Why Are So Many Sustainable Brands Closing?

Inflation, the cost of manufacturing materials, increasing rents, and the need to support staff are all legitimate reasons brands can’t stay above water in the current economic climate. When it comes to ethically sourced ingredients and materials there are no cutting corners on price, unlike mass-produced alternatives. The upfront costs for small sustainable businesses are increasingly more exorbitant than commercial brands. Sustainable materials and ingredients come at a much higher price tag to ensure proper quality and circularity. Many of these brands continue to strive to break even or make little profit due to the impact they know they are making and for the love of their consumers. It seems that now brands cannot continue to keep up with rising costs despite the demand still being present. Several brands singing their swan song are those that are women, Black, AAPI, or Latinx-owned, leaving a frustrating reminder of the gap in funding opportunities for minority business owners. With fewer opportunities for additional fundraising in comparison to brands owned by heterosexual white men, minority-owned businesses have less breathing room for financial choices. Brands such as Back Beat and Common Heir had an audience built of people who were excited to see a brand owned by founders that reflected their consumers, their closure leaves another glaring hole in the industry for representation.

In an economy that gives gratification to brands that prioritize speed over quality, what does the future hold for sustainable brands? People first companies as we like to call them, pave their own path that isn’t necessarily supported by capitalist demand. The point of sustainable brands is to slow down, create quality products that last as long as possible, and then repurpose or upcycle them to continue the flow of circularity. This business model often isn’t enticing to investors or retailers as it disrupts the constant push for people to overconsume. Many of these brands are here to change their industries and create positive consumption habits. They aren’t in it for the financial gain but rather because they know what they’re doing is making an impact and pushing for systemic change. Although it can be upsetting to see brands come and go, it’s important to understand that not every small business can withstand current economic challenges. Just because your favorite company closes doesn’t mean you should shut the door on buying sustainably as a whole. You can seek out secondhand options, find new up-and-coming brands, and upcycle what you currently have. Staying committed to the cause is a constant reminder that sustainability isn’t a quick trend to buy into but rather a long-term commitment that consumers and brands alike are ready for.