Full Guide on the Salt Industry: Trade, Sales, Opportunities

Although most people think of salt as a condiment and ingredient, it’s one of the most important commodities. Salt trade has been one of the key sectors of commerce for millennia, and it still plays a crucial role today. Salt is used in various niche markets such as water treatment and purification, chemical manufacturing, and oil drilling. In fact, only about 10% of all salt produced is food-grade salt that ends up in restaurant condiment holders or is used as an ingredient. The rest is industrial sodium chloride. In this comprehensive guide, we’ll go into detail about the different aspects of the salt trade, the application of this crucial commodity, and what opportunities can be discovered in today’s eCommerce and technology-dominated world.

What Is Wholesale Salt

Bulk sales of salt fall under the wholesale salt category. Industrial companies play the most significant role in this sector. They often buy tonnes of bulk salt as it’s used in large quantities by chemical manufacturers and various other industrial applications. Food-grade salt is also traded in bulk. Although regular table salt is the most common variety, gourmet products like Himalayan or volcanic salt have become very popular among foodies and businesses in the restaurant industry. Thus, spice and condiment manufacturers also purchase bulk salt of different varieties at wholesale prices, package it, and sell it at retail prices.

Businesses That Buy Wholesale Salt

1. Food and beverage manufacturers;
2. Bakery businesses;
3. Food service companies;
4. Farms and other agricultural businesses;
5. Beauty and cosmetics brands;
6. Road maintenance companies and local governments;
7. Pharmaceutical companies;
8. Chemical manufacturers;
9. Metallurgy and other industrial companies;
10. Textile processors;
11. Water treatment facilities.

Where to Buy Wholesale Salt

Industrial companies that use large quantities of salt usually purchase this commodity directly from producers. It’s common for such companies to source locally harvested salt in order to minimize their logistical costs. On the other hand, restaurants and retailers might benefit from wholesale ordering software like BlueCart. The main benefit of wholesale marketplaces is that they allow buyers to also purchase other spice blends and compare prices between wholesale distribution companies. Food-grade salt is usually packaged in bags that range between 5 and 100 pounds. On the other hand, industrial salt can be packaged in flexible intermediate bulk containers (FIBC) with a capacity of one ton (2,200 pounds).

Main Types of Salt and Their Applications

There are two main categories of salt: edible and industrial. Let’s briefly examine the main varieties in these categories.

Food-Grade Salt

1. Regular table salt;
2. Kosher salt;
3. Himalayan pink salt;
4. Sea salt;
5. Fleur de Sel;
6. Celtic salt;
7. Hawaiian salt;
8. Smoked salt;
9. Volcanic salt;
10. Iodized salt;
11. Flake salt;
12. Red salt;
13. Brining and pickling salt;
14. Other types of flavored salt.

Industrial Salt

1. Agricultural salt is used in soil fertilizers;
2. Livestock salt blocks;
3. Pool and water treatment salt;
4. Chemical salt;
5. Sodium chloride solution.

Salt Business Ideas

Salt is probably the highest-demand product in the spice and condiment market. Furthermore, it is also a commodity used in various industries and sectors. As such, starting a business in the salt industry can be a profitable endeavor. Here are a few ideas for businesses in the salt industry you can explore.

1. Salt distribution business. These companies primarily act as middlemen between producers and wholesale buyers of salt. They might also offer additional services such as white-labeling, packaging, and third-party logistics (what is 3PL). Salt distributors partner with industrial companies, retailers, and restaurant businesses.
2. Sales of gourmet salt. Specialty salt varieties have become very popular in recent years. They are used as finishing salt that adds more characteristics and texture to a dish. That’s why selling gourmet salt to both individuals and companies can be a profitable business. Online sales through eCommerce platforms should be the main channels. A brick-and-mortar store is not likely to succeed in that niche.
3. Salt harvesting. Starting your own salt farming business requires large capital investments, but it can achieve high ROI. Both salt mining and salt harvesting through solar evaporation are much easier nowadays thanks to modern technologies. 
4. Selling salt-based products. From bath salts to salt lamps, there are various wellness products made of salt. As halotherapy has become increasingly popular as a natural remedy for lung diseases, selling salt-based products can be profitable.

