Markup Percentage by Industry
Benchmarks for 30+ industries — with markup and margin shown side by side, so you're always comparing the right number.
Industry markup benchmarks answer one question: is my pricing in the right range for my category? They are a sanity check, not a formula. Your actual markup should be calculated from your real costs using the cost-plus method. The benchmark tells you whether the result is reasonable, too low, or unusually high. A markup significantly below the industry range usually means either your costs are higher than competitors or you are leaving margin on the table. A markup significantly above the range is only sustainable if you have genuine differentiation: brand, quality, exclusivity, or convenience.
One critical note before you use any benchmark: make sure you are comparing the same metric. Most financial data sources report gross margin (profit divided by revenue). Most pricing discussions use markup (profit divided by cost). A 50% gross margin is not the same as a 50% markup. A 50% markup equals a 33.3% gross margin. The table below shows both numbers side by side so you never confuse them. For the full distinction, read the markup vs margin guide, then calculate your actual price with cost-plus pricing.
Average Markup by Industry — 2025 Benchmarks
Markup on cost and equivalent gross margin, side by side. Filter by category or search by industry name.
| Notes | |||||
|---|---|---|---|---|---|
| Software / SaaS | Services | 300%–1000%+ | 75%–91%+ | 650% | Near-zero marginal cost; value-based |
| Bakery / Café | Food & Beverage | 200%–400% | 67%–80% | 300% | High markup on low-cost ingredients |
| Coffee Shops | Food & Beverage | 200%–500% | 67%–83% | 350% | Brewed coffee highest; beans lower |
| Eyewear (Retail) | Retail | 200%–500% | 67%–83% | 350% | Among highest retail markups |
| Jewelry (Fashion/Costume) | Retail | 200%–400% | 67%–80% | 300% | Very low material cost |
| Luxury Goods | Retail | 200%–500%+ | 67%–83%+ | 350% | Brand premium drives extreme markups |
| Restaurant / Full Service | Food & Beverage | 200%–350% | 67%–78% | 275% | Food cost target: 28%–35% of menu price |
| Wine & Spirits (On-Premise/Bar) | Food & Beverage | 200%–400% | 67%–80% | 300% | Standard bar markup |
| Beauty & Skincare (Brand/Wholesale) | Health & Beauty | 150%–300% | 60%–75% | 225% | Brand to retailer; high perceived value |
| Restaurant / Fast Casual | Food & Beverage | 150%–300% | 60%–75% | 225% | |
| Apparel / Fashion (Retail) | Retail | 100%–150% | 50%–60% | 125% | Higher for branded; lower for fast fashion |
| Beauty & Skincare (Retail) | Health & Beauty | 100%–200% | 50%–67% | 150% | Prestige brands toward upper end |
| Furniture (Retail) | Retail | 100%–200% | 50%–67% | 150% | Custom/luxury toward upper end |
| Health Supplements | Health & Beauty | 100%–300% | 50%–75% | 200% | Private label higher than branded |
| Jewelry (Fine) | Retail | 100%–200% | 50%–67% | 150% | Diamonds lower; fashion jewelry higher |
| Pharmaceutical (OTC Retail) | Health & Beauty | 100%–200% | 50%–67% | 150% | Generic lower; branded higher |
| Stationery & Paper Goods | Home & Lifestyle | 100%–200% | 50%–67% | 150% | |
| Candles & Home Fragrance | Home & Lifestyle | 80%–150% | 44%–60% | 115% | Handmade toward upper end |
| Craft / Handmade Goods | E-commerce | 80%–200% | 44%–67% | 140% | Must cover high labor cost per unit |
| Home Décor (Retail) | Home & Lifestyle | 80%–150% | 44%–60% | 115% | |
| Pet Products (Retail) | Retail | 80%–130% | 44%–57% | 105% | |
| Shoes / Footwear (Retail) | Retail | 80%–150% | 44%–60% | 115% | Athletic lower; fashion higher |
| Toys & Games (Retail) | Retail | 80%–130% | 44%–57% | 105% | |
| Vitamins & Supplements (Retail) | Health & Beauty | 80%–150% | 44%–60% | 115% | |
| Pet Products (Brand/Wholesale) | Manufacturing | 60%–120% | 37%–55% | 90% | |
| Apparel (Wholesale) | Manufacturing | 50%–80% | 33%–44% | 65% | Wholesale to retailer; retailer adds another 100%+ |
| Consumer Electronics (Brand) | Manufacturing | 50%–150% | 33%–60% | 100% | Varies widely by product category |
| Food Manufacturing / CPG | Food & Beverage | 50%–100% | 33%–50% | 75% | To wholesale/distributor |
| Furniture (Wholesale/Manufacturer) | Manufacturing | 50%–100% | 33%–50% | 75% | To retailer |
| Kitchen & Cookware | Home & Lifestyle | 50%–100% | 33%–50% | 75% | |
| Wine & Spirits (Retail) | Food & Beverage | 50%–100% | 33%–50% | 75% | On-premise (bar) 200%–400% |
