Skip to content

Top 60 Small Scale Manufacturing Business Ideas in 2024

Do you want to start a small manufacturing business with low investment? In this article, we will deal with small and medium-scale manufacturing business ideas that require low investment and less manpower.

In most cases, a manufacturing business requires reasonable capital investment in the initial stage. However, once the business is successfully established, the profits make up the start-up investment in a short period.

What is a Small Manufacturing Business?

A small manufacturing business is a company engaged in the production of goods on a relatively modest scale, typically characterized by a limited workforce, a compact production facility, and a narrower production output compared to larger manufacturing enterprises. These businesses often operate at a local or regional level, serving niche markets or specific customer segments.

Here are key characteristics that define a small manufacturing business:

  • Small-scale of operations
  • Low workforce size
  • Local or niche focus
  • Limited capital and resources
  • Highly flexible to market changes

List of 60 Small Manufacturing Business Ideas

#1. Automotive Parts Manufacturing

If you have experience and looking forward to a low-cost start-up business in the automobile business industry, manufacturing spare parts and tools for cars and vehicle manufacturers. Entrepreneurs can explore subsectors within automotive parts manufacturing, such as electronic components, engine and transmission parts, chassis and suspension systems, and interior and exterior accessories.

As per this report, the global auto parts and accessories market was valued at USD 660.21 billion in 2022. The market volume is expected to reach USD 877.12 billion by 2030, registering a CAGR of 5.7% during the forecast period of 2023 to 2030

#2. Herbal Hair Oil Manufacturing

Herbal hair oil (Ayurvedic) is gaining immense prominence in modern times. It is exhibiting its versatility owing to its embalming effect in alleviating headaches and causing a soothing effect. The market for herbal hair oils is particularly strong in regions where traditional herbal practices are valued, such as Asia-Pacific and the Middle East. North America and Europe also show a growing interest in herbal hair care.

The global herbal hair oil market has witnessed significant growth, reaching an estimated value of around $1.8 billion in 2020. With increasing consumer awareness about the benefits of herbal and natural ingredients, the market is projected to surpass $2.5 billion by 2026 (Source: Market Research Future)

#3. Bakery

The bakery industry is witnessing several trends. It includes increased demand for artisanal and organic baked goods, a rise in gluten-free and healthier options, and the incorporation of innovative flavors and ingredients. In addition, convenience and ready-to-eat products are also driving market growth.

The global bakery market is a dynamic and thriving industry, valued at approximately $388 billion in 2020. It is expected to reach over $570 billion by 2026, experiencing steady growth (Source: Market Research Future).

#4. Banana Wafer Manufacturing

An entrepreneur can start a banana wafer manufacturing project with low investment. The market for banana wafers is expanding as a result of consumer trends towards healthier snack options, the desire for natural and organic ingredients, and the appeal of ethnic and exotic flavours. Banana wafers’ adaptability as vegan and gluten-free treats adds to their popularity.

The market for banana wafers has witnessed steady growth, with the global banana chips market valued at around $1.6 billion in 2020. It is anticipated to reach approximately $2.5 billion by 2026, driven by the popularity of snackable and healthier alternatives (Source: Market Research Future).

#5. Biscuit Making

The biscuit industry is influenced by several trends, including the demand for healthier and natural ingredients, innovative flavors, and convenient packaging. Gluten-free and organic biscuit options are gaining traction, and the industry is adapting to changing consumer preferences. You can start a biscuit manufacturing business with a considerably low investment. You can select a niche like digestive sugar-free biscuit if you want to attract a specific target audience.

The global biscuit market is substantial, valued at around $85 billion in 2020 and expected to reach over $108 billion by 2026. Biscuits are a popular and versatile snack, contributing to the market’s steady growth (Source: Statista).

#6. Candle Making

The candle industry is influenced by trends such as the demand for natural and sustainable materials, unique designs, and scented candles. The market also responds to seasonal trends. It includes increased demand during holidays and for special occasions.

