My previous post featured an article Going pro? What you should know about starting a home-based food business. This brings up a current FAQ: with so many people starting businesses, is the market saturated?
In the US more than half our states have cottage food laws so the bar for legal entry into this business is very low. Many more folks simply start baking and selling without any regard for regulations.
So is the market saturated? For cakes and cupcakes, yes, this market is totally saturated. There are thousands of Facebook pages, websites, and ads on craigslist. People are advertising wedding cakes, birthday cakes, special occasion cakes, and the one-of-a-kind sculpted cakes (made popular by TV shows such as Ace of Cakes and Cake Boss). Everyday there are more people who decide that since they have a kitchen and can whip out a cake mix, then they can sell their cakes and cupcakes. Unfortunately, many have no experience, little talent, and no idea what they are doing. Eventually, they go out of business. But more cake businesses open to take up the slack.
In other categories, however, there will always be a market for a wide range of food products. Whether it’s selling
These are locally produced home made products, the kinds that fall under the cottage food laws. This is the most feasible category. Becoming a home-based food processor is not for people who want to get rich with little work. But it is for anyone who enjoys working with food and can learn how to run a business.
Food is a consumable. There’s a steady market for products. With the current trends for local and seasonal, customers are there – but you have to work at being a business.
Home-Based Baking at its Best! If you’re interested in becoming a home-based food processor, do your market research and write a detailed business plan.