15 Eco-Friendly Business Ideas to Start in 2025

Now is a strong time to start an eco-friendly business. The sustainability market size is projected to reach $79.65 billion by 2030, growing at a compound annual growth rate (CAGR) of 23.1% from 2025 to 2030. 

Global attitudes toward the environment have changed over the past decade, with research showing increasing consumer interest in products and services from eco-friendly companies. According to PWC, consumers are willing to pay 9.7% more for sustainable goods, despite rising cost of living concerns.

In other words, it’s a good time to start your own green business—or pivot your existing business to embrace more sustainable practices.

Here’s an overview of the benefits of starting an eco-friendly company, plus sustainable business ideas to help you get started. 

What is an eco-friendly business?

An eco-friendly business is a business that prioritizes environmental sustainability and has a minimal negative impact on the environment. This can include businesses that try to address environmental issues, as well as those who offer more sustainable alternatives to popular goods and services.

Here are a few examples of what might be considered green businesses: 

• An energy company that installs solar panels to help customers reduce carbon emissions
• An apparel company that makes bags and footwear out of sustainable materials
• A shipping and fulfillment provider that uses sustainable practices to decrease its carbon footprint

Benefits of starting a green business

• Improved brand reputation
• Reduced costs
• Increased resilience
• Positive environmental impact

For many eco-conscious entrepreneurs, earning money while protecting the environment is a good reason to start a green business—but eco-friendly companies can also enjoy distinct reputational and financial benefits. 

Here’s an overview of the benefits of eco-friendly businesses:

Improved brand reputation

A 2024 study from PWC found that 46% of consumers are already buying eco-friendly products in order to reduce environmental impact, and they’re even willing to pay more for them. This means eco-friendly businesses can benefit from an improved brand reputation—even if they can’t offer prices lower than less sustainable options.

This attitude is even more pronounced among younger consumers, indicating that a preference for environmentally friendly practices will increase with Gen Z’s buying power. According to a 2024 Deloitte study, 62% of respondents aged 18 to 34 are already changing their purchase behavior to address climate change. And, out of all groups surveyed, they are the most emotionally engaged in climate change.

Reduced costs

Sustainable business practices can also reduce operational costs. For example, Forbes observes that you can save on utility costs by investing in eco-friendly practices like using energy-efficient appliances and light bulbs or upgrading building insulation to improve energy efficiency and reduce overall energy consumption.

Green practices may also minimize material costs by reducing waste. Plus, these practices allow businesses that achieve minimal waste to save on disposal fees.

Some brands also take pointed steps toward creating more affordable eco-friendly products.

“We ourselves are part of a demographic that is very aware of our impact on the planet. And, the climate crisis is such a top-of-mind issue for us,” says Phantila Phataprasit, founder of Sabai Design. 

“Being part of a demographic that’s younger and also on a budget, we wanted to create a solution that spoke to those values, but also took into account accessibility and budget as well.” 

Increased resilience

Sustainable businesses can reduce their exposure to some risks, providing a long-term competitive advantage over their peers. 

For example, businesses that reduce energy costs or rely on renewable energy sources are better positioned for an energy future in which fossil fuels are more scarce and expensive. Adopting a sustainable business model can also insulate you against future regulatory actions targeting unsustainable packaging, shipping, and production practices.

Positive environmental impact

Sustainable business ideas can directly benefit the environment by: 

• Reducing carbon footprint 
• Diverting waste from landfills 
• Decreasing pollution 
• Impacting the climate change crisis
• Playing a role in the circular economy, which extends the life cycle of items already out in the world 

15 profitable eco-friendly business ideas [with startup costs]

1. Secondhand retail sales
2. Sustainable event planning
3. Eco-friendly cleaning services
4. Eco-friendly beauty
5. Sustainable garden supply
6. Solar panel installation
7. Sustainable fashion
8. Recycling programs
9. Green pet supply
10. Sustainable landscaping
11. Composting business
12. Green gift shop
13. Ecotourism
14. Green business consulting firm
15. Green building company

Whether you’re starting a new eco-friendly business or transitioning your existing company to greener practices, your ideas should both focus on sustainable products or services and identify areas for environmental improvement. These business ideas for eco-conscious entrepreneurs can help get you started.

