Starting Your Gummy Business: Beginner’s Guide

1.How Is The Gummy Business Market Now?

Nowadays, with the development and extension of health nutrition products, gummy development in the supplement industry is becoming more and more broad. First of all, from a regional perspective, the gummy business market can be roughly divided into the global market and the US market:

Global Gummy Market

Global Gummy Business Market-sourced: gminsights

As a food, gummy business market has a bright future. According to surveys, the global gummy market size will be approximately US$20.9 billion in 2023. It is estimated that by 2032, the global gummy business market will be around US$51.2 billion.

US Gummy Market

US Gummy Market-sourced: coherentmarketinsights

According to the global gummy market map, the gummy market in North America is the hottest, accounting for almost half of the global gummy market. This is because gummy supplements are very popular in the United States, and innovation and quality of gummy products in the region are constantly improving.

Secondly, based on the types of gummy products, the gummy business market can be divided into by ingredients and by supplements:

Gummy Market By Ingredients

Gummy Market By Ingredients-sourced: gminsights

Based on ingredients, gummy products include many kinds, the most prominent of which are fruit-based gummies, gelatin-free gummies, CBD/THC gummies, probiotic gummies, vitamin gummies, collagen gummies, and others. The main proportion is fruit- based gummies, gelatin-free gummies, the market size is about US$6.5 billion in 2022.

Gummy Market By Supplements

Gummy Market By Supplements-sourced: marketsandmarkets

As living standards continue to improve, consumers are seeking new options for healthy snacks such as gummy supplements. The gummy supplements are low in sugar, artificial additives, preservatives, but high with vitamins, minerals and other nutrients.

Finally, based on the types of consumer groups, the gummy business market can be divided into for adults and kids:

Gummy Market For Adults and Kids

Gummy Market For Adults and Kids-sourced: grandviewresearch

Judging from the current market research, the gummy market now mainly focuses on adult products. Among them, adult products account for about 60%, and children's products mainly account for about 40%. Adult products are mainly gummy supplements, and children's products are mainly gummy snacks.

2.How To Start Your Gummy Business?

How To Start Your Gummy Business-sourced: gosolo

To start a gummy business is a big project, which involves early business planning and financing, mid-term gummy production and packaging, late-stage trademark design, brand promotion and sales platform issues. Following the process below and try to start your gummy business now!

Step 1: Create Your Business Plan

Create Your Business Plan-sourced: business2community

Before doing anything, planning is the first step. Through the preliminary research on the gummy business market, the planning of capital budgets, the implementation of subsequent plans, the prediction of risks and the advance arrangement of countermeasures, as well as the prediction of goals and results, etc.

Gummy Business Market Research

Gummy Business Market Research-sourced: transparencymarketresearch

Through market research and prediction, it can facilitate the subsequent gummy manufacturing plant site selection, equipment purchase, advertising, sales market, etc. By understanding the market rules and predictions, it will be easier for you to predict the future gummy market launch and production scale.

Budget Control

Budget Control-sourced: superbloov

The capital budget mainly includes the early market research expenses, the mid-term manufacturer site selection, equipment and raw material purchase, formula expenses, and subsequent brand marketing and market launch.

Plan Implementation

Plan Implementation-sourced: projectmanager

Choose a factory site that suits you and pave the way for the subsequent purchase of convenient equipment and raw materials.

Risk Prediction and Targeting

Risk Prediction and Targeting-sourced: paras

During the implementation of Gummy business, there will definitely be certain impacts and risks. In the process of predicting these impacts and risks, response measures and funds must be prepared in advance. Determine your gummy business goals and profitability.

Outcome Prediction

Outcome Prediction-sourced: skillshub

Gummy business will definitely have two results: loss and profit. Before investing, you must remember to predict your results to allocate your investment of funds and manpower.

Step 2: Secure Your Funding

Secure Your Funding-sourced: charlesphillips

In addition to manpower investment, the most important thing to start your gummy business is the raising of funds. You can consider how to get a stable amount of funds for your gummy business based on your ability. You can consider bank loans, financing, crowdfunding or self-funding.

Step 3: Get Gummy Manufacturing Permits and Licenses

Get Gummy Manufacturing Permits and Licenses-sourced: aligen

This part is a little more complicated because it depends on the actual situation in your region. Under normal circumstances, the qualification certificates you need to obtain include: sellers permit, health permit, employee identification, business licenses, gummy manufacturing certificate, sign permit, etc.

Step 4: Gummy Manufacturing

Gummy Manufacturing-sourced: smpnutra

Gummy manufacturing includes factories, equipment, raw materials, formulas, workers, etc. You are responsible for the entire process yourself, including the production and packaging of gummy. This will be a very specialized and complex process.

