Enjoy complimentary customisation on priority with our Enterprise License!
The sauces market size is forecast to increase by USD 31.07 billion at a CAGR of 5.5% between 2023 and 2028. The market is witnessing significant growth, driven by the increasing popularity of ethnic cuisines and the rising demand for convenience food. Ready-to-eat foods have gained immense traction among consumers, leading to an increased demand for sauces and condiments. Furthermore, ethnic sauces like salsa, teriyaki, curry sauces, and BBQ sauces have gained popularity in various regions, bringing diversity to the table. The penetration of Internet platforms has made product availability more accessible, enabling consumers to explore a wider range of options and read reviews before making a purchase. Pricing remains a crucial factor, with consumers seeking affordable yet high-quality sauces. Innovation and new product development are key trends, as companies strive to cater to evolving consumer preferences and tastes. Doorstep delivery and luxury product offerings are also gaining traction, as consumers prioritize convenience and indulgence. Fluctuations in production costs continue to impact the market, necessitating strategic pricing and cost management.
The sauces market in the foodservice industry has experienced significant growth in recent years, driven by the increasing popularity of convenience, globalization, and cross-cultural influences. Convenience is a major factor fueling the growth of the sauces market. With the hectic lifestyles of consumers, ready-to-eat meals and quick-service foods have become a staple in many households. Sauces and condiments, especially those in convenient formats like squeeze bottles and single-serve sachets, cater to this demand. Globalization and cross-cultural influences have also played a significant role in the growth of the sauces market.
Furthermore, these sauces not only add flavor but also provide an authentic taste of different cuisines, appealing to consumers' adventurous palates. The market is witnessing a trend toward flavor diversity, with a growing demand for ethnic sauces and flavor enhancers. The organized food service sector, including restaurants, cafes, and quick-service companies, is a significant contributor to the market while emerging nations offer significant growth opportunities. The use of convenient packaging formats, such as squeeze bottles and single-serve sachets, is also expected to drive the growth of the sauces market.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. In the foodservice industry, convenience plays a significant role in the growing popularity of ready-to-eat foods, including sauces. Globalization and cross-cultural influences have expanded consumer tastes, leading to a demand for various flavors from around the world.
Get a glance at the market share of various segments Download the PDF Sample
The offline segment was the largest segment and was valued at USD 65.91 billion in 2018. While online sales have been increasing, offline distribution channels continue to dominate the global market. Large-format retail outlets offer a wide range of sauces, from mass-market to specialty and foreign brands. Consumers can physically inspect products, compare offerings, and make purchases in person. Local markets and grocers provide easy access to a diverse selection of sauces, catering to immediate needs. Specialty shops focus on gourmet or ethnic foods, offering premium and distinctive sauces for discerning palates.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 36% 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 market in Asia Pacific is experiencing significant growth due to the increasing demand for convenience in food consumption. Ready-to-eat meals, including BBQ dishes, are gaining popularity, leading to an increase in the usage of sauces such as hot sauces, dressings, and marinades.
Furthermore, the region's high population and urbanization have fueled this trend, with China, India, Japan, and South Korea being the major markets. In China, the market for sauces has been thriving, driven by the rise in fast food consumption, particularly pasta, sandwiches, and salads. Brands have capitalized on this trend, introducing innovative products like Cooking Sauces to cater to the growing demand. Package designs, including squeeze bottles and single-serve sachets, have also contributed to the market's growth by offering convenience and portability.
Our researchers analyzed the data with 2023 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.
Growing demand for ethnic cuisines is notably driving market growth. The market is witnessing a significant shift towards health-conscious options, with an increasing preference for low-sugar, low-fat, and gluten-free alternatives. This trend aligns with the broader food industry, which is witnessing an increase in demand for organic and natural ingredients. The globalization of food trends is driving innovation in the sauces market, with companies introducing a wide range of international flavors.
