Sector Trend Analysis - Sauces, Dressings and Condiments in the United States

January 2018

Executive summary

The United States represented 20% of the world’s retail sales for sauces, dressings and condiments in 2016. It was also the largest importer in the sector, with import sales worth US$2.6 billion in 2016 and increased at a compound annual growth rate of 5.2% from 2012 to 2016.

In 2016, the market retail sales were worth US$ 24.4 billion, with a compound annual growth rate of 2.1% from 2012 to 2016. Although the sector continues to see positive growth, there is a shift in retail sales from traditional sauces, dressings and condiments towards more bold favoured products that are nutritious and have ethical qualities, such as organic, non-GMO, cage-free.

From 2012 to 2016, 9,617 sauce, dressing and condiment products were launched in the United States, most of which were new product launches, variety and range extensions. However, 26% of the launches were relaunches, new formulations, and changes in packaging.

The three companies that made up 24.4% of the sector’s retail sales were Kraft Heinz Co, McCormick & Co Inc, and Campbell Soup Co. With the rise in demand for ethnic products such as soy sauce, companies such as Hellmann’s Bestfoods, and Kikoman Foods are seeing strong sales growth.

Contents

Introduction

The United States is the largest consumer and importer of sauces, dressings and condiments in the world, representing 20% of the world’s retail consumption and 13% of the world’s import share. This sector indicates a dynamic opportunity for Canadian producers of sauces, dressings and condiments related products that are healthier due to the markets shift towards product offerings that are nutritious, healthy, and flavourful in nature. As more consumers move away from traditional sauces, dressings and condiments that were predominantly produced by American companies, there is now a growing chance for international producers to offer American consumers a diverse-range of ethnic products in this sector.

The top import markets for sauces, dressings and condiments in the world, % share
Description of this image follows.
Description of above image
United States 37%
Germany 18%
United Kingdom 17%
Canada 14%
France 14%

Source: Global Trade Tracker, 2017

Top ten retail markets for sauces, dressings and condiments in the world, US$ millions
Country 2012 2013 2014 2015 2016 *CAGR (%) 2012-16
World 100,233.6 104,683.4 109,591.6 114,896.3 119,778.8 4.55
USA 22,451.7 22,772.2 23,230.0 23,756.1 24,379.6 2.08
Japan 17,464.2 17,565.4 17,582.9 17,685.1 17,565.3 0.14
China 10,039.3 10,978.5 12,345.2 13,541.3 14,553.8 9.73
Russia 2,842.8 3,156.8 3,491.0 4,205.5 4,644.0 13.05
Germany 3,935.8 4,025.2 4,089.4 4,163.2 4,238.6 1.87
Brazil 2,760.2 3,048.2 3,366.6 3,735.2 4,101.1 10.41
United Kingdom 3,517.2 3,603.7 3,697.6 3,671.3 3,665.7 1.04
France 2,623.5 2,707.6 2,753.7 2,791.1 2,831.6 1.93
Mexico 2,100.1 2,250.8 2,389.3 2,541.4 2,700.9 6.49
Canada 2,293.2 2,346.2 2,393.6 2,439.4 2,484.2 2.02

Source: Euromonitor, 2017.

*CAGR: Compound Annual Growth rate.

Consumer trends

Consumer preferences and diet habits are changing the consumption patterns for traditional staple products such as ketchup, mayonnaise, and mustard, while increasing the consumption for flavourful ethnic sauces, dressings and condiments in the United States.

According to Euromonitor, American consumers’ preferences for sauces, dressings and condiments are shifting towards healthier and more flavourful products. They have a growing desire to incorporate dishes and ingredients from a wider variety of cultures into their diets. This is especially relevant to younger consumers, who are demanding more snack foods and ethnic flavours. Another rising trend is the increasing interest for premium products with an organic, all-natural, small-batch or craft positioning. Additionally, consumers are seeking greater opportunities to incorporate new ingredients into home cooked meals across cultures and provide gourmet flair to their meals (Euromonitor, 2017).

Trade overview

The United States is a net importer of sauces, dressings and condiments-related products, with imports worth US$2.6 billion in 2016 and exports worth US$1.9 billion. Canada is the fourth-largest supplier of sauces, dressings and condiments-related products worth US$258.6 million to the United States, after Vietnam with imports worth US$357.7 million, India worth US$298.1 million, and Mexico worth US$259.9 million.

In 2016, preparations for sauces, prepared sauces, mixed condiments, and seasonings made up 37% of the United States sauces, dressings and condiments-related product imports from the world, worth US$945.2 million and a compound annual growth rate of 6% from 2012 to 2016. Imports from Canada saw a growth rate decline of -0.14% from 2012 to 2016; however, there was an 8% increase from 2015 to 2016.