Step 5: Branding

Branding-sourced: ewm

Brand marketing facilitates your later gummy selling promotion. The ultimate goal of your gummy business is to open the market for your products, gain the trust and love of consumers, and facilitate the later development of new products and the improvement of brand value.

Step 6: Profiting

Profiting-sourced: digitally

After selecting a good marketing and advertising plan, gummy selling will be carried out online and offline to provide you with profits and facilitate the development of new products and further development of the brand.

Step 7: Summary and Improvement

Summary and Improvement-sourced: teachermagazine

Through the implementation of a series of gummy business plans, the market results will be fed back to you. Through feedback, you need to differentiate your gummy and brand from your competitors. Through continuous summary and improvement, you can further consolidate your own brand.

3.Why Start Your Gummy Business?

There are plenty reasons to support you why you start gummy business.

Easy To Make Money

Easy To Make Money-sourced: redbookmag 

To start your gummy business is a good way to make money, because it is a lucrative business. Gummies can be sold in supermarkets, convenience stores, pharmacies, and online. A variety of sales methods and channels can bring you huge business opportunities.

Simple Gummy Manufacturing

Simple Gummy Manufacturing-sourced: wellaliments

Now, the research and development and production process of gummy making machine have been very mature. Not only can it fully automatically produce a variety of gummies for you, it can also design packaging for you and provide skilled procedures and maintenance.

Environmental Benefits

Environmental Benefits-sourced: vaquickstart

Gummy production can improve the environmental impact. It uses natural and biodegradable raw materials and can receive strong support and investment from the government. Reducing the burden on the environment, production costs are relatively low and waste is minimal.

Bring Economic Development

Bring Economic Development-sourced: sa

A low-cost and high-profit business can bring huge benefits to the country and the government, and at the same time protect the environment. This will significantly improve the economy of the country and the government by reducing waste and increasing utilization of raw materials.

4.How Are Gummies Manufactured?

There are two options for gummy manufacturing to increase your production capacity. Depending on the size of your gummy business, you can choose:

Semi-automatic Gummy Making Machine

Semi-automatic Gummy Making Machine-AIPAK

The semi-automatic gummy making machine, also called as gummy depositor machine, by pouring syrup into different molds, can make gummies in different shapes and colors according to your needs.

This machine adopts functions such as continuous pouring, automatic de-moulding, and fan forced cooling, which can ensure the quality and output of gummy during the long-term production process.

Semi-automatic Gummy Making Machine Working Process:

Semi-automatic Gummy Making Machine Working Process-sourced: aipak

Step 1: Raw Material Mixing and Cooking

Mix all the raw materials needed to make gummy including gelatin, pectin, water, sugar, sweeteners, syrup, colors, citric acid, starch, flavor, etc. and cook them in the cooking unit according to your own formulas. Making them until syrupy, and the temperature shall be maintained at around 60-70 degrees Celsius.

Step 2: Depositing

Introduce the prepared syrup liquid into the hopper of the gummy depositor machine through the connecting pipe. The hopper maintains a set temperature to prevent the syrup from curdling or thickening.

Manually place the gummy mold on the operating table of the gummy depositor machine, below the discharge port. Activate the switch and nozzles automatically drips fudge syrup into each deposition chamber. When the trays are all filled, you can remove and put them in new mold trays.

Step 3: Cooling and De-moulding

Let the poured molds stand for about 10 to 20 minutes, and cool them to about 0 to 10 degrees Celsius. Once they are formed, they are demoulded and dried to further evaporate the gummy moisture content.

Fully Automatic Gummy Making Machine

Fully Automatic Gummy Making Machine-AIPAK

The fully automatic gummy making machine can provide you with fully automatic gummy manufacturing and a complete set of processes including cooking, pouring (including servo central filling and pouring), finished product transportation, powder processing and recycling.

Fully Automatic Gummy Making Machine Working Process:

Fully Automatic Gummy Making Machine Working Process-sourced: aipak

Step 1: Ingredients Preparing and Cooking

Prepare your own formulas based on your own needs. The most basic formula is corn syrup, sugar, water, gelatin, food coloring and flavorings. Then add all the raw materials to the cooking unit. While heating, mix and stir. When the temperature drops, add ingredients such as coloring matter, flavoring agents, active substances, citric acid, etc. in batches.

Step 2: Depositing

When all raw materials are mixed evenly, the syrup is removed and introduced into the depositor machine. Through the depositor machine, the syrup will be evenly dropped into the mold.

Step 3: Cooling and De-moulding

When all the molds are filled with syrup, cool the molds and let them sit for 10 minutes to wait for the syrup to settle. When the temperature gradually decreases, the gummy will gradually solidify. When the fondant has set, unmold it and place on a tray.

