The spice trade has been a major driver of economic growth for thousands of years. Although the importance of spices has decreased in today’s technology-dominated world, black pepper and salt supply chains are still crucial for some regions. Salt harvesting and mining have been a major economic activity for various rural communities around the world for centuries. Furthermore, the multiple industrial uses of salt have increased its B2B sales and its importance as a commodity. In this post, we’ll share more about the stages of the global salt supply chain. We’ll also shed some light on the black pepper trade as well. If you’re interested in similar topics, check out our posts on wholesale black pepper and salt business opportunities.
Key takeaway: Both black pepper and salt go through various stages before they end up on our tables. The main ones are harvesting, processing, distribution, and D2C sales.
Stages of the Global Salt Supply Chain
Salt travels a long way from seawater or rock salt mines to restaurant condiment holders or single-use packets. Let’s examine the main stages of the global salt supply chain.
- Extraction. There are three main ways to harvest salt. Solar evaporation of seawater is the most common method. It is a labor-intensive process that takes a lot of time. Rock mining of underground salt deposits is also a common way to extract rock salt. Solution mining is the third most common method. The process includes injecting water into salt deposits and then extracting it.
- Processing. Once the salt has been extracted, the next stage of the salt supply chain includes processing it. Removal of impurities, grinding and breaking down salt deposits, and adding minerals (primarily iodine) are the main steps of processing salt. It’s then packaged based on its application. For example, industrial salt is sold by tonne and is stored in large containers. On the other hand, salt used by fast food restaurants is packaged in single-use packets of a few grams.
- Distribution. Once the salt has been processed and packaged, it needs to be transported to businesses. Cargo ships play an important role in the salt supply chain. Salt is also transported via trucks and rail. Food manufacturers, wholesalers, and companies in the industrial sector that need large quantities of salt purchase it directly from processors. Smaller companies in the food and beverage industry, retailers, and food service businesses typically order salt from suppliers.
- Usage. The final step of the salt supply chain is when the product is actually used. That includes B2C sales from retailers to customers or using salt as a condiment or an ingredient in the restaurant industry. As we already mentioned, salt is also used by various industrial companies like water treatment facilities, manufacturers of chemicals, and other heavy industries.
Stages of the Global Pepper Supply Chain
- Cultivation. Black pepper (and its varieties) is grown primarily in India, Vietnam, Brazil, Indonesia, and other countries with tropical climates. It takes vines a couple of years to mature and then their peppercorns are harvested when they turn green or yellow.
- Processing. Once the peppercorns have been harvested, they go through extensive processing. They need to be cleaned of dirt and debris. Once that’s done, peppercorns are dried either mechanically or sun-dried. After that, peppercorns need to be sorted based on their size, color, and density.
- Import. Processed black pepper is exported from tropical countries to other regions of the world via cargo ships. To guarantee proper inventory management, peppercorns are stored in climate-controlled containers that preserve their quality and prevent contamination.
- Packaging. Once the bulk black pepper arrives in the designated country, it goes through further processing. The majority of peppercorns are packaged and sold whole. Manufacturers of spice blends grind black pepper and mix it with other spices. Ground black pepper is also sold in grocery stores.
- Transportation. The next step in the pepper supply chain includes distributing the packaged black pepper to retailers, specialized & broadline distributors, food service businesses, and other companies that purchase spices in bulk.
- Usage. Black pepper is one of the most important seasoning ingredients. That’s why it can be found in virtually every household or restaurant kitchen.
Trends and Opportunities in the Pepper and Salt Supply Chains
Like any other niche, the salt and pepper sectors are constantly changing. Let’s examine a few trends and opportunities in these industries.
- Business owners can benefit from value-added processing such as infusing or blending salt and pepper to achieve unique flavor profiles;
- Online trade has made selling spices easier than ever before. Whether it comes to selling them retail or at wholesale prices, having an adequate online presence is crucial;
- Demand for sustainably harvested wholesale salt and pepper has increased in recent years;
- Halotherapy is a trend that is here to stay. Thus, selling salt scrubs, bath salts, and other salt-based products can be a profitable endeavor;
- The foodie culture has sparked demand for high-end products like Japanese sea salt or French fleur de sel. Thus, businesses can achieve high ROI if they focus their marketing and sales efforts on such products.
Frequently Asked Questions about the Pepper and Salt Supply Chains
From resources about the most common types of condiments to advice on finding vendors and calculating the cost of goods sold, you’ll find hundreds of useful articles on BlueCart’s website. Below are the answers to common questions related to the global salt supply chain.
What Countries Are Leaders in Salt Production?
As the majority of salt has industrial applications, the countries that are the biggest producers of salt are the ones that have well-developed industry and manufacturing sectors. China is the biggest producer of salt in the world. They harvest sea salt from the large coastal salt flats and from underground salt mines as well. The US is also a leader in salt production. India has well-developed coastal salt farms. Germany harvests salt primarily from underground salt deposits and uses it in its heavy industries. Australia, Brazil, Canada, Chile, and France are other major producers of salt.
Is Salt Production Sustainable?
Salt production requires high levels of energy in all stages of the process. That’s why it can have a significant ecological impact. However, modern innovations in renewable energy and the increased usage of solar evaporation have made salt production more sustainable. If you’re operating an eco-friendly restaurant or another type of business, consider sourcing salt locally when possible. Also, keep in mind that unrefined sea salt has the lowest environmental footprint. Ensuring that salt producers have implemented fair labor practices is another way to make sure that the salt you purchase is sustainable.
How Much Will the Salt Industry Grow?
The expected yearly growth rate of the salt market is roughly 8%. That’s primarily because of the increased demand in emerging markets. As the majority of salt is used by heavy industries, developing countries are likely to play an important role in the global salt niche market. Another reason for the expected growth in this sector is the increased standard of living for people in Africa and Asia. This has led to increased consumption of salted and seasoned food. In addition to helping the growth of the global salt market, this has also led to increased consumption of various restaurant spices.
BlueCart: The Platform for Wholesale Sellers and Buyers
If you’re a distributor of different types of salt, you can benefit from BlueCart’s features. Our software helps suppliers manage orders, create eCommerce catalogs, and analyze wholesale sales. BlueCart also offers various solutions for restaurant businesses, retailers, and other bulk buyers. Schedule a demo today. See how BlueCart’s marketplace connects distributors and businesses that buy wholesale products in an all-in-one platform.