1. Secondhand retail sales

Starting a secondhand retail business that resells used goods can help you earn money while reducing waste. 

Consider starting a secondhand shop in your local community by accepting donations or selling items on consignment. You can also start a secondhand ecommerce business by creating a website to sell items like used clothing, furniture, and household goods.

• Startup cost estimate: Must purchase inventory upfront, but cost will depend on the types of items you buy. For example, purchasing vintage jewelry to sell versus vintage clothing items will require a different upfront investment.
• Potential revenue: Varies widely based on what you sell.
• Required certifications/licenses: General business license and tax permit; will differ by area. 
• Target market: Depends on your niche and what you sell. 

For example, Adored Vintage is a shop that sells vintage clothing online. Founder Rodellee Bas curates romantic pieces from different time periods like the 1970s and 1980s. 

2. Sustainable event planning

Sustainable event planning means helping eco-conscious businesses and community members host parties, fundraisers, or corporate events that align with their values. As a sustainable event planner, you develop relationships with eco-friendly catering services, cleaners, and décor providers in your area to ensure your events are environmentally conscious and have a minimal carbon footprint.

You can also consider warehousing event items like candle holders, serveware, and chalkboard signage. You could rent them out for a second income stream, eliminating the need for hosts to purchase new materials.

• Startup cost estimate: This will range depending on the size and location of your event planning business, but QC Event Planning estimates startup costs at $12,000 or more. 
• Potential revenue: As of 2025, Eventify estimates entry-level event planners can make $30,000 to $40,000 per year, and experienced event planners can make $60,000 to $100,000 per year. High-end event planners could make even more. 
• Required certifications/licenses: Certain states, like California, require a tax license or permit if you’re renting or selling items like decorations. You may also need to obtain a business license. 
• Target market: Corporate retreats, weddings, or family celebrations are all great focus areas to start with. 

Sometimes, sustainable event planning comes in the form of renting out multiuse spaces after hours. That’s the case for sustainable coffee shop Propeller Coffee, which operates out of Toronto, Canada. 

“We’re able to have the café, do the roasting, do the lab work,” says founder Losel Tethong. “And then in the evenings and weekends, it gets a whole second life as an event space for weddings, chef dinners, and community events.”

3. Eco-friendly cleaning services

Green cleaning businesses provide professional cleaning services using reusable and eco-friendly cleaning products. You can offer green housekeeping services to businesses, individuals, and short-term rental operators who want to maintain their establishments while reducing their environmental impact.

• Startup cost estimate: Less than $500 for essential green cleaning supplies; potentially less if you can make them yourself. You’ll also need a reliable form of transportation you can use to get to each job, including all of your supplies. 
• Potential revenue: The amount of money depends on your business structure (do you do everything yourself, or do you employ a team), as well as your business stage, services, and pricing. With advice collected from experts in the field, Jobber estimates that it’s possible to reach potential revenue of $1,000 per day.
• Required certifications/licenses: Business insurance, personal insurance.
• Target market: Choose a niche. You might prefer to work on one specialized type of job (window cleaning, for example) or perform a wider range of cleaning services. 

Blueland, a Shopify merchant, took eco-friendly cleaning to the next level by creating plastic-free, green cleaning tablets. 

“There’s so much greenwashing in this day and age. None of these terms—eco-friendly, sustainable, green—none of it’s regulated,” says Blueland founder Sarah Paiji Yoo. “There’s a lot that I want to do to really start educating consumers on [things] like, these are the certifications, these are the receipts that you should be looking for or asking for.” 

4. Eco-friendly beauty

Eco-friendly beauty businesses provide organic and eco-friendly makeup and skin care products. You can sell eco-friendly products from a brick-and-mortar storefront, online, or at pop-up events like local farmers markets or craft and gift fairs. 

