How to Start a Cinnamon Rolls Company
Cinnamon rolls are seeing a resurgence of popularity in 2022. From Cinnabon to Cinnaholic, businesses with cinnamon rolls as their standout product are all finding incredible success. Even General Mills is introducing a new Pillsbury cinnamon roll product for retail this year, which comes as no surprise. The wild popularity of cinnamon rolls comes as no surprise since both the cinnamon and enriched dough markets are expected to grow to be over half a billion dollars by 2025.
These markets are growing due to a number of young adults searching for nostalgic snacks that they used to eat in their childhood. This coupled with the increase of health consciousness among consumers is driving a demand for better-for-you nostalgic snacks, like toaster pastries, cookie dough, and rice crispy treats. In fact, the global healthy snacks market size was valued at USD 85.6 billion in 2021 and is expected to expand at a CAGR of almost 7% in the next eight years. The market is ever-growing and with the success of traditional cinnamon roll brands, we’re predicting that the next hottest, better-for-you baked good is healthy cinnamon rolls.
As consumer behavior shifts in the favor of innovative small businesses, there has been no better time for entrepreneurs to get their feet wet and dive into starting up their own healthy cinnamon roll company. Read on to see what it takes to build the frameworks of a successful healthy and protein-packed dessert business.
1. Carry Out Market Research
Before diving into any business venture, make sure you conduct your own research to see if it will be profitable for you to pursue. As previously mentioned, the cinnamon and enriched dough markets are seeing an increase in profit and so is the global healthy snack market, but you will want to look at how your potential competitors, like Cinnaholic, are currently doing.
However, that is no reason to worry that there are not enough slices in the pie for other healthy cinnamon roll companies. Cinnaholic may carry plant-based and dairy-free options, however, they are limited to being purchased for online pickup and delivery by third parties. And when you look at healthy cinnamon roll options by big brands such as Annie’s - which are available in brick-and-mortar stores - most of their products are canned and ready to bake, instead of ready to eat.
The demand for healthy indulgent baked goods is high, thanks to the better-for-you bakery revolution, and also to the popularity of the recent low calorie version of the keto diet. Being healthy shouldn’t suck, and this is the sentiment that many consumers are relating to right now. They want to put in the work to take care of themselves but they also want to have fun and enjoy it while they do. So as you start brainstorming the best cinnamon rolls to make, consider researching the hottest diet trends like vegan or plant-based, low-calorie, and high protein-packed to set you and brand apart from everyone else.
2. Perfect the Recipe for Your Delicious Yet Healthy Cinnamon Rolls
With a dessert like cinnamon rolls, you can make a recipe jam packed with healthy beneficial ingredients without compromising the taste or sweetness. There are many sweetener options that are low in calories or are low in sugar that you can choose from when it comes to formulating your cinnamon roll recipe. The plant-based sugar alternative allulose has been a popular pick in healthy dessert snacks and better-for-you baked goods due to its rich deep flavor and syrupy taste.
Other functional ingredients to consider when crafting the perfect better-for-you cinnamon roll recipe are coconut oil or avocado oil for a dose of healthy fats, nootropics like green tea to help improve brain function and mental performance, and adaptogens like Lion’s Mane mushrooms for stress relief. If you really want your cinnamon roll to stand out from your competitors, try formulating with collagen protein, which is a great protein ingredient that will make your rolls stand out from your competitors.
For help with formulation and getting access to so many different good-for-you ingredients in bulk, consider working with a cinnamon roll co-packer instead of trying to run every aspect of your business yourself. A co-packer or a co-manufacturer will be valuable when it comes to the side of a healthy snack business that often gets overlooked. From making sure that your cinnamon rolls are compliant with the health claims you hope to advertise to ensure you’re FDA compliant, these seasoned veterans in the industry are powerhouses you should utilize.
3. Find the Right Cinnamon Roll Manufacturer to Partner With
As previously mentioned, partnering with a business partner who is an expert at manufacturing and producing can be very helpful when you are starting your business off. Finding a co-packer and co-manufacturer is essential for most food-based small businesses and entrepreneurial start-ups.
The right partner will handle all your manufacturing and commercialization needs so you can focus your time on building your customer base. When researching and comparing co-manufacturers, it’s important for you to know why exactly you are seeking their help. Are you looking for someone to help you formulate recipes and follow FDA guidelines? Are you looking for a company that can help you mass produce and package your products in beautiful packaging? Knowing these answers will help you curate a list of questions to ask your co-packer.
Co-manufacturers are great at plenty of aspects but they are not all made equally. You will want a partner who has the same ideals as you, who has access to the ingredients you need, who can handle the volume you require and scale up when needed, and who is in the business of making healthy dessert products. The last one will come in handy for your cinnamon rolls because if you go to a co-manufacturer or co-packer that is known for health drinks, for example, rather than baked goods, you may struggle when it comes to developing and storing your products. Thus, it's best for you to seek out a specialized cinnamon roll co-manufacturer.
4. Develop a Solid Marketing Strategy For Your New Healthy Cinnamon Roll Brand
The last aspect to starting your healthy cinnamon roll company is to create a successful marketing strategy for your brand and cinnamon rolls so you can start generating sales. You have already done some market research in the beginning, if you were following the steps we laid out. These will construct the foundations of your marketing strategy but it is important to always continue researching and remaining on top of trends for your industry. You need to develop an approach that will utilize your understanding of your target audience, your direct and indirect competitors, and the benefits your product will bring to the market landscape. A good jumping off point is to look at competitors or brands popular in your corner of the market and the lucrative strategies they are employing to remain successful.
With eCommerce being the driving force of how many small businesses sell their products today, you should also consider a focused eCommerce strategy. This strategy should include online retailers and marketplaces you want to launch your cinnamon rolls on and how you are going to tailor your marketing tactics accordingly, whether that relates to an ad driven approach on social media, direct social media marketing on your branded profiles, or email marketing.
There are proven methods of becoming a top seller for your product on these platforms so it is worthwhile to research what those methods are and to see how you can employ them for your business.
Get Ready to Start Selling Your Cinnamon Rolls
If you’ve been following along with the guide, then you are more than ready to start your business. All that remains is figuring out where you should sell your cinnamon rolls and how. Due to the lasting effects of the pandemic, it is harder to find success in brick-and-mortar stores. eCommerce, however, continues to grow exponentially every year. People are drawn to convenience and online shopping and deliveries straight to their doorsteps have a massive appeal.
To start off your online business and find success, you will need to have strategies for social media and brand marketing, suppliers and distributors, and much more. You can’t do this all alone but with a team, anything is possible!
To build your team of superstars that will get your cinnamon roll company up and running, you’ll need:
- Your Co-Manufacturer / Co-Packer
- Your Director / Head of Marketing
- The CEO of the Brand
With that being said, you’re finally ready! Happy selling!