Preparations for sauces, prepared sauces, mixed condiments, and seasonings made up 83% of Canada’s sauces, dressings and condiments-related product supplied to the United States. Soy sauce saw the highest growth rate of 13.2% of Canada’s sauces, dressings and condiments-related products supplied to the United States.

Top ten suppliers of sauces, dressings and condiments to the United States from the world, US$ millions
Suppliers 2012 2013 2014 2015 2016 *CAGR (%) 2012-16
World 2,094.62 2,175.16 2,346.7 2,615.29 2,563.82 5.18
Vietnam 107.05 186.02 295.09 311.25 357.69 35.20
India 265.81 225.83 229.72 317.43 298.09 2.91
Mexico 182.98 205.43 230.28 241.37 259.87 9.17
Canada 260.13 242.68 239.22 238.85 258.64 -0.14
China 194.02 208.14 243.52 248.54 244.93 6.00
Indonesia 247.48 220.23 167.72 239.34 165.24 -9.61
Italy 120.35 128.23 141.27 147.77 158.49 7.13
Brazil 64.64 94.22 110.80 149.56 105.34 12.98
Thailand 83.32 89.01 95.85 91.16 87.40 1.20
Spain 57.02 49.34 49.16 55.22 63.43 2.70

Source: Global Trade Tracker, 2017.

*CAGR: Compound Annual Growth rate.

The United States imports of sauces, dressings and condiments from the world US$ millions
**Categories 2012 2013 2014 2015 2016 *CAGR (%) 2012-16
Sauces, dressings and condiments 2,094.6 2,175.2 2,346.7 2,615.3 2,563.8 5.18
Preparations for sauces and prepared sauces, mixed condiments and seasonings 750.8 769.9 824.6 869. 945.2 5.93
Pepper of the genus piper, dried/crushed/ground fruits of the genus capsicum or of the genus pimenta 754.6 789.9 844.7 1,062.9 945.0 5.79
Ginger, saffron, turmeric "curcuma", thyme, bay leaves, curry and other spices 176.3 205.1 271.5 257.1 250.4 9.17
Soya sauce 76.8 81.2 84.3 90.3 94.3 5.27
Seeds of anise, badian, fennel, coriander, cumin or caraway, juniper berries 66.2 69. 67.1 73.3 81.0 5.19
Cinnamon and cinnamon-tree flowers 51.7 62.2 76.7 78.9 76.4 10.27
Cucumbers and gherkins, prepared or preserved by vinegar or acetic acid 57.4 48.7 45.4 53.8 55.4 -0.86
Tomato ketchup and other tomato sauces 65.1 59. 49.2 46.5 40.3 -11.29
Mustard flour and meal, whether or not prepared, and mustard 30.5 33.5 34.4 33.1 32.9 1.93
Nutmeg, mace and cardamoms 47.5 36.9 32.2 32.7 30.1 -10.81
Cloves, whole fruit, cloves and stems 17.8 19.7 16.6 17.7 12.7 -8.06

Source: Global Trade Tracker, 2017.

N/C: Not Calculable.

*CAGR: Compound Annual Growth rate.

**Note: The following HS codes were used to identify sauces, dressings and condiments-related products: 210390, 210320, 210330, 0909, 0910, 0904, 200110, 210310, 0908, 0906, 0907, 20029011, 20029019, 20029021, and 20029029.

The United States imports of sauces, dressings and condiments from Canada, in US$ millions
**Categories 2012 2013 2014 2015 2016 *CAGR (%) 2012-16
Sauces, dressings and condiments 260.1 242.7 239.2 238.9 258.6 -0.14
Preparations for sauces and prepared sauces, mixed condiments and seasonings 192.0 180.4 189.6 192.0 213.9 2.73
Mustard flour and meal, whether or not prepared, and mustard 15.3 16.3 14.7 16. 15.4 0.16
Tomato ketchup and other tomato sauces 41.9 34.3 21.3 15.8 14.3 -23.52
Seeds of anise, badian, fennel, coriander, cumin or caraway, juniper berries 4.6 4.8 7.1 7.2 6.0 6.89
Cucumbers and gherkins, prepared or preserved by vinegar or acetic acid 3.4 3.5 3.2 3.9 4.6 7.75
Soya sauce 1.5 1.7 1.8 2.0 2.4 13.21
Ginger, saffron, turmeric "curcuma", thyme, bay leaves, curry and other spices 1.2 1.3 1.4 1.5 1.8 12.17
Pepper of the genus piper; dried or crushed or ground fruits of the genus capsicum or of the genus pimenta 0.1 0.5 0.1 0.3 0.2 9.26
Nutmeg, mace and cardamoms 0.1 0.0 0.0 0.0 0.0 -32.03
Cloves, whole fruit, cloves and stems 0.0 0.0 0.0 0.0 0.0 N/C
Cinnamon and cinnamon-tree flowers 0.0 0.0 0.0 0.0 0.0 -30.05

Source: Global Trade Tracker, 2017.

