Kerala is one of the most beautiful states in India, blessed with scenic beauty. Apart from these scenic views, the state has the 9th largest economy in India, which possesses many opportunities for entrepreneurs. The natural beauty of Kerala makes it a great location for those who are looking to start a business.
If you are an entrepreneur looking for business ideas, you have come to the right place. In this blog, we will discuss the best business ideas in Kerala. These ideas will be based on your investment, interest, profit, market demand, and resources. Here you will find the best option available for you.
List of Best Business Ideas In Kerala
Here’s a more detailed look at the best business ideas in Kerala that you can choose from.
1. Tour Guide
Kerala’s natural beauty is so awesome that it attracts a large number of tourists. There, you can be a tour guide yourself, or you can open your tourism agency. You can capitalise on the travellers by giving them a tour of Kerala from a local point of view.
If you are looking to start a business in tour guiding in Kerala, then you need to know about the location, estimated investment, resources, and profit. Here it is:
Location:
Munnar, Thekkady, Wayanad, Kumarakom (Popular for domestic and international tourists)
Investment:
Rs 1 lakh to Rs 7.5 lakh (annually). This amount varies by product scale and type.
Resources:
Tourism guide support scheme, KSIDC/KTIDC (provide consultancy on feasibility studies), licensing, GST guidance, and investment promotion services.
Market Demand:
The tour guiding business is set to grow at a strong 21% rise over pre-pandemic levels.
Profit Scale:
Rs 20 lakh to Rs 30 lakh (10-month peak in its season)
2. Travel Blogging/ Vlogging
You can share your experiences and insights with the world of Kerala’s natural beauty. You can also monetize your content through various platforms. Here’s a guide to start a Kerala-focused travel blog that contains market demands, profit potential, and essential resources to help you plan.
Location:
Kochi & Fort Kochi, Verkala & Kovalam, Munnar, Wayanad & Vagamon, Kumbalangi, Bekal, Silent Valley, Kerala River.
Investment:
Rs 60k to Rs 10 lakhs to launch professionally. This investment contains travel expenses, hosting, outreach, camera, editing software, etc.
Resources:
Powerful PR via curated blogger visits and state support, WordPress, SEO, Social Media platforms, Affiliate platforms, etc.
Market Demand:
Kerala tourism revenue hit Rs 35,168 crore, showing a 186% jump from 2021.
3. Hotels/ Guesthouses
Kerala’s natural beauty is so captivating that the number of tourists is increasing daily. Keeping this in mind, starting a business of hotels and guesthouses is a perfect option for you. You can provide the most economical and comfortable hotels to the tourists.
Given the state’s rapidly growing tourism sector, starting hotels and guesthouses can be very profitable. Here’s a short guide that covers location, investment, profit potential, resources, and market demand. Here it is:
Location:
Kochi, Alappuzha, Munnar, Vayanad, Varkala, and Kumarakom are the best locations for opening hotels or homestays.
Investment:
Rs 70 lakh – Rs 3 Crore (Amount can vary based on the product)
Resources:
Marketing support, networking, subsidies for eco-tourism, local artisans, and organic farms can create curated guest experiences, a wellness centre, and local tour operators.
Market Demand:
Kerala receives around 30 million tourists annually, comprising domestic and international tourists during the monsoon (September to June) and winter (October to March).
Profit Margin:
Rs 5 lakh to 10 lakh (depends on hotel’s size and category)
4. Agriculture & Food
The demand for organic products is increasing in Kerala due to growing awareness towards health and sustainability. You can start with a small farm and expand slowly. You can also convert agricultural produce into high-value goods like pickles, spices, jam, and coconut-based products.
If you are thinking of starting an agriculture & food-based business in Kerala, you need to know these important points. Here it is:
Location & Focused Areas:
Kollam District, Pathanamthitta & Idukki, Kattakada panchayats, Mallapuram.
Investment:
Rs 3 – 5 lakh per hectare
Resources:
KSIDC & KINFRA provide land permits, loans, promotional support in agro-agriculture, farmers collectives, branding, market linkage, app-based delivery, reliable across districts.
Market Demand:
Kerala food processing is a high–growth priority sector. The demand for organic exotic fruits and value-added processed food is increasing regularly, like Jackfruit snacks, chips, branded pickles, spices, coconut products, and more.
Profit Potential:
Rs 3 – 4 lakh per hectare once mature.
5. Restaurant
Opening a restaurant in Kerala with authentic regional cuisine can be the best way because you can cater to both locals and tourists. You can sell a variety of foods and cuisines to the customers.
Here’s a guide, if you want to start a Restaurant in Kerala, that covers location, investment, market demands, resources, and profit margin that will help you to get started:
Location:
Kochi, Kollam, Highway junctions, Kottayam, Thrissur, Kozhikode.