The global candle market is vibrant, with an estimated value of around $3.5 billion in 2020. Candles are not only a source of illumination but also serve as decorative and aromatic elements, contributing to the market’s steady growth (Source: Statista)

Learn More: How to Start a Candle-Making Business

#7. Candy/Chocolate Making

If you are passionate about cooking and love the flavor of chocolates, you can start this business from home. Entrepreneurs entering the candy/chocolate-making business should focus on crafting distinctive flavors, exploring creative shapes and textures, and considering health-conscious ingredients. Emphasizing premium quality, ethical sourcing, and attractive packaging contributes to brand appeal.

The global candy and chocolate market is sweetened by an estimated value of over $171 billion in 2020. As indulgent treats, candies and chocolates maintain a consistent demand globally, offering opportunities for growth and innovation (Source: Statista)

#8. Cotton Buds Manufacturing

Cotton buds are very useful household items. are short spindles with one or both ends coated with absorbent cotton padding. With a simple small machine, you can start a small business in the manufacturing of cotton buds. The cotton buds industry is observing a steady shift towards biodegradable materials and innovations in product design. Consumers also seek cotton buds with enhanced features such as safety and comfort.

The global cotton buds market is an essential segment of the personal care industry, valued at around $2.5 billion in 2020. As a hygiene product, cotton buds enjoy widespread usage, presenting opportunities for entrepreneurs in the manufacturing sector (Source: Statista)

#9. Detergent Powder Manufacturing

Almost 67% of the total production of synthetic detergent powders is produced in the small-scale sector has a very big production of soap and 50% of total production in the small sector.

The global detergent powder market is a substantial segment of the cleaning products industry, valued at approximately $22.6 billion in 2020. As an integral part of household cleaning, detergent powders maintain a consistent demand worldwide (Source: Grand View Research).

#10. Diaper Manufacturing Business

Who else better know the importance of diapers than a mom and dad for a newborn kid? The diaper is such a product that is needed all around the year. The cost of making diapers is also much less. You can make diapers and sell those wholesale.

The global detergent powder market is a substantial segment of the cleaning products industry, valued at approximately $22.6 billion in 2020. As an integral part of household cleaning, detergent powders maintain a consistent demand worldwide (Source: Grand View Research).

#11. Designer Bindi Making

Designer bindi is an essential beauty product for women. And there are various types of bindis available in the market. Designer bindi-making business is profitable. And any individual can start this business from home with little money.

#12. Microbrewery Business

Interested in tasting freshly brewed beer? Well, you transform that interest into a very good business idea. You can start your Microbrewery business which will characterize itself with an emphasis on quality, flavor, and brewing technique.

#13. Disposable Paper Plate Manufacturing

Disposable paper plates and saucers as the name suggests are made out of special quality paper reinforced with polyethylene sheets to make them leakproof. These products are convenient to use for serving eatables during family functions, eating chats and snacks, fruits, sweets, etc.

#14. Disposable Plastic Syringe Manufacturing

Disposable plastic syringe manufacturing is perfect for people who have years of experience in the medical product market. This type of disposable syringe generally comes with plastic material.

They are used in the fields of medical and veterinary science. They are used for intramuscular and intravenous injections and are disposed of immediately after usage.

#15. Exercise Book Manufacturing

An entrepreneur can initiate an exercise book manufacturing business with moderate capital investment.  Exercise book manufacturing with creative colorful covers and glossy lamination provides the product with attractive looks. You may design the covers at your unit or you can outsource raw materials.

#16. Fruit Pulp Manufacturing

The demand for fruit sauces like tomato sauce, chilly sauce, jam jelly, etc remains throughout the year. There are various methods of preservation of food including thermal processing, fermentation, pickling, dehydration, freezing, etc.

#17. Garment Manufacturing

Garment manufacturing business activity is vast. It includes the operations of purchasing fabrics from a textile producer and cutting and sewing them to make clothing materials.

Only after that, you can sell the finished garments. In establishing a successful garment manufacturing business, you will need to be careful in choosing products, purchasing equipment, establishing your company as a brand, and marketing your products.