N/C: Not Calculable.

*CAGR: Compound Annual Growth rate.

**Note: The following HS codes were used to identify sauces, dressings and condiments-related products: 210390, 210320, 210330, 0909, 0910, 0904, 200110, 210310, 0908, 0906, 0907, 20029011, 20029019, 20029021, and 20029029.

Retail sales

From 2012 to 2016, sauces, dressings and condiments grew at a compound annual growth rate of 2.1%, with retail sales reaching US$24.4 billion in 2016. Table sauces represented over 36% of the sector’s retail sales with salad dressings, mayonnaise, and ketchup leading the category sales. However, due to shifting consumer trends, traditional table sauces such as mayonnaise, ketchup, and mustard experienced flat or declining growth in 2016. Alternatively, products that exhibit ethnic and spicy qualities, such as herbs and spices, soy and chili sauces experienced strong growth in the review period, with retail compound annual growth rates of 5.2%, 4.0%, and 6.5%. The growth experienced in the herbs and spices subcategory under cooking ingredients, is due to rising prices and increasing sales of premium gourmet and ethnic products (Euromonitor, 2017).

The cooking ingredients category represented the second-largest sauces, dressings and condiments category, with a compound annual growth rate of 2.9% from 2012 to 2016, and reaching retail value of US$8 billion in 2016. According to Euromonitor, American consumers’ desire for adding gourmet qualities to home-cooked meals is a trend that also resulted in strong growth of liquid stocks and fonds (i.e. chicken and beef-based stock and bone), which experienced a growth rate of 3.6% from 2012 to 2016.

The third-largest category was the dips which represented about 15% of the sector’s retail sales. The category saw a compound annual growth rate of 3.8% from 2012 to 2016, with retail sales reaching US$3.6 billion. Although the category is primarily made up of salsa products, the recent growth in dips has been driven by the growing sales of hummus and guacamole products, which is in line with the shifting demand for more ethnic products.

The sale of sauces, dressings and condiments is forecasted to reach US$28.4 billion by 2021 at a compound annual growth rate of 3.4% from 2017 to 2021. The shift towards more bold flavours and gourmet cooking is expected to continue. However, the sector is likely to face strong competition from foodservice establishments and the snack sector due to the rise in “snackification” trends among young American consumers who prefer to snack regularly than eating traditional meals. As the earning and spending power of millennials increase in the future, this trend towards snacking is likely to continue, limiting some of the potential for future growth of more traditional sauces, dressings and condiments, but providing strong opportunity for products that can adapt well to these snacking trends (Euromonitor, 2017).

Sauces, dressings and condiments by category % share in the United States, in 2017*E
Description of this image follows.
Description of above image
Table sauces 36%
Cooking ingredients 33%
Dips 15%
Pickled products 10%
Other sauces, dressings and condiments 4%
Tomato pastes and purées 2%

