Starting a jam jelly-making manufacturing business is a highly profitable food-processing business. This article includes how to start the business, the manufacturing process, machinery, raw materials, and startup cost.
Actually, jam and jelly are the most important food items in the food processing and FMCG industry. The products come under the preserves category. The manufacturing process is simple. Additionally, you can expand the business in several ways including area expansion or initiating a new product line. Even, you can start the business at home also. Also, the business is perfect for women entrepreneurs.
What is Jam Jelly?
Basically, the jam is a thick mixture of fruit, pectin, and sugar. Actually, it is a condiment and neither a solid nor a liquid. Also, thick enough that it spreads easily and can form a blob. Some of the most popular jams are mixed fruit, guava, mango, strawberry, pineapple, orange, apricot jam, etc.
On the other hand, jelly is a clear or translucent fruit spread or preserved. Generally, jelly contains clear fruit juice, sugar, and preservatives.
Is Jam Jelly Business Profitable?
Actually, there is already a good market for jam and jelly. And according to industry experts, the demand will grow in the near future. Some of the major reasons are the convenience of food supplement items and the preference for ready-to-eat products.
Additionally, multiple distribution channels, changing lifestyles and food preferences due to urbanization, and the popularity of versatile flavored food materials are the major factors for the growth. Europe and North America are the largest markets in terms of consumption.
Given the steady demand in Western European countries, the regional market is expected to have the largest market share. The developing regions of South America and Asia-Pacific are also expected to grow at a high CAGR.
Here are the 7 Steps to Start Jam Jelly Manufacturing Business
1. Create a Business Plan
In starting this manufacturing business, you must craft a business plan first. And for that, you must conduct a local market survey. Broadly, you will need to identify the specific types of jams and jellies that local people consume frequently. Additionally, identify the established companies in the market, their packaging, and their price. These all will help you in making decisions in your business. Your jam jelly making business plan must include
- Executive Summary
- Company and Financing Summary
- Products Overview
- Strategic Analysis including current research
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- Sample Private Placement Memorandum
- PowerPoint Presentation for Banks, Investors, or Grant Companies!
2. Arrange Finance
Even if you set up the business at home, you need finance. Generally, you will need to arrange both fixed capital and working capital. So, you must arrange the finance according to your business plan. Also, you must have the capital for marketing and product promotion purposes.
3. Registration & Licenses
Even if you initiate the home-based operation, you will need to register the business. Select a catchy and memorable name for your business. Also, check the licensing aspects in your state. Generally, the specific type of license requirement varies from state to state. As you are dealing with a food item, proper licensing is a must.
4. Setting Up Jam Jelly Manufacturing Unit
The manufacturing operation needs a specific space. If you want to establish a commercial unit, you must have a space for that. Otherwise, you can establish the unit at home also. In both cases, you will need the electricity and water supply. For a small unit, a 500 Sq Ft area is sufficient for operation.
Suggested Read: Best Small Scale Manufacturing Business Ideas
5. Jam Jelly Making Machine
Generally, this type of business doesn’t need any type of heavy or complicated machinery. And if you want to produce homemade products, then you can use your kitchen utensils also. However, for commercial operation, you will need to procure the following machinery.
- Juice extractor
- Filling machine
- Cap sealing machine
- Bottle washing machine
- Box Sealing machine
For a small-scale operation, establish the unit on a semi-automatic basis. Procure the machinery from a reliable and renowned supplier. Check the warranty period and AMC cost after the warranty period. Also, ask the company for on-site training.
6. Jam Jelly Making Process & Raw Materials
a) For Making Jam
First of all, wash the fresh fruits in water. After removing their skin, cut or slice them into small pieces. Then, boil the pieces with water. Mix the appropriate quantity of sugar with the pulp. When the temperature is around 60°C, add citric acid, color, essence, etc. This mixture is then stirred for a while, cooled, and then packed in bottles.
b) For Making Jelly
First of all, feed the washed and peeled fruits to the hopper of a juice extractor. Then filter the juice you obtain from there. Certain fruits like rosella or guava need to be boiled in water before extracting juice. Add the sugar to the juice and then boil this mixture to convert it into jelly form. Now, add the pectin, citric acid, color, etc. in the required quantity. Boiling is done till jelly-like formation is obtained. Finally, you can pack the jelly on cooling.
In the jam jelly-making business, the fruit is the major raw material you need. Additionally, you will need to procure Sugar, Pectin, additives, preservatives, mustard oil, salt, spices, etc. Also, you will need to arrange some packaging materials including Plastic Jars Pouches, Labels, Cardboard Boxes, and Adhesive Tapes.
7. Promote your Jam Jelly Making Business
You must promote the business according to your marketing plan. The marketing plan may include promotional campaigns like offering special discounts, referrals, advertisements, new product development, etc.
Also, you can consider packaging innovations and tie-up with buying houses. Generally, supermarkets, shopping malls, and departmental stores are the most specific locations for selling these items.
However, you must concentrate on establishing the distribution channel. Moreover, you must put your efforts into building a regional brand at least. Also, you can consider expanding the product line along with your jam jelly production business. You can produce pickles, marmalade, squash, and fruit juices from the same unit.
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