Do you want to start a business in the food processing industry? Are you searching for profitable food business ideas? Find here a list of best and easy to start business ideas in the food and agro-processing segment.
In India, the food sector has high growth and profit potential. Also, you can find a lot of opportunities here. The Indian food and grocery market is the world’s sixth-largest in terms of volume. And the food processing industry accounts for 32% of the country’s total food market.
Initiating a food business is easy to start. And as the population density is high in our country, you will find always a market for your product. Also, financial institutions including banks provide different types of loans and subsidies to food entrepreneurs.
List of 57 Food Processing Business Ideas with Small Capital
Bakery is one of the most profitable food processing business opportunities in India. One can initiate by having own or rented space. Selecting the right product and proper marketing strategy are the major deciding factor in getting success in the bakery business. According to the demand and financial aspect you will need to choose the specific products for your bakery business. Read More…
2. Banana Wafer Making
Banana wafers are under-ripe bananas that are cut into slices dipped in syrup solution, dried under the sun or by the oven, fried, and eaten as snack food or dessert. These can be sold both in the local and export markets. You can initiate this business on a small-scale basis. Read More…
3. Beaten Rice Manufacturing
The beaten rice manufacturing is comparatively an easy business to start in the suburban, small towns, or village areas. It needs small capital investment towards infrastructure and machinery. The raw material is also available locally. Read More…
4. Biscuit Making
The Biscuit-making business is very lucrative. You can initiate the business on a small-scale basis. Biscuit making is a conventional activity and an entrepreneur can initiate this business with low startup capital also. Despite the advent of modern, large capacity and automatic biscuit making plants, a large section of people still prefers fresh biscuits from the local bakery as they are cheap and offer many varieties. Read More…
5. Bread Production
Quality bread provides fiber and carbohydrates in a convenient, low-fat form that is portable and delicious. Good bread never goes out of style. The bread production industry has several diversified opportunities. Fresh quality bread is always in demand for both urban and suburban areas. The bread production process is also not complex.
6. Cashew Nut Processing
The manufacturing activities involve in cashew nut processing are cell cooking, cutting, cashew kernel drying, peeling, grading, and packing. Cashew nut processing can be initiated on a small scale and also as an export-oriented plant. Simple machinery is required. Read More…
7. Cheesecake Making
Ingredients required for cheesecakes production are cheese, sugar, strawberries, wheat flour, egg, maize, vegetable oil, starch, salt, preservative, color, and essence. Cheesecake is also very versatile. It works well with a wide variety of flavors ranging from lemon and chocolate to pumpkin. Cheesecake-making business can be started on a small-scale basis.
8. Chocolate Making
The production process of chocolate may vary according to the different qualities of chocolate. Also according to the availability of raw material you can decide the taste and ingredients for chocolate production. Chocolate making is one of the most profitable food processing businesses.
9. Coconut Milk Powder Production
Coconut milk powder has a good market potential not only in India but also in various other countries. Actually, the coconut milk powder has the advantage of long shelf life, fewer storage places required, and lower cost of bulk packing. Coconut milk powder is one of the most trending food processing business opportunities for new entrepreneurs.
10. Coconut Oil Manufacturing
Coconut oil is used as an important cooking medium. Apart from this coconut oil has various industrial applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oils, cosmetics, etc. Location is one of the most important factors in starting coconut oil manufacturing.
India is the highest producer of coconuts in the world. The total cultivated area is over 1.94 million hectares. Around 90% of the coconut growing area is situated in the four southern states of India, with Kerala occupying about 50% of the coconut cultivated area in India. The location of your manufacturing unit should be nearby the area where raw materials can be procured easily.
11. Condensed Milk Production
Sweetens condensed milk has a good market opportunity both in the domestic and export sectors. The only main raw material is good quality milk. condensed milk production is one of the most profitable food processing businesses any individual can initiate with substantial capital investment.
12. Custard Powder Production
In starting custard powder production, required raw materials are corn flour, arrowroot starch, food colors, and essence. The easy availability of raw materials made this business lucrative and profitable. A small-scale unit can also be established with some simple machinery. Custard powder is one of the popular food considered as dessert.
