9 min read

How to Start a Snack Business

Quick answer

How to start a snack business: pick a snack that stays safe on a shelf, like popcorn, chips, pretzels, granola or trail mix, and check whether your state's cottage food law lets you make it at home. When you move into a commercial kitchen or sell to stores, register the facility with FDA, follow FDA's food safety rules and get your state food license. Every bag needs a name, net weight, ingredients, allergens and your address, plus Nutrition Facts unless a small business exemption fits. Meat snacks like jerky follow USDA rules instead.

How to start a snack business: bags of popcorn, pretzels and trail mix with labels on the back, lined up on a packing table
Small batches, real bags, real labels
01

Starting a snack business, step by step

  • Choose a snack and check which agency regulates it
  • Read your state's cottage food law: is your snack allowed at home, and where may you sell it?
  • Lock the recipe and weigh what one batch yields
  • Move to a licensed kitchen or a co-packer when you sell wholesale or across state lines
  • Register with FDA and set up the food safety records that come with it
  • Choose bag sizes, then make a label for each size
  • Pick your first sales channel and grow from there
02

Which snack, which rules?

Snacks split into two worlds. Popcorn, chips, pretzels, nuts, granola and most bars are FDA foods. Jerky and meat sticks are meat products, and USDA regulates meat, not FDA. This guide covers the FDA side.

FDA, How to Start a Food BusinessFDA regulates all foods and food ingredients introduced into or offered for sale in interstate commerce, with the exception of meat, poultry, and certain processed egg products regulated by the U.S. Department of Agriculture

Within the FDA world, the snack type also sets the serving size on your label. FDA groups them like this:

SnackFDA reference amount
Chips, pretzels, popcorn, extruded snacks, fruit chips, grain-based snack mixes30 g
Nuts, seeds and nut mixes30 g
Crackers usually eaten as a snack30 g
Granola bars, breakfast bars, rice cereal bars40 g
21 CFR 101.12(b), Table 2All varieties, chips, pretzels, popcorn, extruded snacks, fruit and vegetable-based snacks (e.g., fruit chips), grain-based snack mixes
03

Can you start a snack business from home?

Often, yes. Dry, crunchy snacks are a good fit for cottage food laws, but the details differ a lot between states. Nuts and anything made in a dehydrator are where the surprises are:

StateSnacks under the cottage food rules
IndianaPopcorn and chips are allowed
South CarolinaGranola, trail mix and roasted or candied nuts are allowed
New YorkPopcorn, pretzels, crackers and vegetable chips are allowed; granola and trail mix with commercially roasted nuts only; raw nuts are prohibited
WisconsinOnly baked goods are exempt: jerky, dried fruit and dehydrator granola need a license
ArkansasGranola and trail mix are allowed; jerky needs an ADH permit

Also check how you may sell. Some states allow online orders, some only face to face, and several states keep home producers out of wholesale to shops. Check that last point early if you picture your snacks on a store shelf.

Food Label Requirements by State →Selling Food from Home →
04

FDA registration and the food safety rules after it

A commercial kitchen that makes or packs snacks for stores registers with FDA before it starts, renews every other year and pays no fee. Retail food establishments, which mainly sell straight to consumers, and private homes are exempt.

A registered facility also falls under FDA's food safety rule for human food, 21 CFR Part 117: good manufacturing practices, plus a written hazard analysis and preventive controls. A very small business qualifies for modified requirements: instead of the full preventive controls plan, it sends FDA attestations, on Form FDA 3942a or online, and repeats them every 2 years.

21 CFR 117.3Very small business means, for purposes of this part, a business (including any subsidiaries and affiliates) averaging less than $1,000,000, adjusted for inflation, per year, during the 3-year period preceding the applicable calendar year in sales of human food plus the market value of human food manufactured, processed, packed, or held without sale (e.g., held for a fee).
21 CFR 1.231(c)No registration fee is required.
FDA Food Facility Registration →
05

Keep records one step up and one step down

A registered snack maker keeps track of where its ingredients came from and where its finished bags went. FDA's example uses cookie dough, but the idea is the same for a bag of kettle corn: your corn and oil suppliers on one side, your stores and distributors on the other.

