FMCG stands for Fast Moving Consumer Goods. Basically, FMCG items hold a strong position in the global economy. Here in this post, we have compiled the most profitable FMCG business ideas for your ready reference.
FMCG has a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly. Additionally, some FMCGs, such as meat, fruits and vegetables, dairy products, and baked goods, are highly perishable.
Generally, FMCG items fetch relatively small margins. However, they are generally sold in large quantities. Therefore, the cumulative profit on such products is substantial.
FMCG caters to a wide range of products. Some of the prominent segments are processed food items, wines & alcohols, soft drinks & packaged water, bakery products, etc. Find here a list of the 50 best FMCG business ideas.
Table of Contents
Why Start an FMCG Business?
One of the most important reasons is the investment amount. Any individual can start this business with a low capital investment. And if you can manage the business properly, you can expect substantial growth in the business.
Secondly, you can promote the products in comparatively easy ways. An extensive distribution network is just enough to promote the products.
You can expect a high stock turnover in this business. Basically, this is a volume-based business.
FMCG products are mostly perishable items. Therefore, customers have requirements on a daily basis. And these are also must-have products for daily consumption.
Apart from manufacturing, there are several opportunities you can explore in the FMCG business.
List of 50 Profitable FMCG Business Ideas
Different types of bakery products are very popular FMCG items. Additionally, the bakery business is very lucrative for startup entrepreneurs. However, you will need to select the specific product line according to the taste of your target demographics.
#2. Baking Powder Production
Actually, baking powder is an important item in both cooking and baking. Apart from household consumers, bakers, caterers, and restaurants are the major buyers of this item. The production process is simple. And you can start the business with moderate investment.
#3. Banana Chips Making
Banana chips or wafers are the value-added products of bananas. If you live in a place where you can procure fresh bananas in bulk, then you can consider this business. Proper packaging, pricing, and distribution are the major aspects of this business.
#4. Biscuit Making
Biscuit-making is a profitable and niche FMCG business. In addition, the business demands moderate infrastructure and capital investment. However, you will need to obtain the necessary licenses from the Govt. authority before commencing the business.
#5. Bread Making
This is also a profitable business. Generally, bread comes with different tastes and shapes. It is advisable to start the business on a small scale and cater to the local areas first. As your business grows you can think about production expansion.
#6. Cake & Patties Making
Different types of cakes, patties, and burgers are getting tremendous popularity in both developed and developing countries. Generally, these are all ready-to-eat foods. And a small retail space is enough to promote these products. However, it is advisable to start this business with 2 to 3 items first.
#7. Canned Rasgulla
Actually, canned Rasgulla is getting huge popularity these days. Basically, the shelf life of the canned Rasgulla is far more than the normal one. Additionally, the item is suitable for transportation also. The product has a good export potential also.
#8. Cheese Production
Actually, cheese is an essential dairy item in both developed and developing countries. Apart from the consumption of bread, it is an important ingredient in many recipes. So, the demand is already there. However, there are several varieties of this product according to taste, size, and packaging.
#9. Cottage Cheese Production
The other most common name for cottage cheese is paneer. This is a very popular processed dairy item. And when it is processed and packed properly, the shelf life of the paneer increases. With a moderate capital investment and a 1000 Sq Ft covered space, you can start a paneer production business.
#10. Chocolate Making
This is another very profitable FMCG business you can start with moderate capital investment. Even, if you have space, you can start the business from home. However, packaging plays an important role in this business.
#11. Coconut Oil Production
Coconut oil is an important cooking oil in several countries including the Asia Pacific region. In addition, the cosmetics, personal care, and food processing industries are the major consumers of this product. If your area is rich in coconut production, then you can consider starting this business on a small or medium-scale basis.
#12. Coffee Processing
Practically, coffee beans or coffee seeds are not consumable items. So, these need proper processing and packaging. The processing process is complex. And the business demands strategic planning and substantial capital investment. However, coffee processing is a highly profitable business revenue-wise. In addition to that, the product has great export potential too.
#13. Cornflakes Manufacturing
If you are living in an area that is rich in corn or maize production, then you must consider starting this business. In addition, you can start a corn processing business with a moderate startup capital investment. Furthermore, the business doesn’t demand a large area for production.
#14. Custard powder Production
Actually, custard powder is a ready-to-cook ingredient for preparing delicious sweet dishes. The production process is simple. However, like any other food business, custard powder production demands a specific license and permission.