Step 4: Coating and Drying

By coating the appearance of gummy with different cream sugar, you can not only change the flavor of gummy, but also prevent the gummy from sticking to each other. Enhance appearance and improve packaging processability. After completing the gummy coating, drying again can facilitate subsequent gummy packaging and storage. 

5.How Much Does It Cost To Start Your Gummy Business?

When deciding to start your gummy business, your ideal goal is to make it successful. This inevitably involves funding issues. Through preliminary market research, you will have an ideal number in mind. However, the costing will require different preparations depending on the situation.

Legal and Licensing Cost

Legal and Licensing Cost-sourced: cityofiona

Legal and licensing are the initial costs of starting your gummy business. Depending on your geographical location, you will need to register with the government and pay fees for various licenses. This needs to be determined according to the specific situation.

Cost of Production

Cost of Production-sourced: educba

Production costs mainly include gummy ingredients, gummy making and packaging equipment, gummy making formulas, gummy making permits, gummy quality control, gummy making sites, and human cost. The cost will vary depending on the scale of your production and the equipment you choose.

Store Starting Cost

Store Starting Cost-sourced: hostpapa

After the gummy is produced and packaged, you need funds that can be invested in sales. Among them, you need to consider whether to sell online or offline. The cost of offline sales may be slightly higher. There is no rental cost for online sales, but you have to bear the shipping and loss of the product.

Advertising and Marketing Costs

Advertising and Marketing Costs-sourced: cleantechloops

Product sales inevitably take into account advertising costs. Whether it is brand marketing or advertising, it is an indispensable fund. This funding can help product sales and gummy business profitability.

Research and Development Costs

Research and Development-sourced: researchgate

Gummy manufacturing is not about constant research and innovation. In this way, you can keep your products competitive and avoid being eliminated by the market. Therefore, you need to continually invest in research and development.

To start your gummy business, it may be an opportunity, but it may also involve risks. You need to research and find an operation plan that suits your needs to ensure that your gummy business can always remain profitable.

6.Is The Gummy Business Profitable?

To start your gummy business is definitely profitable. The reasons are as following:

Huge Gummy Market

Large Gummy Market-sourced: littlepassports

When we conducted research on the gummy business market earlier, we learned that the market size of the gummy market in 2023 will be approximately US$50 billion. Therefore, the development prospects of gummy business are broad and the potential is huge.

High Return On Investment

High Return On Investment-sourced: wallstreetzen

Gummy business has a super high return on investment ratio. Gummy has a huge consumer market, a wide range of consumer groups, simple production technology, convenient transportation, unique taste, and can be integrated with health care products. With low investment and high profit ratio, it can bring your great benefits and profits.

Low Start-up Costs

Low Start-up Costs-sourced: splashanddashfranchise

Compared with other businesses, gummy business can require less expenses. You can achieve success without spending a lot of money. Low-cost procurement of ingredients and equipment helps you operate and sell with ease.

7.How To Make Your Gummy Business Successful?

In recent years, the gummy candy market has grown rapidly, with consumers hoping to use gummies to not only make them happy but also to treat their physical conditions. Therefore, if you want to make your gummy business successful, you can follow the tips below.

Figure Out the Law

Figure Out the Law-sourced: lawnow

Food production, especially gummy supplements, requires government permission. If you produce or sell it privately, you may violate the law and have an adverse impact on your gummy business.

Choose Store Or E-commerce

Choose Store Or E-commerce-sourced: kyozou

Stores and e-commerce each have pros and cons. Physical stores allow consumers to see the quality of products in their lives. E-commerce can reduce costs. The best way is to combine the two with each other. By opening physical stores to display gummies, they are then sold mainly through e-commerce.

Make Good Relationship With Bank

Make Good Relationship With Bank-sourced: firstcitizens

Doing business inevitably involves taking out loans or seeking investment, and taking certain business risks. By having good dealings with financial institutions, financial difficulties can be solved to a certain extent.

Culture Support

Culture Support-sourced: changemanagementreview

Gummy products must require support and endorsement from a cultural background. This can shorten the distance between products and consumers, make products more down-to-earth, and make it easier for consumers to love them.

8.What Are The World Top Gummy Brands?

There are many good gummy brands in the world. Their products are diverse and have their own unique style. Next, learn about their excellent gummy business through the world top gummy brands list below!

HARIBO

HARIBO-sourced: haribo

HARIBO is the world No.1 gummy brand which starts from German. The company creates the first gummy candy in 1922 in the form of little gummy bears called Gummibärchen. It produces its treats at 16 locations worldwide and employs more than 7,000 people. This company is available in more than 100 countries.

