Why are all-natural products more expensive?

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All-natural products are, generally, more expensive than their pharmaceutical, over-the-counter, and factory-based counterparts. Why is that?

First, the economic law of supply and demand comes into play. There is a higher demand for all-natural products than there is supply. This relationship between supply and demand drives up the cost for all-natural products.

Second, the ingredients that go into making all-natural products are often more expensive. Many all-natural ingredients are organic. Organic ingredients cost more to produce. Why? Growing plants without chemicals requires more work. The cost of shipping and storing organic ingredients costs more. Organic producers cannot store and ship organic products with chemically treated products because of the risk of cross-contamination to their crops. This often means that organic products must be shipped in smaller batches, which costs more. Lastly, organic farming operations are often located farther away from large population centres, which also increases transportation costs. All these costs are passed along to the consumer resulting in a higher price for all-natural products.

Third, production plays a role. All-natural products are often made in small batches and this drives up the cost for the consumer. Companies that can produce their products on a mass scale can keep costs down by purchasing their ingredients in very large quantities.

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