Freeze dried candy is the newest fad for making intensely flavored, long-lasting, extra-crunchy treats.
Not only is freeze dried candy a delicious modern snack, but it’s also a very interesting product with a viable capacity for bringing in sales.
Whether you’re looking for a profitable home-based side hustle or want to expand your food vending business, freeze dried candy may be the venture for you!
Today, I’m sharing a practical guide on how to start a freeze dried candy business, addressing key fundamentals and answering all the important questions.
What to Consider Before Going Into the Freeze Dried Candy Business
Freeze dried candy can be a great business opportunity thanks to the massive attraction tied to it. I mean, it’s trendy, has an exciting texture, and tastes good – all of which make it a huge hit among today’s average internet-using customers.
The curiosity surrounding freeze dried candy is steadily growing and doesn’t seem like it’s going to slow down any time soon, offering food entrepreneurs an eager market.
That said, if you’re interested in starting a freeze dried candy business, there are some aspects you need to think about before finalizing your decision.
Resources and Risks
First of all, you need to have enough money to invest in the project and make sure you can keep up with the time commitment. You also need to provide sufficient room for placing the equipment and for storage purposes.
Additionally, you should be prepared to accept the risks associated with setting up a new business.
For example, if your initial sales are below expectations, you’ll have to cover operation costs out of pocket for a while until sales pick up.
Laws and Regulations
You can’t overlook the legal side of the business even if it’s home-based. Verify that selling freeze dried candy is legal in your state and county before you start laying any groundwork.
Be sure to check if you need to register your freeze dried candy business as a legal brand/company. You may also need to obtain licenses or permits from certain authorities to guarantee a smooth operation.
Additionally, you must abide by the food safety standards set by regulatory organizations in your state. There may also be packaging and labeling requirements to consider, such as packaging material and label information.
Selling Point
A crucial part of your business plan is to determine the unique selling point of your product. This is what’s going to differentiate you from competitors and encourage customers to buy from you instead.
To do this effectively, start by analyzing the desires and preferences of your target market. What are the pain points that your freeze dried candy product can resolve? Are there missing features in current products that you can add to yours?
For example, you can make unexplored flavors of freeze dried candy, introduce vegan and gluten-free options, or use resealable packaging.
Consistent Quality
Last but not least, think about your ability to accommodate consistent production of high-quality freeze dried candy. Ask questions such as:
- Am I prepared to meet the demand?
- Am I working with reliable suppliers?
- Do I have an effective manufacturing plan to ensure my product comes out with the characteristics every time?
What Equipment and Supplies Do You Need To Make and Sell Freeze Dried Candy?
Now that you’re familiar with the main considerations of starting a freeze dried candy business, you’re probably wondering about the basic tools required for setting it up.
A freeze dryer and a vacuum pump should be on top of your list of items to secure.
Luckily, you won’t have to search for each one separately as they’re typically sold as a unit. Harvest Right is the leading manufacturer of such equipment in the United States.
Besides a freeze dryer and a vacuum pump, you’ll need trays, parchment paper, and either materials for homemade candy or ready-made candy.
How Much Are Freeze Dried Candy Machines?
A freeze dried candy business is built upon the machines used to make this type of candy. As I explained above, you need a freeze dryer equipped with a vacuum pump.
To accurately calculate the expenses of launching this business, you must factor in the cost of the machines. I already mentioned that Harvest Right is the biggest manufacturer in the freeze dryer US market, so I’ll be using this brand’s prices as a reference.
Buying a freeze dryer is going to set you back between $2,000 and $7,000. As you can tell, it’s a pretty hefty investment.
The exact price depends on the size of the freeze dryer and the type of vacuum you pair it with. You might be able to find used freeze dryers at a reduced cost on websites like eBay and Facebook Marketplace.
How Much Does It Cost To Make Freeze Dried Candy?
This is a common question among those thinking of starting a freeze dried candy business. While it’s justifiable, it’s also tricky to answer.
