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Sorbic Acid or Potassium Sorbate Production Business

Capacity Sorbic Acid Powder: 200 MT per annum | Potassium Sorbate Powder: 300 MT per annum Plant and Machinery cost 400.00 Lakhs
Working Capital 0.00 Rate of Return (ROR) 25.00 %
Break Even Point (BEP) 46.00 % TCI 0.00 Lakhs
Cost of Project 2000.00Lakhs



Potassium and Sorbic Acid Sorbate and its derivatives are two chemical compounds with several applications in the cosmetic and medicinal sectors. These compounds operate as preservatives in a variety of items, including shampoo, cosmetics, and lotions, by inhibiting the growth of bacteria, mould, and yeast. When making domestic or industrial items like metal polishes or wood floor cleaners, they're also employed to make anti-corrosive solutions.

Sorbic acid, also known as 2, 4-hexadienoic acid (CHEBI:17495), is a saturated monocarboxylic fatty acid having two ketone groups and a conjugated system of double bonds. Dairy products, plants, and fermentation processes all contain it. It is antibacterial in nature. The esterification of the corresponding alcohol with succinic anhydride produces sorbic acid.

It is made from glucose by numerous yeasts and bacteria in nature. In addition to being utilised as a food preservative, it is also used as an organic synthesis intermediate. Sorbic acid's CAS number is [65-72-7]. 208-185-5 is its EINECS number. C8H10O2 has a molecular weight of 176.18 g/mol and a chemical formula of C8H10O2.

Berries, particularly sour cherries, apples, cranberries, prunes, plums, peaches, pears, apricots, and strawberries, all contain sorbic acid. Wine vinegar (0.1–0.3%), beer, sauerkraut, pickles, cucumbers, and cheese all contain it.

It’s Utilization:

Sorbic acid is mostly used as a food preservative. The FDA has approved it as a food additive for preventing the growth of bacteria, mould, and yeast. Adding sorbic acid to your product has a number of advantages: It enhances flavour, works as an antioxidant, extends shelf life, does not affect colour or odour, does not react with other components, is heat stable and does not produce gas at high temperatures, and is biodegradable.

Potassium Sorbate: Potassium sorbate is a food ingredient that inhibits the formation of mould. In addition, by suppressing yeast development, it extends the shelf life of food. It's also used as a stabiliser in ice cream and other frozen desserts to keep sugar from recrystallizing and fat from destabilising.

Because it has little antibacterial activity in non-acidic solutions or at low pH values, it functions best in acidic solutions where mould or bacteria can be found.

Potassium sorbate, sometimes known as E202, is a widely used food preservative. Many over-the-counter medications, such as creams, gels, and suppositories, include this antifungal ingredient.

The US Food and Drug Administration has classed it as GRAS because of its significance in preventing food deterioration and fighting yeast infections in people (FDA). Potassium sorbate, being a natural preservative, has no notable negative effects when ingested at appropriate doses.

Mold is controlled using potassium sorbate in foods including cheese, fruit, processed meats, and baked products. In swimming pools, potassium sorbate is used to reduce algae growth. Due to increased demand from developing economies such as China, India, and Brazil, the market for potassium sorbate has lately grown. Chemicals like chlorine are being phased out in favour of non-toxic alternatives like potassium sorbate in these countries.

Fermentation or chemical synthesis can be used to make potassium sorbate. Fermentation produces a more natural product that is better for human consumption than synthetic goods, but it is more expensive to create because it takes longer.

Synthetic items are less expensive, but they are less healthful since they contain other substances that may be harmful to your health. As people become more aware of these difficulties, demand for naturally produced potassium sorbate will rise while demand for synthetically manufactured potassium sorbate will fall.

Market Outlook:

Sorbic Acid Market:

During the forecast period (2020–2030), the global Sorbic acid market will grow at a CAGR of 4.7 percent, from $347,661.0 thousand in 2019. The presence of well-established food and beverage and pharmaceutical businesses in Western economies, as well as rising per capita food and beverage consumption in emerging economies such as India, China, and Brazil, are largely to blame.

Because sorbic acid is used as a preservative to keep food from being contaminated or spoiling, the government's backing for the industry is creating a profitable growth opportunity for market participants.

On the basis of form, the powdered category accounted for the higher market size in the Sorbic acid sector in 2021. This is due to the powdered compound's simpler manufacturing procedure compared to the encapsulated form, which is why manufacturers prefer to produce Sorbic acid in powdered form. Powdered Sorbic acid can also be added to any sort of processed food or beverage, resulting in its widespread use in the food and beverage sector.

Potassium Sorbate Market:

The market for potassium sorbate was valued at $154.7 million in 2019 and is expected to increase at a CAGR of 4.89 percent from 2020 to 2025. Potassium Sorbate Market growth is attributable to its widespread use as a preservative in food products, as well as the fact that it is readily available and inexpensive.

Potassium sorbate is a chemical additive that is widely used in foods, beverages, and personal care products. It's a tasteless, odourless salt made artificially from Sorbic corrosive and potassium hydroxide.

By inhibiting the growth of mould, yeast, and fungi, potassium sorbate extends the time that food can be consumed.

Potassium sorbate was first thought to be harmless, making it necessary for human ingestion, but regular consumption can lead to a variety of health problems in the long run. The Potassium Sorbate Market is expected to grow during the forecast period 2020-2025, owing to product improvements and the effect of e-commerce channels, social media, and other factors.

Potassium Sorbate Market expansion is expected to be fueled by factors such as rising demand for processed foods and increased need for processed food products with longer shelf lives.

The high use of potassium sorbates in the food industry, which has no influence on the flavour, colour, or smell of food and protects it from decomposition, as well as its easy availability and cost-effectiveness, are driving the segment's expansion over the projected period 2020-2025.

Industry Major Market Players:

·         Advanced Inorganics

·         Anmol Chemicals Group

·         APAC Chemical Corporation

·         Celanese Corporation

·         Daicel Corporation

·         FBC Industries

·         Hawkins Watts Limited

·         Jinneng Science and Technology Company Ltd.

·         Lubon Industry Co. Ltd.

·         Nantong Acetic Acid Chemical Co. Ltd.

·         Nantong Alchemy Biotech

·         RuGao ChangJiang Food Co. Ltd.

·         Shandong Hongda Biotechnology Co. Ltd.

·         Shandong Kunda

·         Sorbic International

·         Tengzhou Aolong Fine Chemical

·         Wanglong Tech Co. Ltd.



  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • We can modify the project capacity and project cost as per your requirement.
  • We can also prepare project report on any subject as per your requirement.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.



NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:

• Good Present/Future Demand
• Export-Import Market Potential
• Raw Material & Manpower Availability
• Project Costs and Payback Period

We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.


The report contains all the data which will help an entrepreneur find answers to questions like:

• Why I should invest in this project?
• What will drive the growth of the product?
• What are the costs involved?
• What will be the market potential?

The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:



Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications


Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity


Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers


Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel


Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)


Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram


Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities


Project at a Glance

Along with financial details as under:


  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital


  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals


                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios


                Earnings Per Share (EPS)


             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 


  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR