If there is one shared love around the world, it has to be food. So it’s no wonder why there is a lot of money to be made in the food business. The rise of street food markets, pop-ups and new dining experiences have changed the way we dine, where and what we eat. Dephna, a rental kitchen company, have flourished in this new climate, with their commercial kitchen for rent are filling up with new businesses eager to make a name for themselves in the food market.
One of the ways to ensure your business is not only profitable, but able to maintain its success, is to target on of the enduringly popular niches for food businesses. Here we highlight five of the most popular and why they are so valuable and interesting.
1. Bakery and/or baked goods
Love bread, cakes and everything in between? Hone your inner Mary Berry and take on the baking world. Baking is a skill and you can make a high profit from it due to the low cost of ingredients, plus the additional saving of bulk buying as it is generally low cost to produce. The interest for baking has risen in recent years, so much so the sales of baking products have risen by 62% since 2007.
A rental kitchen will help to keep all your baking equipment in one place and will allow the space you will need to for prepping, baking, decorating and packaging. Space will definitely be more of an important factor for you if you’re making occasion cakes for birthdays or weddings, and with the average cost of a wedding cake costing £300 it is still a profitable business venture.
2. Baby food
As a nation we are becoming more aware of what our families are eating. When we think of baby food we usually think of the stuff in jars that sits on the shelves for months and months, so there is a definite gap in the market for fresh baby food that is nutritious and convenient for our on-the-go lifestyles.
Chief Executive of Danone, Emmanuel Faber has said that baby food buyers are “increasingly turning toward healthy and organic niche products rather than mainstream ones”. You should consider targeting parents at local markets with your baby food, and make sure to use only ethical and organic ingredients for this market. This will also allow you to raise the price of your products as you increase in popularity, helping improve your profit margins.
3. Vegan foods
Vegan food is the biggest developing market with a massive increase in demand for vegan choices. Between 2012 and 2016 there was a 185% increase in the number of vegan products launched in the UK surpassing its trendy reputation and transforming into a lifestyle choice for at least 542,000 brits.
To maximise your profits for vegan foods, you should be looking to appeal to non-vegan consumers too. There is no reason why vegan should mean vegans only. As consumers we like choice, so whether you’re a meat-eater or not having the choice of picking up a vegan product is great especially as we are becoming more ethically conscious eaters.
4. Sweets and candy
Surprisingly making sweets is quite like baking, it’s cheap to produce so it can be profitable. Sweets are attractive to every one of all ages, whether you’re child sucked in by the bright colours or an adult drawn in by the nostalgia of buying lemon sherbets in the sweet shop.
Big businesses are suffering over concerns with sugars, but this could be your in if you can manufacture locally and with natural sweeteners like agave or stevia leaf extract. Seasonal celebrations can help you boost sales and try new recipes, while maintaining good profit margins.
5. Health food recipe boxes
Health food recipe boxes have taken the pain out of prepping healthy food, especially as we want healthy food choices but want them to be quick and easy. Analysts Cardlytics report that spending on recipe boxes increased 64.6% in the first 6 months of 2016, and those buyers reduced their eating out spend by 2%.
The rise of subscription based food has risen over the past few years and goes beyond just snacks. You can now get vegetarian and vegan varieties, lean meat boxes, cuisine based boxes and more delivered straight to home or work. What’s more is that this business is great for start-ups as you don’t need the shop space to sell them, just the space to make them in.