Investment:
Total Rs 20 lakh to Rs 40 lakh (annually, it depends on the area)
Resources:
Low-interest loans, collateral-free startup Kerala loans, business permits, tax filing, fresh seafood, spices, and food suppliers.
Market Demand:
Interest in niche and theme-based restaurants is growing with a growth rate of 10-12% per annum.
Profit Potential:
Rs 1.5 lakh to 2 lakh per month (depending on concept and city)
6. Coffee Shops
Coffee shop business idea in Kerala can be successful considering its culture and preferences. Opening a coffee shop focused on local flavors and artisanal coffee, premium coffee shops, and themed cafes that offer a unique experience.
Starting a coffee shop in Kerala can be a smart business, especially in tourist places, cities, and college areas.
Best location for starting a coffee shop:
1. Tourist Place
- Munnar
- Fort Kochi
- Varkala
- Waynad
2. Cities & Towns
- Kochi (Ernakulam) – Best for high footfall areas & Urban crowd
- Tiruvananathapuram – Capital city, students, and office-going people
- Calicut (Kozhikode) – Educational Institutes, evolving cafes culture
- Kottayam / Alappuzha – Smaller towns but near to local markets
Investment :
Rs 50k to 5 lakh (depending on interior complexity & equipment)
Resources :
Interior & furniture, kitchen equipment, coffee machine, crockery, cutlery, licenses & registration, branding & signage.
Market Demand:
The coffee shop market is set to grow at a strong CAGR of approximately 13.3% till 2030.
Profit Margin:
Rs 50k to 2 lakhs per month
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7. Bakery
A bakery business can be very profitable due to the high demand for freshly baked goods in Kerala. It can be very successful by focusing on quality, variety, and a unique offering.
You can sell a variety of baked goods, or offering unique Kerala-inspired items can help you a lot. We have shared a brief look at the bakery business in Kerala. Here it is:
Location:
Urban Hubs, high-football areas, high-density localities (Kochi, Thrissur)
Investment:
Rs 5 lakh – Rs 25 lakh (depends on bakery size, rent, equipment, licenses, staff, initial inventory)
Resources:
Local ingredient suppliers, skilled bakers, digital payment solutions, and government safety food registrations.
Market Demand:
Daily demand for bread, snacks, and cakes, driven by Kerala’s urbanization, is very high.
Profit Margin:
Potentially monthly profit Rs 50k to Rs 2 lakh, depending on scale and efficiency.
8. Banana Chips
Kerala is popular for its banana chips. If you would prefer to sell this popular snack, especially among tourists and locals, it can be a great business idea. This business takes a very low investment and offers good profit margins. You can add more variants to regular banana chips that customers will also like.
Location:
Banana-producing regions include Palakkad, Kozhikode, Thrissur, and Ernakulam, with access to highways for distribution.
Investment:
Rs 2 lakh to Rs 15 lakh for manual setup( according to area, manpower, packaging, machinery products)
Resources:
Good network with farmers, food technologies, packaging vendors, FSSAI licences, and online sales channels.
Market Demand:
Banana chips are a popular snack among Kerala’s people, and they grow more in the festival seasons.
Profit Margin:
Typically, net margin is 20% to 35%. The monthly income is potentially Rs 30k to 1.5 lakh for a small unit.
9. Catering Business
Several catering businesses can thrive in Kerala. If you would prefer to serve traditional Kerala cuisine, offering unique menus, or catering to specific dietary needs can be the best solution. This business needs a food truck, and with this, you need to focus on online delivery services. Instead of this, you can offer cooking classes that can also be successful.
Location:
Demand centers near wedding halls, urban clusters, business districts, and temples.
Investment:
Rs. 5 lakh to Rs. 25 lakh (kitchen setup, delivery vans, FSSAI certification, staff, tableware, marketing)
Resources:
Event managers, trained chefs, a supplier network, and a partnership with event venues.
Market Demand:
Trained chefs, suppliers, web presence, and partnership with event venues.
Profit Margin:
Monthly profit range 15% to 20% from Rs 50k to Rs 2 lakh for established brands.
10. Digital Marketing Services
If you know about Digital marketing, you can provide services like SEO, social media management, and content writing to businesses in Kerala. Starting a digital marketing business in Kerala offers unique opportunities in, growing economic, technological landscape. Here’s a breakdown, Specific to setting up your service:
Location:
The best location in major cities with high business presence (Kochi, Calicut, Thiruvananthapuram).
Investment:
Rs 1 lakh to 10 lakh (office space, tech hardware, initial staff)
Resources:
Content creator, digital marketing specialists, analytics tools, strong portfolio, subscriptions.
Market Demand:
Tourism, educational sectors, and retail sectors as digital adoption grows.
Profit Margin:
The profit potential for digital marketing agencies could range between 30% to 50% on gross. For specialized persons, margins could go up to 70%.
11. Online Coaching Classes
You can earn more profit through your knowledge by offering online classes in different subjects, health and wellness coaching, career coaching, etc.