Steps to Start a Salt Business

1. Do a thorough research on the salt industry you’ve chosen;
2. Find suppliers and vendors;
3. Get all necessary licenses and certifications;
4. Begin operations by focusing primarily on sales and marketing;
5. Start scaling and growing your business by developing processes and automating tasks;
6. Expend both vertically and horizontally;
7. Adapt to changes in market conditions and demand.

Salt Retail Sales

Although edible salt is around 10% of the overall market share in terms of volume, it has a much higher value compared to industrial salt. Furthermore, gourmet products such as volcanic or Celtic sea salt come at a high price per pound. That’s why retail salt businesses can be far more profitable compared to industrial salt companies. Here are a few important things to consider about retail sales in the salt industry.

1. In addition to salt, companies that specialize in retail sales can also offer restaurant spices, oils, and other condiments.
2. Gourmet salt products often need high-end and functional packaging. This can increase the value of the product, and companies can sell it at a higher price.
3. Non-edible types of salt can also be an additional revenue stream for businesses that sell salt retail. That includes bath salts, halotherapy devices, salt lamps, and other goods.
4. Make sure to pay extra attention to marketing. The best places for salt retail sales are eCommerce and social media platforms. Advertising there can dramatically increase sales and have a very good return on investment. You can also benefit from influencer marketing, as it is especially useful for D2C brands.
5. It’s possible for companies that specialize in retail sales of salt to also sell in bulk. For example, some restaurants or other businesses might be interested in purchasing large quantities of gourmet salt. Keep in mind that selling both retail and wholesale means you need to have proper inventory management and processes.

Characteristics of the Global Salt Market

As an important commodity, salt is traded on global markets. That’s why it’s a fairly large market that has an estimated size of around USD 30 billion. Here are some of the characteristics of the global salt industry.

1. The main drivers of growth are industrial applications of salt such as chemical production, oil drilling, and water treatment.
2. Sustainability has become a major trend in the salt industry. A growing number of salt farms aim to reduce their ecological footprint and the cost of goods sold by using renewable energy.
3. China, the US, India, and Germany are the main players in the global salt industry due to their well-developed heavy industries.
4. Most companies that purchase bulk salt order from local producers, as transportation and storage costs are often bigger than the price of the salt itself.
5. Although food-grade salt is a small percentage of all the salt produced, it has a much higher price per pound. That’s especially true for gourmet products such as volcanic salt or flavored salt.
6. Increased consumption of salt has led to food regulations in various countries. These legislations aim to reduce the sodium content in foods.
7. Thanks to innovations, business owners in the salt industry can harvest and transport salt more efficiently and at a lower cost.
8. Online sales through eCommerce platforms have been on the rise. Foodies might order artisanal salt from platforms like Etsy, businesses use marketplaces like BlueCart when it comes to wholesale sales of salt and various other products.

What Is Industrial Salt

This term is primarily used to describe non-edible sodium chloride that’s used for non-food applications. Sales of industrial salt dominate the salt industry. As industrial salt requires less processing, its price is much cheaper compared to regular table salt. In addition to sodium chloride, various other types of salt are used by manufacturers and other heavy industries. The most common ones are sodium carbonate (soda ash), potassium nitrate, ammonium nitrate, sodium bicarbonate (baking soda), potassium chloride, and magnesium sulfate (Epsom salt).