Source: Euromonitor, 2017

*E: Estimate

Historical retail sales of sauces, dressings and condiments in the United States, in US$ millions
Categories 2012 2013 2014 2015 2016 *CAGR (%) 2012-16
Total 22,451.7 22,772.2 23,230.0 23,756.1 24,379.6 2.08
Table sauces 8,414.6 8,434.8 8,485.9 8,595.4 8,807.0 1.15
Salad dressings 2,603.8 2,597.2 2,612.1 2,620.8 2,662.8 0.56
Mayonnaise 1,927.8 1,876.3 1,826.4 1,806.7 1,825.7 -1.35
Ketchup 795.5 801.7 803.3 829.9 828.2 1.01
Soy sauces 701.7 722.9 755.3 767.4 821.7 4.03
Barbecue sauces 655.8 681.3 697.0 731.1 766.1 3.96
Other table sauces 750.2 746.2 732.8 741.9 764.9 0.49
Chilli sauces 532.5 567.8 616.6 646.8 686.2 6.54
Mustard 447.1 441.6 442.4 450.9 451.4 0.24
Cooking ingredients 7,106.8 7,261.9 7,446.9 7,657.8 7,980.8 2.94
Herbs and spices 2,561.3 2,707.6 2,795.2 2,928.4 3,136.0 5.19
Pasta sauces 2,342.8 2,307.3 2,345.1 2,384.6 2,441.8 1.04
Bouillon 1,404.4 1,462.1 1,509.3 1,531.8 1,583.3 3.04
Liquid stocks and fonds 879.9 918.4 962.5 976.9 1,014.0 3.61
Gravy cubes and powders 280.2 287.6 287.4 288.6 291.8 1.02
Stock cubes and powders 244.3 256.0 259.4 266.3 277.5 3.24
Cooking sauces 717.4 706.7 717.5 733.4 739.1 0.75
Dry sauces 80.9 78.3 79.8 79.5 80.5 -0.12
Dips 3,099.5 3,239.3 3,413.6 3,569.9 3,604.2 3.84
Pickled products 2,329.3 2,301.4 2,328.4 2,377.1 2,408.4 0.84
Other sauces, dressings and condiments 899.1 920.4 939.9 941.7 965.3 1.79
Tomato pastes and purées 602.4 614.4 615.3 614.2 614.0 0.48

Source: Euromonitor, 2017.

*CAGR: Compound Annual Growth rate.

Forecast retail sales of sauces, dressings and condiments in the United States, in US$ millions
Categories 2017**E 2018 2019 2020 2021 *CAGR (%) 2017-21
Total 24,816.0 25,685.4 26,589.2 27,519.1 28,395.1 3.43
Table sauces 8,904.1 9,171.9 9,451.8 9,741.0 10,012.5 2.98
Salad dressings 2,676.1 2,754.5 2,840.6 2,927.8 3,008.8 2.97
Mayonnaise 1,798.4 1,813.6 1,831.1 1,853.0 1,872.4 1.01
Soy sauces 866.0 926.2 985.9 1,044.9 1,101.5 6.20
Barbecue sauces 789.1 822.3 855.6 887.9 918.1 3.86
Ketchup 829.0 843.9 861.6 881.7 901.0 2.10
Chilli sauces 720.5 761.2 800.5 839.6 877.2 5.04
Other table sauces 782.7 804.1 824.5 846.2 865.2 2.54
Mustard 442.4 446.0 452.1 459.9 468.2 1.43
Cooking ingredients 8,204.4 8,561.7 8,926.8 9,291.7 9,631.7 4.09
Herbs and spices 3,291.6 3,502.6 3,715.0 3,920.1 4,109.4 5.70
Pasta sauces 2,493.1 2,576.5 2,659.8 2,744.8 2,821.8 3.14
Bouillon 1,618.7 1,680.2 1,745.5 1,813.9 1,880.6 3.82
Liquid stocks and fonds 1,041.0 1,088.8 1,140.8 1,196.1 1,250.7 4.69
Gravy cubes and powders 296.3 301.4 306.6 312.2 317.4 1.73
Stock cubes and powders 281.4 290.0 298.0 305.7 312.5 2.66
Cooking sauces 722.1 723.1 726.7 732.4 738.7 0.57
Dry sauces 78.9 79.2 79.7 80.5 81.3 0.75
Dips 3,651.0 3,797.1 3,947.3 4,105.0 4,256.7 3.91
Pickled products 2,456.6 2,517.8 2,583.9 2,656.4 2,723.9 2.62
Other sauces, dressings and condiments 986.5 1,016.9 1,049.4 1,082.9 1,116.1 3.13
Tomato pastes and purées 613.4 620.1 630.1 642.1 654.3 1.63

Source: Euromonitor, 2017.

*CAGR: Compound Annual Growth rate.

**E: Estimate.

Health and wellness

Health and wellness (HW) sauces, dressings and condiments made up 9% of the sector’s total retail sales in 2016, worth US$2.1 billion. During the five year review period, the sector grew at a compound annual growth rate of 3.0% (2012 to 2016) and is expected to grow at a compound annual growth rate of almost 5.5% from 2017 to 2021.

The organic portion of the health and wellness sauces, dressings and condiments saw the most significant growth, with a compound annual growth rate of 11.5% from 2012 to 2016. This is partly due to the rise in demand for natural and organic products in the United States. The category is expected to continue to grow at a dynamic compound annual growth rate of 10.6% from 2017 to 2021. Alternatively, the “reduced fat” health and wellness category saw a decline in growth with a compound annual growth rate of -1.8% from 2012 to 2016. However, this category is expected to recover at a compound annual growth rate of 1% from 2017 to 2021.

