Did you know the U.S. packaged food market is forecast to grow 4.8 percent annually from 2022 through 2030? It’s a trillion-dollar industry, which means there’s plenty of cake for anyone who’d like to have a bite.
In fact, there couldn’t be a better time to launch a food product. As the COVID-19 pandemic gradually disappears, in-store grocery shopping is on the rise.
However, making a food product that will succeed isn’t easy. There are several competing brands in every category, and there are usually well-established products that are nearly impossible to dethrone.
So, what can you do to increase your culinary delight’s chances of making a ton of sales? Read on for the recipe!
Settle on the Right Food Product Niche
Chances are you already have an idea of what you’d like to make and sell. Perhaps you’re a passionate baker and naturally, you want to sell cake or another baked product. Or you’re already a dairy farmer, so selling dairy products would be right up your alley.
Regardless of your specific background, there’s a lot more that goes into choosing a food product that will be a success. You must understand the state of the market you want to enter. If it’s already awash with cakes, for instance, introducing another cake into the market might not be a good idea.
The cost of producing the food item will also influence your decision-making. Some products require lots of processing and specialized storage, which will increase your production expenses. Do you have adequate capital?
The food industry is highly regulated. Ensure you have a detailed understanding of the regulations your food product will need to satisfy before it can hit the shelves.
Know Your Consumers
Now that you’ve settled on a food product, who is the target consumer? Knowing your consumers will enable you to make informed decisions on a number of things, including formulation and packaging.
For instance, if your product targets the older population, then most of your consumers are conscious about eating healthy diets. Your product must be super healthy (low on calories, for example), otherwise, it could flop.
You’ll also choose a food packaging design that can best attract your target audience. For an older audience, the packaging that’s easy to open. Use large fonts, bold colors, and imagery to enhance visual communication.
Choosing a Selling Strategy
You’ve done the hard work of researching, designing a product, and preparing it for the market, but that’s only half the job. The other half is making it accessible to consumers.
You have a couple of options: sell it directly to consumers or go retail or both.
Direct to the consumer means you’ll be in charge of its distribution. You can set up an e-commerce website and sell it online, or a local store where customers can come in and buy.
If you go retail, you’ll need to supply the product to grocery stores, convenience stores, and supermarkets. This can be challenging because you must work out agreements with the owners of those stores.
The Market Is Ready for Your Food Product
Although the food market is ultra-competitive, it’s possible to introduce a new food product that will sell. Research the market, identify what consumers are yearning for, and give them precisely that. Ensure the packaging design checks all the boxes and pick a suitable sales strategy.
Get down to cooking, but remember to keep tabs on our blog for more delicious business advice.
