Culinary Sauces Market Size, Share & COVID-19 Impact Analysis, By Type (Dry and Wet), Application (Households, Food Processors, and HoReCa), End-Use (B2C and B2B), and Regional Forecasts, 2022-2029

The global culinary sauces market size was valued at USD 45.23 billion in 2021 and is projected to grow from 46.64 billion in 2022 to USD 59.75 billion by 2029, exhibiting a CAGR of 3.60% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with culinary sauces experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of 1.1% in 2020 as compared to 2019.

Cultural expansion, population diversification, and rising consumer preferences for ethnic, authentic, and umami flavors are the key factors predicted to drive the global culinary sauces market growth. The growing popularity of premium food products and healthy cooking solutions is predicted to boost the demand for nutrient-enriched cooking sauces. Rising awareness among buyers regarding organic, preservative, and salt-free products is expected to positively impact the demand for condiments.

The rise in sauce processing activities is intrinsically linked with the demands of the various end-user industries. Europe & North America are emerging as global hotspots for enhancer sauces and condiments owing to the rapidly evolving food industry, along with growing demand for innovative product offerings. Furthermore, the increasing demand for on-the-go snacks, ready meals, and ready-to-cook products for enhancing their attributes supports the culinary sauces industry's growth.

COVID-19 IMPACT

Disruption in the Foodservice Sector and Supply Chains Negatively Impacted the Growth

The sudden outbreak of the COVID-19 pandemic has negatively impacted the foodservice sector across the globe. The discrepancies in the supply chains of raw materials due to the rise in transportation and logistics rates, along with restrictions ranging from forced closures and limited operational hours negatively impacted the overall market performance. According to the House of Commons of the United Kingdom research report, 2022, the hospitality sector in the country experienced 42%, lower economic output in 2020 in comparison to the previous year, 2019. The hospitality industry's share in the country’s economy fell to 2% in 2020 compared to 3% in 2019. Thus, these aforementioned factors significantly affected the growth rate of the sauces market. The temporary border closure and restrictions on public mobility limited the export and import of raw materials in several countries, which led to fluctuations in the prices of raw materials such as tomatoes, chilies, pepper, and others, thereby affecting the overall cost of production.

The physical distancing and shelter-in-place norms imposed by the governments negatively impacted the foodservice industry across the globe. However, as the consumers stayed at home, it gave rise to the at-home cooking trends leading to stockpiling of essential culinary ingredients such as sauces. In response to the prolonged lockdowns, consumers started to buy food items that are convenient and can easily be prepared, such as spaghetti, pasta, tomato, and other sauces, to avoid the transmission of the virus.

LATEST TRENDS

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Development of Exotic and Bold Flavor Blends is a Prominent Trend

Exotic and bold flavors in sauces are gaining wide momentum across the globe in both foodservice and retail segments. Manufacturers and food processors have widely explored taste and flavor to experiment with for developing innovative products to address consumers' insatiable and ever-evolving demand. Exotic sauce blends created by combining two or more types of sauces pave new opportunities for manufacturers to expand their product offerings. Currently, flavors such as Korean barbecue, Indian, Thai curries, Chimichurri, spicy tabasco, and habanero are the few widely experimented with flavor options. Furthermore, the amalgamation of Asian and Mexican cuisines is on the rise for creating fusion flavors, which contributes to market growth. For instance, in February 2022, Mother’s Recipe, one of the prominent food brands in India, launched “Exotic Global Sauces” category, available in red chili, chili vinegar & sriracha sauce, and green chili garlic chilli sauce variants with no added MSG and artificial colors for enhancing the taste and flavor of the new fusion dishes.

DRIVING FACTORS

Growing Vegan and Vegetarianism Trends to Fuel Market Growth

In recent times, consumers' appetites for different plant-based meat alternatives continue to expand and diversify, thereby promoting vegetarianism and veganism trends worldwide. Even though the vegan and vegetarian trends have no direct influence on the sourcing of the products, it has gradually started to sway various food ingredient manufacturers to develop innovative flavors that can be paired with these meat alternatives. These culinary sauces are often incorporated into meat substitutes in order to enhance their flavor and texture, along with mimicking the taste of meat products. Furthermore, various processed food and ingredients manufacturing companies are pondering the vegan culinary sauces sector so as to cater to the changing consumer preferences toward animal-based products. For instance, in April 2022, Kikkoman Corporation in India, for the first time, introduced oyster flavored sauce, which is 100% vegetarian and is suitable for both non-vegetarians and vegetarians.

Growing Investment in Research and Development by the Major Playersto Aid Market Growth

Processors operating in the culinary sauces sector have recognized the future growth potential of nutrient-enriched and healthier versions of traditional sauces. It has allowed companies to invest heavily in innovation and introduce nutrient-enriched products in the market to establish their prominence. They are working towards developing the technology for creating dry concentrates of culinary sauces using additives such as soy-mushroom, soy-pepper, and others. Moreover, these processing companies are capitalizing on advanced machinery solutions to overcome manufacturing glitches and improve the existing production method.

