In this piece, we will take a look at the five most profitable food businesses in the world. If you want to understand the dynamics of entrepreneurship, learn about some of the biggest food companies in the world, and a unicorn that is challenging the status quo, be sure to check out 20 Most Profitable Food Businesses in the World.
5. Chocolate Making
Profit Margin Estimate: 15%
Chocolate making is one of the biggest industries in the world. Confectionery giants such as Nestle and The Hershey Company (NYSE:HSY) have built up multi million dollar businesses by selling the delicious products. At the same time, while generally, chocolate making has a 15% profit margin, specialty and boutique chocolate makers can see this figure jump to as high as a whopping 40%, and store owners can enjoy 20% margins.
4. Chicken Poultry
Profit Margin Estimate: 17%
The growth in chicken and poultry farming has been one of the biggest contributors to modern day progress. Chicken provides a healthy source of protein and can be farmed on a large scale. At the same time, the meat is quite cheap when compared to other animal based protein alternatives such as mutton and beef. However, chicken farming is a quite complex business, and it requires setting up facilities to breed the animals, feed them, and if the business model allows, then slaughter them as well.
3. Popcorn
Profit Margin Estimate: 22%
If you’ve ever been to the movies, you’ll know how expensive popcorn can get. Popcorn is a popular food, and is consumed not only in the cinema but also at parks, fairs, or whenever the mood is right. Startup costs for a popcorn business are quite low as well, with some estimating that it can cost $7,000 to get things going, Additionally, unlike say farming chickens, it can be sold from home as well – significantly reducing capital set up costs.
2. Homemade Condiments
Profit Margin Estimate: 25%
Homemade condiments can include as many products as the chef is willing to make. The popularity of this business is amplified by the fact that smaller entrants can actually gain an advantage over larger firms such as The Kraft Heinz Company (NASDAQ:KHC). This is because these firms have to operate on a scale to recover their capital expenditure. This limits them to only producing well known and mass producible products. On the flip side, homemade condiments can carry their own flavor and customizations – which the bigger firms cannot replicate due to scale constraints.
1. Honey Products
Profit Margin Estimate: 30%
Honey is one of the healthiest foods in the world. It is also one of the most long lasting, with honey from the tombs of the Egyptian pharaohs still fit for consumption. Filled with antioxidants and having a lower glycemic index than sugar, honey is always in demand. However, just like poultry, making honey requires training or specialized beekeepers to ensure that quality and quantity are not affected.
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