Month: October 2024

Over the past few years, the food industry has seen a remarkable shift. During COVID, there was a massive shift in ghost kitchens, and food delivery (be it groceries or takeout) immediately went on the rise. 

Even to this day, with it being post-COVID, those ghost kitchens are still around; the same can be said for those delivery companies like Uber Eats and Deliveroo. But that’s not the only thing either. Have you noticed in your local grocery store that more brands are popping up that aren’t from Nestle, Unilever, or any of those other giants?

Essentially, more and more small, innovative brands have found their way onto supermarket shelves, standing toe-to-toe with industry giants. For example, there’s Mike’s Hot Honey to Prime by the Paul brothers, and even TikTok-inspired hits like Pink Sauce, it’s clear that starting a food product business has never been more appealing — or accessible. Now, these are all mostly in the US, but it doesn’t really matter where you are though.

There’s the Temptation of It All

There’s something irresistible about the idea of creating a unique product and disrupting the typical grocery store options. It doesn’t really matter if it’s an influencer turning a fan-favourite recipe into a product or a small entrepreneur hoping to change the way people enjoy condiments; the appeal is undeniable, right? Well, with so many of these businesses, they start small, capture attention on social media, and quickly grow into household names. Wouldn’t that alone mean that it wouldn’t take too much to get big?

But while it may seem easy to jump on the bandwagon, breaking into the food industry is anything but simple. Behind the success stories are long hours, unexpected hurdles, and challenges that can derail even the most promising of brands. 

Understanding the nuances of this industry is essential if you want to succeed. Now, it’s not a cakewalk, no matter how many people (influencers or everyday people) jump into this. It takes a lot of time and effort, and of course, there’s the capital that’s needed, too.

Why Getting into the Food Product Business is So Alluring

For many, the appeal of launching a food product business comes from the desire to shake things up. Now, many shoppers are just flat-out tired of the same old brands and products. Most stores seem to be nothing but Nestle and Unilever, which isn’t even good (or ethical) either! People want innovation, better ingredients, and something that feels personal rather than mass-produced. This is exactly why brands like Graza Olive Oil and even influencers like Mr. Beast’s Feastables have caught fire so quickly.

So, just like what was mentioned above, a lot of products, not all, but a lot, tend to blow up in popularity thanks to social media (or the presence prior such as Mr. Beast). But overall, it does play a major role in leveling the playing field. Nowadays, it’s no longer just the established brands that have the loudest voices. A well-placed viral post can propel a product from obscurity to must-have status overnight.

However, while the barriers to entry seem low, this industry is highly competitive, and only the most prepared will make it past the starting line.

Why Consumers are Embracing Small Food Brands

It goes back to what was said above: people are tired of bland, cookie-cutter products from the big names that dominate the shelves. Most of them are unethical, they’re harming the environment, they’re paying low wages, and the quality is garbage.

Its really not hard to see that consumers today crave something different, something that feels personal. But small food brands have a way of connecting with buyers on a human level. Maybe it’s through bold flavours, quirky packaging, or a founder’s story that hits home, these brands offer more than just food—they offer an experience. It’s this authenticity that’s making small brands the cool kids in the supermarket.

There’s a Desire for Authenticity

One reason small food brands have gained traction is the growing demand for authentic, locally sourced, and artisanal products. Shoppers today want to know where their food comes from, and many feel that smaller brands are more transparent than the big players. In a market where personal connection and trust are increasingly important, small brands often have an edge. People love supporting people, not big business.

Innovation and Unique Flavours

Another thing to keep in mind is that smaller brands are also not afraid to experiment with bold, innovative flavours. For example, there’s the spicy hot honey mentioned earlier, but even uniquely blended olive oils (and a fun squeeze bottle). 

So, these products stand out because they break away from the generic options we see every day. However, the ability to offer something new, something different, appeals to consumers looking for novelty and excitement in their food choices.

Challenges When Starting a Food Product Business

While yes, the allure of the industry might be strong, but it’s important to recognise the obstacles that come with starting a food product business. While creativity and innovation are key, so is a solid understanding of the logistics and regulations that govern the food industry.

Scaling Your Product

One of the first challenges many new businesses face is figuring out how to scale their product. While sure, it’s easy to whip up small batches of hot sauce or olive oil in a home kitchen, creating enough to meet supermarket demand is another beast entirely. So, scaling up means larger production runs, working with co-packers or manufacturers, and managing logistics that might be completely new territory for most.

The Cost of Scaling

The cost of scaling is also a significant hurdle. Renting a commercial kitchen, purchasing ingredients in bulk, and maintaining a steady production schedule all require upfront investment. For small entrepreneurs, finding the funding to take their product from small batches to large-scale production can be one of the biggest challenges.

Compliance and Regulations

So here’s the thing, it’s not just about creating a delicious product — it has to be safe and comply with strict food safety regulations. Now, here’s a good example of this, in the UK, the Food Standards Agency ensures that all food products meet safety standards, but if you’re looking to go international (as most businesses will try to do), then compliance with the FSMA, especially if you’re wanting to expand to the US.

So wherever you want to operate (and expand to), you’re going to need to do some thorough research. Honestly, there are a lot of helpful resources online that will help you stay up to date with all of this, such as articles. There’s even the FSMA Friday Webinar Series, where experts break down key updates and changes that could affect small food businesses.

But overall, knowing and enacting regulations and being compliant is non-negotiable. While yes, it’s probably one of the biggest challenges for any new brand, you’ll be putting your reputation and your whole brand at risk through fines, product recalls, or even being shut down. While major brands like Nestle and Ferror get by with this (granted, they shouldn’t), you especially won’t be able to survive.

Building Your Brand Identity

You need to keep in mind that creating a food product isn’t just about the taste—it’s about the story, the vibe, and the connection with your audience. So, your brand should practically leap off the shelf, screaming, “Pick me!” This is where personality comes into play.

Now, major brands don’t have to do the “Pick me” because people already recognise their brands all under their brand umbrella. So you’re at an advantage because you can go about your style far differently if you want. For example, you could go with a quirky name (such as the brand “Hands Off My Chocolate” did), eye-catching design (what most new brands are doing nowadays), or maybe even a feel-good backstory, which can make all the difference. 

You just need to remember that people don’t just buy products; they buy into brands that resonate with them. A strong brand identity is like the secret sauce that gets customers hooked for the long haul.

There’s a Lot of Power of a Strong Brand

So, once you’ve figured out the logistics of producing your product at scale, the next challenge is creating a strong brand identity. In the competitive world of food products, your branding is just as important as the product itself. From your packaging design to your company values, every element of your brand should resonate with your target audience.

Social Media and Marketing Strategies

It was mentioned already, but it deserves to be mentioned again. However, you can expect that most small food businesses have found success by leveraging social media to build their brand. Influencers and viral content have helped propel products like Mr. Beast’s Feastables and Prime Hydration into the spotlight. 

Technically, they are from major influencers (mostly targeting kids), but the Pink Sauce that went viral on TikTok wasn’t from a major influencer, so even that gives proof that you don’t need to be an influencer. Overall, a strong social media presence can create a sense of community around your brand and make it easier to connect directly with consumers.

However, relying solely on social media isn’t enough. A robust marketing strategy that includes a combination of digital marketing, in-store promotions, and public relations efforts is key to gaining traction in a crowded market.