RESTRAINING FACTORS

Fluctuations in Raw Material Prices to Pose Hindrance in Market Performance

A major factor restraining the market growth is the fluctuations in the price of widely used raw materials in culinary sauces such as tomatoes, jalapenos, peppers, garlic, and others. Since the price of these raw materials relies on production and demand, it swiftly varies due to the dominance of a few key manufacturers in these ingredients trade, stock ratios, weather patterns, labor requirements, political factors, diseases of crop yields, and others. For instance, India, which is one of the prominent producers of chili and tomatoes, benefitted from the huge price hike due to adverse climatic conditions and lower cultivation. This significantly affected the final price of the product as it directly gets affected due to price hikes, which ultimately led to an increase in the price of culinary sauces. India faced lower outputs of chilies for the fifth time in 2022 since the last year, 2021, owing to the invasive pest attack and crop damage from unseasonal rains in the major producing regions, leading to a price hike of nearly 80%.

SEGMENTATION

By Type Analysis

Wet Sauces to Hold the Prominent Share Backed by the Wider Availability

On the basis of type, this market is segmented into dry and wet sauces. The wet sauce segment held the major share in the market and is anticipated to maintain its position even during the forecasted years owing to its wide utilization in households as well as in the foodservice industry. The growing demand for ready-to-use wet sauces, such as soy sauce, ketchup, tomato puree, and chili, due to its surging utilization in various dishes as it considerably saves cooking and food preparation time. This has also influenced the manufacturers to introduce new products, which is anticipated to impact the market performance positively. For instance, in June 2022, Ceramica Food Industries launched a range of seven new sauces, including tomato ketchup, in India, which can be used as a dressing, dip, or in sandwiches and wraps. These sauces will help improve the flavor profile and deliver a unique culinary experience to the diners.

The demand for dry sauces is anticipated to grow at a considerable pace owing to their high shelf-life and ease of application. Manufacturers are working towards creating a restaurant-style dining experience at home by using dry blends such as bouillons and semi powders. However, the high processing cost and time required for producing these dry sauces due to the use of high-cost equipment such as dehydrators is likely to restrain the segment’s growth.

By Application Analysis

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Household Application to Emerge as Dominant Segment Due to Rise in Home Cooking Trends

Based on application, the market is segmented into household, food processors, and HoReCa. The household segment is likely to remain dominant during the foreseeable years due to its growing use in home cooking. The wide availability and accessibility of a wide range of sauces boost the segment’s performance. The rise in the working women population and the number of single-person households worldwide has led to their growing inclination towards culinary sauces as it considerably saves cooking time. Furthermore, the incorporation of various non-indigenous sauces into traditional dishes helps to enhance their flavor and texture, thereby complementing the food for making it more palatable. These aforementioned reasons are projected to boost product demand.

Upsurge in the number of cafes, restaurants, and hotels owing to the increase in global population, coupled with the rise and high profitability associated with the hospitality sector, is likely to benefit the HoReCa industry. Furthermore, the rising demand for savory, sweet and spicy, and other innovative flavors in various food products among consumers will likely fuel its demand among food processors.

By End-Use Analysis

B2C Segment to Hold the Major Share Due to Growth in Retail Industry

The end-use segment is bifurcated into – B2C and B2B. In recent times, the B2C segment surfaced as the leading segment in the global marketplace and is anticipated to grow at a decent pace during the upcoming years. The ever-growing demand for easy-to-cook solutions such as ready meals is predicted to leverage the sale of cooking sauces among consumers positively. Moreover, rising consumer inclination toward innovative taste preferences and growing at-home cooking trends pave numerous opportunities for manufacturers to explore the culinary sauces sector. The B2B segment is projected to witness robust growth during the forecast period due to the steadily expanding global foodservice industry.

REGIONAL INSIGHTS

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The Asia Pacific culinary sauces market in 2021 stood at USD 16.90 billion and is anticipated to register the fastest growth rate during the forecasted period, 2022-2029. Asian cuisines are known for their diverse, bright, and vibrant flavors, imparted by using a wide range of condiments such as culinary sauces. These sauces are increasingly becoming a part of Asian foodservice industry and households owing to the rising adoption of various western eating habits and culinary practices for creating new eating experiences. Consumers are keen to experiment with new flavors, and different flavors of sauces in traditional staple foods are likely to positively impact the consumption of cooking sauces in various countries across the region. Furthermore, population dynamics and spicy culinary traditions of the different emerging countries within the region are now being explored by individuals, contributing to the market's exponential growth. Japan, India, and China are undergoing digitalization trends which have propelled the demand for Korean sauces in these countries. Moreover, the presence of these countries anticipated to propel the region’s dominance in the global marketplace due to their wide utilization as an essential element in traditional cuisine.

Europe’s culinary sauces market share is majorly propelled by the robust growth trajectory of the sauces and condiments industry across the region. The rising demand for spicy ethnic foods and their increasing popularity in European countries, such as Germany, Italy, France, and others, is encouraging key international market players such as Hormel and McCormick to invest in the European market. These market players are minutely analyzing the taste preferences of European consumers and investing in improving their R&D capabilities to produce and launch innovative products.

The growing popularity of various continental cuisines and changing lifestyles across the countries such as the U.S. and Canada are a few factors driving the product’s demand across North America. There is a surge in the popularity of ethnic cuisines in these countries owing to the increase in the number of multi-cultural populations, and restaurant outlets is projected to fuel the demand for sauces in the region. In addition, new and frequent product launches in the U.S. and Canada are expected to impact the regional market performance positively. For instance, in July 2022, Kraft Heinz announced the launch of its new chef-inspired sauces and spreads product line named Heinz 57 collection for offering a vast culinary experience to the consumers.

The South American market is a hub for distinct range of dishes that comprises various spicy condiments such as chimichurri, aji amarillo, and others, with spicy flavors always being prevalent in the region. Premiumization trend in sauces and condiments is on the surge owing to the urbanization and rise in disposable incomes of the individuals, allowing them to spend more on such premium quality sauces. However, the growing exposure of individuals to international and cross-cultural cuisines is influencing new cooking techniques and experimentation where some of the ingredients in the preparations are replaced with indigenous ones to create a unique tasting dish. Furthermore, their growing health consciousness have influenced the demand for healthy-indulgence, further contributing to the demand for culinary sauces in the forthcoming years.

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Spices and herbs are an indispensable part of Middle Eastern cuisine, and with evolving consumer taste and changing dietary preferences taste is projected to proliferate the demand for culinary sauces across the region, as they act as a crucial ingredient in the preparation of a wide variety of regional cuisines including hummus and Babaganoush. Furthermore, culinary sauces can have multiple usage in the preparation as well as an accompaniment in the Middle East & African cuisine, which is a positive attribute of the product and can support its sales in the region.

KEY INDUSTRY PLAYERS

Strong Product Portfolio to Strengthen Market Position of Key Players

Players operating in the global market have recognized the increasing popularity of various cuisines amid several regions and hence are making continuous efforts to innovate and launch new products in the market to establish their prominence. The Kraft Heinz Company, Unilever Plc, Conagra Brands, Del Monte Foods Inc., and McCormick & Company Inc. are among the prominent players operating in the industry.

The Kraft Heinz Company is one of the most active companies in the market. The company is embarking on joint ventures and new product launches to establish its prominence in the market. For instance, in April 2022, the company launched first-of-its-kind innovation with its ketchup called HEINZ DIP & CRUNCH to revolutionize the burger eating experience as the product combines sauce with crisp potato crunchers.

LIST OF KEY COMPANIES PROFILED:

• The Kraft Heinz Company (U.S.)


• Conagra Brands (U.S.)


• Unilever PLC (U.K.)


• Del Monte Foods Inc. (U.S.)


• Kikkoman Corporation (Japan)


• YAMASA Corporation (Japan)


• Ken’s Foods (U.S.)


• McCormick & Company Inc. (U.S.)


• McIlhennyCompany (U.S.)


• Hormel Foods Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2022 – Solina Group Holding, a culinary and solutions manufacturer, acquired France-based sauce expert companies Sauces et Créations and Atelier D2i to expand its product offering range with sweet and savory made-to-measure sauces.


• September 2021 – Kraft Heinz Co. agreed to acquire Companhia Hemmer Indústria e Comércio, Brazilian sauces and condiments manufacturing company, to expand its consumer base in Brazil.


• October 2021 – U.K. based brand Patak announced its new launch of an Indian-style plant-based range of curries that comprises of easy to cook sauces and ready meal kits.


• November 2020 – McCormick & Company Inc. signed a definitive agreement to acquire Cholula Hot Sauce, which is a premium hot sauce brand, as an opportunity to broaden its portfolio.


• August 2020 – Jubilant FoodWorks Ltd., known for operating Domino’s Pizza and Dunkin’ Donuts outlets in India, entered into the FMCG segment by introducing its range of ready-to-cook sauces, gravies, and pastes.

Report Coverage

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, market segmentation, product types, and leading distribution channels of the product. Besides this, the report offers insights into the market trends, key players, and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth prospects of the market over recent years. Along with this, the market report provides an exhaustive analysis of the market dynamics and competitive scenario. Various critical insights presented in the report are the overview of related markets, recent developments such as mergers & acquisitions, the regulatory situation in prominent countries, and key industry trends.

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