| Books (Retail) | Retail | 30%–50% | 23%–33% | 40% | Tight margins; publisher sets price |
| Office Supplies (Retail) | Retail | 30%–60% | 23%–38% | 45% | |
| Sporting Goods (Retail) | Retail | 30%–60% | 23%–38% | 45% | Equipment lower; apparel higher |
| Automotive Parts (Retail) | Retail | 25%–50% | 20%–33% | 37% | OEM parts lower; aftermarket higher |
| Consumer Electronics (Retail) | Retail | 10%–30% | 9%–23% | 20% | Thin margins; volume-driven |
| Food & Grocery (Retail) | Food & Beverage | 10%–35% | 9%–26% | 22% | Perishables lower; specialty higher |
Convert any benchmark - Markup to Margin or Margin to Markup
Margin = Markup ÷ (1 + Markup) Markup = Margin ÷ (1 − Margin)
Use this to convert any benchmark you find elsewhere. If a source reports "45% gross margin," that equals an 81.8% markup on cost. Full markup vs margin guide: markup vs margin.
How to Apply Industry Benchmarks to Your Pricing
Calculate Your Cost-Plus Price First
Compare Your Markup to the Industry Range
Adjust for Your Positioning
For a full workflow, read how to price a product. If you already know the market price and need to work backwards, use the reverse markup calculator.
Why Two Competitors in the Same Industry Can Have Wildly Different Markups
The range within any industry is often wider than the range between industries.
Brand vs Commodity: a branded product and a generic product in the same category can differ by 200%–500% markup because customers pay for trust, recognition, and perceived quality, not just production cost. A branded vitamin supplement and a private-label equivalent might have identical production costs but retail at $35 versus $12.
Channel: the same product sold at a craft fair, on Etsy, through a boutique retailer, and on the brand's own website carries different markups because each channel has different costs and customer expectations. Channel is one of the strongest drivers of markup variation within a category.
Volume and Scale: higher volume reduces fixed cost per unit, which allows either lower prices or higher markup at the same price. A manufacturer producing 10,000 units per month has a fundamentally different cost structure than one producing 500 units per month.
Product Complexity and Customization: custom, bespoke, or complex products command higher markups because labor cost is higher and price sensitivity is lower. A custom piece of furniture carries a higher markup than a standard production piece; a tailored suit carries a higher markup than off-the-rack.
How Channel Changes Your Markup — Same Product, Different Economics
Your markup isn't just about your industry. It is about where you sell.
| Channel | Production Cost | Channel Costs | Total Cost | Selling Price | Markup | Margin |
|---|---|---|---|---|---|---|
| Wholesale to Retailer | $15.00 | $1.00 (freight) | $16.00 | $28.00 | 75% | 42.9% |
| Retailer (keystone) | $28.00 (wholesale) | $8.00 (overhead) | $36.00 | $56.00 | 55.6% | 35.7% |
| Etsy | $15.00 | $5.20 (fees+packaging) | $20.20 | $42.00 | 108% | 51.9% |
| Own Website / DTC | $15.00 | $3.50 (processing+shipping) | $18.50 | $42.00 | 127% | 56.0% |
| Craft Fair | $15.00 | $4.00 (booth+travel) | $19.00 | $42.00 | 121% | 54.8% |
| Amazon FBA | $15.00 | $8.20 (fees+FBA) | $23.20 | $42.00 | 81% | 44.8% |
This table shows why "what markup should I use?" is always a channel-specific question. The same $15 production cost item needs a 75% markup to be viable wholesale, but needs 108%–127% markup to be viable on direct channels because fees, packaging, and shipping must be absorbed in the markup. When you see an industry benchmark, always check whether it is a wholesale markup, a retail markup, or a DTC markup. They measure the same product at different points in the value chain.
About These Benchmarks
The markup ranges in this table are compiled from multiple sources: published industry financial data (including NYU Stern industry margins data, converted from gross margin to markup), trade association pricing surveys, retail and wholesale pricing guides, and practitioner-reported ranges across forums, communities, and published case studies. Markup ranges reflect typical operating businesses, not theoretical optima or outlier performers. Ranges are intentionally wide to reflect genuine variation within each category. These benchmarks are updated annually. For the most current data in regulated or rapidly changing categories such as pharmaceuticals and electronics, verify against current industry sources.