FDA, How to Start a Food BusinessThis is also known as "one up, one down" in the distribution chain.

Simple habits make this easy: write a batch number on each case, keep supplier invoices with the batch, and log which store got which batch.

06

Do your snacks need Nutrition Facts?

Most packaged snacks do, with two exemptions that matter for a new business. The first covers sellers who sell directly to consumers and stay under FDA's sales limits. The second is the low-volume exemption, made for small brands that sell through stores:

Your businessLow-volume exemption
Under 100 full-time equivalent employees, and under 100,000 units of the product sold in the US in the past 12 monthsExempt, after you file a notice with FDA before the exemption period
Fewer than 10 full-time equivalent employees, fewer than 10,000 units a year, and not an importerExempt without filing a notice
Any nutrition claim or nutrition information on the bag, label or adsNo exemption
21 CFR 101.9(j)(18)(iv)if the person is not an importer and has fewer than 10 full-time equivalent employees, that person does not have to file a notice for any food product with annual sales of fewer than 10,000 total units

Snack brands lose this exemption easily: "high protein", "low fat" or "only 100 calories" on the front is a claim, and then the bag needs the full panel. Our tool builds the panel; it does not review claims, so check each claim against the nutrient content claim rules first.

Where do the numbers come from? FDA's start-up page mentions commercial labs, university food science departments and USDA's nutrient database.

FDA, How to Start a Food BusinessThe USDA Agricultural Research Service Food Data Central may be used to develop appropriate nutrient information for foods.

That is the data our tool uses. Type in the recipe, approve each USDA match, and the tool returns the panel with FDA rounding and % Daily Values, plus a calculation report for a store buyer or inspector. For an ingredient we don't have, like a seasoning blend, type the numbers from the supplier's label or take a photo of it.

Nutrient Content Claims →
07

Allergens in a snack lineup

Snack makers handle more of the major allergens than most food businesses: peanuts and tree nuts in mixes, sesame on pretzels and crackers, milk in cheese powders, wheat and soy in coatings. Our tool flags each one from the recipe and writes the Contains line, naming the exact tree nut.

If one line runs nuts and the next runs plain popcorn, a precautionary "may contain" statement is voluntary under federal law, and it has to be true.

"May Contain" Allergen Labeling →
08

Bag sizes change the label

Snack bags are where serving size gets tricky. A bag sold on its own with under 200% of the reference amount counts as a single serving, so the panel describes the full bag. Between two and three times the reference amount, the label needs two columns, per serving and per bag. Plan your sizes with that in mind, and make one label per size.

21 CFR 101.9(b)(6)A product that is packaged and sold individually that contains less than 200 percent of the applicable reference amount must be considered to be a single-serving container, and the entire content of the product must be labeled as one serving.

Our tool sets servings per container from the package weight and offers the Dual column format. Print on Avery 5126, 5168, 5164 or 5163 sheets, or send the PDF to your bag printer.

Dual Column Nutrition Label →
09

Your label, by snack

Each snack page shows a sample recipe, the serving size worked out and the label it makes:

Chips Label →Popcorn Label →Pretzel Label →Trail Mix Label →Granola Label Design →Protein Bar Label →Start your snack label free →
10

Where to sell your snacks

ChannelWhat it takes
Farmers markets and eventsOften possible under a cottage food law, with samples to win buyers
Your own web shopState rules for home producers; a licensed kitchen to ship across state lines
Coffee shops, gyms and gift shopsWholesale: usually a licensed kitchen, FDA registration and a full label
Grocery chainsAll of the above, plus whatever the retailer asks of its suppliers

Not ready for your own kitchen? A co-packer makes your snack under its license. Your label then names you as the brand, for example "Distributed by", with your city, state and ZIP.

Co-Packer →How to Sell Food Online →
11

Snack business checklist

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Questions

Questions

From a home kitchen, it depends on your state's cottage food law: some ask for nothing, some for a registration or permit. From a commercial kitchen, you need a state or local food license, and usually an FDA registration too.

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