#18. Ginger Oil Manufacturing

There is a large market for both fresh and dried ginger. The main application of ginger oil is in confectionery beverages and baked products. There is also a minor outlet for the perfumery industry.

The present demand for ginger oil is estimated at 517.68 tons per annum. The demand is expected to reach 4,212 tons by the year 2022. Ginger oil manufacturing is a good potential venture for startup entrepreneurs.

#19. Guar Gum Manufacturing

Guar gum, locally called guaran, is a galactomannan. It is the ground endosperm of guar beans. The guar seeds are dehusked, milled, and screened to obtain the guar gum. It is typically produced as a free-flowing, off-white powder. In addition, it is a natural food thickener, similar to locust bean gum, cornstarch, or tapioca flour.

#20. Ice Cream Manufacturing

Any individual can initiate an ice cream manufacturing business on a small-scale basis with moderate capital investment.

Ice cream is defined as a frozen dairy product made by suitable blending and processing of cream and other milk products together with sugar, flavor, stabilizer, and incorporation of air by agitating during the freezing process. Ice cream is consumed by all sections of society, particularly children.

#21. Iodized Salt Manufacturing

The manufacturing process of iodized salt is not very complex. Iodized salt is an ordinary common salt treated with potassium iodate 50 to induce the right quantity of Iodine in the diet to enhance the iodine deficiency in people. Salt was the name originally given to the residue left by the evaporation of seawater.

#22. Jam Jelly Making

Jam and jelly, both are very healthy foods. Additionally, the manufacturing operation demands a small place. Furthermore, you can start jam jelly making in your kitchen with your kitchen utensils. And as your business grows, you can scale up at any moment in time.

#23. Jeans Manufacturing

Jeans manufacturing or denim production business opportunity demands adequate knowledge about textile design and current trends. In addition, the business demands substantial capital investment.

However, with proper planning, you can start the jeans manufacturing project on a small-scale basis. Jeans nowadays are very popular apparel as casual or informal dress among men, women, and kids also.

#24. Jewelry Making

The global jewelry market, valued at over $300 billion, presents a diverse landscape of artistic expression and personal adornment. A jewelry-making business involves creating unique pieces ranging from handcrafted artisan jewelry to custom-designed pieces that resonate with individual tastes

#25. Jute Bag Manufacturing

Jute fiber is an eco-friendly item. And you can produce different types of bags with jute. Additionally, you can decorate those bags with embroidery, mirrorwork, or beads. You just need to have a good quality sewing machine.

#26. Leather Bag Manufacturing

Men and women both use leather bags nowadays. And the demand for good quality leather bags is increasing very fast.

Additionally, with some simple hand tools and equipment, you can start this business from home. However, you must procure good quality leather to produce good quality bags.

#27. Matchstick Making Business

Any individual can initiate a matchstick manufacturing business on a small-scale Basis. However, you must maintain the safety measures strictly.

Matchsticks are consumer products and the demand is growing day by day. An entrepreneur knowing channel distribution can start a matchstick manufacturing business with moderate capital investment.

#28. Micronutrient Fertilizer Manufacturing

The micronutrient manufacturing business involves an elaborate process of inventory management, production, packaging, and marketing. Entrepreneurs having knowledge of the chemical industry can initiate this business with reasonable capital investment.

#29. Mineral Water Manufacturing

Mineral Water Plant normally uses mountain spring water to produce Bottled Water. Whereas  Packaged Drinking Water Plant uses Groundwater through the borewell as the source of water. And then purify with several purification applications to produce packaged drinking water.

#30. Naphthalene Ball Making

Naphthalene Balls are very useful to prevent everything from being attacked by insects. They are extensively used as a household preservative for woolen clothes and as a deodorant tablet for toilets, urinals, bathrooms, etc. You can produce the balls from naphthalene flakes with tablet-making machinery having its ball-shaped die. This industry requires a little machinery and technical know-how.

#31. Noodles Manufacturing

This is another lucrative small-scale production business you can start with small capital. In addition, at any moment in time, you can scale up the business. Noodles are a very popular food item worldwide. However, you must procure space, machinery, and raw materials to start production.

