Whether its clothes or just straws, the price of eco-friendly products are high, eco-minded people have to cover a larger margin than a regular product. It’s no big deal for an individual who could afford expensive eco-friendly products.

But an average buyer has no choice left. Either they have to cut budget or cut eco-friendly products from their life, giving up on the thought of making minimal impact on the environment. That leaves us to the thought that sustainable living is a privilege that only the rich could afford. To be fair, it’s everyone’s right to make purchases that protect our planet, stay healthy by eating natural food, and wear clothes that don’t end up choking our seas over many washes.

Price comparison for two basic items: Paper Towel and Toilet Paper. Price shown for conventional brands taken from Sam’s Club as of April 2021.

There is doubt in every average consumer’s mind by looking at the expensive price tag of eco-friendly products. It isn’t easy to understand whether buying green products makes any substantial difference or if the green industries are nothing less than traditional ones who exploit the environment and make fake promises for short-term profits.

Why is going green expensive?

The cost usually depends on the materials used in its manufacturing process and the design. In most cases, the cost of such products is considerably higher than ordinary products because it is made with more care and attention. Most eco-friendly products are also not sold at lower prices because they are created using more natural resources, like recycled materials, which are more costly than other natural resources, thus reflecting the hike.

The production source and labor-management cost

Let say agricultural products, for instance; the eco-friendly procedures are more expensive. Farmers practice organic farming without using pesticides because it contains toxic chemicals and eliminates the endangered pests beneficial for germination. Other than that, chemicals follow through the seepage and reach the rivers nearby, thus polluting local water bodies and disrupting the ecosystem. To prevent that, the farmers or farm owners add more laborers to manage tasks like cleaning, weeding, repairing pest damages, etc. Green companies believe in Providing fair wages and safe working conditions to laborers. Therefore, when organic products are produced using environmentally friendly ways and strictly following the fair labor employment terms, the price of organic products increases. The only way to cover the price is to sell products with a higher price tag.

Production process

The processes of organic products also lead to higher price tags. Most organic practices are done sharing facilities because larger facilities don’t comply with the organic operations. A lot of effort must go into the processes, ensuring that organic and traditional materials’ stay separate without getting mixed. Executing such processes cost both time and money. Based on the labor wage terms, the laborers are paid on a timely basis, which eventually elevates the product’s price tag.

Inefficient product production

Another reason for the high price tag is inefficient product production due to low demand and small manufacturing facilities. Since the production rate is low, companies don’t get the benefits of economies of scale. It turns out the only way is to increase the fixed price of each product they produce, reflecting the expenses of the products.

Materials unavailability

Other than that, the materials or ingredients required for producing organic products are difficult to find, difficult to produce, and expensive to purchase. These challenges drive the production cost to a higher price tag.

Certification costs

Before managing the production source and process, the production facility has to undergo environmental certifications. Acquiring a USDA organic certification per se is expensive, not to mention challenging. The farm facilities must meet sustainable measures, modified facility, updated sustainable practice modes. An annual inspection ranging from $400 to $2000 a year is charged upon the facility in exchange for certifications.

These are the common validations that make sustainable living standards and organic products expensive. However, the price is getting higher because we don’t want many products and not allowing the green business owners to improve the production process to lower the price. In other words, due to the lesser demand for organic products, the cost is high. If the demand increases, the manufacturers will get a chance to scale up the economies, so the price will reduce.