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With spectacular double-digit growth, the market for frozen meals is rising as more people remain at home. You may establish your own frozen food company and capture a portion of this booming industry whether you possess true culinary expertise or just a few recipes you’ve always wanted to share with the world. 

Nevertheless, more than simply ideas will be needed for success. You must be aware of the entrepreneurial implications of your decision. Fortunately, this step-by-step manual covers all you need to know about starting a profitable business.

Step 1: Find Out if this is the Right Business for You?

Positives Vs Negatives

Frozen food is in high demand in this hot market.
Flexibility – Run your business from your home
Use your creativity to experiment with and develop new recipes.
Manufacturer required; difficult to locate a white-label producer
High Startup Costs – Inventory and other goods might be expensive.
  • Size of the sector and past growth rates – The worldwide frozen food sector had a value of $256.46 billion in 2021, up roughly 11% from the year before.
  • Estimate for development: By 2028, it’s anticipated that the frozen food market will have increased by more than 50%. 
  • In 2022, there will be 567 companies in the United States producing frozen food.
  • Employed personnel – In 2022, 97,383 individuals will work in the US frozen food processing business.

Cost of Starting Frozen Food Business

$6,500 to $13,000 is typically spent as startup capital for a frozen food enterprise. Your initial inventory, a freezer of industrial strength, and shipping materials are included in the price.

You can choose one of two strategies when you first launch your company. The smallest order size your manufacturer will accept might be placed in order to obtain samples of your goods. Next, you might present your product to nearby grocery stores to see if they will order it for stocking. Being the most competitive area in the grocery store, the freezer aisle, this might be difficult. But if you can pull this off, you won’t need to keep inventory because your goods can be transported straight to the shops.

The other is to sell straight to clients online, in which case you’ll need to buy a stock of product from your manufacturer and keep it in a commercial freezer. It is difficult and expensive to package frozen food for delivery, but doing so is arguably the greatest approach to get more customers interested in your goods. Then, once you’ve demonstrated that customers would purchase your goods, you may approach grocery retailers with a proposal, noting your successful track record.

Is Frozen Food Business Profitable?

Depending on what you’re creating, your product prices will vary. The $5 average sales price used in these calculations is an assumption. Once production and shipping expenses are deducted, your profit margin will be around 30%.

You might start off working from home and making $130,000 a year in sales by selling 500 products every week. If the 30% margin is accurate, this would result in a profit of $39,000. Sales may reach 1,500 items each week if you sign contracts with food retailers. Your profit margin might increase to almost 40% if you did not have to pay for shipping materials. You would earn a healthy profit of $156,000 on a $390,000 yearly income.

Entry Barriers

  • Locating a reputable producer
  • The rivalry between major frozen food firms

Step 2: Create a Strategy

Identify a Gap

Examine the goods, pricing ranges, and best-selling items of frozen food businesses by conducting web research. Finding a market gap to fill is what you’re after. Perhaps the neighborhood market is lacking in premium frozen seafood, frozen whole grain waffles, frozen concentrated soups, or frozen vegan pizzas.   


  • You may build a range of recipes or construct them with a focus on a certain meal. If you want to test the market, it’s generally better to start small with a few goods.


According on the kinds of things you’re presenting, prices change. In order to ensure that your pricing are reasonable, compare them to those of similar foods. After production and shipping expenses, your goal should be to make a 30% profit margin.

The Step By Step Profit Margin Calculator may be used to calculate your markup and final price points once you have an understanding of your expenditures. Do not forget that the prices you employ at launch should be flexible if the market requires it.

Target Market

Your target market will depend on the kinds of goods you sell, but it will often be a very large and varied market. Ensure that all of your marketing initiatives are distributed throughout platforms like Facebook, Instagram, and TikTok.


You can want to operate your company from home in the beginning to save money. To the contrary, if your company expands, you’ll probably need to recruit personnel for a variety of positions and perhaps even lease a warehouse. On websites like Craigslist, Crexi, and Instant Offices, you may locate business space for rent in your neighborhood.

You might wish to abide by these general guidelines while selecting a commercial space:

  • Accessible by public transportation in a central location
  • With plenty of natural light and ventilation
  • As your firm expands, your lease might be made more accommodating.

Step 3: Write a Business Plan

A plan is important for any business. This will help you guide your new business through the launch process and keep your eye on your main goals. A business plan also helps possible partners and investors understand your business and its goals better:

  • Executive Summary: A brief outline of the whole business plan that should be written after the plan is done.
  • Business Overview: A summary of the company’s goals, vision, purpose, assets, and control structure.
  • What we make and what we do: Explain in detail what you’re selling.
  • Do a SWOT analysis and look at market trends like changes in demand and growth opportunities.
  • Competitive Analysis: Look at your key rivals’ strengths and flaws and make a list of what makes your services better.
  • Sales and Marketing: Look at the unique selling points (USPs) of your business and come up with sales, marketing, and promotion plans.
  • Management Team: An overview of the team’s tasks and professional backgrounds, as well as a business structure.
  • Operations Plan: Your company’s operational plan includes how it will get supplies, where it will put its office, what its most important assets and tools are, and other practical details.
  • Financial Plan: A three-year plan for money, including start-up costs, a break-even analysis, predictions of profits and losses, cash flow, and a balance sheet.
  • Appendix: Add any other papers related to money or business.

Step 3: Create a Marketing Plan

Some of your business will come from passersby or people who find you online, but you should still spend money on marketing! Getting the word out is especially important for new businesses because it will bring in more customers and make people more aware of the brand. 

Link your website to your social media accounts once your site is up and running. Social media is a great way to market your business because you can make posts that are interesting and sell your goods.

  • Facebook is a great place for paid ads because it lets you target specific groups, such as guys under 50 in the Cleveland area. 
  • Instagram has the same perks as Facebook, but it’s for a different crowd.
  • Website: Search engine optimization (SEO) will help your website show up higher in appropriate search results, which is a key part of making more sales. Make sure your website has clear calls to action. Try changing the size, color, and placement of calls to action like “Book Now” This could bring in a lot more customers.
  • Google and Yelp: Getting mentioned on Yelp and Google My Business can be very important for getting people to know about your business and buying from you.
  • Sell your frozen goods in-person to nearby supermarkets.
  • Blog creation: Create a blog and publish frequently. Share on many sites while varying your material.
  • Press releases – Publicize new goods, sales, and other information.
  • Paid ads on social media –  Choose platforms that will allow you to reach your target market and run targeted social media marketing.
  • Pay-per-click advertising – Boost your search engine ranking using Google AdWords. Initial keyword research is required.
  • Influencer marketing – Practice paying users with sizable social media followings to advertise your frozen goods. With smaller audiences and cheaper prices, micro-influencers are available.