#15. Dal milling
Dal milling is one of the most profitable business opportunities in the agro-processing industry. In addition, you can start a dal milling business in two ways. One is a large-scale dal milling and another is a mini dal mill. If you are starting with your own limited finance, then it is better to establish a mini dal mill.
#16. Desiccated Coconut Powder Manufacturing
This is a value-added product from coconut. In addition, production technology is also available. The product is getting immense popularity these days. Desiccated coconut may find a good market in areas where coconuts are not produced.
#17. Fish Processing
If you live in coastal areas then starting a fish processing unit is a great opportunity for you. Actually, canned and processed fishes have a higher shelf life. Additionally, these products are great for upmarket selling and export.
#18. Flour Milling
The flour milling industry is a vibrant sector. Flour is the main ingredient in bread. Also, it is an important ingredient in biscuits, cakes, pies, soups, and a range of processed foods. Rapid industrialization and increasing disposable consumer income are the major factors driving market growth.
#19. Frozen Yogurt Production
Actually, frozen yogurt is a popular dairy product globally. And starting this business demands proper planning and moderate investment. In addition to that, you must concentrate on intensive distribution and marketing.
#20. Fruit Juice Production
Starting a fruit juice manufacturing 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. In addition, the consumption of packaged fruit juice is increasing rapidly.
#21. Ghee Production
Basically, ghee is clarified butterfat. Additionally, ghee is the richest source of animal fat in the vegetarian diet. It supplies 9 K. calorie energy/gm. You can start a ghee manufacturing business both on a large-scale or small-scale basis. Ghee is highly popular in Asian countries. However, it has a prominent presence throughout the world.
#22. Ginger Garlic Paste Making
Ginger garlic paste is a new product. And the item is gaining rapid popularity. Ultra-busy lifestyles and the increasing demand for ready-to-cook items are the major reasons for driving the growth. You can start onion paste making also from the same manufacturing unit.
#23. Grocery Store
A traditional grocery store is still a very lucrative business for new entrepreneurs. Additionally, this FMCG business is suitable to start in any location. You can start this business in rural areas, small towns, and metro cities also.
#24. Hing Processing
The edible Hing is Compounded Asafoetida. It is a very popular spice item. However, the basic raw material is not easily available in all countries. Basically, you need to import the raw materials from Iran and Afghanistan. Other than a spice item, it is used in the food processing and cosmetics industries.
#25. Honey Processing
Honey is a widely consumable item. In addition, the product has both domestic and export potential. If you are living in a honey-producing area, then you can consider starting a processing unit. The location of the unit plays a huge role in this business. Because you have to source enough raw honey to produce packaged honey.
#26. Ice Cream Making
Ice cream is a very popular product both in developed and developing countries. Additionally, it is one of the most delicious dessert items. Every age group of people loves this food. An ice cream-making business is financially very profitable. However, you must have the proper marketing strategy for this business.
#27. Ice Cream Parlor
A small ice cream parlor is a profitable FMCG business model. Additionally, you can start this business in the Kiosk model also. However, you have to provide a comfortable and easy arrangement for your consumers.
#28. Jam Jelly Making
Jam jelly-making is a traditional business, and still, it is very lucrative. Even, the business is perfect for women entrepreneurs and housewives. A home-based jam jelly-making business is also profitable. Because it demands low infrastructure costs. You can produce different types of products according to the availability of the fruits in your area.
#29. Juice Bar
Juice and smoothie bar is a profitable retail business in the beverage industry. Additionally, you can start the business as a franchise also. Securing a good retail location determines the long-term success of this business.
#30. Meat Processing
The demand for different types of animal protein is increasing very fast. However, starting a small meat processing business demands strategic planning and substantial investment. Additionally, you must have a proper marketing plan for this business.
#31. Milk Powder Production
Nowadays, milk powder holds a prominent position in the FMCG industry. Actually, milk powder is a convenient format with flexibility for further processing into a wide range of products. Typically, the powder is recombined locally and used to replace liquid milk when local milk is not available or not cost-effective.
#32. Mushroom Processing
Fresh mushrooms have a very limited life. However, processing and canning increase their shelf life to a few months. The productivity of mushrooms is higher than any crop. Any individual can initiate a mushroom processing unit with small capital and infrastructure. Even you can start the unit at home.
#33. Mustard Oil Production
This is another great FMCG business you can start at any scale according to your investment capacity. Actually, mustard oil is a very popular cooking oil. Generally, it comes either in pet bottles or in poly pouches. The major raw material is only mustard seeds.