Furthermore, e-commerce platforms are facilitating the easy availability of these sauces, allowing consumers to experiment with new recipes from the comfort of their homes. The popularity of ethnic food trucks, offering fusion cuisine with unique international combinations, is further fueling the demand for sauces that cater to diverse taste preferences. Overall, the sauces market in the US is poised for growth, driven by evolving consumer preferences and the globalization of food trends. Thus, such factors are driving the growth of the market during the forecast period.
Increasing penetration of private-label brands is the key trend in the market. The market is witnessing an upward trend due to the increasing popularity of private-label brands. These brands offer fusion flavors and limited-edition releases that cater to consumers' evolving taste preferences. Mustard Sauce, Hot Sauces, Soy Sauce, Barbecue Sauce, and Ketchup are some of the popular sauce categories that are witnessing significant growth.
Furthermore, private-label products are priced affordably, making them a preferred choice for budget-conscious consumers. Supermarkets and retail chains are key players in driving the sales of these products. They allocate ample shelf space and run in-store campaigns and promotions to boost their sales. Continuous innovation and product launches are helping private-label brands to gain market share in the sauces market. Pouches and sachets are also gaining popularity as packaging options for sauces due to their convenience and portability. Thus, such trends will shape the growth of the market during the forecast period.
Fluctuations in production costs of sauces is the major challenge that affects the growth of the market. The market is significantly influenced by various factors, including product availability, pricing, and customer reviews on Internet platforms. Sudden increases in the cost of raw materials, such as tomatoes, garlic, sugar, and onions, can lead to price volatility and impact manufacturer profitability.
For instance, garlic, a key ingredient in many sauces, is primarily produced in China, and price fluctuations in this commodity can significantly affect the market. Doorstep delivery and innovation are crucial in maintaining customer satisfaction and loyalty. New product development and luxury offerings are also driving growth in the sauces market. Manufacturers must stay agile and responsive to market trends and customer preferences to remain competitive. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting 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 market growth analysis strategies.
Customer Landscape
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.
Campbell Soup Co. - The company offers sauces such as Classic scampi sauce, Spicy thai curry, Tavern style pot roast and Garlic honey mustard sauce.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth in the foodservice industry due to the increasing demand for convenience and ready-to-eat foods. Globalization and cross-cultural influences have expanded consumer tastes, leading to a diverse range of sauces and condiments available in the market. Ketchup, mayonnaise, ethnic sauces such as salsa, teriyaki, and curry sauces, BBQ sauces, hot sauces, dressings, and flavour enhancers are popular choices for restaurants, cafes, quick-service companies, and foodservice sector establishments. The organized foodservice sector, including fast food restaurants, is a major consumer of sauces and condiments. Consumers are increasingly seeking health-conscious options, leading to the production of low-sugar, low-fat, gluten-free, organic sauces made with natural ingredients. Innovation and new product development are key trends in the market, with luxury products, fusion flavours, and limited-edition releases gaining popularity.
Furthermore, the market is also witnessing growth in emerging nations, where convenience and meals are becoming increasingly popular. E-commerce and internet platforms have made product availability more accessible, with doorstep delivery and competitive pricing driving sales. Reviews and customer feedback play a crucial role in consumer decision-making, and companies are investing in product innovation and packaging design to stand out in the market. Squeeze bottles, pouches, and single-serve sachets are popular packaging formats, with mustard sauce, hot sauces, soy sauce, and barbecue sauce being top sellers.
Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.5% |
Market growth 2024-2028 |
USD 31.07 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.2 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 36% |
Key countries |
US, China, Germany, Japan, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Campbell Soup Co., Cargill Inc., Conagra Brands Inc., Concord Foods LLC, Fresh Del Monte Produce Inc, General Mills Inc., Haven Row LLC, Hormel Foods Corp., Kens Foods Inc., Kikkoman Corp., Mars Inc., McCormick and Co. Inc., Nestle SA, Newmans Own Inc., Northwest Foods Gourmet, Otafuku Sauce Co Ltd, The Clorox Co., The Kraft Heinz Co., Unilever PLC, and YAMASA Corp. |
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 market 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 market research 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 Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.