How to Start Jam jelly making business – Investment, Profit | StartupYo

How to Start Jam jelly making business

Overview

Making a shortcake sweeter or a boring toasted bread delightful to eat or even stocking up on them in your fanny pack while you plan for an extensive road trip. Jams and jellies have been a feast for everyone as kids and even now as adults when you are to lazy to make yourself a meal.

With the added nutrional value in these and claims which justifies its manufacturing from farm fresh and organic fruits in this era of growing diversions towards healthy and nutritious eating, jams have increasingly managed to capture a huge market share and maintain its space in the shelf of every house

On the other hand talking about jellies, those fruit flavoured gelatine bites which still drive the kids crazy because of it’s irreplaceable properties unlike in those chocolate munches and bars.

The Indian sweet spread market including jams and jellies was pegged more than $211 million in the year 2016 and is expected to reach a high of $527 million by 2022.

Does look like a sweet and juicy manufacturing opportunity, doesn’t it? Let’s dig in

Market potential and uses

Beginning with the most important distinction to clarify I.e between jellies and jams

JAMS	JELLIES
Jams contain the fruit pulp	Jellies on the other hand have the juice form of fruit
It refers to the product made with whole fruits cut in to prices and crushed	These are the only made of firm fruit juice
Jams cannot hold themselves because of its gelled texture	Jellies are fully capable of holding themselves in one place in distinctive shapes
Jams can be accompanied with food and desserts	Jellies can be accompanied individually, with desserts, food as well

The market potential for jams and jellies is increasing at an increasing rate.

For jams because of its long shelf life, nutrition of fruits and because it provides a ready to make food option.

For jellies because of the fact that these are fruit juice based, make a filling snack, has low calories and has properties unlike other candies, chocolates etc

Their market potential for these products can be further defined on the following bases :

On the basis of flavours of jams

Strawberry
Marmalade
Blackberry
Raspberry
Blueberry
Mixed fruit

On the basis of uses on jam

Used for mixing in cocktails
Used for making toasts
Used as a topping for creamy desserts
Making shortcake
Used as a topping for pancakes

On the basis of flavours of jellies

Grape
Blackberry
Blueberry
Raspberry
Strawberry
Apricot
Cherry

On the basis of uses of jellies

Used for making yogurt
Used in oatmeal
Used as a dressing for biscuits

Licenses required

The licenses required to run the jams jellies making business is

FMCG registration and certificate
Trade licence
MSME registration
GST registration
NOC by the state pollution control board

Also read :

Investment required

The investment required to run a jam jelly making business is ₹10 lakh-₹20 lakh

Profits made

The profits made from this business is ₹3 lakh per month

Target consumers

The target consumers for this jam jelly making business are

Cafés: The cafés are a target market because they require jams and jellies as stuffings for croissants, buns as well as dips

Restaurants: Restaurants require jams and jellies for the purpose of preparing breakfast meals they’ve to offer to the customers with breads, sandwiches, pancakes, pies etc

Grocery stores: Grocery stores stock up on sachets, packets, jars, bottles of jams and jellies to meet the requirements of the working class as well as kids who require a wholesome yet ready to eat meal for breakfast

Supermarkets: The supermarkets also stock up on various flavours of jams and jellies to meet the various requirements of every consumer niche

Canteens: The canteens of colleges, schools, commercial offices also require jams to meet their sweet spread needs

Online grocery stores: The online grocery stores like big basket, Amazon grocery, grofers etc also require the jams and jellies manufactures under your brand to provide their customers with variety in flavours, manufacturing processes, fruits, packaging, shelf life etc

Area required

The area required to set up this jam jelly making business are is 1000 sq ft

Raw materials required

The raw material involved in setting up this business is

Fruits
Sugar
Pectin
Additives
Preservatives
Gelatine
Jars: plastic, glass, fibre
Labels
Cardboard boxes

Jam making process

Washing, peeling, slicing
Boiling
Mixing of sugar with pulp
Cooling
Packing

Jelly making process

Washing, peeling of fruits
Addition of sugar in fruits
Boiling
Cooling and packaging

Machinery required

The machinery required to get started with this jam jelly making business is

Pulled machine
Juice extractor
Mixer/grinder
Slicing machine
Steam jacketed kettle
Baby boiler
Bottle washing and filling
Stirrers, gloves etc

Manpower required

The manpower required to run this business are as follows

1-health inspection supervisor
2-skilled workers
3-unskilled workers

Moreover ample training to these workers in terms of the following must also be provided with

Equipment handling
Machine usage
Safety and precautions

Business model and growth

The business model of a jam jelly making business can be defined using these 4 variants

Value proposition: The value which these jam jelly making business is likely to provide to you is:

These products are of a routine consumption and have a wide range in terms of flavours, packaging and shelf life meeting the large demand of every consumer

These products are also a part of an essentials purchase of the majority of consumers so the supply remains unaffected by all the possible phenomenons

Target consumers: Tye target consumers for this business are as follows:

Restaurants
Cafés
Canteens
Groceries
Supermarkets

Competitor review : The competition to your jam jelly making business is as follows

Kisaan
Splitz
Natureland
Pep and pure
Pursuit industries

Marketing strategy

The marketing strategy that can be implemented by your jam jelly making business could be

Advertising: Through tv commercials, brand ambassadors, brand endorsements, tie ups

Print media: Blogs, articles justifying your natural manufacturing processes without any preservatives added etc

Growth

The jam jelly making business has the potential and has witnessed the following growth prospects

The Indian sweet spread market is expected to grow at a CAGR of 16%

This market is likely to be worth a high of $527 million by the end of the FY

Profit margin

He profit margin which a jams jelly making business is likely to provide to you is 30%

Suggestions

While you spread out that fresh jam on your bread well spread out the reasons for you to take up this opportunity

Firstly, because of trends in manufacturing low calories, no added preservatives and organic jams and jellies the market for this is vast because of the growing health awareness among consumers

Secondly the manufacturing process of making jams and jellies is minimal and has a vast distributor network

Lastly, the demand for the jams and jellies under your brand could also cater to the foreign demand because of the flavour and fruits made available by you