Handmade Food Regulations: FDA Rules and State Kitchen Licensing

The Regulatory Landscape: FDA, States, and Home Kitchens

Food regulation comes from three levels:

1. Federal (FDA)

The FDA sets baseline food safety rules that apply everywhere in the US.

• • Food Facility Registration: Required if you manufacture food for human consumption
• • Food Safety Modernization Act (FSMA): Establishes food safety standards for manufacturing
• • Labeling Requirements: All food must have proper ingredient and allergen labels
• • GMP (Good Manufacturing Practices): Standards for how food is made, stored, and handled

2. State Laws

Each state has its own food safety laws. Some allow home-based food production; others require commercial kitchens.

3. Local (City/County)

Local health departments enforce food safety and kitchen licensing.

Foods That REQUIRE a Commercial Kitchen

Potentially hazardous foods must be made in a licensed commercial kitchen. These include:

• Canned goods (low-acid foods): Pickles, canned vegetables, canned meats, canned soups—require commercial canning equipment and licensed kitchen
• Foods requiring refrigeration: Prepared foods, sauces, dressings, cream-based products
• Foods with meat, poultry, or seafood: Even if cooked, require commercial kitchen with specific equipment
• Foods with dairy (except certain cheeses): Cheese, yogurt, milk products must be made with pasteurized milk in licensed kitchens
• Foods with eggs: Most egg-containing products must be made in commercial kitchens

Cost of commercial kitchen access: $15-$50/hour or $200-$500/month depending on location and facility

Cottage Food Exemption: What You CAN Make at Home

Most states allow certain "non-potentially-hazardous" foods to be made in home kitchens under a "Cottage Food Exemption."

Foods typically allowed under cottage food laws:

• ✓ Jam, jelly, preserves (high sugar/acid prevents bacterial growth)
• ✓ Dried goods (granola, trail mix, dried herbs)
• ✓ Certain baked goods (cookies, brownies, breads WITHOUT cream cheese frosting)
• ✓ Candy, fudge, chocolate (if made without dairy fillings)
• ✓ Nuts (roasted, seasoned)
• ✓ Coffee, tea, spice blends
• ✓ Pasta (dried, not fresh)

Cottage Food Limitations

Even under cottage food exemptions, you typically:

• • Can sell through direct-to-consumer channels (farmers markets, Etsy, your own website)
• • Cannot sell to restaurants or retailers
• • May have revenue caps (some states: $50K/year max; others: $75K/year)
• • Must label with "Made in a home kitchen" or similar warning
• • Don't need a license, but might need to register

If You Need a Commercial Kitchen

If you want to make foods not allowed under cottage food exemption, you need a licensed commercial kitchen.

Option 1: Rent a Commercial Kitchen

Many cities have shared commercial kitchens that food makers can rent.

How to find shared kitchens: Search "[Your City] shared commercial kitchen" or "community kitchen rental"

Option 2: Build Your Own Licensed Kitchen

Install a commercial kitchen in your home or separate space.

• • Cost: $10,000-$50,000+ depending on food type and state requirements
• • Requirements: Commercial-grade equipment, separate entrance, specific plumbing/HVAC, inspection approval
• • Timeline: 2-6 months to get licensed
• • Ongoing: Annual health inspections required

Option 3: Co-Pack (Outsource Manufacturing)

Partner with an existing food manufacturer who makes your product.

• • Cost: Usually 30-50% of product price for manufacturing + packaging
• • Benefit: No kitchen investment; they handle licensing and compliance
• • Downside: Less control over process; higher per-unit costs

Federal Requirements: FDA Compliance

1. Food Facility Registration

What it is: Free online registration with the FDA if you manufacture food for human consumption

• • Cost: FREE
• • Where: FDA.gov food facility registration
• • Requirement: Most food producers must register within 60 days of starting manufacturing

2. Proper Labeling

All packaged food must have proper FDA-compliant labels including:

• • Product name
• • Complete ingredient list (in descending order by weight)
• • Allergen disclosure (if any of the major 8: peanuts, tree nuts, dairy, eggs, fish, shellfish, soy, wheat)
• • Net weight
• • Manufacturer/distributor name and address
• • Nutrition Facts (if you make nutritional claims)
• • "Processed in a facility that also processes..." warnings (if applicable)

3. Good Manufacturing Practices (GMP)

The FDA requires adherence to food safety standards:

• • Clean, sanitary facilities and equipment
• • Proper food storage and temperature control
• • Pest control measures
• • Employee hygiene and training
• • Written food safety plans

Home kitchens used for cottage food typically don't meet GMP standards, which is why cottage-food-only kitchens aren't inspected.

State-Specific Rules: Huge Variation

Here's how different states handle home food production:

Action: Google "[Your State] Department of Health cottage food exemption" or look at your state's health department website directly.

Your Compliance Checklist