Industry Analysis & Industry Trends
The Cooking Salt Processing industry is firmly ingrained in the food sector of the economy. Food manufacturers and processors require salt products for a multitude of processes including flavouring, curing, seasoning and preserving. From a consumer perspective, cooking and table salt tend to be staples of the 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, helping to reduce price volatility. The industry has traditionally enjoyed strong profit margins, with increasing availability of premium salts solidifying this trend... purchase to read more
Industry Report - Starting a New Business Chapter
The Cooking Salt Processing industry exhibits high barriers to entry. The biggest hurdle facing potential entrants is the ability to source brine or pre-dried salts to process. This can be capital-intensive, with only larger industry players such as Cheetham Salt operating sizeable solar salt fields.
Large players undertake the bulk of industry production, leaving little room for potential entrants. Large operators 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