13. Dalia Production
The increasing demand for nutritional and ready-to-eat food has increased the market potential of Dalia. Dalia manufacturing business can be initiated on a small-scale basis with simple machinery. The production process is simple. Dalia production does not imply major licensing issues.
14. Dal Milling
Dal milling is actually the processing of different pulses. According to the availability of raw material, you can select different various products. Commonly two types of conventional processing methods are used. Such as wet milling and dry milling. Dal milling is capital intensive and energy sapping in nature. Read More…
15. Energy Drink Production
Energy drink is a very popular option nowadays to relieve stress. Currently, energy drink production is one of the most profitable and trending food processing businesses. Initiating an energy drink manufacturing business is cost-intensive and requires a strong product promotion strategy.
16. Flour Production
Flour is produced by milling food grains. different varieties types of flour are used to prepare different foods. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour, etc. The production process is simple. This business can be initiated on a small-scale basis with simple machinery.
17. French Fry Making
Good quality potatoes are generally used to make french fry. French fries are becoming very popular in the Indian market. Apart from the domestic demand, the product has an export opportunity also. French fry-making business can be initiated on a small-scale basis. Need to pay attention to packaging.
18. Fruit Juice production
Fruit juice is one of the ready-to-serve items. Another popular product is squash. These are very popular throughout the year, especially in summer. The fruit juice production business can be initiated on a small-scale basis. The product should be selected according to the availability of raw materials.
19. Ginger Garlic Paste Processing
Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also serves as a carminative and gastric stimulant in many medicinal preparations. As instant mixes and spices are becoming more popular the demand for ginger garlic paste is also increasing. The production process is simple and the product has an immense market opportunity for export also. Read More…
20. Ginger Oil Production
The main application of ginger oil is confectionery beverages and baked products. India is the largest producer of ginger. Ginger oil production is one of the most profitable food processing businesses that can be started on a small-scale basis also.
21. Grape Wine Making
Grape winemaking is actually fermenting the grape juice. The major raw material required for the processing and making of grape wine is grapes. Grape wine making is capital intensive and it requires proper operational and marketing strategy.
22. Groundnut Oil Processing
Groundnut oil processing is one of the most profitable food processing businesses considering the required capital investment. The oil that is obtained from groundnuts/peanuts is very healthy and suitable for the best human consumption. The manufacturing unit can be established on a small-scale basis. Read More…
23. Hing Making | Compound Asafoetida
Hing is used in India in culinary preparations for flavoring purposes. Pure asafoetida is generally not preferred for use in view of the high concentration. It is, therefore, sold in compounded form. Hing has a good market potential not only in the domestic market but also in the export market. The main raw material is generally imported from Afghanistan or Iran.
24. Honey Processing
Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit in two ways. Either by the manual system or by electrically driven. The production process is simple. Additionally, you can initiate the business on a small-scale and home-based basis.
25. Ice Block Manufacturing
Ice block-making businesses can be established on a small-scale basis. Actually, ice blocks are essential for the transportation and preservation of fish. According to the local demand for ice blocks, the unit should be established as far as production output is concerned.
26. Ice Cream Cone Making
Any individual can initiate the ice cream cone-making business on a home-based and small-scale basis. Ice cream cones of many varieties flavors and in different forms are served around the year and demand is going up year after year. The most popular mode of serving is in cones as it is neat & clean, easy to store and there is no disposal need. With the continuous increase in the sale of ice-creams, demand for cones is increasing. Read More…
27. Ice Cream Making
You can start an ice cream-making business on a small-scale basis with low startup capital investment. Ice cream making is a wonderful small business idea that any individual can explore to make handsome money out of it.