#32. Packaging Box Making

One can start this venture whether he is living in a metro city or a suburban city area. Every small and big good after production needs a box for packaging.

In addition, every product-based company always looking for an attractive and durable packaging box. And it is the most important item to send the product to the end-users.

#33. Paper Carry Bags

Paper carry bags are common packaging materials. In addition, it is an essential item for many industries. The list includes textiles and cloth merchants, dry cleaners, bakers, grocers, stationers, sweet sellers, etc.

#34. Potato Powder Making

You can start potato powder making with a small investment. The location plays an important part in the success of this business. You need to select a location where you can easily procure the raw potato.

In addition, Kufri Chipsona, Kufri Jyoti, and Chandramukhi are the most suitable varieties for potato powder processing. The demand for potato powder is increasing. Because potato powder is an easy-to-use item for many food processing companies.

#35. Rubber Band Manufacturing

Rubber bands are very useful items. Sometimes we use rubber bands as hair bands. Sometimes we use the bands widely in agriculture, automobile, packaging industry, and newspaper industries. You can start this business at home with a small capital investment.

#36. Soap Making

You can start a soap-making business with some simple equipment at home. Homemade soaps have a great demand in the market. And the required raw materials are easily available in the market. Generally, there are two different types of soap-making processes you can opt for.

#37. Soybean Meat Manufacturing

Soybean Meat or Bari is delicious food. And the demand for this item is increasing very fast in Asia Pacific countries. The production process is simple. Additionally, you can start a business with low capital investment.

However, you will need to procure the machinery and raw materials to start production.

#38. Nail Polish Making

The global Nail Polish market is valued at 9190 million US$ in the year 2018. Industry pundits predict the volume is expected to reach 17600 million US$ by the end of 2025. If you are looking for a small manufacturing business in cosmetic items, nail polish is a product that should be considered seriously.

#39. Soya Sauce Manufacturing

Soya sauce is one of the world’s oldest condiments. In addition, it is an essential ingredient for making several delicious food items. However, you can start a soya sauce production business with a small budget. The production process is also simple.

#40. Tutti Frutti Manufacturing

Tutti frutti is a colorful confection containing variously chopped and candied fruits. The major ingredients for tutti frutti manufacturing are fruits and sugar. You can start the business on a small scale.

#41. Vermicompost Production

If gardening is your hobby, and you have a backyard, you can start this business. And compost fertilizer is considered organic manure. And the process of vermicompost production is simple. However, you must have some skills and experience in starting the business.

#42. Vinegar Manufacturing

Vinegar is a liquid consisting mainly of acetic acid (CH3COOH) and water. In addition, vinegar has a great variety of industrial, medical, and domestic uses. Vinegar manufacturing is a lucrative business opportunity for entrepreneurs.

#43. Woodworking

Woodworking is a comparatively easy business to start with a small startup capital investment. If you can initiate the business at home, then the only investment aspects are some hand tools and wood as raw materials.

Related: Woodworking Business Ideas from Home

# 44. Baking Powder Manufacturing

Baking Powder is a dry chemical leavening agent. Additionally, it is an important item in the food processing industry.

The production process is simple. Additionally, the unit demands simple machinery. With a small infrastructure and low investment, any individual can start a baking powder manufacturing business.

# 45. Disposable Plastic Cups

In this day and age, people increasingly don’t have the time to sit and sip a cup of coffee or tea. This is where disposable plastic cups are getting popular.  This is a great business opportunity because they have high potential returns.

The manufacturing process is simple.  It does not need much space or much capital to get you going. Also, you can sell the items in your local market.

#46. Small Scale Tannery

A Tannery is a hide and skin processing unit that produces quality finished leathers. Leather products manufacturing companies are the major consumers of finished leather. Needless to say, there is a tremendous opportunity for growth in the Tannery business.

#47. Toy Manufacturing

Toy manufacturing is an evergreen business. This is an all-season manufacturing business where the demand for products does not depend on seasonal changes.

#48. Kitchen Utensils Manufacturing

The demand for kitchen utensils exists all around the year. Items like frying pans, cutleries, and containers are needed in all kitchens. You can buy simple machinery to make these items with low investment.

