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Investment Opportunities Series: Rock Candy Production

Investment Opportunities Series: Rock Candy ProductionInvestment Opportunities Series: Rock Candy Production

Rock candy, also called rock sugar, is a type of confectionery composed of relatively large sugar crystals.

This sweet additive is highly in demand in Asia, as it is often dissolved in tea in Iran and China, and consumed as a common candy or mouth freshener in India.

The Persian daily Forsat-e Emrooz recently published an article on the production of rock candy and the sector’s investment potential in Iran.

According to a member of Tehran’s Rock Candy Producers Association, Yousef Sheydaei, the current state of rock candy production presents a great opportunity for investors to set up large-scale industrial rock candy production lines and take advantage of the large domestic market

Close to 70% of Iran’s rock candies are still manufactured through traditional methods and exported overseas mostly in the form of “souvenirs and suitcase trade.”

Sheydaei noted that Iranian expatriates account for a large portion of demand for rock candy, as they purchase in large quantities for its “nostalgic taste”.

“By investing in the production of high volumes of rock candy and innovative designs and packaging, producers can reap considerable profits in this industrially underdeveloped and yet lucrative market,” he added.

Echoing the same sentiments, Javad Ezzati, an entrepreneur active in the field, said: “As long as there is tea, there will be demand for rock candy.”

According to Ezzati, $27,000 are needed to set up a traditional rock candy production facility for producing a ton of candies per day.  However, for establishing a large, industrial-scale production line with a daily output of 5 tons per day needs at least $166,000 of capital and a minimum of 12 workers.

Ezzati recommends the latter method, as “traditional production is no longer economical or profitable”.

He added that the real value added and profit in rock candy production comes from creating unique and novel tastes and packaging the product in different weights.

“Iran’s rock candies have many customers in the region who purchase the commodity in bulk, repackage it and sell it with added profit,” he said, adding that producers must move towards packaging their goods in different weight packages.

“Byproducts of a rock candy production line can be used to manufacture chocolate and other types of candies, effectively turning what would be production waste to profit,” Ezzati said.

Financialtribune.com