Stable demand and revenue growth continue to prove the industry is worth its salt
Melbourne, Australia (PRWEB) May 05, 2013
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.
The Cooking Salt Processing industry has a medium level of concentration, and CK Life Sciences Pty Ltd (owner of Cheetham Salt) is the major player in the industry. 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 value addition within the industry has also allowed producers to benefit from high profit margins and brand loyalty. However, the industry has been partly affected by the low-sodium movement among certain consumer groups (due to the links between salt consumption and blood pressure). The scientific community is yet to reach a consensus on this relationship, with many schools of thought prevailing on the subject. According to IBISWorld industry analyst, Naren Sivasailam, “In the five years through 2012-13, industry revenue is expected to increase by an annualised 1.2% to total $187.2 million.” This includes an estimated 1.8% increase in revenue over 2012-13.
The future prospects of the Cooking Salt Processing industry are expected to remain stable, driven by demand from food manufacturers and consumers alike. Sivasailam adds, “While the industry's branded players are expected to account for the majority of revenue, the salt category is expected to face increasing competition from private-label and supermarket-owned products.” Food manufacturers will continue to be the industry's main source of income, as the chemical properties of salt are central to a host of food industries such as the dairy, bakery, meat and seafood processing segments. The growth of sea and rock salt within the retail sector is also forecast to continue, driven by the premiumisation and popularity of gourmet and natural ingredients.
For more information, visit IBISWorld’s Cooking Salt Processing report in Australia industry page.
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IBISWorld industry Report Key Topics
Firms in this industry process salt for non-industrial purposes.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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