#34. Mayonnaise Production
Basically, mayonnaise is a thick, creamy dressing item in cooking. Generally, oil, egg yolk, and either vinegar or lemon juice are the major ingredients in the mayonnaise-making process. The production process is simple. Also, it needs some small machinery and equipment.
#35. Noodles Manufacturing
Generally, noodles come in two different variations. One is ready-to-eat or instant noodles with spice, oil, etc. Another is packed plain noodles that demand mixing with other ingredients and preparation. However, the ready-to-eat type fetches more profits than the second one. The project is suitable for home-based operation also.
#36. Online Grocery Delivery
An online grocery store is a trending business these days. People with busy work schedules prefer to have the products at their doorsteps instead of going to the market. However, this business demands substantial capital investment for both operation and marketing.
#37. Organic Food Store
The demand for organically grown food is increasing very fast. People are becoming aware of consuming foods with harmful chemicals. Therefore, starting a small organic food store is a highly lucrative business. However, product sourcing plays a very crucial role in this business.
#38. Packaged Drinking Water or Mineral Water
Generally, the success of packaged drinking water highly depends on the localized demand for the product. Though you can earn profit from 1 liter and 500 ml bottles, the maximum profit you can get is from 20-liter drums.
#39. Paneer & Cheese Manufacturing
Paneer and cheese are very popular and value-added products. The manufacturing process is also simple. You can start the unit with simple machinery. Generally, packaged paneer fetches more lucrative margins than loose paneer.
#40. Papad Making
Papad is a tasty and popular snack item. Any individual can initiate a papad-making business on a small-scale, home-based basis, or on a large scale. Demand for different varieties of papad is increasing steadily. The demand is steady throughout the year and it generally hikes 10-15% during the festive season.
#41. Pickles Making
Pickle making is a great business globally. However, pickles are more popular in the Asia Pacific region basically. Pickles come in a wide range of varieties. Additionally, the specific taste and physical condition generally vary depending upon the taste of the local people.
#42. Popcorn Production
Actually, popcorn is a delicious and tasty snack item any person can have. If you want to start a small-scale manufacturing business in the FMCG industry, then you can consider this business. In addition to that, it is a low-cost business.
#43. Potato Chips Making
Value-added products from potatoes, hold an important position in the FMCG business sector globally. In addition, potato chip manufacturing is comparatively an easy business to start. Different varieties of potatoes are usually used for chips. According to the market acceptance, it is necessary to make a variety of chips by adding different types of spices and flavors.
#44. Rice Milling
Rice is a major staple food for most of the population in this world. There is a wide variety of rice and they come in different price ranges. Rice milling or rice processing is a profitable business. And if you live in an intensive rice-growing area, you can consider initiating a rice mill project.
#45. Shrimp Papad Making
Simply, the papad made with shrimp is called shrimp papad. To produce shrimp papad, you will need to procure fish flour with other dal flours. The manufacturing process is simple. You can set up the unit either as semi-automatic or on a fully automatic basis.
#46. Soy Sauce Production
Generally, soy sauce or soya sauce works as a flavoring agent in different food items. The product is highly popular throughout the globe. Soya sauce finds wide acceptance for use in western and Chinese dishes and meat products. Basically, from soy flour, you can produce soy sauce.
#47. Spice Processing & Packaging
Spice processing & Packaging is a very profitable FMCG business worldwide. Spices play an important role in enhancing the flavor and taste of processed foods. They are also used in medicine because of their carminative stimulating and digestive properties.
#48. Sugar Production
Sugar milling is a traditional and lucrative FMCG business. Initiating a sugar mill is a capital-intensive business. And you can only start the business at a location that produces sugar cane. Because you have to procure sugar cane on a regular basis for your factory operation.
#49. Tea Bag Making
The teabag-making process is simple. And the product has a wide market in both domestic and institutional audiences. With a small infrastructure and even at home, you can initiate this business. Basically, you need to understand the specific demand in your locality. And accordingly, you must prepare the tea bags. Some of the most popular flavors are cardamom tea, basil tea, etc.
#50. Tea Processing
Tea production and processing plant are financially very lucrative businesses for startups. In addition, the business opens up huge possibilities for expansion. However, you must start the unit in a tea-growing area.
We hope this list of FMCG business ideas will help you in making an informed decision towards starting your own business.