10 Low-Cost Handmade Products With HIGH Profit Margins (2026)

10 Low-Cost Handmade Products With HIGH Profit Margins (2026)

If you’re making handmade products and you feel like you’re constantly working and buying materials, and are on a hamster wheel, but not actually growing your art business the way you’d like to then… this video is for you.

Today I’m breaking down 10 low-cost handmade products that can have really strong profit margins going into 2026. These are products that don’t require expensive materials, huge inventory, or complicated production, but allow for you to price it high and have a high profit margin.

Alright, let’s get into it! 


 

 

Digital Products 

If you already make things by hand, one of the most profitable products you can add to your business is digital products. And this is one of my personal favorite products as an art business. 

The cool thing about digital products is you only need to make them once. You don’t manage physical inventory, you don’t pay for materials for each order, and you don’t ship anything. That’s what makes this model so scalable and profitable.

And some examples of digital products you could make and sell are sewing templates, knitting charts, embroidery designs or crochet patterns. Then upload them to and sell them on Etsy, Gumroad or your own website hosted by Squarespace or Shopify which is my personal favorite as that’s what I use. 

According to Profit Duel, On average, successful sellers make about $500 to $2,000 per month from selling digital patterns and templates, although it is good timing that this will vary widely based on factors like the quality of your designs, your marketing efforts and platforms you use.

Once your pattern is out there, you have a product that is making money while you sleep and this way you don’t have to make something new for each order. That’s the magic of digital products, and the reason they’re one of the lowest-cost, highest-margin products you can sell in 2026.




Mini Wall Art & Art Prints

One of the easiest handmade products to start selling with low material cost and high profit margin is mini wall art or small statement art pieces. These are compact, affordable pieces of artwork, like small prints, mini canvases, or tiny framed paintings, that fit perfectly into people’s homes, gift racks, shelves, or gallery walls.

Small Art pieces hit a more impulse buy territory as well. A buyer might hesitate at a large statement piece, but a mini wall print or tiny abstract painting feels like a low-risk purchase. They’re perfect for last-minute gifts, quick decor updates, or something pretty for a collector to put on their shelf. Makers often keep the cost for materials around or under the $5-10 and then retail for about $25 to $50+.

According to Global Growing Insights, the global wall art market size reached $74.19 billion USD in 2025 and is project to reach 123.4 billion USD by 2035, with strong consumer demand for personalized and online purchased decor. So plenty of consumers are actively buying wall art online, and that demand is not shrinking anytime soon. 

According to this article by Art-classes.co.uk, online shops like Etsy and Society 6 have seen a boom in small print sales over the last few years. According to Etsy’s 2023 seller trends report, art prints in the 8X10 inch and smaller range were month their top growth art categories, with sales growing by 22% year-over-year.  The appeal to buyers as well was that the pieces were affordable, easy to ship and fit in small places.  


Handmade Jewelry Using Simple Components

One of the easiest handmade products to make with high profit margins is simple jewelry. These are specific jewelry pieces that are in your style and niche, but are inexpensive to produce, quick to assemble, and can be priced at a premium because the perceived value, design, style, and uniqueness of handmade pieces.

Another reason jewelry works so well in 2026 is the trend toward personalization and niche styles. Buyers want pieces that reflect their personality, favorite colors, or aesthetic,  whether that’s boho, grunge, or statement-making. Handmade jewelry meets that demand perfectly, and you can price based on uniqueness rather than material cost

According to a recent market analysis by Accio, handmade jewelry remains one of the most popular and dynamic segments on Etsy, contributing a significant share of marketplace activity with consistent buyer engagement, strong order values, and growth driven by personalization and unique handcrafted appeal. 

Also according to Allied Market Research, the handmade jewelry market was valued at over $151 billion USD in 2022 and is projected to reach $472 billion USD by 2032. So this show  long-term demand for handcrafted jewelry and increased consumer interest in artisanal products, which helps explain why makers can command premium pricing and high profit margins. 



Hair Accessories

Scrunchies, headbands and small hair accessories are classic low-cost, high-profit products that sell consistently because they’re quick to make, inexpensive to produce and repeatable. A few yards of fabric and some elastic, and you have a finished product that people will happily pay for and your materials cost and time it takes to make it are only a fraction of that.

