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Shampoo production and cost

Have you ever wondered why most shampoos, including well known brands can be found in the mass market at very low prices despite ongoing advertising campaigns? This comes from two factors:

1/ the enormous mass output

The quantity of product is forcasted is in hundreds of tons and packaging such as plastic bottles and containers in hundreds of thousands.

2/ the components used

Shampoo is basically made-up of: aqua, oil, emulsifier, preservative and fragrance. Each of these components can vary in characteristics and prices for more than 10 times. 

Therefore, it is easy to understand that, probably, the mass market major brands do not use the more expensive. All the more as they have promoted the new multiple use of their shampoo and spent heavily on advertising in recent years.

In conclusion, the customer must understand that its private label provider cannot quote the price without knowing the exact quantity, and quality (with detailed components). They both affect the unit price dramatically.

Shampoo production and Cost (图1)