Dips and Spreads Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, Canada, Australia, UK, France - Size and Forecast 2024-2028

Dips and Spreads Market Size 2024-2028

The dips and spreads market size is projected to increase by USD 29.85 billion at a CAGR of 5.82% between 2023 and 2028. The market for dips and spreads experiences significant growth, driven by the increasing influence of ethnic and international cuisines. This influence shapes consumer preferences and broadens the range of options available, with favorites like hummus, tzatziki, guacamole, and salsa gaining immense popularity. Similarly, international spreads such as Indian chutneys, North African harissa, or Japanese miso-based spreads attract consumers seeking authentic global flavors. Food manufacturers capitalize on this trend by introducing diverse dips and spreads, incorporating unique ingredients and traditional recipes, and catering to the growing interest in finger foods and snack foods. Clean-label preferences, emphasizing natural, minimally processed ingredients, further drive market growth, aligning with the evolving preferences of health-conscious consumers, including those following vegan movements. Thus, the market witnesses sustained growth, fueled by the demand for natural spreads and nut-based spreads, among other offerings.

Market Overview

The market shows an accelerated CAGR during the forecast period.

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Market Segmentation by End-user

The food service industry represents a vital end-user segment within the global market, encompassing diverse establishments that serve prepared meals, snacks, and beverages. This industry comprises various end-user categories, each utilizing dips and spreads in distinct ways. Restaurants and cafes, ranging from fast-food chains to fine dining establishments, integrate dips and spreads as accompaniments, condiments, or ingredients in a wide array of dishes, adding flavor and enhancing the dining experience. Further, selling packaged food necessitates a distinct business strategy compared to operating a restaurant, and depending on strategy, it may require full-time work. Production, documentation, tracking, marketing, distribution or shipping, merchandising, and additional financial management, in addition to funding for brand launch, will all depend on how it is sold. Thus, such improvements and strategies can boost the food service industry, which, in turn, the growth of the global market during the forecast period.

Market Segmentation by Distribution Channel

The market share growth by the offline segment will be significant during the forecast period. Offline distribution channels in the global market serve as pivotal conduits for the widespread availability and accessibility of these products. Various offline retail channels contribute significantly to the distribution and sale of dips and spreads, catering to diverse consumer preferences and market segments. 

The offline segment was the largest and was valued at USD 48.66 billion in 2018

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In addition, companies operating in the global market are acquiring dips and spreads-producing manufacturers to expand their businesses. Further, food service outlets like restaurants, cafes, and delis utilize these products as ingredients or accompaniments, procuring them either from distributors or directly from manufacturers. Local markets, farmer's markets, and artisanal stores showcase homemade or locally produced dips and spreads, attracting consumers seeking authentic or speciality options. These offline distribution channels collectively facilitate market penetration, ensuring broad consumer reach and convenience. Thus, the offline segment is contributing significantly to the growth and diversity of the global market during the forecast period.

Key Regions 

APAC is estimated to contribute 42% to the growth of the global market during the forecast period

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Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. The APAC region represents a dynamic and burgeoning market for dips and spreads, experiencing notable growth and diversification. Further, retailers are expanding their businesses by acquiring wholesale businesses which help them to expand sales by increasing the control over stores. For example, in August 2020, Reliance Retail, India's largest retail chain, acquired Future Group's retail and wholesale businesses, as well as its transportation and warehousing operations, for USD 3.4 billion. As a result, Reliance Retail now controls one-third of India's brick-and-mortar stores. Such factors are expected to contribute to the growth of the regional market during the market forecast period.

Market Dynamics and Customer Landscape

The market is experiencing dynamic growth, influenced by the impact of ethnic and international cuisines on consumer preferences. A prominent trend in this market is the increasing emphasis on clean-label food products, with consumers paying closer attention to the product quality and food safety of dips and spreads. However, a significant challenge facing the industry is the rise in the prevalence of allergens and dietary restrictions, prompting both established brands and new entrants to innovate and adapt their product offerings to meet diverse consumer needs.

Despite these challenges, the versatility of dips and spreads as condiments, appetizers, and snack foods continue to drive their popularity across various cuisines and dining occasions. With a focus on texture, flavor, and the incorporation of natural ingredients, including plant-based and nut-based spreads, the market is poised to capitalize on emerging trends such as the vegan movement and the demand for healthier alternatives to traditional thick sauces. As restaurants and consumers seek flavorful accompaniments for dishes ranging from Mexican food to seafood and finger foods like nachos and crackers, the market presents ample opportunities for growth and innovation.

Key Market Driver 

The burgeoning impact of ethnic and international cuisines on dips and spreads is driving market growth significantly. This influence shapes global consumer preferences, diversifying available options. As globalization connects cultures, demand rises for authentic flavors, fostering interest in culinary traditions. Ethnic dips such as hummus, tzatziki, guacamole, and salsa, from Mediterranean, Greek, Mexican food, and Latin American cuisines, respectively, gained immense popularity worldwide. Additionally, the market sees increasing demand for thick sauces and spreads inspired by various culinary traditions. These trends reflect consumers' desire for authentic and diverse flavors, encompassing favorites like dumplings and seafood-infused spreads. Moreover, staples like pita bread and nachos complement these offerings, enriching the culinary experience.