Basically, ice cream is a frozen blend of a sweetened cream mixture and air, with added flavorings. A wide variety of ingredients are allowed in ice cream, but the minimum amounts of milk fat, milk solids (protein + lactose + minerals), and air should be maintained in ice cream making. Read More…
28. Iodized Salt Production
Iodized salt is a white crystalline powder salt fortified by Iodine. Iodine deficiency disorder can be easily avoided by consuming a sufficient amount of salt fortified with Iodine. Iodized Salt consumption is directly related to population growth. You can start an iodized salt production business on a small-scale basis also. Read More…
29. Jackfruit Processing
The primary economic product of jackfruits is the fruit. People consume it both when immature and when they mature. However, you can’t keep the sweet pulp of the fruit for a long time because of its highly perishable nature. Hence, every year there a huge post-harvest loss occurs during the peak time. Read More…
30. Jam Jelly Making
Jam jelly-making business is profitable and can be initiated on a small scale with low capital investment. With proper planning and strategy, jam jelly-making business can be initiated home-based also. Different allowances and grants from the Government sector are also available.
Most kinds of fruit and some vegetables are used to make a wide variety of jam and jelly. Fruit jam contains rich fruit pulp and is available in mango, apple, mixed fruit, pineapple, and orange flavors. Jelly is a clear, bright mixture made from fruit juice, sugar, and sometimes pectin. Jelly and jam are used as the bread spread and as a filling for some cakes and cookies. Read More…
31. Lemonade Making
Lemonade is actually a lemon-flavored very popular soft drink. You need the principal raw materials like sugar, citric acid, flavor & essence, food color, and sodium benzoate. Lemonade making is a capital and management-intensive business. Read More…
32. Fruit Bar Making
Mango, pineapple fruit bars are very popular. You must initiate the unit according to the availability of raw materials. The fruit bar-making process is simple. You can initiate a small-scale unit by installing simple machinery as home-based also.
33. Fruit Juice Production
Starting a fruit juice production company is a profitable and lucrative venture. However, the business demands careful planning and substantial capital investment. Fresh fruit juice is a popular item in the beverage industry compared to other packaged drinks. Read More…
34. Meat Processing
Meat processing technology comprises the steps and procedures in the manufacture of processed meat products. All processed meat products have been in one way or physically and/or chemically treated. Meat processing is capital intensive. However, you need a proper distribution and marketing strategy before initiating.
Microbreweries produce a small amount of craft beer than large-scale corporate breweries and are independently owned. The market of microbreweries is immensely developing. However, you need different licenses and permissions in initiating the microbrewery business.
Learn More: How to Start a Profitable Microbrewery Business
36. Noodles Making
Generally, two types of noodles are popular. One is normal and the other is instant. The process is quite simple and requires not much-skilled labor. The boom in the foodservice sector including the fast-food chain has widened the demand potential for Noodles. Read More…
37. Packaged Drinking Water Production
Increasing awareness of health and scarcity of getting pure drinking water have made an immense market demand for packaged drinking water. Nowadays people prefer to have packaged drinking water not only outside but also in-house. In initiating packaged drinking water business, it is important to check the PH balance of water where you want to establish the unit.
38. Palm Oil Processing
The main raw material is palm fruits. Palm oil is used as edible oil. Apart from that, there is a demand for commercial industrial use. Palm oil processing is profitable and capital intensive. All types of palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.
39. Paneer & Cheese Production
Basically, cheese and paneer are value-added dairy items. Basically, paneer is fresh cheese. It is also known as cottage cheese. Actually, paneer is an unaged, acid-set, non-melting farmer cheese or curd cheese. However, packaged paneer ensure good quality and longer shelf life than loose paneer. Read More…
40. Papad Making
Any individual can initiate the papad-making business on a small-scale and home-based basis also. Papad making is one of the most profitable food processing businesses considering the low startup capital investment. Papad is a thin wafer-like product and served as fried or roasted. Read More…
41. Pasta Making
The artificial drying process allows the pasta to be produced at an industrial level and therefore to be distributed. The drying process is the final main step of industrial pasta production, and it is fundamental to greatly prolong the shelf life of the product. The manufacturing process is not complex and the demand is increasing.
42. Pickles Making
Pickles are the most popular items in Indian recipes. Besides, the domestic market pickles have an export potential also. Actually, you can produce different types of quality pickles. However, you must select the product according to the availability of the raw materials. The production process is simple. And you need simple machinery and equipment.
