Organic and homemade is undoubtedly one of the main food trends these past few years. That includes various products like different types of nut butters, honey, pasta, and more. That’s why you might be wondering how to start a jam-making business from home. In this article, we’ll explain the main steps of becoming a business owner of a small jelly and jam-making business. Additionally, we’ll give you some ideas on different types of businesses in the food preserves and spread niche that might be worth exploring. For more ideas, check out our guide on starting a nut butter business where you can find additional suggestions.
Different Types of Jam and Jelly Businesses
Homemade Jam and Jelly Business
Naturally, one of the most common ways to profit from jams and jellies is to make and sell them. You can combine different flavors and experiment with various recipes. Furthermore, you can focus on all-natural and organic products from local farms. A lot of people are striving to buy locally. And using organic products means you can sell to health-conscious clients.
These products can be sold not only directly to consumers but also to local food stores. You can also partner with different stores that wish to sell on consignment. Keep in mind that Cottage food laws apply only for smaller quantities. If you grow your business and wish to sell wholesale jams and jellies, you need to follow the regulations and obtain a wholesale license.
Instead of making the most popular types of jams, you can choose a different approach and make boutique and exotic products. You can even experiment with blends and flavors. You can mix jams and jellies with different nuts or add exotic fruits to the recipes. This will give you a competitive advantage compared to other companies that sell the most popular types of jam like strawberry, raspberry, and grape jelly.
Online Jam and Jelly Store
For the past decade, the eCommerce trade has been steadily growing. That’s why it might be a great idea to start an online store that sells homemade jams and jellies. Furthermore, you can maximize revenue by adding other products as well. You can partner with wholesale nut butter suppliers or use the dropshipping model to increase the range of products on your website.
You can also start a jelly and jam subscription business. That would be a great gift for food enthusiasts looking for organic handmade products.
Jelly and Jam-Making Classes
Organizing events like jam-making workshops can be a fun activity for families. Kids love fruit preserves and they’ll be very excited to learn how to make them. Additionally, during these events, you can sell things like cooking books, cooking accessories, and jars of delicious jam.
Mobile Jam and Jelly Stand
Wondering how to start a jam business at different locations? You can invest in a food truck or another type of mobile stand and visit different events, festivals, and farmers’ markets.
Gifts and Baskets
Hampers and gift baskets with different products can be a great gift for food enthusiasts. Furthermore, you can approach event planners and corporate clients and offer them these products for different occasions. These baskets can contain other food items like specialty cheese, honey, specialty coffee, different types of chocolate, nut butters, or tea varieties.
Key takeaway: Making and selling homemade fruit can turn into a profitable business. The main things you need to research on how to start a jam business are the type of products you plan to sell, the distribution channels, and the restrictions related to the Cottage food laws.
How to Start a Jam Business?
- Draft a thorough business plan. The first step before starting your business journey is to strategize it. The business plan will be the roadmap for your company. It should include components such as products, pricing, targeted audience and markets, business objectives, marketing goals, and financial projections.
- Research legal terms. Local and national regulations vary depending on the type of product and the state. You might need to obtain certain permits and licenses in order to sell your fruit preserves.
- Choose the right recipes. Although strawberry jam and grape jelly are the most popular types, you might find it beneficial to sell less-known varieties. Mango jams, jalapeño jelly, Japanese matcha jam, and ginger jam are just some of the recipes you might consider. Even though the market for these products is narrow, the competition is also very small.
- Production facility and tools. If you’re wondering how to start a jam business with small capital, it might be a good idea to use your home kitchen as a production facility. You might also need tools and equipment like a separate refrigerator, storage for jars and packaging materials, and some kitchen accessories.
- Suppliers of ingredients. Consider finding a reliable wholesale produce supplier. You’ll need high-quality ingredients to produce tasty jams and jellies. If you plan to sell gift baskets, hampers, and other products that combine well with jams and jellies, you might want to get in touch with a wholesale peanut butter supplier too.
- Packaging, branding, and marketing. You need to develop a brand identity that resonates with customers. Use social media and other free channels to showcase your products. The packaging should be branded as well. The design should not only attract attention, but also comply with requirements such as including ingredient lists, nutritional information, and allergy warnings.
- Pricing and distribution. The main components in calculating the price should be ingredients, packaging, production costs, and profit margin. In the beginning, it might take a lot of work to compete with established brands. However, clients often prefer to support small local companies from their community. That’s why your primary distribution channels should be local-oriented. Farmers’ markets and specialty stores are just a few examples.
Frequently Asked Questions about How to Start a Jam Business
Have you decided to start your own jelly and jam-making business? In that case, you probably have a lot of questions regarding operations, profitability, distribution channels, and more. We might not be able to answer every question in one article, but in the next paragraphs, you’ll find the answers to the most common questions on the topic of how to start a jam business.
How Profitable Is a Jam Business?
According to market and consumer data, the profit margin of jams is between 10% and 50%. Naturally, these numbers can vary depending on a number of factors. If you’re doing your research on how to start a jam business, keep in mind that you can expect a profit margin of around 10%-20%. One way to increase these numbers and maximize profits is to offer exotic mixes that can be hard to find. Another technique a jam and jelly manufacturing business can use is to increase the value of the products with unique packaging or recipes that go with every jar.
Where to Sell Jam?
The most obvious places where you can sell homemade jams and jellies include farmers’ markets, local specialty stores, and food co-ops that support locally-made products. Here are some additional ideas on where to sell jam:
- Online marketplaces. Platforms like Etsy allow individuals to reach a broad audience of potential buyers. That’s especially true if you invest in quality packaging and branding.
- Gift and tourist shops. A lot of tourists wish to buy small jars of local handmade jam. That means you can sell your homemade products to such stores.
- Cafes, bakeries, and the restaurant industry. The hospitality industry uses fruit preserves for a lot of desserts.
- Subscription box businesses. There are different types of subscription boxes that include homemade items. You can become a subscription box supplier with homemade jams and jellies.
- Events and festivals. Local fairs and craft shows give small local businesses the chance to showcase and sell their products. After all, the answer to the question “how to start a jam business at home” is “start local”.
Are Jams Hard to Make?
Jams and jellies can be made easily from the comfort of your home. Most recipes require very few ingredients. The more important questions you need to answer are how to start a jam business that is profitable, how to market your products, and how to grow the business sustainably.