• Startup cost estimate: Starting to sell makeup and skin care online is going to range in cost, especially based on the manufacturing route you choose. Crafting products like lip balm at home is going to cost less than working to source products or develop products with a manufacturer or private label company. 
• Potential revenue: Some beauty businesses make millions per year, but your take home is going to range based on many different factors, like what you sell, target market, reach, etc.
• Required certifications/licenses: While cosmetic products do not require FDA approval before hitting the market, there are other certifications you should consider. As an eco-friendly beauty business, think about getting certified via: Leaping Bunny, COSMOS (natural and organic green business certification), and Fair Trade. 
• Target market: Varies based on the types of beauty products you sell. 

One example of an eco-friendly beauty brand is My Skin Feels, which repurposes waste-bound food into high-quality skin care products.

“The more fun you have with your brand, even if it’s a serious message, it still captures the audience because it’s fun,” says founder Danielle Close. “Yes, sustainability is really important, and food waste is really important, and natural products are really important, but it’s packaged in a really fun way that makes it feel non-threatening and it doesn’t judge you if you’re not those things.” 

5. Sustainable garden supply

If you’re passionate about gardening, start an eco-friendly garden supply shop and sell green products like organic fertilizer, native plants, and seeds. You can also offer educational classes or workshops to help customers use sustainable methods to create beautiful landscapes or grow their own food.

• Startup cost estimate: A small brick-and-mortar retail build-out commonly runs around $40,000 to open, before ongoing inventory and operating costs.
• Potential revenue: The US nursery and garden stores market was $53.9 billion in 2024, capturing just 0.001% of that (approximately $539,000) shows plausible first-year gross sales for a single well-run shop.
• Required certifications/licenses: Expect standard local retail licenses plus extra rules if you sell pesticides or certain lawn chemicals (federally registered under FIFRA; states often require dealer licensing for restricted-use products).
• Target market: Home gardeners and DIY landscapers in suburban ZIP codes within a category that generated tens of billions in US retail sales in 2024.

One garden supply business bloomed out of founder Sonja Detrinidad’s love for plants. “There are pictures of me as a little girl hanging around in the garden with my grandmother,” she says. “I was always surrounded by plants.”

As someone selling sustainable garden supplies, you might spend a typical day advising local shoppers, sourcing new plants for your shop, and managing any online portion of your business. 

6. Solar panel installation

A solar panel installation business helps companies and individuals reduce carbon emissions and cut energy costs. Solar panel technicians install energy-saving panels on rooftops and in open spaces like parking lots and fields.

• Startup cost estimate: In order to start installing solar panels, you’ll need the required tools, liability insurance, and training. Initial investment ranges from $50,000 to $500,000.
• Potential revenue: Enact Solar estimates profits of $5,000 to $50,000 for residential projects and $100,000 or more for commercial solar panel installation. 
• Required certifications/licenses: Licensing for solar panel installation varies by state; you should look into NABCEP Board Certifications for increased credibility. 
• Target market: Homeowners, small businesses, and large commercial businesses.

7. Sustainable fashion

Sustainable fashion businesses source and sell products made from recycled materials (like plastic water bottles or recycled textiles) or renewable, raw materials (like bamboo and hemp).

• Startup cost estimate: Launch costs vary by model (POD vs. inventory); many brands target a lean online launch, while adding third-party certifications (e.g., GOTS) adds verification and labeling fees.
• Potential revenue: Fashion is growing modestly, and consumers report paying an approximately 9.7% premium for sustainable products, which will be helpful in setting pricing strategies. Revenue is going to vary greatly based on the type of clothing you sell.
• Required certifications/licenses: Consider GOTS for organic fiber claims and OEKO-TEX (e.g., Standard 100) for chemical safety; also align marketing with the FTC Green Guides update focus on qualified sustainability claims.
• Target market: Values-driven shoppers who increasingly prefer responsibly manufactured products. 

For example, ANIÁN is a circular clothing company that uses sustainable processes in its manufacturing. 

“We manufacture all of our own clothing,” says Paul Long, president of ANIÁN. “We design the materials and work with the mills. All of our clothing is made out of post-consumer waste with no dyes.” 

