Starting Peanut Butter Manufacturing Business Plan (PDF)

Peanut Butter Manufacturing Business Plan
Business Plans PDF

The peanut butter manufacturing business is a lucrative business perfectly suited for anyone. Peanut butter forms an integral of many kitchens across the world. Go to many households and you will find peanut there. Peanut butter is heavily consumed across the world. Peanut butter is a highly nutritive product which is used as bread spread and added to food like rice, relish, smoothies, sauces, cookies and porridge. It’s high in proteins and contains low calories, thus it’s considered a healthy food.  Peanut butter manufacturing is a very profitable business which can even been done at a small scale using little capital. Many entrepreneurs from all over the world are making money from peanut butter production business. This article will outline how to start the peanut butter business, and the peanut butter business plan – PDF, Word and Excel.

Peanut butter production is a lucrative business, providing income for millions of families, but there are some essential decisions that you need to make before you venture into the peanut butter business. You have to decide on the size of your peanut butter manufacturing project i.e. the amount of peanut butter that you want to produce daily; location of the peanut butter manufacturing business e.g. a peanut butter plant/factory , and your target market. These choices will be affected by the amount of capital you have, and the size and needs of your target  market. If you do not have a lot of capital, you can always start small and grow your peanut butter project overtime. You also need to carry out market research (Who are you going to sell the peanut butter to? At what price?) and write a peanut butter business plan before you start the peanut butter production project.

Market Research

Look Into The Monopolistic Competition Element

The peanut butter market is generally characterised by monopolistic competition. This means the peanut butter market is midway between absolute competition and monopoly. In such a market the product sold (peanut butter in this case) is unique but having close (but not perfect) substitutes. That is an important aspect to understand in the peanut butter market.

Thus the competition you will deal with is dual i.e. other peanut butter manufacturers and players selling substitutes. You must research to find out what the metrics are like regarding that dynamic. Another thing to look into here regards peanut butter imports. That could be a credible threat to the viability of your peanut butter manufacturing business.

Find Out Regarding Peanut Butter Customer Segments

Peanut butter is chiefly processed as either smooth or crunchy. You have to understand what is consumed most and by who i.e. consumer preferences. You can get even more information by looking into the distribution dynamics. Peanut butter is often found in supermarkets and small shops. Find out average peanut butter order quantities and sales volumes. Studying those can inform on the nature of customer segments. Knowing your target peanut butter market customer personas helps you cater to consumers’ specific needs.

Researching Peanut Butter Market Opportunities

Your peanut butter manufacturing market research is mainly concerned with identifying market opportunities. You have to find out what your key competitors are. What products and services do they offer? What marketing strategies are they employing? What is their market share? Where are they located? Where do they get their raw materials? What are their selling prices? These are some of the things to find out.


For medium to large scale peanut butter manufacturing, there is need of finding industrial premises for the peanut butter plant. The premises should have sufficient electricity supply to power all the peanut butter machines. It is advisable to locate your peanut butter plant closer to the target market so as to minimise transport costs. Other factors which may determine the location include: proximity to raw materials, availability of affordable labour and electricity. Small scale peanut butter production can even be carried from residential premises.

Permits/Licenses, Insurance & Business Bank Account

This is the food industry, getting licensed or a permit is non-negotiable. You must also properly register your peanut butter manufacturing business. Your business premises and operations need to be covered by insurance. All finances for your peanut butter manufacturing business must be managed via a separate business bank account. These 3 elements make your peanut butter manufacturing business compliant, authentic, and structured.

Machinery & Equipment for Peanut Butter Manufacturing Business

Peanut Butter is produced from peanuts/groundnuts. However, the shells of the peanuts need to be removed first. This is done using a Sheller Machine.  Peanut shellers clean, shell and sort peanuts prior to further manufacturing process. A sheller is optional, as you can buy shelled peanuts/groundnuts instead of unshelled ones. The shelled groundnuts/peanuts will then have to be roasted.  Roasting is a process by which heat is supplied to the groundnuts. This is done using a Roaster Machine. The roasted peanuts are then passed through a blancher machine which  emoves the remaining outer skins of the peanuts that still remain after roasting.

