Customized report service – Barbecue sauces and spices market in the United States and Europe

Introduction

The United States is a major importer and consumer of sauces, dressing and condiments. In 2017, U.S. global imports represented a 10.7% market share, with an import value of US$1.2 billion. The value of retail sales was US$25.2 billion in 2017. Consumers' growing demand for products with unique flavours influences the growth of the barbecue sauce, dressing and condiment market. Changes in food consumption habits, supported by an increase in disposable income, stimulated the growth of this market.

In the European market, the United Kingdom is the largest importer of sauces, dressing and condiments, with 7.9% of the global market and an import value of US$870.6 million. The value of retail sales for the United Kingdom was estimated at US$4.1 billion in 2017. American cuisine has certainly influenced British consumers' choices of barbecue sauces. Barbecue sauce producers are emphasizing smoky flavours that use terms like "grilled" and "charred." 

France is the second largest European importer of sauces, dressing and condiments, with a 6.1% share of the global market and an import value of US$678.2 million in 2017. This can be explained by French consumers' interest in new spicy flavours, and the value of retail sales was US$3.3 billion in 2017.

Consumer profile

Consumer preferences are shifting toward hot and spicy options inspired by eastern cuisines, with products featuring new ingredients in response to strong consumer interest. Those in the 16-24 age category are generally much more receptive to ready-to-eat foods, and millennials are much more likely than any other generation to be interested in new flavours.

According to Euromonitor, American and European consumers continue to seek healthier food options. They demonstrate high demand for quality sauces, dressing and condiments with claims such as natural, organic, local and craft.

Market overview

United States

The United States is a net exporter of sauces, dressing and condiments, with a value of US$1.7 billion in 2017 and an import value of US$1.2 billion in 2017. Canada is the largest exporter to the United States for sauces, dressing and condiments, representing US$265.0 million. Mexico is the second, with a value of US$204.8 million, where spiced table sauces, such as hot sauces and barbecue sauces, dominate demand.

France

France is a net importer of sauces, dressing and condiments, with US$678.1 million in 2017, compared to exports valuing US$303.0 million for the same year. The main exporter to France is Belgium, with US$132.3 million in 2017. Italy is the second, with US$111.1 million, explained primarily by pasta sauces. Canada is the 22nd exporter of sauces, dressing and condiments to France, with a value of US$1.5 million in 2017. 

United Kingdom

The United Kingdom is also a net importer of sauces, dressing and condiments, with US$870.6 million in 2017, compared to exports of US$428.4 million for the same year. The growth in exports can be explained by the broader selection of spicier and more exotic sauces. The top exporter to the United Kingdom is the Netherlands, with a value of US$210.3 million in 2017, but exports have decreased since 2013. Canada is the 34th exporter of sauces, dressing and condiments to the United Kingdom, with US$1.6 million.

Retail

In the United States, young consumers are increasingly interested in exotic seasonings and sauces from different countries. Sauce, dressing and condiment producers are aware of this consumer preference. Therefore, we expect producers to develop new product varieties to pique consumer curiosity.

In addition, products with foreign and spicy flavours, such as herbs and spices, hot sauces and barbecue sauces, have seen strong growth in the historical period, with compound annual growth rates of 5.4%, 4.8% and 3.1%. In the selection, spices and herbs represented a value of US$3.3 billion in 2017.

Dips are the second category in terms of value, with US$3.8 billion in 2017, and recorded a CAGR of 4.1% between 2013 and 2017. This growth can be explained by the popularity of salsa, hummus and guacamole products (ethnic products).

France

The CAGR for sauces, dressing and condiments was 1.9% of the retail value between 2013 and 2017. The volume of retail sales between 2013 and 2017 saw slower growth because some categories, such as powdered sauces, suffered from maturity, which slowed the performance of the entire sector. French consumers are increasingly seeking healthier food products, but many products in this category have an unhealthy image because of their high fat, salt or sugar content.

