Brewing kombucha can be lucrative if you do so effectively and properly. Starting a kombucha business is a lot more work than simply making kombucha and selling it, as there are many more things to consider as a business owner.
Kombucha offers a wealth of health benefits, and if you can bring these into your community and make money while doing it, great! Remember, the kombucha market is saturated with competition, so make sure to set yourself apart.
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Are Kombucha Businesses Profitable?
If you have a solid business plan, make good kombucha, and have the mindset to own a business, then yes! Being in the kombucha industry can be a very profitable business.
While owning a business is not easy, the kombucha market is growing exponentially. Having the know-how to run a business and make delicious kombucha tea can be very lucrative.
You will need to understand the ins and outs of being a business owner, as well as be able to make multiple large batches of high-quality kombucha at a time. Kombucha brewers starting businesses have to put a lot of work in to make them successful. However, even small businesses can be successful with the high demand for kombucha.
How Much Does It Cost to Make Kombucha?
Making one 16 oz serving of kombucha costs roughly $0.08. This is, of course, not counting the initial costs, which can be a one-time investment anywhere from $15 to $80, depending on what kind of starter kit or equipment you invest in.
Overall, brewing kombucha is very cheap. Even if you are not selling kombucha, making kombucha at home can be a great way to save money.
How Much Does Kombucha Sell For?
There are several kombucha brands on the market right now, and you can find the carbonated probiotic drink at most grocery stores and convenience stores. On average, brands such as Health-Ade, GTs, Brew Dr., and Humm Kombucha sell for between $3 and $5 USD.
Of course, the prices vary from store to store, but one thing is for sure: brewers can save and earn a lot of money by brewing their own booch.
First Steps to Starting a Kombucha Business
- Conduct sufficient market research. You need to know your target market (including demographics of potential customers), market size, competitors, etc.
- Create a business name that stands out. You must brand your kombucha business as part of a good marketing strategy. What better way to set yourself apart than by having a unique name that people will remember?
- Register your business. You have several options when registering your kombucha business, but one of the more popular options is forming an LLC. This also includes acquiring all of the business licenses needed to open your business.
- Run a cost analysis and create a budget for your business. This is crucial to running any successful business, as it is the only way you will turn a profit. Figure out the costs of starting and running your business (including equipment, ingredients, labels, maintenance, staffing, etc.).
- Write a business plan. Include a summary, mission and vision statements, products and services, goals and objectives, and your company’s organizational structure.
- Create a marketing strategy. This should include all forms of marketing, including social media, word of mouth, print ads, etc.
- Find a storefront to run your business out of. A kombucha brewery should have good airflow, be clean, and not be too humid. If you plan on selling out of your home, you should procure all of the proper licensing for this.
How Much Does It Cost to Start a Kombucha Business?
The cost of starting a kombucha business varies drastically. If you are home brewing, the costs will be relatively minimal, especially if you use household items.
However, the costs will be significantly higher if you plan to open a kombucha brewery or a kombucha cafe in a brick-and-mortar location. You must calculate rent, proper licensing, USDA certification, marketing expenses, and more. This type of kombucha business will start at around $25,000 but can go up considerably from there.
Creating a startup company can be quite a big venture. Make sure you do your research and enjoy the process. If you are in the beginning stages of this new venture, congratulations!