How to Start a Sea Salt Business

Part 1 - How to start a Sea Salt business - Background

For as long as salt has been used in and on food, people have been sourcing it from the world’s oceans. Today, sea salt businesses use simple (and sometimes ancient) means to mine salt from seawater.

The sea salt industry has grown in recent years as the foodie movement has gained traction. The industry is expected to see sustained growth of 6.1 percent annually over the next five years, with global revenues forecasted to increase from $1.1 billion in 2016 to $1.5 billion by 2022.

You may also be interested in additional unique business ideas.

Our guide is in 3 parts:

• Part 1 - How to start a Sea Salt business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a sea salt business?

Starting a sea salt business is a low-cost venture. In fact, Wellfleet Sea Salt Co. won a business competition in part because the startup expenses were so low. To get started, business owners need:

• a pickup truck (for sourcing salt from locations)

• 5-gallon buckets or 50-gallon barrels (for carrying seawater)

• a method of evaporating the seawater (see below)

• a food processor (to grind the salt crystals)

• jars and labels (for packaging)

While some businesses use expensive evaporators or factories for processing seawater, a greenhouse or other sun-exposed structure will work just fine. Whatever method is used, air should be allowed to pass through as this will speed up the evaporation process.

In theory, business owners could source all of these materials for very little. Many food-service businesses will give away 5-gallon buckets, and most people have a food processor. A greenhouse can be built from scrap wood and clear plastic. If business owners don’t have a pickup truck, they can rent one as needed. Jars and labels must be purchased, but they can be bought in small quantities until the business has an established revenue.

What are the ongoing expenses for a sea salt business?

The ongoing expenses for a sea salt business are minimal. They include costs associated with:

• fuel costs

• automotive costs

• packaging and shipping costs

• marketing costs

• utility costs (depending on the type of evaporator used)

Who is the target market?

The target market for a sea salt business is people who appreciate fine food and have some discretionary income. Such people will be interested in high-quality, unique salts, and they’ll have enough income to afford sea salt.

How does a sea salt business make money?

A sea salt business makes money by selling jars of salt to wholesale and retail customers. Jars may be sold individually or in a set that contains several different flavors.

How much can you charge customers?

Most sea salt sells for between $8 and $12 retail. The Marblehead Salt Co. has fishing salt priced at $10 and Fire Salt priced at $13. A high-end truffled salt made with truffle mushrooms is $25.

How much profit can a sea salt business make?

Because seawater is free to source, a sea salt business’ potential profit is high. A 3-ounce jar that’s priced at $10 might have cost $1 (for the jar, label and associated fuel). Using these numbers, a business that sold 500 pounds in a year would net $24,000. At 40,000 pounds annually, the profits would grow to be much more.

How can you make your business more profitable?

A sea salt business can increase its profits by selling sets of multiple salts together. The owners of Amagansett Sea Salt Co. found that customers who spent $10 on a jar of salt would often spend $30 on a set of several blends. Some customers may also be interested in purchasing sea salt cellars, which are wooden or ceramic containers for storing sea salt.

Day-to-Day and Growth

What happens during a typical day at a sea salt business?

Most days at sea salt businesses are spent either making sea salt or getting it to customers.

Making salt involves collecting ocean water from pre-selected locations and then evaporating the water molecules. Evaporation techniques range from leaving the saltwater in primitive wooden boxes to using high-tech evaporators.

When selling manufactured salts, the day might be spent finding wholesale accounts, selling at retail locations or analyzing online sales. Some of these methods also require packaging and shipping salts.

What are some skills and experiences that will help you build a successful sea salt business?

To successfully run a sea salt business, business owners must understand the nuances of ocean salt. Much more than just sodium-chloride, sea salt contains many minerals that give it its unique flavor, density and shape. At different locations and in different seasons, the minerals in the water change.

Finding the best locations, seasons and times to source seawater requires a knowledge:

• tide charts

• seasonal currents

• sea level maps

• trigonometry

A familiarity with each of these areas helps business owners predict what trace minerals will be in specific locations’ seawater at any given time.

What is the growth potential for a sea salt business?

A sea salt business may be a small one- or two-person operation that produces just a few hundred pounds of sea salt, or it can be a large company that makes thousands of pounds. For example, Amagansett Sea Salt first produced 500 pounds of salt in 2010. By 2014, the company was making 4,000 pounds annually and had plans to reach 40,000 pounds each year.

What are some insider tips for jump starting a sea salt business?

Although much of the work involves making salt, business owners can’t forget the interpersonal side of running a sea salt business. When starting out, a business’ first few customers are usually people who already know the business owner. Thus, networking is an integral part of getting this type of business launched.

How and when to build a team

Many sea salt businesses remain one- or two-person operations. If needed, a business owner might hire employees to help process salt, find wholesale accounts or fulfill orders as a business grows.

Part 2 - Is a Sea Salt business the right fit for you?

Part 3 - Action plan to launch your Sea Salt business in 90 days