Similarly, international spreads, such as chutneys from India, harissa from North Africa, or miso-based spreads from Japan, have also garnered attention among consumers seeking authentic global flavors. Food manufacturers and brands are capitalizing on this trend by innovating and introducing diverse dips and spreads, incorporating unique ingredients and traditional recipes. By embracing the influence of ethnic and international cuisines, companies can capture the interest of consumers seeking adventurous culinary experiences, contributing to the continued growth and diversification of the market during the forecast period.

Significant Market Trends

Increasing emphasis on clean-label food products is an emerging trend shaping the market growth. Clean label preferences represent a significant trend in the global market, reflecting consumers' increasing emphasis on natural, transparent, and minimally processed food products. This trend is driven by a growing awareness and concern among consumers about the ingredients present in the food they consume. As a result, there is a rising demand for dips and spreads that boast clean labels, free from artificial flavors, colors, preservatives, and additives. Further, transparency in labelling is crucial in catering to these preferences, as consumers seek comprehensive and honest information about the sourcing, processing, and composition of the dips and spreads they purchase.

However, the clean label movement is gaining momentum, and manufacturers are innovating and adapting to meet these demands, aligning their product offerings with the evolving preferences of health-conscious consumers in the global market. Thus, such factors boost the growth of the global market during the forecast period.

Major Market Challenge 

The increase in the prevalence of allergens and dietary restrictions is a significant challenge hindering market growth. The prevalence of allergens and dietary restrictions presents a significant challenge in the global market. Consumers today exhibit diverse dietary preferences and restrictions, including allergies to common ingredients like nuts, dairy, gluten, and soy and lifestyle choices such as veganism and paleo diets. Meeting these varied dietary needs while maintaining taste, texture, and product quality poses a considerable challenge for dips and spreads manufacturers. Creating allergen-free or hypoallergenic dips and spreads requires meticulous attention to ingredient sourcing, production processes, and cross-contamination prevention. 

Additionally, providing clear and comprehensive labelling along with transparent information about ingredients and potential allergens becomes imperative to earn consumer trust and loyalty in the competitive global market. Thus, an increase in the prevalence of allergens and dietary restrictions hampers the growth of the global market during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market growth and forecasting and analysis.

• Key Offering- Arizona Spice Company: The company offers chipotle, green Chile and green ghost dip mixes.
• Key Offering- Campbell Soup Co: The company offers spicy corn dip under the brand name CAPE CODE.

This market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including Andros Group, Arizona Spice Company LLC, AVT Gavia Foods Pvt. Ltd, Campbell Soup Co., Conagra Brands Inc., Cornitos, Del Monte Pacific Ltd., Dr. August Oetker KG, Euro American Brands LLC, Ferrero International S.A., Hormel Foods Corp., McCormick and Co. Inc., PepsiCo Inc., Renfro Foods, Sandridge Crafted Foods, The Hershey Co., The Kraft Heinz Co., VRB CONSUMER PRODUCTS Pvt. Ltd., Walgreens Farms Pvt. Ltd., and Yihai International Holding Ltd

This market growth analysis and market report of qualitative and quantitative analysis of companies have been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

This market research and growth report forecasts market growth by revenue at global, regional & country levels and provides a market analysis and report of the latest market growth and trends and market research and growth opportunities from 2018 to 2028. 

• Distribution Channel Outlook
  • Offline
  • Online

• End-user Outlook
  • Foodservice industry
  • Household

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

In the bustling market, consumer attention is drawn to a diverse array of products, from established brands to new entrants offering innovative flavors and packaging solutions. Ensuring food safety throughout the supply chain, from sourcing raw materials to packaging, is paramount to meet consumer expectations. Within the market, the hummus segment stands out, valued for its nutritional value and plant-based protein content, while conscious consumers seek options with lower levels of saturated fat. Inspired by Mediterranean cuisine, dips packaged in jars exude a premium look, appealing to those seeking artisanal and gourmet products.

The rise of the online retail segment provides accessibility to a wide range of options, emphasizing natural ingredients and nutritious offerings while minimizing salt, sugar, and unhealthy fats. From cheese spreads to vegetable dips, consumers can enjoy these appetizers with an assortment of accompaniments, including crackers, raw vegetables, and tortilla chips. Amidst changing consumer awareness and altered eating habits, the market witnesses a surge in demand for plant-based dips and flavor-driven options such as gochujang and chimichurri. As the industry evolves to meet urbanization trends and shifting preferences, brands focus on offering unrivaled flavors with extended shelf life, catering to diverse buying decisions and price points across rural and urban areas.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of dips and the key companies

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