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The pesto sauces market is estimated to grow at a CAGR of 4.94% between 2022 and 2027. The size of the market is forecast to increase by USD 1,031.31 million. The growth of the market depends on several factors, including the new product launch, the need for convenience in cooking, and the increasing popularity of Italian cuisine.
This report extensively covers market segmentation by end-user (retail and food service), Packaging (glass bottles, pet, cans, pouches, and cartons), and Geography (Europe, North America, South America, APAC, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global pesto sauces market as a part of the global packaged foods and meats market under the global food products segment of the global food, beverage, and tobacco market. The global packaged foods and meats products market covers manufacturers or food processing vendors that are involved in food processing to eliminate microorganisms and extend shelf life. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The new product launch is notably driving the market growth, although factors such as fluctuating price of raw materials may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Pesto Sauces Market Driver
One of the key factors driving the global pesto sauces industry growth is the new product launch. Successful new product launches will help increase the revenue flow and the market share of players. Also, new product launches will help in keeping the interest of players alive in the market. For instance, in September 2021, San Carlo, the leading Italian company, launched a new pesto-flavored chip.
The pesto-flavored chips are one of the most interesting new products developed by the Italian company specializing in chips and snacks. In April 2021, The Cooks & Co brand, owned by fine food distributor R.H. Amar, launched new recipes for its two pesto pasta sauces for food service operators. In February 2020, Tesco launched a new line of vibrantly colored vegan-friendly pesto sauces in its wicked kitchen range. The increasing number of new product launches in the market will drive market growth during the forecast period.
Significant Pesto Sauces Market Trend
Expanding retail space is one of the key pesto sauces market trends that is expected to lead to market growth. The most common distribution formats of pesto sauces are supermarkets and hypermarkets, convenience stores, discount stores, and online portals. E-commerce as a sales medium for pesto sauces is gaining popularity among consumers and is expected to contribute to the growth of the market.
The sale of these products through various e-commerce portals such as Amazon and others is increasing. The traditional sales channel for pesto sauces has always been supermarkets and hypermarkets, and convenience stores. The retail chain sales of these products have increased over the past few years. The sale of pesto sauces through supermarkets and hypermarkets is also increasing, as consumers prefer to cook at home and are looking at products to make cooking more convenient.
Major Pesto Sauces Market Challenge
One of the challenges to the growth of the global pesto sauces market is the fluctuating price of raw materials. One of the challenges to the growth of the market is the fluctuating price of raw materials such as olive oil, basil, garlic, and other ingredients. The price of garlic, which is a key ingredient of pesto sauce, fluctuated over the years, and this is expected to negatively influence the growth of the market. The average global price of garlic increased in 2020 compared to 2019. The price of garlic fluctuated in countries such as China, Spain, Argentina, and others countries. China is the largest producer of garlic.
Olive oil is another major ingredient in the production of pesto sauce. The price of olive oil at source rose from USD 3,468.3 per metric ton in January 2021 to USD 5,145.1 per metric ton in November 2022. It also witnessed a spectacular 67.3% in 2021 compared to 2020. The price fluctuation of olive oil is expected to continue during the forecast period. Thus, the fluctuating price of raw materials is expected to negatively influence the growth of the global pesto sauces market during the forecast period.
Key Pesto Sauces Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Pesto Sauces Market Customer Landscape
Vendors 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.
buitoni.com - The company offers pesto sauces such as Pesto with Basil 7 oz. Also, this segment focuses on producing tortellini, ravioli, flat pasta, tortellini, sauce, and shredded cheese.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the retail segment will be significant during the forecast period. The demand for Italian cuisine is increasing among consumers, and they are trying to cook these dishes at home. This will help increase the sale of pesto sauces through the retail channel.
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The retail segment was valued at USD 2,242.71 million in 2017 and continue to grow by 2021. The retail channel consists of supermarkets, hypermarkets, convenience stores, discount retailers, online sales, and others. Supermarkets and hypermarkets were the most preferred retail channels for the purchase of pesto sauces among consumers. Supermarkets and hypermarkets carry various products from different brands, and this makes it convenient for consumers to choose the product. The increasing prominence of private label brands by the supermarket and hypermarket chains is one of the positive trends which can influence the growth of the segment during the forecast period.
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Europe is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand for pesto sauce is expected to remain high in the European region due to the increasing demand for pasta sauces among consumers. Also, the increasing popularity of Italian cuisine among consumers will increase the demand for pesto sauces in the European region. In 2021, the food service sector was one of the major consumers of pesto sauce in Europe, as the number of restaurants offering Italian cuisine is increasing in the region. The increasing prominence of private-label brands is one of the positive trends which can influence the growth of pesto sauces in Europe. The increasing number of new product launches and the entry of new players will help in the growth of the market during the forecast period.
The emergence of COVID-19 in 2020 resulted in the region's trade and economy collapsing. However, by the end of 2020, the factories, warehouses, and other facilities of regional vendors were reopened due to large-scale vaccination drives. As a result, local vendors could meet the demands of consumers. Regional governments lifted trade restrictions in 2021. Owing to the pandemic, people began working from home, and there was a reduction in their restaurant visits. An increasing number of families resorted to preparing all their meals at home, which increased the demand for pesto sauces, particularly in Italy. During the epidemic, however, Internet sales increased. The rising demand for pesto sauces will expose the regional market in focus to moderate growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Pesto Sauces Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.94% |
Market growth 2023-2027 |
USD 1,031.31 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.99 |
Regional analysis |
Europe, North America, South America, APAC, and Middle East and Africa |
Performing market contribution |
Europe at 51% |
Key countries |
US, Italy, UK, Germany, and Brazil |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Barilla G. e R. Fratelli Spa, Belazu Ingredient Co., Buitoni Food Co., F.lli De Cecco di Filippo Fara San Martino Spa, F.lli Sacla Spa, Fattorie Umbre S. r. L., Filippo Berio USA LTD., Food Service (India) Pvt. Ltd, Frontier Co. op, G.L. Mezzetta Inc., Napolina, Rana USA Inc., Raos Specialty Foods Inc., Roland Foods LLC, Saucery Foods Pvt. Ltd., Sorrentina Honestly Italian Pvt. Ltd., Telluric Foods Ltd., Ugo Foods Group Ltd., Unilever PLC, and Nestle SA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Packaging
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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