Historical retail sales of HW sauces, dressings and condiments, in US$ millions
Categories 2012 2013 2014 2015 2016 *CAGR (%) 2012-16
HW sauces, dressings and condiments 1,882.5 1,891.0 1,947.6 2,009.0 2,117.4 2.98
Organic 544.4 588.3 648.2 726.3 842.7 11.54
Reduced fat 1,057.0 1,019.9 1,006.2 986.3 981.0 -1.84
Reduced salt 281.1 282.8 293.3 296.4 293.0 1.08

Source: Euromonitor, 2017.

*CAGR: Compound Annual Growth rate.

Forecast retail sales of HW sauces, dressings and condiments, in US$ millions
Categories 2017**E 2018 2019 2020 2021 *CAGR (%) 2017-21
HW sauces, dressings and condiments 2,188.0 2,308.5 2,436.7 2,572.8 2,709.1 5.49
Organic 923.6 1,028.3 1,139.8 1,258.3 1,381.4 10.59
Reduced fat 971.5 980.3 989.6 999.5 1,006.0 0.88
Reduced salt 292.8 299.9 307.3 315.0 321.8 2.39

Source: Euromonitor, 2017.

*CAGR: Compound Annual Growth rate.

Company

The top three companies with the most market share in the sauces, dressings and condiments sector were Kraft Heinz Co, McCormick & Co Inc, and Campbell Soup Co. With the merge of HJ Heinz and Kraft Foods Group Inc in the review period, the new Kraft Heinz Co continued to be the leading company in the sector despite slow and flat growth in 2016. In 2016, the company’s retail sales amounted to US$2.7 billion, with 11.2% market share of the total sauces, dressings and condiments sector. Despite the company’s dominant share over its competitors, Kraft Heinz Co is less popular with millennial consumers.

McCormick & Co is the second-largest company with 7.8% of the sector’s market share and total retail value of US$1.9 billion. According to Euromonitor, McCormick & Co made significant gains by the increasing popularity of it brands, such as Lawry’s which offers a variety of seasoning mixes, spice blends and marinades, positioned as authentic craft products from Texas. Another contributing factor to this brand’s popularity is its ethnic qualities and more intense flavour. Additionally, the company took several steps to transform its product offerings by appealing to the growing consumer demands for healthy options and concerns over ethical and natural food production (Euromonitor, 2017). As a result, the company saw a 5% current value growth in 2016 and compound annual growth rate of 2.6% from 2012 to 2016.

Campbell Soup Co. is the third-largest company with a 5.4% market share in the sauces, dressings and condiments sector, and retail sales reaching US$1.3 billion in 2016. Like McCormick & Co, Campbell Soup Co.’s success in 2016 was mainly driven by the popularity of product offerings with ethnic qualities and more intense flavours.

Although the sauces, dressings and condiments sector is dominated by American companies there are a number of international companies maintaining a strong presence in the sector. According to Euromonitor, companies such as Hellmann’s Bestfoods, and Kikkoman Foods are all experiencing strong positive growth, much of which was fueled by sales of ethnic products.

Top ten companies of sauces, dressings and condiments in the United States, US$ millions
Description of this image follows.
Description of above image
Kraft Heinz Co 2,735.3
McCormick & Co Inc 1,900.5
Campbell Soup Co 1,328.1
Unilever Group 1,044.5
PepsiCo Inc 904.6
Mizkan Group Corp 717.5
Clorox Co, The 685.7
Pinnacle Foods Inc 591.4
ConAgra Brands Inc 586.6
Strauss Group Ltd 571.1

Source: Mintel, 2017

Product launch analysis

In response to consumers’ shifting demands, companies are aggressively pursuing new product launches or alterations to existing products that incorporate spicy and ethnic qualities into their product lines and are making strong efforts to alter their production processes accordingly (Euromonitor, 2017). For example, in 2015 ConAgra launched Gulden’s Sriracha Mustard and Stone Ground Dijon Mustard, while tomato processor, Red Gold, introduced ketchup and salsa products containing sriracha in early 2016 (Euromonitor, 2017).

According to Mintel’s Global New Products Database, there were 9,617 sauce, dressing and condiment products launched in the United States from 2012 to 2016. Most of which were new product launches, variety and range extensions, while 26% of the launches were relaunches, new formulations, and changes in packaging. The top three origins for ingredients used in the product launches were Chile, Italy, and the United States. Around, 13.1% of the products launched in the United States were identified as imported products, while 16.1% were identified as non-imports. Of the products launched, 62% were branded while 38% were private labels.