Black Forest

Black Forest-sourced: candyattic

Black Forest is world top gummy brand that manufactures gummies and candies that are made with carefully selected ingredients to give you the fruity flavor and soft, juicy texture you won't find anywhere else. All their gummies are made in the USA with real fruit juice for a healthy sweet snack!

Nerds

Nerds-sourced: nerds

Nerds is an American candy launched in 1983 by the Sunmark Corporation under the brand name Willy Wonka Candy Company. Nerds are now made by the Ferrara Candy Company, a subsidiary of Ferrero Group. Since 1983, the company has always been fun and innovative, with perfectly imperfect shapes that are better together.

Jolly Rancher

Jolly Rancher-sourced: jolly rancher

Jolly Rancher is an American brand of sweet hard candy, gummies, jelly beans, lollipops, sour bites, and a line of soda put out by Elizabeth Beverage Company in 2004. Jolly Rancher's original flavors were watermelon, apple, and fire stix. They soon introduced cherry, orange tangerine, lemon, grape, peach, and sour apple.

Life Savers

Life Savers-sourced: life savers

Since founded in 1912, Life Savers has become an iconic brand across fruit-flavored confections and mints due to their great-tasting flavors and unique candy-with-the-hole shape. Life Savers is an American brand of ring-shaped hard and soft candy.

Welch's

Welch's-sourced: welch's

Welch's is an American gummy company headquartered in Concord, Massachusetts. It manufactures and markets an array of other products, including gummies, refrigerated juices, frozen and shelf-stable concentrates, organic grape juice, fruit snacks, and dried fruit.

Albanese

Albanese-sourced: albanese

Albanese is a confectionery and gummy manufacturer more than 40 years. They have made the world best gummies and chocolates in the world by using simple recipe for success. All of their gummies, chocolates, and nuts are made at their factory located in the heart of the Midwest.

eFrutti

eFrutti-sourced: efrutti

Headquartered in Furth, Germany, eFrutti has brought innovation to the gummi segment worldwide for more than four decades. Founded in 1948, the company offers outstanding product quality based on high end quality ingredients and flavors in combination with innovative product concepts.

Skittles

Skittles-sourced: skittles

Skittles is a British company who manufactures multicolored fruit-flavored lentil-shaped candies and gummies. The gummies consist mainly of sugar, corn syrup, and hydrogenated palm kernel oil along with fruit juice, citric acid, and natural and artificial flavors.

Swedish Fish

Swedish Fish-sourced: swedish fish

Swedish Fish is a fish-shaped, chewy candy originally developed by Swedish candy producer Malaco in the late 1950s. They come in a variety of colors and flavors. One of the ingredients in Swedish Fish is invert sugar, a combination of glucose and fructose. Invert sugar is important in Swedish Fish due to its ability to retain moisture.

9.What Is The Future Trends In The Gummy Manufacturing?

Even though the gummy business is a relatively easy industry with a high return on investment, in the process of starting the gummy business, you will inevitably be challenged and meet industry trends.

The Future Trends In The Gummy Manufacturing:

Continuous Gummy Development and Innovation

Continuous Gummy Development and Innovation-sourced: ConfectioneyTalk

Gummies is a product that requires constant development and innovation so that you can ensure the competitiveness of your product. Including the development of gummies in different shapes and flavors. And the subsequent development and production of supplement gummies will bring more and more choices to consumers.

Gummy Functional Requirements Increase

Gummy Functional Requirements Increase-sourced: preparedfoods

As social living standards continue to improve, consumers are paying more and more attention to health requirements. There will be more functional gummy supplements on the market. For example, probiotic gummies, calcium gummies, vitamin gummies, etc.

Raw Material Price Fluctuations

Raw Material Price Fluctuations-sourced: dentalcareofchinohills

As the demand for gummies continues to increase, the demand for raw materials will increase. Therefore, fluctuations in raw material prices are inevitable. When the price of raw materials fluctuates, gummy manufacturing cost will also fluctuate.

Growing Health Concerns About Diabetes and Obesity

Growing Health Concerns About Diabetes and Obesity-sourced: bhambribariatrics

Gummies may contain a small amount or a certain amount of sugar, which can cause a heavy burden on the body in the long run. So, going forward, there will be growing consumer health concerns about diabetes and obesity.

Vegetarian Gummies

Vegetarian Gummies-sourced: nutraingredients

As the number of vegetarian consumers around the world increases, the demand for vegetarian gummies will also increase. In the subsequent research and innovation process of gummy products, vegetarian gummies will gradually increase and become mainstream.

Conclusion:

Through this starting your gummy business beginner's guide, it can help you how to start your own gummy business from the very beginning. However, Everyone's situation is different. Therefore, achieving a successful gummy business still requires your own exploration and summary. If there are more you want to know about the gummy business or gummy manufacturing, please come to us anytime!