One of the big advantages of hair accessories is that they appeal to repeat buyers. A customer might grab one scrunchie, then come back to buy a matching set or complementary headband. They’re also lightweight and inexpensive to ship, which keeps your margins high. 

The hair accessories market is valued at 24.8 billion USD in 2024 and is estimated to reach 57.1 billion USD in 2034, according to PR Newswire. The global hair accessories market is experiencing robust growth, driven by evolving customer preferences, lifestyle changes, and the rising importance of grooming and fashion in everyday life. A key growth factor is also the influence of fashion trends and social media platforms like Instagram, TikTok and Pinterest that enable influencers and celebrities to showcase unique hairstyles. 

According to Grand View Research, personalized hair accessories are gaining popularity as consumers seek unique items to reflect their styles as well, so it’s good to think about how you can incorporate a way for customers to choose initials, custom colors and styles to create their own unique pieces that reflect their personality or even have DIY kits. 




 

Handmade Keychains or Charms 

If you are looking for a product that has low material cost, is quick to make, has broad appeal and strong profit margins, handmade keychains or charms are another great one to explore. 

Part of why keychains perform so well is that they are universal accessories. They appeal to customers of all ages and styles because they can be functional, decorative, personal, or sentimental. According to trend reports, keychain demand is driven by personalization and gifting occasions; people love giving or collecting keychains that reflect personal interests, hobbies, or memories.

The global keychain market size will grow from 17.8 billion USD in 2023 to 28.1 billion USD by 2033, showing strong sustained demand for keychain-style accessories worldwide according to Globe Newswire

According to Accio, the keychain market in 2025 was characterized by strong demand for personalization, unique aesthetics, and functional utility. The market is driven by trends such as kawaii, anime, Y2K, and a growing interest in handmade, eco-friendly and customizable options. Consumers are also actively seeking unique, collectible and gift-worthy keychains that reflect current fashion and pop culture trends as well. 

Also according to SmartBuy, custom handmade keychains rated as #5 in the top 5 handmade product categories by profit margins with an average profit margin of 63%, so this is a solid high profit margin product to explore with your specific aesthetic and niche.  




Crochet or Knit Accessories (small scale) 

Another great high margin product to explore are crochet or knit accessories, and these are the kinds of small, quick-to-make products like coasters, headbands, ear warmers, wrist warmers, phone pouches, mug cozies and other accessories that take 2 hours or less to make with minimal materials.

One big reason these accessories work so well is that they hit a sweet spot for buyers, they feel valuable but are affordable and useful as well. Many Akers find that smaller accessories often sell faster than big projects because customers see them as practical, giftable, and easy impulse buys. Accessories also allow you to diversify your product line with different styles, colors and seasonal themes without investing a ton of time or supplies into each piece. 

According to SmartBuy, the crochet market is continuing to expand, especially with Gen Z, increasing sales of trending accessories by 34% year-over-year. The primary factors are that 68% of consumers will pay premium prices for eco friendly-handmade items now at the time of this video, and is has grown from only 42% in 2022 which is pretty cool. Also social media influence has created a boom in growth with #crochet generating 8.2Billion views on TIkTok. The items that dominate due to low material costs, fast product time and high social media appeal according to this article are baby amigurumi, reusable product bags, face scrubbier, granny square coasters, and phone grip wraps specifically. So those specific product offerings are worth exploring. 

 

Handmade Home Fragrance (wax melts, sachets, and simmer blends)

If you want a product that feels luxury but doesn’t cost a lot to make, handmade home fragrance is one of the best categories to explore in 2026. Things like wax melts, scented sachets and simmer blends are inexpensive to product, appealing to a wide audience and have strong gifting as well as seasonal demand. The reason why this product works well is because the base materials like wax, essential oils, fragrance oils, dried botanicals, sachet fabric, and packaging, are all relatively inexpensive when bought in bulk. 

The global home fragrance market, which includes candles, wax melts and other scent products, is expected to grow from 11.1 billion USD in 2023 to 20.28 billion by 2030 according to Grand View Research. 

And according to Business Research Insights, the global wax melts market size is forecasted to reach 4.14 billion USD by 2035 for only fragrance wax melts alone. Also because of the absence of an open flame, the fragrance wax melts are a popular choice for those seeking a cost-effective and hassle-free way to refresh the air with inviting scents. And the biggest segment with this is beeswax. So that could be a great niche to explore. 