Also focused on wellness tourism and organic farming, which allows you to open related coaching niches like Ayurvedic wellness coaching and organic farming coaching.
Starting online classes in Kerala is a smart move – the state’s high literacy rate, tech adoption, and student-driven culture make it a strong market in the educational field. Here are the key factors to consider.
Location:
Home office or online platform for regional subjects, pan-India via platforms in Kochi, Kozhikode.
Investment:
Rs 50k to Rs 1 lakh (depends on setup, software tools, content production, initial marketing)
Resources:
Expert teachers, video production, learning management software, and marketing via social media.
Market demand:
Growing due to e-learning, exam-based education learning, and increased willingness to pay for quality courses.
Profit:
40% to 70%.
12. Home Cleaning Services
Offering professional and reliable cleaning services for homes, offices, and especially in urban areas can be the best and easiest solution if you are looking to start a business in Kerala. Opening a home cleaning business can be a great idea. As a demand for such services is regularly growing, especially in urban areas where people are often too busy with their office work. Here’s a breakdown related to this you need to know:
Location:
Urban areas like Kochi, Thiruvananthapuram, Kozhikode, and Kollam have a high demand for this service.
Investment:
Rs 30k to Rs 50k, depending on your home equipment, and Rs 15000 to 30000 according to hiring staff per month.
Resources:
Cleaning equipment, Human resources, technologies, and marketing channels.
Market Demand:
With increasing urbanization, tourism and hospitality, post-construction cleaning, and increasing health awareness, people have realized deep cleaning and sanitizing their homes regularly.
Profit Potential:
You can expect 20% to 30% margins in the initial stages. As this scale grows, these margins can increase.
13. Handicrafts Products
Kerala offers huge opportunities for handicrafts businesses. There are most popular ideas include textiles like handloom sarees, shawls, wooden toys, wood carvings inspired by temple architecture, kathakali masks, and coir products made from coconut husks. Additionally, items like bowls, plates, and other everyday products can also sell well.
Starting a handicrafts business in Kerala is a smart idea, especially because this state has a rich tradition in arts, crafts, strong tourism, and growing online shopping trends. Below is a breakdown you need to know:
Location:
Kochi, Kumarakom, Alleppey, Kozhikode, or online from anywhere.
Investment Required:
Rs 50000 to Rs 3 lakh or more, which includes raw material, tools and equipment, working setup, branding and packaging, online store, and marketing.
Resources:
Raw material, skilled labour, Technology, and tools (depending on your specific niche.)
Market demand:
There’s an increasing demand for locally made handicrafts, especially traditional Kerala items, internationally and by tourists.
Profit:
Small businesses can earn Rs. 2 lakh to 10 lakh annually. Once the service runs profit margin can reach up to 30% to 60%.
14. E-commerce Platform
You can create an online marketplace for local vendors to sell their products. This e-commerce business includes organic and natural products, personalized gifts, and sells handmade items.
Starting this service, a promising venture, especially with rising internet penetration and growing online buying behavior in the state. Here are some keys to success you need to take a look at:
Location:
Thrissur, Trivandrum, Calicut, Kottayam, Kochi.
Investment:
Rs 2 lakh to 5 lakh per year for a low-scale platform.
Resources:
Tech infrastructure, Product sourcing, Logistics partner, initially team (2 – 5 people)
Market Demand:
More people prefer to buy groceries & essentials, eco-friendly products, books & education, Ayurvedic, and herbals online.
Profit Margin:
Small businesses can earn Rs 50000 to Rs 2 lakh per month.
15. Low-Investment Businesses
Starting this service is a very smart move, especially with the state’s educated population, rich culture, growing internet usage, and strong tourism sectors. You don’t need a big budget to start this. Using options like dropshipping, online reselling, selling handmade jewellery, and freelance writing. Additionally, you can sell handmade temples, swings, handmade toys, wooden utensils, etc. The only thing that matters is to choose the right place, market, and type. Here it is:
Location:
Alleppey, Fort Kochi, Trivandrum, Railway station, bus stand, Palakkad, Idukki, and Mallapuram.
Investment:
Rs 20k to 30k according to your potential and service type.
Resources:
Rented shop, basic packaging material, laptop or mobile for online work, manpower, and digital tools.
Market Demand:
Youth shopping online, especially girls or women buyers, are using online shopping. Kerala is seeing rising demand in Eco-friendly & traditional products, home-cooked food and snacks, local groceries, and organic items.
Profit potential:
Starting margin 30% to 60% in any low-investment business.
Conclusion:
Kerala is a perfect place to start a business because of its beautiful and peaceful nature, strong culture, and growing economy. If you know the market strategies, use the state strengths, then you can turn your ideas into reality.
However, these are just a few examples, and the most profitable business depends on your skills, resources, and market research. These above given sectors offer significant opportunities for growth and successful business in Kerala.
