Bee’s wax wrap – Success in Niche Market
Business Success:
Some would like to do a business which can be small, niche but very meaningful, this gives them satisfaction and continued success in a niche segment. These are the market Nichers. There are many “Market Nicher Examples”. For those who would like to avoid competition and take a different path, these businesses provide insights which ignite our minds for success and being meaningful. Bee’s wax is one such example I came across.
Bee’s wax – What is fun about Bee’s wax being used for wrapping the foods?!
Bee’s wax is taken from bee’s hive, which has been in use since 1500 BC in the Egypt. The Egyptians have used Beeswax as medicines for treating bruises, inflammations etc., Most importantly it is being as skin care cosmetic products. With its anti-microbial properties, it is being used for food wrapping.
Why this market?
Non-recyclable plastic is one of the key challenges and as we use plastic in almost every aspect of daily life, it has become part of every one’s life but disposing is a big challenge.
It is estimated that 8 million metric tonnes of plastic enter ocean every year and it is estimated that already 150 million metric tonnes of plastic are in ocean already! Plastic production is estimated to be around 360 million metric tonnes in 2020.
We need some alternatives to plastic!
Reusable food wrappers – Bio degradable:
Innovative organic clothes coated with bee’s wax, being used for food wrapping. Instead of plastics, this helps to protect the food and also keeps the food for longer duration of time! Because Bee’s wax is breathable. Any cold / room temperature food products can be wrapped!
These clothes can be reused for 1 year and it is being sold as plain printed clothes in different sizes or small bags etc.,
Of course, it has some down sides as well, warm foods cannot be wrapped, highly coloured foods can stain the clothes thought it is washable and also it is expensive!
It is bio degradable! At the end of life these bio degradable products can be easily decomposed.
Emerging business opportunities!
There is a growing awareness on sustainability – to avoid emissions, plastics, reduce carbon foot print and this is growing business segment. Many developed countries and developing countries are actively embracing these kinds of products and looking for alternative packings which will help. Even in India, plastics and plastics bags are banned in shops and in many places.
Business perspective
- Unique market – Not much of competition
- Uses – this can be used in many ways and applied in many ways.
- Scope of improvement – How we can bring down the cost of these organic bio degradable wraps
- Higher margin products
Business size:
- There are many companies which are focusing in US, UK and other countries which are making a revenue in the range of $1 Million to $10 Million. These companies are in the nascent stage, however not much of business models and technologies are being engaged in this segment.
- As sustainability living is the new norm, for example Microsoft is focusing on reducing the environmental impact of large infrastructures, Toyota is working on creating on 175-acre smart city in Japan with autonomous vehicles and modern technologies … as the we see that awareness and initiatives are in the increasing trend, the adoption of these kind of products will be on the rise.
Market size
The global sustainable market is on the growth trend which is expected to grow from $280 B in 2019 to $ 469B in 2027, and the reusable food wrapping market is expected to $13.19 Billion (It is 6 times greater than Chennai export revenue in 2021) to $29.32 Billion in 2027.
Go for Niche Markets:
“Market Nicher examples” are many, we will cover some more in the future blogs.
