Rising urbanization is urging consumers to grab food on the go. This is leading to a growth in the market for ketchup, sauces, and mayonnaise worldwide. The global culinary sauces market was valued at USD 45.23 Billion in 2021 and is expected to grow at a CAGR of 3.6% from 2022 to 2029, while the ketchup market’s value was USD 3288.5 million in 2019 and is expected to reach USD 3916.6 million by the end of 2026. The global mayonnaise market reached US$ 12.3 Billion in 2022 due to its thriving use in fast food chains where it is used as a dip for many dishes.
Market segregation
Based on type, the sauces market can be segmented into dry and wet sauces, out of which the wet version currently holds a larger market share. This encourages manufacturers to experiment and introduce new variants into the market periodically.
Coming to application, the market is divided into the household, food processor, and HoReCa (hotels, restaurants, and catering). The wide availability, accessibility, and rise in working women and single-person households dominate the household segment.
By end-use analysis, the market is bifurcated into B2B and B2C, where the B2C segment holds the larger share and is expected to grow at a decent pace in the coming years.
The market is divided into Europe, Asia Pacific, North America, Latin America, the Middle East, and Africa based on geographical regions. In the global ketchup market, North America holds the largest market share. Since Asian cuisine is known for its bright and vibrant flavors, the Asia Pacific region has regionally the largest sauces market share. For mayonnaise, North America holds the largest market share due to the rising demand for snacks in the region.
Mayonnaise is divided by type into flavored and unflavored, where the unflavored variety is more popular as it is used in preparing various dishes.
Based on distribution channels, the mayonnaise market is segmented into supermarkets and hypermarkets, convenience stores, online retailers, and specialty stores. Supermarkets and hypermarkets hold the maximum share in this domain.
Market insights
Growing demand for organic ketchup is a significant trend observed in the market. This is fueled by the rising consumer interest in organic ingredients and a healthy lifestyle.
The shift in cooking habits, like spending less time preparing food, is making consumers opt for convenient options, enhancing the market growth for ketchup and sauces.
In North America, tomatoes are highly available, and manufacturers mostly use tomatoes for flavor rather than other sauces. Also, consumers prefer to use tomato sauce over different varieties.
With the expansion in purchasing power, working population, and heightened living standards, on-the-go mayonnaise-based food items are in demand, fueling the mayonnaise market growth.
Celebrity endorsements and social media campaigns are some ways manufacturers are trying to increase sales and profits.
The rising number of convenience stores, supermarkets, and online shopping portals offers key players lucrative opportunities to sell their products and grow further.
Exotic sauce blends made by combining two or more sauces are gaining momentum worldwide. At present, flavors like Thai curries, Indian, spicy tabasco, habanero, and Korean barbeque have widely experimented with various flavor options.
During the COVID pandemic, owing to the at-home cooking trends worldwide, consumers started buying and stockpiling convenient food items such as spaghetti, pasta, and tomato sauce, boosting their sales.
What is driving the market, and what is holding it back?
Focus on research and development by major players
Manufacturers have identified the future growth potential of nutrient-rich sauces. This leads to companies focusing on innovation and producing healthy variants of traditional sauces. They are also investing in advanced machinery and increasing production, leading to growth in the market for sauces, ketchup, and mayonnaise.
Vegan and vegetarian trends fueling the market
Consumers’ appetite for plant-based foods is promoting veganism and vegetarianism globally. This urges sauce manufacturers to bring out products that go well with meat alternatives, mimic meat flavors, or can be incorporated into meat substitutes.
Raw material price fluctuations
The fluctuating prices of ingredients used in sauces like tomatoes, jalapenos, garlic, and pepper are factors that restrain the market growth. The production and demand depend on weather conditions, labor requirements, crop diseases, stock ratios, etc. The product's final price is impacted by price hikes of raw materials, raising the price of sauces. For example, in 2022, India witnessed low outputs of chilies for the fifth time due to pest attacks and crop damage from unseasonal rains. This led to a price hike of roughly 80%.
View from the top
Companies have recognized the rising popularity of various cuisines in different regions and are constantly innovating and launching new products to remain dominant in the market. Some prominent market players include Kraft Heinz Company, Cremica, Del Monte Foods Inc., Hormel Foods Corporation, Conagra Brands Inc., Nestlé SA, and Unilever PLC.
What the future holds
By 2028, the mayonnaise market is expected to reach US $ 15.7 Billion, growing at a CAGR of 4.08% during 2023-2028. The growing demand for vegan, eggless, and low-calorie variants drives growth.
For the ketchup market, growth is expected at a CAGR of 5.86% during 2017-2027. Owing to its simple packaging and convenience, ketchup is grabbing consumers’ attention worldwide.
The sauces market is projected to grow from $46.64 Billion in 2022 to $59.75 Billion by 2029 at a CAGR of 3.6%. Population diversity and increasing consumer preference for authentic and umami flavors are the key drivers for the market.
References
https://www.fortunebusinessinsights.com/culinary-sauces-market-103365
https://www.mordorintelligence.com/industry-reports/ketchup-market
https://www.supermarketresearch.com/2022/09/23/mayonnaise-market-2022-2027-industry-size-share-price-trends-and-forecast/#:~:text=The%20global%20mayonnaise%20market%20size%20reached%20US%24%2012.3,a%20growth%20rate%20%28CAGR%29%20of%204.08%25%20during%202023-2028.
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