8. Recycling programs

If you already run a retail business, make it more sustainable by starting a buyback or recycling program. This way, your customers can return used items in exchange for coupons or store credit. Alternatively, you can resell the used items or salvage fabric and other materials to create new items.

• Startup cost estimate: Recycling Today estimates it costs anywhere from $30,000 to $300,000 or more to start a recycling business. Costs hinge on vertical (e.g., paper, e-waste, batteries) and equipment. 
• Potential revenue: Municipal solid waste volumes remain vast; revenue depends on the type of recycling program you choose to implement. 
• Required certifications/licenses: Activities may trigger solid-waste permits and, for certain materials (e.g., batteries, lamps, pesticides), RCRA hazardous or universal waste rules. Permitting processes are spelled out by EPA and state agencies, so check both your local and federal requirements.
• Target market: Municipalities, institutions, individuals, and commercial sites looking to improve waste disposal. 

Another option within the recycling space is to create new product opportunities like a reusable and recyclable product line. Anew, for example, is a sustainable business that sells reusable water bottles that can eventually be household recycled once they reach the end of their lifespan. 

9. Green pet supply

Green pet supply businesses sell organic pet food, sustainably sourced and produced items like collars, beds, and leashes, and environmentally friendly pet cleaning products to eco-conscious animal lovers. You can sell these products at local markets, online, or from a brick-and-mortar storefront.

• Startup cost estimate: A small retail footprint build-out commonly runs around $40,000, as mentioned above. You’ll need to add inventory and compliance costs if you sell pet foods or grooming chemicals.
• Potential revenue: TheUS pet industry reached $152 billion in 2024, signaling solid, continued growth and good revenue opportunity.
• Required certifications/licenses: Pet foods must meet FDA and state requirements (often following AAFCO models). Products making pesticidal claims (like flea/tick medication) fall under FIFRA and state registration.Sustainable pet brands also can pursue Pet Sustainability Coalition accreditation. 
• Target market: Millennial and Gen Z pet owners trading up to natural and eco-labeled products.

For example, Zero Waste Store sells green pet supplies like dog shampoo and compostable pet waste bags. 

“Our Essential line is products that everybody’s using every day, but they’re able to buy them [and] feel good about the purchase because they know it’s sustainable, it’s plastic-free, and it’s affordable,” says Zero Waste Store co-founder JJ Follano. 

10. Sustainable landscaping

If you have a green thumb, start a landscaping company that helps customers find sustainable solutions for their properties. Depending on the ecosystem, you might design drought-tolerant landscapes (also known as xeriscaping), build rain gardens, or create a pollinator habitat with native plants.

• Startup cost estimate: You’ll need equipment like a truck, trailer, electric tools, and irrigation gear.Your startup costs will depend on how much of this equipment you already have, and what you’ll need to purchase.
• Potential revenue: The US landscaping services industry was roughly $178 to 184 billion in 2024–25, so securing even a tiny local share could yield healthy six-figure top lines.
• Required certifications/licenses: Standard contractor licensing varies by state; for irrigation, look to EPA WaterSense-labeled professional certifications.
• Target market: Water-stressed municipalities and eco-conscious individuals. 

11. Composting business 

Starting a composting business lets you earn money by diverting waste from landfills. Consider offering a free food waste dropoff service and selling nutrient-rich compost to businesses and individuals. Alternatively, offer to pick up compost materials for a nominal fee or earn money helping individuals build systems for composting food waste at home.

• Startup cost estimate: Acquiring a site, prepping it, and purchasing bins/aeration, and routing vehicles will be the main costs to start a composting business. Consult the US Composting Council’s handy calculator to determine what your cost per yard is. 
• Potential revenue: The US has established a “food loss and waste reduction goal” that aims to slice food waste by 50% by 2030. If you are starting a composting business, you can support this effort and potentially lock in more revenue because of it. 
• Required certifications/licenses: Many states require solid-waste or composting facility permits. Consult the Target Organics website for more information. 
• Target market: Municipal clients and food-generating businesses trying to meet diversion mandates and ESG targets under EPA/USDA food-waste strategies.

