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Table Salt Production in the US Industry Market Research Report Now Available from IBISWorld

Los Angeles, CA (PRWEB) August 26, 2013

The Table Salt Production industry experienced growth in the five years to 2013, despite revenue volatility in 2010 and 2011. “Due to the staple-nature of table salt, the industry was one of the few to escape the recession unharmed as consumers and food processors maintained demand for salt,” says IBISWorld industry analyst Brandon Ruiz. “Over the five-year period to 2013, revenue growth is expected to increase by an annualized rate of 0.1% and operator profit margins are expected to remain healthy.” However, industry revenue dipped 2.8% in 2010 and 7.6% in 2011, largely due to a drop in the price of salt. In 2013 the industry is expected to earn revenue of $598.7 million, a 2.1% increase on 2012.

The large majority of table salt produced in the United States is used in the production of processed foods sold in grocery stores and restaurants. The remainder, less than 20.0%, is used by households for preparing meals and as a table seasoning. While salt intake has increased in the US over the long term, in the short run demand from consumers and food processors is generally steady from year-to-year and not exposed to large swings in demand. Over the past five years, health agencies have made a concerted effort to educate consumers on the dangers of a diet high in salt. However, to date, the impact on industry revenue has been negligible.

The Table Salt Production industry is expected to remain largely unchanged over the next five years. “Most salt producers have been in the game for decades and have long-term supply contracts in place that earn them healthy, predictable profit margins,” says Ruiz. “The merger and acquisition activity that characterized the industry in the 1990s has left the industry highly concentrated, making it difficult for new entrants to break in.” The Table Salt Production industry operates with a high level of market share concentration. This is due to expanded product line offerings and production capacity levels for the industry's major players, as well as the purchase of Morton Salt by K+S Group, which served to expand the scale of production with which the company operates.

Furthermore, the industry's substantial barriers to entry, particularly with respect to initial investment requirements, have kept entrance levels subdued. In general, industry operators do not solely produce and sell table salt, but also offer a range of other commercial, industrial and agricultural salt products that fall outside the scope of this industry. Long-term downstream contracts for these products, particularly for deicing salt from government agencies, serve to keep potential industry-applicable entrants out. The top three industry players are Cargill Inc., Morton Salt and Compass Minerals International Inc. For more information, visit IBISWorld’s Table Salt Production in the US industry report page.

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IBISWorld industry Report Key Topics

This industry produces table salt for human consumption. Salt is used as a seasoning on food or in food processing. Industry products include sea salt, iodized salt and fine salt. Salt manufactured for deicing, chemical manufacturing, water treatment or any other use other than for human consumption is excluded from this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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