43. Potato Chips Making
Sliced, thin, and fried potato chips are very popular ready-to-eat snacks item. Potato is one of the easily available vegetables also. The potato chips making process is simple and involved simple machinery. Additionally, you can initiate the potato chips making business on a small-scale basis also. With the ongoing growth of the population and rising urbanization, particularly among young people, packaged food such as packaged potato chips have very bright growth prospects. Read More…
44. Potato Powder Making
Potato powder is increasingly being used in a variety of food preparations like snack foods, soups, curries, and other dishes as a thickening agent. However, potato powder manufacturing is capital intensive. In this business, you will need to obtain FPO and Pollution Control Board permission to run the unit.
45. Rice Bran oil Production
The Commerce Ministry recently allowed bulk exports of rice bran oil and removed quantitative restrictions on outbound shipments of organic edible oils. Rice bran oil is a premium edible oil with limited consumption in India. Rice bran oil production is capital intensive. However, you must establish an export-oriented unit to get much better profitability.
46. Rice Mill
India is the second-largest producer of paddy in the world. Rice is the staple food of the majority population. The mini rice mill consists of a paddy cleaner, sheller, separator, and polisher. Mini rice mill is one of the most profitable food processing businesses.
47. Scented Supari Making
Basically, supari is a mouth freshener. People in all age groups chew supari on the regular basis. However, raw supari is not a consumable item. It requires proper processing and packaging to make it human consumable. Read More…
48. Soya chunks Processing
First of all, any individual can initiate the soya chunks processing on a small-scale basis. The major raw materials are soybean meals and peanut meals. The Soya chunks production process involves milling, mixing, extruding, and cutting. This is one of the most profitable food processing businesses one can start with moderate capital investment.
49. Soy Sauce Production
The major raw materials, that are needed for soy sauce production are soybeans, wheat, and salt. Also, you can obtain different types of manufacturing processes to produce different types of soy sauce. You can start soy sauce production on a small-scale basis also.
50. Spice Powder Making
Spice grinding and packaging is one of the most profitable food processing business ideas in India. Also, you can initiate the business on a small and medium scale. Spice is an essential item and is considered as the tastemaker. Apart from individual spice powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala, etc. Read More…
51. Sugar Candy Manufacturing
Sugar candy is generally considered hard-boiled sugar confectionery. There are so many popular flavors for sugar candy like orange, pineapple, mango, mint, strawberry, etc. Sugar candy manufacturing is one of the most popular food processing business ideas.
52. Sunflower Oil Processing
For sunflower oil processing the main raw material is sunflower seed. Refine sunflower oil goes through the long way of purification. It consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization, and nitriding. Sunflower oil processing is capital intensive and profitable food processing business. Read More…
53. Tamarind Paste Making
Tamarind paste has many culinary uses including a flavoring for chutneys, curries, and the traditional sharbat syrup drink. The tamarind sweet chutney is popular in India and Pakistan as a dressing for many snacks. Basically, the tamarind pulp contains 20% moisture, 6% fiber, and 67 % carbohydrates. Read More…
54. Tomato Processing
Tomato is a widely available item and processed tomato products are also very popular. The most popular products are tomato sauce, puree, juice, ketchup, etc. In initiating tomato processing you can also produce tomato pulp for other small-scale industries. The production process is not complex. Only you need simple machinery and equipment.
55. Tutti Frutti Making
Tutti frutti is a concentrated processed food product. Basically, you can produce it from raw papaya with attractive color, sugar, and preservative. Additionally, several other food processing industries like cake, bakery bread, etc. use this product regularly. The product has also a very good retail opportunity. Read More…
56. Vermicelli Production
Basically, vermicelli is a pasta product. Also, it is popular as spaghetti. And the people in the Indian subcontinent consume it in different cooked food items. Some of the major popular recipes are Upma, khichadi, payasam barfis, halwa, Puliyogare, Curd Samia, etc. Read More…
57. Vinegar Manufacturing
Vinegar is a good preservative. Generally, it contains 5% acetic acid. Compliances under the FPO and PFA Act are mandatory for vinegar manufacturing. Commercial-scale vinegar manufacturing requires sound technical knowledge.