There are other options for compost-adjacent businesses as well. For example, you could follow in the footsteps of brands like Grind and start a business selling items that use compostable packaging. 

12. Green gift shop

Green gift shops sell sustainable products—from beauty supplies and apparel to home goods and décor. If you have an eye for swoon-worthy gifts, consider curating a sustainable collection and selling items online or in person.

• Startup cost estimate: A compact retail concept typically takes about $40,000 to open, plus inventory.
• Potential revenue: With consumers willing to pay more for sustainably produced goods, curated assortments can sustain premium pricing in a small-format store.
• Required certifications/licenses: Standard local retail licensing. You’ll also need to ensure truth in any advertising claims that aligns with the FTC Green Guides’ emphasis on sustainability claims.
• Target market: Eco-conscious shoppers seeking verified low-impact gifts and home goods. 

Zero Waste Store, for example, is an online green gift shop that sells a variety of sustainable and eco-friendly products. The brand grew its sales from $6,000 to $2 million in just one year. 

“We wanted to support small businesses specifically and make sure that products were made mindfully and eco consciously with minimum packaging, no plastic packaging, and with ingredients that are sourced sustainably and with no plastic,” Zero Waste Store co-founder Sarah Cieslinski shares. 

13. Ecotourism

Ecotourism businesses help customers find and book travel experiences that minimize negative environmental impacts, facilitate learning about the local ecosystems and culture, and offer the opportunity to assist with conservation projects.

If you’re familiar with a particular region or an eco-friendly vacation activity (like bike touring or hiking), start an ecotourism business that matches eco-conscious customers with unforgettable travel experiences. 

• Startup cost estimate: Permits, guide training, insurance, and minimal-impact gear. 
• Potential revenue: Travel and tourism was projected to contribute approximately $11 trillion to global GDP in 2024. Actual revenue will depend heavily on factors like location, target audience, seasonality, and more. 
• Required certifications/licenses: Local outfitter/guide permits plus optional Global Sustainable Tourism Council program certification. Also consider pursuing Leave No Trace training to strengthen your credibility and lessen your own environmental impact. 
• Target market: International and domestic travelers prioritizing low-impact experiences.

As an ecotourism business owner, you might spend your days leading hikes, bike rides, city walking tours, or even camping trips. You’ll also likely need to spend time on the back end booking and planning eco tourism experiences and offerings. 

14. Green business consulting firm

Green business consultants help environmentally conscious businesses assess their environmental impacts, develop strategies to reduce negative outcomes, and support implementation. Green business consultants can also help companies target a net positive impact on the environment.

For example, you might help a food production company pursue regenerative farming practices or support a software-as-a-service (SaaS) company in donating a percentage of its profits to an environmental organization.

• Startup cost estimate: If you’re interested in starting a green business consulting firm, you’ve chosen an idea with low overhead compared with some of the asset-heavy businesses on this list. Keep in mind that you will need to have significant experience in the field before getting started. If you do, generally all you’ll need is a laptop and to pay business registration fees. 
• Potential revenue: Because of initiatives like NGFS Net Zero 2025, companies are estimated to spend $275 trillion between 2021 and 2025 on revamping physical assets. Even if you can tap into just a small fraction of this as a consultant, you could stand to make a lot of revenue. 
• Required certifications/licenses: There’s no universal license for consulting, but check with your local jurisdiction on whether or not you need a business license. While not required, potential clients value recognized credentials like LEED Green Associate for building.
• Target market: Mid-market companies seeking guidance.

15. Green building company

Green building companies use sustainable construction materials and embrace building practices that reduce carbon dioxide emissions. Many also specialize in designs that improve indoor air quality, energy efficiency, and access to natural light. If you’re a builder, contractor, or architect, start a green building company that targets eco-conscious consumers and improves the sustainability of your local built environment.

