7 Steps to Start a Food & Beverage Business
Starting a successful food and beverage business can be challenging but once you get a grip on it and understand the model how it works things will work for you. The food and beverage industry is one of the fastest-growing and most successful sectors in the world, as food is a basic necessity for humans. Consequently, the industry shows no signs of decline, as consumer demand continues to rise every year. It consists of frozen, canned food to the speciality ones along with alcoholic drinks to the non alcoholic ones including functional beverages.
If you are seeking an answer to how to start a food and drink business online, then keep reading this comprehensive and effective blog, which answers all your queries effectively.
Food and Beverage Market Size
The food and beverage industry has seen considerable growth in recent years. The Business Research Company has mentioned statistics that indicate the revenue generated in 2024 was $6,695 billion USD. By the end of 2025, it is expected to become a 7042 billion USD industry with a CAGR of 5.2%. By 2029, the market is expected to grow at a 5.7% CAGR, making it an 8,783 billion USD industry.
Innovative technology like mobile phones, online shopping modes, and advanced technology used in food and beverage production and processing plays a vital role in the success of the industry. Knowing the size of the food and beverage market will enable you to predict the industry's future.
How to Start a Food and Beverage Business (Steps)
To start a food and beverage industry, you need to follow certain steps to make the business profitable. Below are the steps that will help you keep the business running in the long run.
1. Research Your Market and Niche
To start any business, you need to do proper research on it to understand how the market works, what products are in trend in that specific market, and many more. For food and beverage business you need to do the same. Have an in-depth research on the market, on what business models this industry works, who are main target customers you will be encountering in this product market, what are their preferences when buying food and beverage items in bulk, who are your competitors, their business model, grey areas in their business that you can work on and present it as your business’s strength.
Explore the types of products that come under the food and beverage niche. You can sell frozen and canned food products (plant-based and meat-based) or opt for fresh products, such as vegetables, fruits, and seafood. When it comes to beverages, you can decide between non alcoholic drinks like energy drinks, sodas, coffee, tea, protein shakes, herbal drinks, along with alcoholic drinks that include beer, wine, cocktails, etc. once you decide the niche you are going to invest in, move on to the next step that is having a solid business plan to execute.
2. Come Up With A Solid Business Plan
Having a solid business plan plays a crucial role in the success of your food and beverage business. What are your business goals and objectives you want to achieve, mention that in it. How are you going to run your business, sales channel you are going to use, how much investment you will make initially, what would be the profit margins, how much will you spend on marketing, plan for scaling business, etc everything from branding, marketing, investing, aiming and achieving comes under your business plan it acts as a pathway towards success and answer all the queries that you might encounter at any point in the business.
3. Take Care of Licenses, Permits, and Legal Requirements
To start any business you need to take care of the licenses, permits and legal requirements for smooth running of the business. Check out the international and local permits and licenses that you need to have in order to start a food and beverage business. Mandatory licenses are (HACCP, FDA, ISO). Having these certificates will increase the authenticity of your business and build brand trust among buyers.
4. Find Reliable Suppliers and Manufacturers
To source premium-quality food and beverage items, you need to connect with experienced suppliers and manufacturers, and you can find such professionals more easily on various online b2b trading platforms.
Tradewheel.com is the leading online B2B marketplace where you can have access to a list of hundreds of wholesale suppliers and manufacturers of the food and beverage industry. The platform is easy to use and is equipped with all the right tools that make trading easy, fast, and affordable for everyone. You can find various trending frozen food products, ranging from plant-based to meat-based options, as well as fish, all available on the website at wholesale prices.
Global Sources is one of the renowned and oldest online B2B trading platforms. Verified suppliers of food and beverages enable you to source premium quality products at reasonable prices. You can inquire about shipping details, payment methods, product quality, and quantity directly from manufacturers through this marketplace without any hassle.
Another B2B spot is Alibaba, a well-known online trading platform known for its positive global reputation and trade assurance certification. You can reach out to millions of manufacturers here and source food and beverage products in bulk quantities at wholesale prices, saving on the per-unit cost of each product.
5. Set Up Production and Operations
Setting up production is important, especially for the food business. You can choose between an in-house kitchen, a cloud kitchen, co-manufacturing, or dropshipping. In this way, you do not need to have a production facility, and all the product sourcing to shipping will be the responsibility of the suppliers you have partnered up with. If you are manufacturing on your own or selling under your brand name, ensure that the packaging, labeling, and shelf life of the products are mentioned or have been taken care of in the best way possible, as they play a vital role in your business growth, especially when it comes to food and beverages.
6. Build Your Brand and Marketing Strategy
A strong brand identity consists of attractive logos, packaging designs, and the ability to convey a clear message. Connect with reliable logo designs and build your brand logo carefully, using a well-thought-out name that is easy to remember and aligns with what your business is about. Use online and offline marketing strategies like SEO, Social media, online apps, pop-up events, sampling, and email marketing. You can also use influencer marketing in this digital and online world, where customers trust food bloggers and rely on their reviews before purchasing any product.
7. Launch, Distribute, and Scale
Finally, launch your own business website, as it enables buyers to connect directly with you, saving them from exploring fake websites. Decide how you will sell products, either in bulk at wholesale prices to resellers or directly to end users, and then determine your sales channel accordingly. Use online B2B marketplaces to reach out to international buyers or to sell bulk. You can also use online B2C websites to meet the needs of end users directly. Food and beverages are also in high demand; restaurants, cafes, and supermarkets are always seeking premium-quality products. Maintaining long-term relationships will bring profit to your business and also benefit you in scaling your business.
Food and Beverage Business Ideas
Packaged Food Business: Sell convenient, ready-to-eat, or specialty packaged foods that cater to busy lifestyles and health-conscious customers.
Beverage Business: Launch a drink brand like juices, coffee, or functional beverages that meet the growing demand for refreshing and wellness-focused options.
Food Service & Restaurants: Open a restaurant, café, or cloud kitchen to serve unique cuisines and attract local food lovers.
Specialty & Niche Markets: Target niche audiences with vegan, baby, pet, or halal food products that have consistent and loyal demand.
B2B & Wholesale Opportunities: Supply ingredients, beverages, or catering services to businesses and tap into bulk orders for higher profits.
Conclusion
How to start a food and beverage business? It is the most common query business startups come across at the pre-initial stage of the business lifecycle. In this blog we have sorted your problems by answering all the questions and queries that food and beverage industry newbies are looking for. Mentioned above steps will be your guideline to successful and start of food and beverage business. Keep on reading this blog and expand your business horizon.