Applications of Industrial Sodium Chloride

1. Large quantities of salt are used by local governments and road maintenance companies for de-icing roads, railway tracks, and sidewalks.
2. Manufacturing chlorine, caustic soda, and various other chemicals use sodium chloride as a raw material.
3. Oil drilling companies use salt to stabilize the structure of oil wells during drilling.
4. Textile companies use sodium chloride during the fabric dyeing process as it improves colors.
5. Treating and purifying water is also one of the major applications of sodium chloride. 
6. Naturally, food processing companies also use large quantities of salt. The biggest ones might purchase large quantities of non-processed salt at a low price and turn it into edible salt themselves.

Salt Packaging and Branding

The important thing to know about salt packaging is that it is very different when it comes to industrial and edible salt. Here are the main characteristics of salt packaging for these two product categories.

1. Industrial salt is usually transported and delivered in bulk. That’s especially true for rock salt. Granulated can also be packaged in flexible intermediate bulk containers that can hold one ton of the mineral. Some companies purchase sodium chloride solution as it’s used in de-icing.
2. Edible salt can come in small and large quantities. Food processors, food service businesses, commercial bakeries, and other companies that use large amounts of salt order it in bags between 10 and 50 pounds. Large-scale food manufacturers might buy whole pallets of salt bags.
   Packaging and branding play a big role in the retail sales of salt. As a growing number of consumers search for organic, sustainable, and healthy food products, manufacturers often aim to showcase such characteristics in their product branding. Furthermore, gourmet salt products often come in functional and high-end packaging, such as mills and grinders. When it comes to specialty salt varieties, customers expect the product to be of high quality, and that should be reflected in the packaging.

What Is Sustainable Salt

Offering organic and sustainable products is a trend that can be seen in various niche markets. As a growing number of consumers have switched their buying habits, brands have adapted. That’s why sales of sustainably harvested salt have increased in recent years. Here are the main characteristics of sustainable salt.

1. It’s harvested through solar evaporation or another method that uses renewable energy.
2. Ethical considerations, such as fair wages and good working conditions, are taken into consideration as well.
3. Salt farms use water efficiently to minimize the environmental impact of the harvesting process and reduce the chance of drought.
4. Sustainable salt is locally sourced in order to minimize transportation needs.

How Businesses Benefit from Sustainable Salt

Companies in the salt industry can take advantage of this switch in customer demand in various ways. Here are a few ideas.

1. They can focus more on organic and sustainable products to increase their market share.
2. They can showcase their efforts toward sustainability in product branding and marketing.
3. They can partner with other businesses that aim to reduce their ecological footprint.

Stages of the Global Salt Supply Chain

Before it ends up in meals, salt travels a long way. Here are the main stages of its supply chain.

1. Salt is extracted from seawater through evaporation or harvested in salt mines. 
2. It’s then processed based on its applications. Industrial salt requires little to no processing. On the other hand, edible salt for the food and beverage industry needs to have its impurities removed. It’s also packaged in various types of containers, from small single-use packets to wholesale bags.
3. Once the salt has been packaged, it’s ready to be transported. That’s usually done by rail or trucks, as most companies purchase salt from local producers.
4. It then ends up on grocery shelves or in pantries and can be used in dishes or as a condiment. Industrial salt is usually stored in cold and dry warehouses due to its hygroscopic properties.

Wholesale Black Pepper

Although this guide is primarily on the salt industry, we need to add some details about black pepper as well. These two spices often go hand in hand with one another as they are the most common combination for seasoning. Here are some of the important things to know about the retail and wholesale trade of black pepper.

1. It’s primarily cultivated in Southeast Asia. From there, it is transported to all regions of the world. 
2. Although black pepper is the most popular type, there are also other varieties of this plant. White, green, and red peppercorns are the most common ones.
3. Black pepper is usually sold in whole black peppercorns. That’s because pre-ground pepper loses its potency and flavor with time.
4. The reason why it’s one of the most popular seasoning spices is that it stimulates the flavor receptors on the tongue.
5. Although black pepper is commonly associated with the food sector, it’s also purchased in bulk by perfumery and cosmetics businesses. They usually use black pepper essential oil or extract as an ingredient in their products.