Figuring out the cost of making freeze dried candy comes down to calculating the money spent throughout the entire production process. This means you need to factor in other expenses than buying a freeze dryer and vacuum pump ($2,000 up to $7,000).
You need to account for the electricity needed to run the machines: An average cycle for a candy batch in a home freeze dryer is 4 hours long, pulling around 1 kWh (kilowatt hour) per hour.
Prices of electricity vary from one state to another, so if you consider the lowest and highest cost states (Idaho and Massachusetts respectively), a batch would cost between 40 cents to $1 and 14 cents.
Additionally, there’s the cost of the candy, whether you’re getting ready-made quantities or buying materials for homemade candy. Also, don’t forget to add up the spending related to packaging (material, number, printing, etc.)
How Profitable Is Freeze Dried Candy?
Selling freeze dried candy can be quite profitable if your prices are appropriate and you manage the operation efficiently to bring in customers regularly.
To calculate your profit margin, you’ll need to find the difference between how much it costs you to produce each bag of freeze dried candy and how much you’re charging per bag.
Generally, you can expect a profit margin of at least 50%. Not only does this business idea have an excellent projection investment-wise, but it also has great potential for scaling later on.
How Much Money Can You Make Selling Freeze Dried Candy?
While the profitability of selling freeze dried candy is established as high, the amount of money you can expect to make from this business depends on various factors including the production costs, the pricing, and the sale volume.
This means you can end up making anything between a few hundred bucks to several thousand dollars or even more.
It’s key, however, to practice efficient financial management to ensure a revenue as high as possible. This includes budgeting resources, monitoring cash flow, and tracking inventory.
Do You Need a License To Sell Freeze Dried Candy?
I mentioned above that you need to verify whether or not it’s legal to sell freeze dried candy in your state and county before you get started on business planning.
To do so, you’ll have to check the cottage food law in your state. Thanks to these regulations, you don’t need to obtain a commercial license to produce and sell low-risk foods such as baked goods.
Freeze-dried candy made at home or as part of a small business should fall under cottage food law. But because the market is pretty young, not many states have directly addressed such products.
You can research the legality of the business and the required licenses by accessing your state’s official website and browsing sections related to starting a food business.
How Much To Sell Freeze Dried Candy For
Setting an appropriate price for your freeze dried candy is crucial to the profitability of your business.
First, you need to calculate the total production cost of your freeze dried candy then figure out how much each bag costs. After that, you’ll determine the price by adding a profit margin that you consider satisfactory.
Taking a general look at the homemade freeze dried candy market, I can say that the typical price of an ounce ranges between $3 to $5.
Where to Sell Freeze Dried Candy
It’s not difficult to find outlets with sales opportunities, especially with online shopping being an integral part of our daily lives.
In fact, your biggest market can be found online. You can sell your freeze dried candy via Etsy and similar marketplaces or through a website dedicated to your business.
In the non-virtual world, you can sell freeze dried candy at farmers markets as well as booths at festivals or fairs. You can also sell to other businesses or retailers, at a mall kiosk, or your own store.
What Do I Need To Do To Sell Freeze Dried Candy?
To sell freeze dried candy, you need to follow the following steps to make sure you have a sound business foundation:
- Conduct thorough market research
- Check your state’s legal position
- Create a business plan outlining each stage of production along with the costs and profitability
- Develop your brand identity
- Invest in a freeze dryer and vacuum pump
- Experiment with the process and the flavors until you establish a recipe
- Generate a marketing strategy
- Keep improving your operation
Final Thoughts
The secret sauce to starting a freeze dried candy business is careful planning. The market is new, the demand is high, and the margins are remarkable, so all you need is a solid scheme and you’re in for a lucrative venture!
Sarah is the founder of Baking Kneads, LLC, a blog sharing guides, tips, and recipes for those learning how to bake. Growing up as the daughter of a baker, she spent much of her childhood learning the basics in a local bakery.