• Startup cost estimate: Construction startup costs vary by trade and state. Adding LEED services entails fees (e.g., LEED GA exam $250; project LEED registration typically $1,350 per building for members).
• Potential revenue: Revenue potential for green building companies is sizable. In 2024, 1,437 LEED projects totaling more than 414 million square feet were certified across the Top 10 US states. Firms that self-perform or consult on LEED can win premium projects.
• Required certifications/licenses: State general contractor/trade licenses plus optional LEED professional credentials.
• Target market: Commercial owners and public agencies pursuing LEED or Energy Star outcomes. 

Market trends for sustainable businesses

The ERM Sustainability Institute recently published the latest installment of its annual trends report. The report outlines the path forward for sustainable businesses. 

“Twenty-twenty-five promises to be a challenging year,” the report states. “Although many companies and investors still firmly believe sustainability is a key commercial driver, they face an increasingly complex environment, from trade disputes that may transform supply chains to policy uncertainties that increase unpredictability.” 

But in the face of these challenges, ERM still suggests that “many companies now see sustainability as an integral part of doing business.” 

Here are some important market trends and statistics that sustainable businesses should consider: 

• According to the Center for Sustainable Business, 41% of the growth of consumer packaged goods from 2013 to 2024 comes from products marked as sustainable. 
• According to DHL’s 2025 Ecommerce Online Shopper Survey, 55% of shoppers say that sustainability will be more important to them by 2030, and 37% of global shoppers purchase sustainably sourced items at least once per month. 
• Global uncertainty is causing volatility with supply chains, as is climate change. S&P states that moving forward, companies will “face increased pressure on sustainable supply chain management practices.” 

How to start an eco-friendly business (certification & legal steps)

If you’re looking to start an eco-friendly business, now is a great time. 

“I think that not just within the furniture industry, but across all consumer products that have been proven out in the last five to 10 years, people really do want to support sustainable brands, want to buy products that are sustainable, and those companies are growing faster than their counterparts across the board,” says Phantila Phataprasit, founder of Sabai Design. 

Here’s how to start a business that’s eco-friendly: 

1. Set up your business foundation

Begin with the standard steps needed for the foundation of any new business: 

• Refine your business idea.
• Conduct market research.
• Create a business plan.
• Register with the appropriate authorities.
• Validate product ideas.
• Source your products or services responsibly.   

For eco‑friendly businesses, this foundational process includes integrating sustainable practices into your operations from day one—whether it’s choosing eco-friendly packaging, low‑impact suppliers, or renewable energy sources.

2. Choose a legal structure 

Choose the business type (e.g., LLC, S Corp) with the legal structure that works best for you and your goals. Some states in the US offer benefit corporation status, a legal tool that mandates consideration of environmental and social performance in decision making. 

Even without state‑specific statutes, consider adding language in your articles or bylaws to formally commit to stakeholder interests (e.g., workers, community, planet) to align with B Lab expectations. 

3. Pursue B Corp certification 

This step is optional, but can be a powerful differentiator for your business. 

B Corp certification is issued by the nonprofit B Lab and is a third‑party verification that means that your company meets rigorous standards of social and environmental performance, accountability, and transparency. 

To qualify for B Corp certification, you must:

• Complete the B impact assessment and score at least 80 out of 200 points across areas like governance, workers, community, and environment 
• Meet the legal requirements for becoming a B Corp, which includes considering the impact of all decisions on all stakeholders 
• Pay annual certification fees based on your location and gross annual revenue
• Re‑certify every three years to maintain status
• Consider applying to become a Pending B Corp while you wait 

Funding your green business venture

Eco‑friendly businesses can tap into small business grants and startup business loans through resources like the Small Business Administration (SBA). 

SBA loan programs include: 

• 7(a) loans: The primary SBA program, 7(a) loans offer up to $5 million.
• 504 loans: 504 loans is a long term fixed rate financing option for major fixed assets with a maximum loan amount of $5.5 million. 
• Microloans: Microloans are ideal for startups or smaller-scale green businesses, offering up to $50,000, with an average loan of around $13,000. 

Other options to consider for getting a small business loan include: 

• Small business grants
• Startup capital
• Startup business loans