How can food start-ups hold their own against large, established brands? While you won't become a Kellogg's® overnight, there are lots of strategies to enter the market successfully. Here are three essential tips for food start-ups aiming to establish themselves, draw in customers, and create a solid foundation.
1. Compete on Quality, Not Price
In most cases, a small start-up company isn't going to be able to match established food brands on price. Big brands benefit from economies of scale, where massive purchasing power lowers their ingredient costs.
Rather than getting into a price war, position your brand as a premium product by focusing on high-quality ingredients and certifications that resonate with today's health-conscious consumers. After all, quality is often top of mind for consumers, with 28% stating they are willing to pay 20–30% more for a better-tasting protein product.1
2. INVEST IN Product Claims
Consumers are savvy; they won’t be impressed by slapping “natural” on your label. To stand out, ensure your suppliers provide meaningful certifications such as Non-GMO Project Verified, organic, kosher, allergen-free, or Upcycled CertifiedTM. Transparency is also key, including speaking to traceability of food sources, microtoxin levels, and zero animal testing.
When asked what improvements they’d like to see in plant-based products, 35% of consumers want to see more naturalness/fewer artificial ingredients in plant-based offerings.1 By emphasizing quality and certifications, you’ll attract consumers who prioritize product integrity over low cost. As your brand scales, you can revisit pricing strategies — but early on, quality can be your strongest differentiator.
Consumers are looking to pea protein for added nutrition
While the protein market has been strongly focused on whey, U.S. demand for pea protein — an allergen-free and vegan option — continues to rise. From 2013–2023, Google searches related to ‘pea protein’ increased while ‘whey protein’ searches declined. This shift demonstrates the value of ingredients that offer more than just basic nutrition and provides a perfect opportunity to give consumers what they're looking for.
3. Embrace SPEED TO MARKET
One of the biggest advantages of a start-up is the ability to be nimble. Compared to large companies, food start-ups can often react faster to trends, adapting to consumer preferences before competitors even notice the shift. This speed-to-market advantage can be a powerful asset for small brands looking to make a mark.
We anticipate seeing a focus on the following trends over the next year:
- Top claims: High protein, gluten-free, and plant-based claims are rapidly growing
- Protein innovation: Protein companies are targeting new product categories by developing new ingredients such as clear protein and plant protein with improved bioavailability.
- Gut health: Protein brands are differentiating themselves by adding fiber and/or pre and probiotics. And vice versa! Gut health products are adding protein to give their consumers a boost.
4. Explore your test kitchen options
Small-scale food start-ups also enjoy a relatively low barrier to entry for kitchen-based production. Entrepreneurs can start in their own kitchens, refine recipes, and gather customer feedback without the need for massive upfront investments. As you grow, you can move from a home kitchen to a pilot kitchen for continued testing and scaling.
The PURIS pilot kitchen includes all the commercial kitchen essentials — gas stoves, grill tops, and convection ovens — along with advanced equipment like flat tops, deep fryers, and sous vide machines. More importantly, it provides specialized tools that allow you to measure texture attributes and assess shelf life with equipment like:
- Texture analyzers
- Blast freezers
- High-shear mixers
- Twin screw extruder
- Moisture and water activity meters
Partnering with a pilot kitchen will help you scale your recipe as you capitalize on the flexibility that powers your start-up.
5. Apply for Start-Up Programs
Bringing a product to market requires industry connections, which can be challenging for new food brands. Large companies have extensive networks to support areas like R&D, regulatory compliance, sourcing, manufacturing, branding, marketing, and distribution, while many start-ups do not.
That's why it's important to find partnering organizations and investors that recognize the importance of supporting food innovation. Consider the following:
- Leverage Incubators and Accelerators: Many incubators and accelerators are specifically designed for food start-ups. (Bonus: these programs often provide access to shared kitchen spaces, equipment, and expert guidance.) By joining an incubator or accelerator, you can accelerate your product development process and gain credibility with potential customers and investors.
- Pursue Grants and Competitions: There are a lot of grants and competitions available for food start-ups — and winning a grant or competition can provide both funding and recognition, which can be instrumental in your growth. Research local and national opportunities, making sure to tailor your application to highlight the unique aspects of your brand and product.
- Network with Industry Professionals: Sometimes, there's a lot of value in showing up and shaking hands. Don't underestimate the value of attending industry conferences, trade shows, and networking events to meet potential partners, investors, and mentors.
- Join Professional Organizations: Becoming a member of professional organizations related to the food industry can provide access to resources, events, and a community of like-minded entrepreneurs. These organizations often offer workshops, webinars, and forums where you can learn from experts and share your own experiences.
- Utilize Online Platforms: There are many online platforms dedicated to supporting start-ups and small businesses. Websites like Kickstarter, Indiegogo, and FoodBytes! can help you raise funds, gain exposure, and connect with potential customers. Don't forget that "regular" platforms like LinkedIn can also be valuable for networking and finding collaborators.
With decades of ingredient innovation under our belts, PURIS is known for helping food start-ups align with growing consumer trends, such as food and beverages made with pea protein. While most other protein sources are either declining or plateauing in demand, there was a 5% increase in products containing pea protein from 2018 to 2022. (All the more reason to try something new and find out if pea protein could work in your up and coming product!)
Write your Start-up success story
By investing in high-quality ingredients, targeting emerging trends, and partnering with a development program, food start-ups can create products that draw in consumers and stand out on shelves.
Sources
1. Innova Now & Next in Dairy & Dairy Alternative Drinks in the US & Canada, 2024
