Capital requirements generally include land acquisition, construction, equipment procurement, installation, pre-operative expenses, and initial working capital. The total amount varies with capacity, technology, and location.
To start a fish oil supplement manufacturing business, one needs to conduct a market feasibility study, secure required licenses, arrange funding, select suitable land, procure equipment, recruit skilled labor, and establish a supply chain and distribution network.
Fish oil supplement manufacturing requires raw materials such as whole fish (like salmon, mackerel, and sardines) or their by-products from filleting operations. Other marine sources like krill and shrimp are also used, and some supplements may use fish liver oils.
A fish oil supplement factory typically requires fish cooking and pressing units, centrifuges, purification and deodorization systems, filtration units, vacuum dryers, oil storage tanks, soft-gel encapsulation machines, bottling lines, and quality-testing instruments.
The main steps generally include:
Fish cooked to release natural oils
Pressed fish mass separates crude oil
Centrifugation removes water and impurities
Oil purified through filtration and deodorization
Omega-rich fractions concentrated using molecular distillation
Oil encapsulated into soft-gel capsules
Finished capsules tested for purity and potency
Products packaged and stored for distribution
Usually, the timeline can range from 12 to 24 months to start a fish oil supplement manufacturing plant, depending on factors like site development, machinery installation, environmental clearances, safety measures, and trial runs.
Challenges may include high capital requirements, securing regulatory approvals, ensuring raw material supply, competition, skilled manpower availability, and managing operational risks.
Typical requirements include business registration, environmental clearances, factory licenses, fire safety certifications, and industry-specific permits. Local/state/national regulations may apply depending on the location.
The top fish oil supplement manufacturers are:
BASF SE
Croda International PLC
Koninklijke DSM NV
Omega Protein Corporation
Pelagia AS
Profitability depends on several factors including market demand, manufacturing efficiency, pricing strategy, raw material cost management, and operational scale. Profit margins usually improve with capacity expansion and increased capacity utilization rates.
Cost components typically include:
Land and Infrastructure
Machinery and Equipment
Building and Civil Construction
Utilities and Installation
Working Capital
Break even in a fish oil supplement manufacturing business typically range from 3 to 6 years, depending on scale, regulatory compliance costs, raw material pricing, and market demand. Efficient manufacturing and export opportunities can help accelerate returns.
Governments may offer incentives such as capital subsidies, tax exemptions, reduced utility tariffs, export benefits, or interest subsidies to promote manufacturing under various national or regional industrial policies.
Financing can be arranged through term loans, government-backed schemes, private equity, venture capital, equipment leasing, or strategic partnerships. Financial viability assessments help identify optimal funding routes.