Handmade Kits 

Handmade kits are an amazing product because if someone likes to be more crafty and make DIY projects, this is a great offering that is packaged in a way for them to make that is simple to use. For example you could make crochet kits, embroidery kits, candle-making kits and mini craft bundles. The materials are inexpensive, and the instructions can be reused over and over as well. 

These kits are such a great offering as well because you’re selling both the materials and the experience. For example, a small crochet kit might cost $5–$8 in yarn, hooks, and packaging, but you can sell it for $20–$35. That’s a strong profit margin without requiring you to make the finished product yourself — the buyer does the work. And because kits are compact and lightweight, shipping is cheap and scalable.

The global DIY Craft Kits Market size was valued at 14.5 billion USD in 2025 and projected to grow to 27 billion USD in 2033 according to Future Data Stats. For market purposes, the DIY Craft Kits Market is driven by consumers seeking creative outlets, stress relief, and unique products they can make themselves. One of the latest trends is the increasing demand for eco-friendly and sustainable craft kits. 

Depending on your art or craft niche you can explore making jewelry making kits, knitting or crochet kits, sewing kits, painting  and drawing kits, woodworking kits, paper craft kits, or candle and soap making kits. 



Maker Tools

Maker tools are one of those products that are small, inexpensive to produce, but can sell at a premium because they’re essential to your audience’s hobby. So for example this could be stitch markers, row counters, gauge rulers, tapestry needles or ergonomic hooks. These tools are also lightweight, easy to ship, and appeal to crafters who want quality or aesthetic details. 

The arts and crafts tools market size is forecasted to increase by 1.68 billion USD between 2023 and 2028 according to Technavio. And the market is experiencing significant growth due to the increasing popularity of DIY projects and paper crafts. The demand for decorative items and artwork is on the rise, leading to an increased need for high-quality cutting tools and art supplies. And the sector caters to a wide range of consumers from eco friendly and sustainable materials for their crafting projects to individuals looking for therapeutic activities. The market encompasses a diverse range of products including drawing tools, painting tools, cutting tools, paper crafts, decorative items and art supplies. 

Another advantage of maker tools is that they’re perfect for bundling or limited editions. You could sell a set of themed stitch markers, a beginner friendly toolkit, or a seasonal collection of tools. Because your audience is niche and passionate, they’re willing to pay a little more for products that feel curated, high-quality or collectible. 



Limited Edition Micro-Collections


If you really want to create buzz and maximize profit, limited edition micro-collections are a perfect final product to feature. These are small, curated sets of handmade products released in very limited quantities, whether that’s a set of themed crochet accessories, a bundle of scented home fragrances, or a mini collection of smaller art pieces. The scarcity factor drives demand and allows you to charge a premium, even when the material cost is low. 

Limited edition collections work so well because customers love exclusivity. People are more likely to buy when they know the items won’t be around forever. 

Research from behavioral economics shows that scarcity triggers fundamental psychological responses, including loss aversion and fear of missing out (FOMO), which marketers can use to create urgency in their campaigns. Also the psychology of scarcity plays a powerful role in consumer behavior, turning ordinary products into must-have items simply by limiting their availability.

And one of the ways to create scarcity is by having exclusive releases, this can be special versions of your product in limited qualities and could also feature a new flavor, color or design that will be available for only a short time.

So micro-collections are versatile. You can do seasonal launches, holiday editions, or themed sets that create anticipation  and drive early sales. They also give you an opportunity to experiment creatively without committing to large-scale production, which is perfect for small businesses and focused on quality, storytelling and high profit margins. 


 

Well what did you think of these 10 low-cost, high profit handmade products for 2026?

If you did, please make sure to subscribe to be updated on upcoming offerings and new videos that are released each week. 

Well thanks for watching and I hope you’ll join me in the next one! 

 

 

Sources & References:

Digital Products & Craft Patterns

Handmade Home Fragrance (Wax Melts, Sachets, Simmer Blends)

Handmade Kits & DIY Craft Market

Maker Tools (Crochet, Knitting, Sewing Accessories)

Limited Edition Products & Scarcity in Sales

 

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