Number of sauce, dressing and condiment products launched by year
Description of this image follows.
Description of above image
2012 1,846
2013 2,251
2014 1,674
2015 1,686
2016 2,160

Source: Mintel, 2017

Launch types of sauces, dressings and condiments, from 2012 to 2016
Description of this image follows.
Description of above image
New variety/range extension 41%
New product 33%
New packaging 20%
Relaunch 5%
New formulation 1%

Source: Mintel, 2017

The top categories to see the most product launches from 2012 to 2016 were seasonings with a total of 2,218 products, table sauces with a total of 1,439 products, and cooking sauces with a total of 1,153 products. The top companies to launch new products were Kroger with 473 products, Williams-Sonoma with 407 products, Aldi with 295 products, Target with 283, and McCormick with 247 products.

Top ten sauce, dressing and condiment categories for launches in the US, from 2012 to 2016
Category Number of products
Seasonings 2,218
Table sauces 1,439
Cooking sauces 1,153
Dressings and vinegar 842
Dips 832
Pickled condiments 817
Oils 776
Pasta sauces 721
Other sauces and seasonings 259
Stocks 223

Source: Mintel, 2017

Top ten companies to launch sauces, dressings and condiments in the US, from 2012 to 2016
Company Number of products
Kroger 473
Williams-Sonoma 407
Aldi 295
Target 283
McCormick 247
Meijer 244
Safeway 168
ACH Food Companies 161
Giant Eagle 158
Supervalu 156

Source: Mintel, 2017

Ingredients

The top five ingredients used in sauce, dressing and condiment launches were salt, water, garlic, spices and onions. However, ingredients that have grown in use since 2012 were thyme, filtered water, cumin seed, corn starch, and flavouring substances. According to Mintel, the new ingredients appearing in this sector are shrimp shell, red currant juice, crab apple, curing agents, date juice, raisin juice, sparkling wine, pomegranate vinegar, silver onion, and kimchi.

Top fifteen ingredients used in sauce, dressing and condiment launches, from 2012 to 2016
Ingredient Number of products
Salt 5,249
Waters 4,169
Garlic 3,776
Spices 3,428
Onion 3,012
Food acids 2,980
Vinegar 2,920
White sugar 2,815
Natural flavourings 2,330
Citric acid (food) 2,232
Xanthan gum (food) 1,705
Sea salt 1,397
Tomato 1,333
Soybean oil 1,216
Tomato paste 1,174

Source: Mintel, 2017.

Top fifteen growing ingredients used in sauce, dressing and condiment launches, from 2012 to 2016
Ingredient Number of products
Sea salt 1,397
Coriander 670
Sunflower seed oil 461
Ginger 409
Corn starch 392
Cumin seed 348
Cane sugar 341
Parmesan cheese 323
Thyme 280
Tomato juice 241
Chickpea 237
Sesame paste 234
Filtered water 231
Flavouring substances 222
Yeast 218

Source: Mintel, 2017.

Flavours

The top flavours that were identified in sauces, dressings and condiments were garlic, tomato, salsa, roasted/toasted, and barbecue/BBQ/barbacoa. The flavours that have grown in use since 2012 were sriracha (hot chili sauce), salt/salted, Greek yogurt, cinnamon, and chili/chili pepper (green). According to Mintel, the fastest growing flavours are onion, pepper/peppercorn, cranberry, salsa verde (green sauce), mushroom, and bay leaf/laurel.

Top flavours identified in sauce, dressing and condiment launches, from 2012 to 2016
Flavour Number of products
Unflavoured/plain 1,051
Garlic 486
Tomato 457
Salsa 368
Roasted/toasted 333
Barbecue/BBQ/barbacoa 317
Spice/spicy/piquant 297
Hummus 236
Mustard 204
Basil 199
Hot 120
Dill 76
Sriracha (hot chili sauce) 71
Greek yogurt 55
Salt/salted 50
Rosemary 43
Cinnamon 26
Chili/chilli pepper (green) 21
Cabbage/kale 16
Tangy 11

Source: Mintel, 2017.

Distribution channel

Supermarkets remained the dominant retail channel for sauces, dressings and condiments in 2016 with a value share of 62%. Most consumers tend to purchase sauces, dressings and condiments in supermarkets as part of larger shopping trips with more time-consuming home dining experiences in mind (Euromonitor, 2017). Private labels struggled in 2016 for the sales of cooking sauces. Convenience based channels, such as convenience stores, drug stores and discounters held a portion of the sector sales. Internet retail sales made up 1.5% of the sectors retail sales, however, this represents a significant increase from 2010 at compound annual growth rate of 7.8% (2010 to 2016) and a consistent year on year growth of about 8%.

