal soap.

  • Acorus Calamus.
  • Vetivera Zianioides.
  • Berberis Aristata
  • Cerous Deodara
  • Cuminim Cyminum
  • Embli Ribes
  • Phyla Nodiflora
  • Plumbago Zeylanica
  • Cyamopsis Tetragonolob
  • Emblica Officinalis
  • Phyllanthus Aamarus
  • Zinziber Officianale
  • Azadirachta indica

Related: 100+ Profitable Small Business Startup Ideas

Herbal Soap Making Process & Machine

You can source the manufacturing technology from National Research Development Corporation, (A Government of India Enterprise). However, here you can find a detailed manufacturing process of herbal soap.

First of all, you must perform the extraction of herbs. You must maintain the required formulation. Then you can prepare the soapstock with pure coconut oil with pure potassium hydroxide. Mix the extracts as per the required formulation. Then allow soap to set in the pan. Finally, cut to the required weight and size. Then it is ready for packaging.

In addition, to start herbal soap making, you will need to procure some basic machinery like boiler and accessories, mixing tanks/steel pans, and packaging unit.