#49. Crafts Making

If you have a creative mind and you enjoy crafting, then the crafts-making business is just perfect for you. The global crafts market is a vibrant and diverse sector. With a market size exceeding $40 billion, crafts encompass a vast spectrum, from DIY home decor to intricately handcrafted jewelry.

Related: Home-Based Crafts Making Business Opportunities

#50. Chalk Making

Chalks are widely used in schools. Additionally, these are essential items in the tailoring industry. Furthermore, the chalk-making process is very simple and any individual can start this business from home.

#51. Packaged Drinking Water Manufacturing

The demand for pure hygienic water is growing in most developing countries. Starting a small packaged drinking water plant is no longer a costly proposition. If you have some space and a good source of underground water, manufacturing mineral water can fetch you good returns.

If the investment is not a problem or if you have financial institutions ready to back you up, try a large-scale manufacturing business. This type of business is a big-ticket business that requires large investments but also has the potential for huge profits.

#52. Contract Farming

Farming has witnessed a sea change in recent years. The process of farming is becoming more and more mechanized. As a contract farm owner, you are supposed to have an agreement with many farmers and buy the product. It is seen that the average revenue of a contract farm is much more than a non-contract farm.

#53. Paper Bag Manufacturing

The demand for paper bags is expected to grow in the coming days due to the pollution hazards of plastic bags. Paper bag manufacturing needs low investment and can be started on a small scale.

#54. Electric Car Manufacturing

Big investors are nowadays very interested in investing in startups dealing with manufacturing electric vehicles. Experts are of this opinion. electric cars are going to be an inevitable phenomenon in the transport industry as the supply of fuel is bound to be scarce in the coming days.

#55. Manufacture Smartphones

Though the market is fiercely competitive, it is still a lucrative sector as the demand is huge. If you have something new to provide and have a sound financial backup, smartphone manufacturing still can be a hugely profitable venture.

#56. Toothpaste Manufacturing

There is a wide demand for low-cost affordable toothpaste all across the world, especially in suburban and rural areas. Additionally, the product is an FMCG product and the cost of starting is reasonable.

#57. Manufacture Ventilators

The demand for respiratory ventilators is on the rise. The supply is much less than the demand. Industry pundits predict the demand will remain in the coming years as respiratory diseases. Factors like virus outbreaks, overall pollution, lifestyle issues, or the aged population.

#58. Face Mask Manufacturing

The outbreak of coronavirus has facilitated the demand for face masks worldwide. Manufacturing face masks does not require much investment.

#59. Hand Sanitizer Manufacturing

Hand sanitizer is another product that has seen a huge increase in demand globally. This manufacturing business also does not require much investment to start and can be started on a small scale. Check our guide on how to start a hand sanitizer manufacturing business to know more.

#60. Furniture Making

Furniture making is an evergreen business. The demand for furniture items like chairs, tables, wardrobes, beds, cabinets, and desks is available throughout the year. The business of furniture manufacturing is one of the most popular and small-scale manufacturing businesses across the globe.

Frequently Asked Questions

What are some low-cost manufacturing business ideas for beginners?

Some of the top low-cost manufacturing business ideas are listed below:

  • Customized crafts or handmade products.
  • Small-scale food processing.
  • Clothing or fashion accessories.
  • Home or beauty products.

Is it necessary to have a background in manufacturing to start a business?

While experience can be beneficial, it’s not mandatory. However, learning through research, training, and networking is essential. Consider partnering with experienced individuals or hiring knowledgeable staff.

How can I finance my manufacturing business?

Some of the popular ways of funding a manufacturing startup are as follows:

  • Explore personal savings or family contributions.
  • Seek small business loans or grants.
  • Consider crowdfunding or angel investors.
  • Explore government-sponsored programs or incentives.

What are common challenges faced by manufacturing businesses?

Some of the major challenges of starting and running a manufacturing business are managing production costs, maintaining quality control standards. navigating regulatory compliance, and developing effective distribution and supply chain strategies.