Distribution channels of sauces, dressings and condiments in the United States, US$ millions
Outlets 2012 2013 2014 2015 2016 *CAGR (%) 2012-16
Total 22,451.7 22,772.2 23,230.0 23,756.1 24,379.7 2.08
Store-based retailing 22,187.0 22,493.3 22,934.9 23,429.9 24,021.6 2.01
Grocery retailers 19,567.1 19,804.3 20,188.7 20,599.1 21,090.0 1.89
Modern grocery retailers 18,848.2 19,054.2 19,416.8 19,823.0 20,300.1 1.87
Convenience stores 45.1 47.1 47.4 46.9 46.6 0.82
Discounters 472.2 484.1 486.7 507.7 531.5 3.00
Forecourt retailers 140.3 143.2 141.2 138.7 136.5 -0.68
Hypermarkets 4,070.3 4,191.0 4,279.9 4,419.3 4,583.4 3.01
Supermarkets 14,120.3 14,188.7 14,461.6 14,710.3 15,002.1 1.53
Traditional grocery retailers 718.9 750.1 771.9 776.1 789.9 2.38
Food/drink/tobacco specialists 194.9 205.0 209.3 216.3 229.2 4.14
Independent small grocers 524.0 545.2 562.6 559.8 560.7 1.71
Non-grocery specialists 95.6 90.0 92.0 89.3 90.2 -1.44
Health and beauty specialist retailers 95.6 90.0 92.0 89.3 90.2 -1.44
Mixed retailers 2,524.2 2,599.0 2,654.3 2,741.5 2,841.4 3.00
Non-store retailing 264.7 279.0 295.0 326.3 358.1 7.85
Home shopping 4.5 3.6 2.8 2.4 2.2 -16.38
Internet retailing 260.2 275.3 292.2 323.9 355.9 8.14

Source: Euromonitor, 2017.

*CAGR: Compound Annual Growth rate.

Claims

Due to the shift in consumer preferences, manufactures are advertising their products as being natural or as having ethical qualities, such as being organic, non-GMO or free of artificial ingredients (Euromonitor, 2017). For example, during the review period (2012 to 2016) the top claims associated with sauce, dressing and condiment launches were kosher, low/no/reduced allergen, gluten free, no additives/preservatives, and all natural ingredients.

Top claims of sauces, dressings and condiments
Claim Number of products
Kosher 3,454
Low/no/reduced allergen 2,397
Gluten free 2,348
No additives/preservatives 1,778
All natural product 1,748
Organic 1,155
Ethical - environmentally friendly package 1,021
Ease of use 847
GMO free 816
Social media 588

Source: Mintel, 2017.

Packaging

According to Euromonitor, a number of new packaging innovations were announced in 2016 that sought to cut down on food waste, increase convenience and eliminate the use of chemicals viewed by many consumers as potentially harmful to their health (Euromonitor, 2017). Companies are now launching new packaging for sauces, dressings and condiments that provide smaller, health-conscious portions and reduce the waste often associated with traditional packaging used for products in the sector, such as large bottles of salad dressings. In addition, companies are now looking into alternative packaging materials, such as acrylic and polyester packaging, to discontinue the use of chemical in their packaging. This is a direct response to consumers’ growing concerns for health risks caused by the use of chemical, such as Bisphenol A (BPA) (Euromonitor, 2017).

During the review period of sauce, dressing and condiment launches from 2012 to 2016, the common package materials used for over 43% product launches were plain glass. The top three packaging manufactures used in the product launches were Owens-Illinois Glass Containers (USA), Ardagh Glass (UK), and Berry Plastics Corporation (USA).

Top ten package types used in sauces, dressings and condiment launches, from 2012 to 2016
Package type Number of products
Jar 3,923
Bottle 2,606
Tub 857
Flexible stand-up pouch 408
Flexible sachet 374
Can 347
Flexible 232
Carton 142
Tray 123
Aerosol 118

Source: Mintel, 2017.

Top ten package materials used in sauces, dressings and condiment launches, from 2012 to 2016
Package material Number of products
Glass plain 4,088
Polyethylene terephthalate plastic 2,135
Polypropylene plastic 654
Plastic unspecified 625
Metal steel 419
Glass coloured 324
Multi laminate 270
Paper foil lined 174
Multi-layer board 143
Metallised film 126

Source: Mintel, 2017.

Top ten packaging height used in sauces, dressings and condiment launches, from 2012 to 2016
Package height Number of products
105 mm 349
160 mm 304
130 mm 274
110 mm 272
170 mm 253
125 mm 234
195 mm 230
155 mm 228
165 mm 224
120 mm 215

Source: Mintel, 2017.

