According to P&S Intelligence, the global sauces, dressings, and condiments market is projected to reach $143.9 billion by 2023, registering a CAGR 3.8% during the forecast period.
Growing demand for healthy sauce options, rising disposable income of consumers, and increasing popularity of international cuisines are the major factors driving the market growth across the world.
Insights on the market segments
Based on type, the sauces, dressings, and condiments market is classified into cooking ingredients, dips, table sauces, pastes and purees, pickled products, and others. Among these, table sauces accounted for the largest market share in terms of sales volume, amounting to over 40.0%, in 2017.
On the basis of distribution channel, the sauces, dressings, and condiments market is categorized into specialist retailers, supermarkets/hypermarkets, convenience stores, and others, wherein the “others” category comprises internet retailers, mixed retailers, and non-grocery specialists, including beauty and health retailers. Of these, the convenience stores category is expected to witness the fastest growth in the market during the forecast period, both in terms of revenue and sales volume.
U.S. stands as the largest market among all countries
Geographically, the U.S. led the sauces, dressings, and condiments market in 2017, contributing more than 20.0% revenue. Further, during the forecast period, the U.S. market is predicted to witness 3.7% CAGR in value terms. The growth of the market in the U.S. is attributable to the increase in disposable income and customers’ inclination toward organic flavors and international cuisines.
Rising trend of home-cooked meals fueling the sales of cooking ingredients
The key factor behind the growth of the sauces, dressings, and condiments market across the globe is the shifting consumer preference toward home-cooked meals; for example, a recent survey found that around 73.0% of adults in the U.S. cook at least four nights a week at home in 2016. Further, the growing awareness about healthy meals and the desire to save costs are driving millennials toward cooking at home, which is aiding in the progress of the market for cooking ingredients around the world.
Another trend being observed in the sauces, dressings, and condiments market is the increasing use of social media to create brand awareness by the manufacturers of such food products. Companies have begun to sell products with interesting message-backed stories to target a wider customer base. For this, vendors are using social media to tell the story of their brand to the masses.
Convenience of easy cooking associated with these products driving the market growth
Busy lifestyle, characterized by longer working hours, and an increase in the number of people living alone in cities are the key factors resulting in the growing demand for dressings, sauces, and condiments around the world. This is because people who lead a hectic life want easy cooking options, and such products reduce the cooking time of meals.
The increase in the disposable income of consumers is another reason supporting the growth of the sauces, dressings, and condiments market, as with the rise in disposable income, people are spending on fancy meal options, such as ready-to-use dressings, sauces, and condiments.
Major players launching innovative products to gain a larger market share
Major companies operating in the global sauces, dressings, and condiments market are introducing new products to increase their market share. For example, Sir Kensington’s, which is a part of the Unilever Group, launched four types of ranch dressings—pizza ranch, avocado oil classic, buffalo, and classic—at the Natural Products Expo West, organized in March 2018.
Similarly, in September 2017, Kikkoman Corporation launched a low-salt variety of soy sauce, containing soy peptide, which is a type of protein that helps in controlling blood pressure. The product is specifically targeted at people aged 40 and older. Initially, the company sold the product through mail orders and online channels, but later began selling it through supermarkets in Japan from February 2018.
Global Sauces, Dressings, and Condiments Market Segmentation
By Distribution channel