Start A Coffee Roasting Business - Business Ideas

Updated: September 15th, 2022
Start A Coffee Roasting Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

A coffee roasting business roasts green coffee beans to various roast levels. Recent market research has shown that the global coffee roaster market is increasing at a CAGR of 4.24% for the next six years.
Therefore, launching your coffee roasting business in 2024 can be profitable. Coffee roasters use large machinery, including a roaster and grinder, to turn the beans into a finished product. To start a coffee roasting business, research the market and find who else is roasting in your target area.

Then, find out where coffee sellers in your area are getting their supplies. You also need to know how many coffee shops are in your area.

Then, decide if you want to sell the coffee to individuals or to a coffee shop. Alternatively, you can sell the coffee in your coffee shop or deliver it to elite lodging establishments and restaurants.

Starting a coffee roasting business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell coffee roasting , or selling coffee roasting online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a coffee roasting business ➜

Key Stats

market size
$320B
revenue (monthly)
$82.5K
starting costs
$24.9K
gross margin
35%
avg product price
$7
time to build
270 days
growth
Direct sales
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Website Costs

$213

$6,715

Business Formation Fees

$550

$2,500

Equipment & Supply Expenses

$63

$200

Retail Business Expenses

$1,250

$10,450

Inventory Expenses

$350

$14,750

Software Expenses

$150

$2,794

Advertising & Marketing Costs

$75

$5,286

Total Startup Costs

$2,651

$49,695

Successful Businesses

Business URL Rank

Keurig

keurig.com

37,586

Coffee Roaster

bluebottlecoffee.com

53,076

Fellow

fellowproducts.com

88,865

Dutch Bros

dutchbros.com

125,733

Verve Coffee Roasters

vervecoffee.com

144,382

BLK & Bold Specialty Beverages

blkandbold.com

150,112

Sweet Maria's Home Coffee Roasting

sweetmarias.com

152,654

Sprudge

sprudge.com

154,704

Coffee Crafters

coffeecrafters.com

243,960

Seven Coffee Roasters

sevencoffeeroasters.com

286,344

Ceremony Coffee Roasters: Order Coffee, Find Cafés, Shop Gear, Learn

ceremonycoffee.com

293,013

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Rewarding work

Starting a coffee roasting business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a coffee roasting business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

High margins

The gross margins for your coffee roasting business are typically around 35%, which is considerably high and allows you to grow your business and manage costs easily.

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

High employee turnover

In the coffee roasting business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a coffee roasting business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

No safety net

Typically, as a coffee roasting business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

High overhead expenses

With starting a coffee roasting business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