The peanuts/groundnuts are then fed into a peanut butter grinding/milling machine. This the main machine needed for the peanut butter production business. It grinds the roasted groundnuts till smooth peanut butter is produced. After the peanut butter is produced, it will then be packed into the peanut butter jars using a peanut butter filling machine. So you need to also have peanut butter jars, which can be of different sizes to cater for different customer needs. The peanut butter jars will need to be labeled. This is usually done by self-adhesive paper which is printed and wrapped around the peanut butter jars. Your peanut butter business plan should take into account the costs of purchasing the machinery and equipment.

Raw Materials for Peanut Butter Production

The major raw material used to make peanut butter is peanuts/groundnuts. They are roasted and milled to produce peanut butter. The cost and quality of the groundnuts which you use play a significant role in  determining the profitability and success of your peanut butter manufacturing business. Peanuts which are big are the ones which make good quality peanut butter.  Before you start the peanut butter business, you should take into consideration the price of peanuts/groundnuts and the selling price of the peanut butter. If the groundnuts are too expensive, your business will encounter heavy losses. Our peanut butter production business plan comes with excel financial statements which will assist you in determining the profitability of the business, taking into consideration the price of the peanuts and other raw materials. Other raw materials include salt, emulsifier, stabilisers, additives, and sweeteners.

Inventory Management

The main focus is raw materials and the processed peanut butter. The main raw materials are peanuts (or groundnuts) and salt. You need to always ensure you have enough to cater for your peanut butter manufacturing needs. Machinery must also be kept in check. You must have a detailed process flow so that it is easy to know when anything needs to be replenished. The same goes for the processed peanut butter. You need to strike a balance between having in stock in line with demand for it. The ideal scenario is for it to go to market as soon as it is processed. This calls on you to get a digital inventory management system to streamline your peanut butter manufacturing operations.


Factory workers are needed to carry out the actual production of peanut butter, acquiring the raw materials, operating the machines, and packing the peanut butter. Of importance is quality control: sorting and grading groundnuts/peanuts before and after roasting, as well as checking the quality of peanut butter produced. Employees are also needed for accounting, sales, marketing, logistics,  supervisory and management roles. The number of employees you need will depend on the size of your peanut butter production business. Your peanut butter making business plan should take into account the costs of purchasing the machinery and equipment. 

Capital for Peanut Butter Business

The amount of capital required for the peanut butter manufacturing business depends on the scale of the project. You can get a loan from the bank, or funding from investors, to use as capital to start your peanut butter production business. If you plan to raise capital from investors and a loan from the bank, you need a good peanut butter production business plan. If you don’t have access to investors and bank loan, you can use your personal savings and start small, and grow your business overtime. Peanut Butter business is very profitable, so if you reinvest the profits you get, you can quickly grow. Even if you are not planning to get a loan, you should still get a peanut butter business plan to guide you in starting and operating the business. It is essential for you to have a peanut butter manufacturing business plan before you venture into the business, so that you know all the costs involved and you make an informed decision.

Marketing Plan

Your target markets can be wholesalers and retailers. Having your peanut butter in supermarkets and shops builds brand awareness. Thus the best marketing approach is to engage such players directly. You can also directly sell to consumers – hassle-free and more lucrative. Having an active online presence i.e. website and social media accounts is essential. Branding and using alluring signage on your premises and in strategic areas helps as well. Invest in attractive, memorable, and informational packaging for your peanut butter.


The market for peanut butter is very huge and is ever increasing. Increasing working population, rising disposable income, rising demand for nutritious products, and rapid urbanisation, have resulted in increasing demand for peanut butter.  You can supply your peanut butter to supermarkets, wholesalers, tuckshops, individual households, schools, restaurants & fast food outlets, companies,  organisations and events etc. For large scale production of peanut butter, you can also end up exporting it to other countries. The peanut butter production business plan ought to include a proper marketing plan to use in your peanut butter business.