Top ten packaging width used in sauces, dressings and condiment launches, from 2012 to 2016
Package width Number of products
75 mm 695
85 mm 560
60 mm 535
80 mm 501
70 mm 496
45 mm 494
65 mm 455
55 mm 325
115 mm 290
100 mm 290

Source: Mintel, 2017.

Top five packaging manufactures used for sauce, dressing and condiment launches, from 2012 to 2016
Packaging Manufacturer Number of products
Owens-Illinois Glass Containers (USA) 352
Ardagh Glass (UK) 323
Berry Plastics Corporation (USA) 268
Saint Gobain Containers (USA) 189
Leone Industries (USA) 156

Source: Mintel, 2017.

New product examples

Smoked Honey Sauce
Record ID Company Brand Category Sub-Category Country Store Name
4503235 Bee Local Bee Local Sauces & Seasonings Table Sauces USA Whole Foods Market
Store Type Store Address Date Published Product source Launch Type Price in local currency Bar Code
Natural/Health Food Store New York 10011 Dec 2016 Shopper New Product US$12.99 814417021134

Bee Local Smoked Honey Sauce is made with American honey and smoked with Cherrywood using a Traeger wood fire grill. It is described as sweet and smoky, and can be used with cheese, barbecue, roasted vegetables, fried chicken and dressings. This product retails in an 8-fl-oz. pack.

Ghost Pepper Mustard
Record ID Company Brand Category Sub-Category Country Store Name
4430193 Beaverton Foods Inglehoffer Sauces & Seasonings Table Sauces USA Brooklyn Fare
Store Type Store Address Date Published Product source Launch Type Price in local currency
Supermarket New York 10014 Dec 2016 Shopper New Variety/Range Extension US$4.49

Inglehoffer Ghost Pepper Mustard is said to be America's hottest mustard, and is free from gluten. It retails in a 10.25-oz. pack, bearing the Facebook logo.

Artichoke, Jalapeno & Parmesan Premium Dip
Record ID Company Brand Category Sub-Category Country Country of Manufacture Import Status
4484703 Reser's Fine Foods Stonemill Kitchens Savoury Spreads Dips USA USA Not imported
Store Name Store Type Store Address Date Published Product source Launch Type Price in local currency Bar Code
Schnucks Supermarket Cape Girardeau 63702 Dec 2016 Shopper New Packaging US$2.99 071117180312

Stonemill Kitchens Artichoke, Jalapeno & Parmesan Premium Dip has been repackaged. The product contains no artificial colors or flavors, is said to be made with real parmesan cheese, and retails in a 10oz. pack.

Dad's Original Sauce
Record ID Company Brand Category Sub-Category Country Store Name
5188155 Jambco Bongiovi Brand Pasta Sauces Sauces & Seasonings Pasta Sauces USA Safeway
Store Type Store Address Date Published Product source Launch Type Price in local currency Bar Code
Supermarket Seattle 98121 Oct 2017 Shopper New Product US$2.99 858981004148

Bongiovi Brand Pasta Sauces Dad's Original Sauce is a premium, all natural sauce. It is free from gluten and is kosher certified. It retails in a 9-oz. pack. The manufacturer claims that the profits help combat hunger and homelessness through the Jon Bon Jovi Soul Foundation.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International Market Intelligence page, arranged by region.

Resources

Sector Trend Analysis - Sauces, Dressings and Condiments in the United States
Global Analysis Report

Prepared by: Ranna Bernard, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2018).

Photo Credits
All photographs reproduced in this publication are used by permission of the rights holders.
All images, unless otherwise noted, are copyright Her Majesty the Queen in Right of Canada.

To join our distribution list or to suggest additional report topics or markets, please contact:

Agriculture and Agri-Food Canada, Global Analysis
1341 Baseline Road, Tower 5, 3rd floor
Ottawa, Ontario
Canada, K1A 0C5
E-mail: aafc.mas-sam.aac@canada.ca

The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada (AAFC) assumes no liability for any actions taken based on the information contained herein.

Reproduction or redistribution of this document, in whole or in part, must include acknowledgement of Agriculture and Agri-Food Canada as the owner of the copyright in the document, through a reference citing AAFC, the title of the document and the year. Where the reproduction or redistribution includes data from this document, it must also include an acknowledgement of the specific data source(s), as noted in this document.

Agriculture and Agri-Food Canada provides this document and other report services to agriculture and food industry clients free of charge.

Date modified: