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 Forecast, 2020 – 2027

The global culinary sauces market size was valued at USD 43.53 billion in 2019 and is projected to reach USD 55.31 billion by 2027, exhibiting a CAGR of 3.3% during the forecast period.

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

Abrupt Outbreak of Coronavirus to Significantly Impact Product Demand

The sudden outbreak of the COVID-19 pandemic has negatively impacted the foodservice sector across the globe. The disturbances created in the supply chains of raw materials due to increased transport rates and higher delivery costs have impacted the overall market. Moreover, various governments have announced temporary bans on foreign air travel and various state councils have executed quarantines to prevent the spread of the virus. These aforementioned factors are predicted to slow down the growth rate of the global sauces market. The limitations on the export and import of raw materials owing to the temporary border closure situations in some countries is expected to cause raw material price fluctuations, which can impact the overall production cost of these food items.

The physical distancing and shelter in place orders given by several governments is also expected to negatively impact the foodservice industry across the globe. Numerous restaurants and cafeterias are offering only take away and delivery options which can negatively impact the overall market product growth for a while. However, in response to prolonged lockdowns, consumers have been stocking up food items that are convenient and easy to cook such as pasta & spaghetti sauces and tomato sauce to avoid repeated purchase which is expected to surge product sales.

Latest Trends

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Growing Demand for Healthier Customized Products

The increasing prevalence of obesity and other lifestyle diseases across the globe is positively leveraging the sales of healthier and customised culinary sauces such as salt-free, sugar-free, gluten-free, and others. Key market players are capitalizing on this trend by indulging themselves in the production of customized sauces. For instance, YAMASA Corporation extensively produces less-salt soy sauce for foodservice, industrial, and retail sector.

DRIVING FACTORS

Proliferating Demand for Exotic Sauces from HorReCa Sector to Support Market Growth

HoReCa (Hotel, Restaurant, Café) sector is aiding the growth in the gourmet & specialty offerings. The foodservice giants are demanding multifunctional and value-added solutions, which is predicted to have a positive impact on the profit margins of sauces manufacturers. The prominent players in the industry are embarking on offering multifunctional solutions to the HoReCa sector to benefit from the current trend. Moreover, the growing inclination of millennials towards dining out and the rising popularity of umami flavor, such as that found in soy sauce, and appetizing cuisines are projected to boost the demand for condiment sauces from the HoReCa sector.

Several other social factors such as increasing working women population and growth in household disposable incomes coupled with the rise of fast-casual restaurants and ease of delivery services are predicted to be favorable factors for the culinary sauces market growth.

Increasing Investment by Key Market Players in Research and Development to Fuel the Market

Players operating in this market have recognized the future growth potential of nutrient-enriched and healthier versions of the traditional table sauces. As a result, these companies are heavily investing in innovation and launching nutrient-enriched products in the market to establish their prominence. Moreover, the manufacturing companies are capitalizing on advanced machinery solutions to overcome processing glitches and to improve the existing production method.

RESTRAINING FACTORS

Rising Raw Material Prices to be a Major Hindrance in the Market Growth

The increasing cost of inputs such as raw materials, transportation, packaging material, and others has resulted in the rising prices of the final product, which is predicted to restrain revenue growth over the forecast period. For instance, in 2018, the market experienced the scarcity of chili peppers, as weather conditions led to delays in the delivery of dried chili peppers in the market. This resulted in an increased price of chili peppers, which is a crucial raw material for the production of a variety of condiment sauces.

SEGMENTATION

By Type Analysis

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Wet Culinary Sauces to Hold Prominent Share in the Market

At the global level, the culinary sauces market has been segmented into dry and wet sauces. The wet sauce segment is predicted to lead the market during the forecast years due to their high adoption in households as well as the foodservice sector. The increasing demand for ready-to-use sauces is forcing manufacturers to launch new products in that segment which is expected to positively impact product growth. For instance, in March 2018, an Australian supermarket chain, Coles, announced the launch of a new variety of hot cooking sauces in alliance with Usain Bolt to entice more consumers.

The demand for dry sauces is predicted to witness considerable growth owing to their high shelf-life and versatility to be utilized in the preparation of a range of cuisines. However, the high expenditure required for their products such as the use of high-cost dehydrators can act as a restraining factor for the segment’s growth.

By Application Analysis

Household Application of Product to Remain High Throughout the Forecast Period

The household application segment is predicted to remain high during the foreseeable years. The easy availability of an extensive range of sauces is expected to boost this segment. The addition of culinary sauces to traditional dishes can help to enhance their flavor as well as help in dressing and complementing the food to make it more palatable. These aforementioned reasons are projected to boost product demand. Moreover, the rising trend of home cooking instead of dining out and easy availability of various convenient sauces such as pasta sauce and spaghetti sauce that save time are encouraging consumers to opt for innovative and healthier versions of traditional sauces.

The rising number of hotels and restaurants due to the rising global population, coupled with high profitability associated with the hospitality business is predicted to significantly aid product’s demand across the HoReCa sector. Furthermore, the growing demand for savory and other snack food products among consumers will aid the demand for the product among food processors.

By End-use Analysis

B2C Segment will Hold the Major Revenue Share

At present, the B2C segment is dominating the global marketplace and it is expected to grow at a significant pace during the upcoming years. The ever-growing thirst for easy solutions to cooking meals is predicted to positively leverage the sale of cooking sauces among consumers. Moreover, increasing consumer inclination towards various taste preferences coupled with the rising inclination towards home-cooked food is creating opportunities for the culinary sauces manufacturers. The B2B segment is projected to witness sturdy growth during the forecast period due to the steadily expanding global foodservice industry.

REGIONAL INSIGHTS

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Asia-Pacific Market to Rise at the Fastest Pace

The market in Asia-Pacific is expected to register the fastest compound annual growth rate (CAGR) of 3.7% during 2020-2027. The increasing adoption of various western culinary practices and habits and the inclusion of different flavors in traditional staple foods are expected to influence the consumption of cooking sauces within the various countries of Asia Pacific. The rising popularity of regional and ethnic cuisines is expected to further drive the sales of these sauces in the region. Moreover, the presence of countries such as Japan, South Korea, and China is likely to increase the region’s dominance in the global market as culinary sauces are an essential element of their traditional cuisine.

North America's culinary sauces market share is majorly propelled by the robust growth trajectory of the sauces and condiments market across the region. Increasing popularity of various continental cuisines, and changing lifestyles are the few factors driving the product growth in the region.

Increasing popularity of ethnic foods owing to the growing multi-cultural populations is projected to boost the demand for various traditional sauces across Europe. In addition, new and frequent product launches in the UK, Germany, and other countries are expected to positively impact the regional market growth. For instance, in January 2020, Tesco introduced its first-ever plant-based condiment range which includes five variants of sauces and one wicked dreamy beetroot dressing. These products are widely available in the UK market.

KEY INDUSTRY PLAYERS

Strong Product Portfolio to Strengthen Market Position of Key Players

Players operating in the global market of Culinary Sauces 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 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 2018, Kraft Heinz and the Food Network partnered to launch a lineup of cooking sauces, meal kits, and salad and sauces dressings. The products contain no artificial flavors, colors, or dyes.

LIST OF KEY COMPANIES PROFILED:

• The Kraft Heinz Company (Pennsylvania, United States)


• Conagra Brands (Illinois, United States)


• Unilever PLC (London, United Kingdom)


• Del Monte Foods Inc. (California, USA)


• Kikkoman Corporation (Chiba, Japan)


• YAMASA Corporation (Chiba, Japan)


• Ken’s Foods (Massachusetts, U.S.)


• McCormick & Company Inc. (Maryland, United States)


• Hein Celestial (New York, United States)


• Hormel Foods Corporation (Minnesota, United States)


• Other Players

KEY INDUSTRY DEVELOPMENTS:

• In April 2019, Rufus Teague, the U.S. based brand, announced the launch of its first-ever sugar-free line of BBQ Sauces. The new variants viz. Slim & Sweet and Smoke & Chipotle are an addition to its line of premium quality, gluten-free, and all-natural barbecue sauces.


• In March 2019, The Kraft Heinz Company added two new variants in its already existing product range viz., Mayocue and Mayomust. These sauces are mayonnaise mixed with barbecue sauce and mustard, respectively.

REPORT COVERAGE 

An Infographic Representation of Culinary Sauces Market

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The culinary sauces market report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the market size and growth rate for all possible segments in the market. Along with this, the report also provides elaborative market information and analysis of the dynamics and competitive landscape shaping the market. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

Report Scope & Segmentation