Peanut Butter Business Plan PDF
Peanut Butter

Keys To Profitability

Capitalize On Rising Global Health Food Awareness

Health food (not healthy food) is natural food that is deemed to have health-giving qualities. Health foods typically comprise core nutrients namely, carbohydrates, protein, fat, vitamins, and minerals. Globally there is a growing awareness and demand for health foods. More and more people are leaning more on only eating health foods. Peanut butter is a good example of a health food. If you want to push volumes for your peanut butter manufacturing business, sell the health food benefit. Incorporate it in your branding and marketing to appeal more to consumers.

Figure Out Ways To Reduce Costs Of Sourcing Quality Groundnuts

Groundnuts are a major input in the peanut butter (over 90 percent) manufacturing business. They are mostly not easy to come by thus making them costly. No wonder most peanut butter manufacturers are inflexible on pricing their peanut butter. If you can get your hands on cheaper groundnuts, you get a competitive advantage via pricing flexibility. Search far and wide for cheaper groundnuts. Farmers who often grow them can be situated far away from urban or peri-urban areas. Their being far away usually makes them sell their groundnuts for much cheaper prices. Do your research into finding such groundnut farmers. You can even consider investing groundnut farming; it could reduce the cost of sourcing groundnuts.

Provide A Comprehensive Range Peanut Butter (Type And Size-Wise)

Customer preferences when it comes to peanut butter are varied. Some prefer smooth peanut butter, whereas some prefer crunchy peanut butter. Some even prefer newer variations such chocolate peanut butter. You need to provide what adequately serves those preferences. Closely tied to that, are the sizes of the peanut butter containers. Informed by empirical bases, package your peanut butter ranging from the smallest units to the biggest units. All in all, there must be something for everyone.

There are many underserved markets. Shortages of peanut butter are commonplace in some areas. Most peanut butter manufacturing businesses still focus on traditional approaches. These are opportunities for you to start a distinguished peanut butter manufacturing business.

Pre-Written Peanut Butter Manufacturing Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the peanut butter production business, we encourage you to purchase our well-researched and comprehensive peanut butter manufacturing business plan. We introduced the business plans after discovering that many were venturing into the peanut butter making business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global peanut butter manufacturing business plan will make it easier for you to launch and run your peanut butter production business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the peanut butter business.

Uses of the Peanut Butter Business Plan (PDF, Word And Excel)

The peanut butter business plan can be used for many purposes including:

  • Raising capital from investors/friends/relatives
  • Applying for a bank loan
  • Start-up guide to launch your peanut butter manufacturing business
  • As a peanut butter production business proposal
  • Assessing profitability of the peanut butter manufacturing business
  • Finding a business partner
  • Assessing the initial start-up costs so that you know how much to save
  • Manual for current business owners to help in business and strategy formulation

Contents of the Peanut Butter Production Business Plan (PDF, Word And Excel)

The peanut butter business plan include, but not limited to:

  • Marketing Strategy
  • Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
  • Risk Analysis
  • Industry Analysis
  • Market Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some people in the peanut butter business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your peanut butter manufacturing business

The Pre-written peanut butter business plan package consists of 4 files

  1. Peanut Butter Manufacturing Business Plan – PDF file (Comprehensive Version – 77 Pages)
  2. Peanut Butter Manufacturing Business Plan – Editable Word File (Comprehensive Version – 77 Pages)
  3. Peanut Butter Manufacturing Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 44 pages)
  4. Peanut Butter Manufacturing Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the amount of peanut butter produced per day, selling price of the peanut butter etc, and all the other financial statements will automatically adjust to reflect the change.

Click below to download the Contents Page of the Peanut Butter Manufacturing Business Plan (PDF)

Download Peanut Butter Business Plan

Get the Peanut Butter Manufacturing Business Plan (PDF, Word And Excel)

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The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

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The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on and we will assist you.

We wish you the best in your peanut butter manufacturing business! Check out our collection of business plans , and more business ideas.



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