Selling hot sauce at a local farmer’s market is one of the easiest and most profitable ways to enter the hot sauce business. There are thousands of venues across the US and the regulations in many states are less stringent than the federal Food and Drug Administration (FDA), making it easy to start a hot sauce business.
Applying for the proper permits to sell hot sauce at a local farmers market includes knowing your home state’s local cottage food laws and whether or not hot sauce is acceptable under this rule. Many states do not allow hot sauce to be sold directly to consumers under local cottage food laws because hot sauce with a pH below 4.6 can be considered “potentially hazardous”. Once your hot sauce has been approved, apply for a permit to sell at one or many of the local farm markets in your area.
Reasons to sell hot sauce at a farm market
Many entrepreneurs entering the hot sauce business start out selling at local farm markets because there are many venues to sell at, the cost to set up is low and the process of having your sauce approved on the state level can be easier and less expensive than the federal level.
Selling hot sauce at a farm market doesn’t mean you haven’t hit the “big time”…a sale is a sale. Although many farmer’s markets may be seasonal, the number of markets continues to grow every year. According to Economic Research Service from the US Department of Agriculture, the growth of farm markets has averaged 7% per year over the last 20 years. In addition, 2020 saw over $10 billion in sales at farm markets. These are great opportunities to sell your hot sauce at farm markets across the US.
Where to sell
Currently, there are over 8,000 farmer’s markets in the US alone according to the U.S. Department of Agriculture. Although these are spread out across the entire United States and there is a significant number of markets per state, there is more than likely one or two markets within a few miles of your residence where you can sell hot sauce. Search the directory at Local Harvest.org to find local farm markets in your area.
Low startup costs
The cost to sell hot sauce at a farm market includes the permit fees to apply and any costs associated with the equipment needed to display your sauce. Marketing costs will focus on displays, graphics, and banners to attract potential customers. Many times, the products themselves can act as marketing because farm markets give you direct contact with potential customers. Having a product sample to provide to consumers can drive sales but this can also increase costs.
Approving a hot sauce
Hot sauce has come a long way in a short time and has begun to be widely accepted and sold as cottage food in many states. This is largely attributed to many types of hot sauce products being shelf-stable, low in pH, and not being able to harbor harmful bacteria.
A hot sauce that has a pH level at or below what the FDA states will kill harmful bacteria will have a wider acceptance as a cottage food in many states. This means your sauce will need to be at or below 4.6 pH to be approved by many local cottage food laws. Read more here on Understanding Hot Sauce pH and here for The Importance of Hot Sauce pH.
Know your states cottage food law
A cottage food law is a regulation set up to approve or disapprove homemade foods to be sold directly to consumers with very few inspections or licensing requirements. This allows a simple and easy hot sauce recipe to be bottled at home and sold without filing forms, needing laboratory testing, or having a hot sauce that will not be approved.
About half the states in the US allow homemade hot sauce to be sold directly to consumers. Most often it will need to be acidified with a pH of 4.6 or below and this will need to be verified through laboratory testing. Read more here on The Importance of Hot Sauce pH and why your homemade hot sauces should be tested regularly. Also check out How To Use a pH Meter To Test Hot Sauce so you can perform your own testing at home.
Contacting the local health or agricultural department is the best way to find out if your hot sauce will qualify as cottage food to be sold at a local farm market. Many states are continually updating their acceptance of homemade products to include hot sauces that may be acidified or are on the alkaline side of the pH scale.
States with cottage food laws that allow hot sauce sales
Currently, 25 states allow the sale of hot sauce under their cottage food laws whether it is acidified or not. As states are continually amending their local food laws these numbers will grow to benefit the sale of homemade hot sauce directly to consumers. States are recognizing that stringent federal regulations are keeping small independent hot sauce companies from entering into business so hot sauces get accepted more and more to increase inter-state commerce. This makes money for both the local governmental offices and small hot sauce startup companies.
Selling hot sauce at a farm market allows you to avoid the loopholes of federal regulations. Although some states can be very stringent, it will be easier and less expensive to sell hot sauce through a farm market than to get approved by the FDA, locate a co-packer, and sell at local grocery stores.
Each state has different regulations to follow that allow the sale of homemade hot sauce directly to consumers. Getting familiar with each of these states’ cottage food laws includes contacting the local agricultural department or health-related department in each state or county where you will be doing business. Contacting the local farm market can also provide you with what type of hot sauce may qualify as cottage food and is eligible to be sold at a local market.
