Starting a food business can be very profitable, but identifying the most successful food businesses can be difficult. There are other aspects of profitability to take into account, including the size of the market, the target market, and the competition. However, the infant food sector is one of the food industries with the highest profits.
The multi-billion dollar infant food industry is one that is expanding yearly. The global infant food market is anticipated to grow at a CAGR of 5.1% from 2020 to 2026, reaching a value of $109.13 billion, according to a report by Research and Markets. Some of the causes influencing the expansion of the baby food industry include the expanding population of working moms, the rise in the number of nuclear households, and the increased demand for organic and natural baby food products.
There are various businesses that control the market for baby food. With a combined market share of more than 30%, Nestle and Danone are the two biggest companies in the baby food sector. Hero Group, Mead Johnson Nutrition, and Abbott Laboratories are more significant companies. These businesses provide a wide selection of infant food items, including organic, natural, and regular selections.
If you’re thinking about opening a food business, you might be asking if you need a license from the Food Safety and Standards Authority of India (FSSAI). No, is the response. As long as they follow specific requirements, anyone who create and sell homemade food are exempt from needing an FSSAI license, according to the FSSAI. For instance, they must ensure that their food is safe and hygienic and have an annual sales of less than Rs. 12 lakhs.
As a result of its sizable market and consistent growth rate, the infant food sector is one of the most lucrative food industries. The two biggest companies in the baby food market are Nestle and Danone, but there is always potential for new entrants who can provide distinctive products and target particular markets. If you want to establish a food business, you need do market research, figure out who your target market is, and make sure you abide by all applicable laws.