Are you thinking of a good business with high demand but doesn’t break the bank to run? There’s an answer to that: smoothies.
The demand for these thick slushie-like beverages is likely to beat the pandemic and beyond. According to Mordor Intelligence, the market could grow up to nearly 7% from 2020 to 2025. Meanwhile, Radiant Insights forecast it to increase by 8.59% from 2017 to 2021.
Growth Drivers
What makes smoothies the ultimate go-to drink these days? Here are the best reasons:
1. Ease of Opening a Business
Opening a smoothie bar is uncomplicated when you think about it. First, you have many dining options to choose from:
- If you have enough capital but want to spare yourself from significant birth pains, pick among the different smoothie franchise opportunities.
- If you have limited financial resources and like to bootstrap, you can always begin with a small smoothie bar in your neighborhood.
- If you’re thinking of saving money from rent, start a home-based business.
Your smoothie shop can be a full-fledged restaurant that offers other healthy choices, such as salads and plant-based meals. These can appeal to groups, like families and friends. It’s easier for you to upsell other products and services too.
You can also have a stand. You might not earn as much as when you have a stand-alone shop, but it’s more convenient to maintain and usually has a lower operating expense.
2. Changing Lifestyles
Although Americans struggle to meet the recommended dietary guidelines, most still want to keep themselves healthy. In a 2018 survey by a food industry expert, about 60% said they’ve love to eat well most of the time. An overwhelming 90% wouldn’t mind having more fruits and veggies on some days of the week.
However, in a Mintel survey, 40% shared that they wanted to eat healthily but didn’t know where to turn for the right information. Further, most people are busy. Even if they want to eat right, they don’t have the time to prep for good meals. Your business can help fill in the gaps.
But why are Americans try to live a healthier lifestyle nowadays? Some of the best reasons are:
- More studies reveal that consuming a plant-based diet can help prevent or reduce the risk of various chronic diseases. These include type II diabetes, cardiovascular disorders, and certain types of cancers.
- Healthcare costs are rising. In 2018, it rose by 4.6%. That’s over $11,000 per-person expenditures.
- More people realize that they can negotiate with their healthcare insurance premiums when they’re healthier.
3. Millennials and Generation Z
Millennials are the wellness generation for a reason. According to Goldman Sachs, being healthy for them is not a trend but a way of life – they pursue it actively. They spend money on plant-based meals, organic ingredients, fitness equipment, and supplements, among others.
Meanwhile, Generation Z, which came after the millennials, is just as conscious about their health as their predecessors. In fact, they’re willing to pay a premium for wellness products, revealed a Nielsen survey.
Why do these groups matter to any business? Currently, they are the most important consumer markets in the world. In the United States alone, the millennials comprise about 26% of the households. Generation Z has a spending power amounting to over $135 billion.
Growing a business takes a lot than a popular product. However, having an in-demand product like a smoothie already gives you a good head start. Further, with low operating costs and full support from a team (if you’re franchising), you have fewer issues to worry about.