State agricultural departments
Selling hot sauce at a farm market in states where hot sauce is approved may be easier than following federal regulations but there is still a process that needs to be done. Locating the local health agencies that approve hot sauce is one of the first steps after you have a great-tasting hot sauce of course.
Locate your local agricultural authority
Contacting the authority who will directly approve a hot sauce to be sold as cottage food is the only way to get a hot sauce approved. There will typically be a form or application along with a fee to apply for acceptance. This also means you need to know your sauce. Knowing and understanding the pH level will be necessary to file as a seller of cottage foods, including hot sauce, in many states.
What you will need for approval
You will need to show proof that your hot sauce product is a pH of 4.6 or below in the form of laboratory testing. Although some states may not require testing results at all, it is still good to know and have this information as well as other testing results indicating nutritional content.
Testing results
Although not all states require testing results many will, and this can also be a valuable thing to have for consumers. Many local authorities regulating farm markets may have specific testing agencies so contact the cottage food authority before spending thousands on laboratory results.
Samples
The local farm market where you intend to sell your hot sauce will want to see and taste the product you have for sale in its finished and packaged form. Proving these samples for free to potential customers will cost you money but this can be thought of as an expense towards marketing your sauce.
Submitted documentation
Most farm markets will not allow you to just show up, set up a sales table, and begin selling to customers. There will be a formal process beginning with an approved product. This will usually require testing results indicating the proper pH level and a description of the product.
Difference between homemade and commercial hot sauce
Homemade products will usually use fresh ingredients without the need to provide additives to keep them shelf stable for long periods. Commercial products will usually include preservatives or processes that prolong the shelf life of products. Because of this, it can be difficult to duplicate a homemade hot sauce flavor, texture, or consistency.
Follow FDA regulations
Manufacturing hot sauce under federal Food and Drug Administration guidelines means you can sell your hot sauce at any venue. However, many farm market opportunities may prove to be more profitable than investing in stores.
Find local markets
There are over 8,000 farm markets in the United States. Finding local farmer’s markets to sell hot sauce is easy through this link. There may be a few instances where you can sell homemade hot sauce at a farm market across state lines, but the typical cottage laws are usually specific to a certain region, jurisdiction, or county.
Apply for permits
Once your sauce is qualified as an acidified food product, if it needs to be, applying for permits is as easy as filing the correct form. Fees can range in price and will generally be less than a couple hundred dollars. This allows your hot sauce business to temporarily but legally set up sales transactions directly to potential consumers.
Set up
Setting up for sales at a farm market will include temporary structures that you can set up and take down relatively quickly. Verify what your local market provides before investing money in equipment like tables and stands. Visiting the market where you intend to sell can also provide you with an understanding of what is needed.
Table or stand
Setting up a table or stand is essential for product display, sample giveaways, and point of sale transactions. This can be a simple fold up table or semi-permanent fixture depending on the market set up. Having something that you can set up quickly is the best option to allow you to set up at any market, anywhere.
Point of sale transaction
The point of sale transaction can be a determining factor in the shopping experience and can often determine if a customer is completely satisfied as well as other data. According to OneViewCommerce, the software used should create payment options for the customer can be a factor in determining customer satisfaction. Quick and reliable checkouts are one method of keeping customers happy and returning.
Banner, sign & graphics
Having a banner, sign, or promotional material will provide a backdrop for marketing and this can be necessary costs towards making additional sales. These signs should include your company name, logo, and graphics along with some contact information. Having flyers and pamphlets to hand out and place in a bag after the point of sales is also some great promotional material.
Other options
Selling sauce of any kind at a farmers’ market can be a difficult thing for the local agricultural departments to accept but there can be spicey alternatives. Many cottage food laws allow the sale of dried spices or dried peppers and there are many combinations to present these products.
Dried spice
Dried hot pepper spice combinations are an excellent addition or option to selling at a farm market. Most of the individual cottage laws in each state will approve dried, crushed, or ground hot peppers for sale directly to consumers. This is because hot peppers in dried form are less likely if at all, to allow harmful bacteria to grow. This is the main concern for the authorities regulating each of the cottage food laws. A product that is less likely to be able to allow harmful bacteria to thrive will be more likely to be approved for sale. Consumers love spicy food beyond hot sauce. Spice can be added to many different food types that may already be approved under cottage food laws.