Hot sauces saw the fastest growth in terms of retail sales volumes of 6.0% in 2017, compared to 2016. (Euromonitor International, 2018a) Barbecue sauces and other table sauces also performed well. Consumers, especially young people, want to experiment with new flavour combinations and are attracted by spicy foods in general. These trends combined will benefit hot sauces and other table sauces. During the forecast period, hot sauces and barbecue sauces will record a CAGR of 5.5% and 3.9% for the same period.

United Kingdom

British consumers are also moving away from traditional sauces and are seeking out spicier and more exotic varieties to enhance the flavour of their dishes. This trend has been observed in spiced table sauces, such as hot sauces. 

The CAGR for sauces, dressing and condiments grew modestly by 1.0% between 2013 and 2017. Hot sauces saw the greatest increase in Compound Annual Growth Rate, with 9.1% between 2013 and 2017.

The spices and herbs category represents the highest value for sauces, dressing and condiments, with US$395.6 million in 2017. The volume of retail sales of herbs and spices also increased by 3.0% in 2017. (Mintel, 2018) British consumers are buying more spices to make homemade sauces.

Barbecue sauces are expected to be the subcategory with the second-greatest Compound Annual Growth Rate. This category will reach a CAGR of 5.6% between 2018 and 2023, just behind hot sauces, with a CAGR of 8.5%. Retailers are focusing on strategies to maximize sales by creating more shelf space. The shelf space devoted to barbecue sauces increased by 5.0% in volume in 2017.

Popular barbecue sauce flavours

In the U.S. market, the main flavours identified in the production of barbecue sauces were barbecue, honey, smoky, sweet/spicy and chili pepper.

In the British and French markets, barbecue, Korean, smoky, spicy and garlic flavours dominate the market. Consumers are behind this development, since they have developed a taste for spicy sauces and exotic flavours. The particularity of the European market is that barbecue flavour is often associated with American culinary culture.

Claims for barbecue sauces

American and European consumers are leading increasingly busy lives, with less time to cook at home, and many choose a product based on its ease of use and convenience. That is one of the reasons why barbecue sauces have the claim microwavable (36.8%) and easy to use (31.6%). Products without additives and allergens are also popular among consumers.

Companies

United States

The three companies with the largest market share in barbecue sauces were Ken's Foods Inc. (46.8%), Kraft Heinz (13.7%) and McCormick & Company Inc. (6.3%). While the barbecue sauce sector is dominated by American companies, some international companies maintain a strong presence in the sector. According to Euromonitor, companies like Baxter & Sons Ltd. and Kikkoman Foods all have strong positive growth, much of which is attributable to sales of foreign products.

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Company	Market share (%)
Ken's Foods Inc	46.8
Kraft Heinz Co	13.7
Others	10.6
Private Label	8.9
McCormick & Co Inc.	6.3
Clorox Co, The	3.4
Baxter & Sons Ltd	2.5
Famous Dave's of America Inc	2.3
ConAgra Brands Inc	3.2

Source: Euromonitor International, 2017a

France

Most of the French market is dominated by multinationals and foreign companies. International producers are able to offer a wide range of products, particularly exotic flavours that have become popular during the review period.

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Company	Market share (%)
Unilever Group	13
Others	14
Private Label	23.9
Kraft Heinz Co	49.1

Source: Euromonitor International, 2017b

United Kingdom

In the British market, Kraft Heinz has the largest market share for barbecue sauces at 41.4%. In second is Associated British Foods plc, with a market share of 15.0%. Like the French market, the British market is dominated by multinationals, primarily Kraft Heinz Co.

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Company	Market share (%)
Kraft Heinz Co	41.4
Private Label	28.9
Associated British Foods Plc	15
Others	9.5
McCormick & Co Inc	5.2

Source: Euromonitor International, 2017c

Product examples

Examples of barbecue sauces

Examples of grilling spices

Conclusion

Table sauces combining a strong heritage, unique production methods and quality ingredients should continue to gain favour when consumers are looking to buy sauces and seasonings. The development of new, spicier flavours will result in growing demand for barbecue sauces, and the market should see positive growth over the forecast period.

Customized report service – Barbecue sauces and spices market in the United States and Europe
Global Analysis Report

Prepared by: Nesrine Benmoussa, Co-op Student

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2019).

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