Industry Analysis & Industry Trends
The Cooking Salt Processing industry is firmly ingrained into the food sector of the economy. Food manufacturers and processors require salt products for a multitude of uses ranging from flavouring, curing, seasoning and preserving. From a consumer perspective, cooking and table salt form a staple of the weekly grocery basket thereby rendering demand relatively inelastic to price changes. In terms of supply, the near limitless availability of raw material inputs has resulted in stability in domestic production and low levels of price volatility. The high level of concentration and value addition within the industry has also allowed producers to benefit from high profit margins and brand loyalty... purchase to read more
Industry Report - Starting a New Business Chapter
The Cooking Salt Processing industry exhibits high levels of barriers to entry. The biggest hurdle facing potential entrants is the ability to source brine or pre-dried salts to process. This can be highly capital intensive, with only larger industry players such as Cheetham Salt operating sizeable solar salt fields.
The bulk production are of the industry is dominated by larger players, leaving little room for potential entrants. Operators with large operations are able to minimise their average variable costs. They use expensive machinery to dry and process large volumes to meet the demand of downstream industries like food manufacturers. New entrants looking to target these markets would need to invest considerable capital to build appropriate facilities... purchase to read more