The sauces and dips market is gaining fame owing to their variety of flavors and adoption as sides, dressings, and condiments. A wide range of flavored sauces such as tomato sauce, mayonnaise, chili sauce, soya sauce, and others have captured a large market segment and are anticipated to grow further at a significant rate. The prime players in the market, withstand cutthroat competition by offering variety along with quality at an affordable price. Taking an example of Indian-origin sauces and dips brand Veeba, which is gaining the market with the help of its diverse sauces and dips portfolio. Kraft Heinz Company is another prime player in the market, whit over 40 years of experience in this field. The company aims to innovate its way through the market and become a global leader. Recently, the Heinz company collaborated with Top Maters to launch 5 new flavors of BBQ sauce. While the existing players are competing to reach the top, the industry is encountering a few new and unique entrants. Habanero, a chain of Mexican restaurants, diversified in the market of sauces and dips with the launch of its Habanero BBQ range of sauces. There are other prominent players as well in the market making significant changes. Hence, it becomes crucial to scrutinize the market. Look at its past, prospects, and future.
Foundation of Sauces and Dips and Its Present Market Standing
Historian and Archeological studies show that sauces have been an inevitable part of several traditions and cultures around the world. In the Asian region, Chinese cuisine involves the usage of soya sauce, chili sauce, and oyster sauce for better taste. The 17th-century American households used to manufacture sauces using salt, pepper, and vinegar. This sauce was then stored and used for long periods, reducing the cooking time. This recipe was then carried by European countries, post-colonialization of the region. In Europe, the sauces undergo several transitions and experimentation, resulting in the production of different flavored sauces.
While traditionally, these sauces were home-made and involved usage of freshly picked natural ingredients, today's fast pacing life demands a more flexible recipe. Hence, this led to the production of processed sauces, which are convenient and ready- to serve. Moreover, the adoption of processed food in daily dietary intake further raised the demand for processed sauces. However, rising health concerns raised the need for healthier processed sauces with natural ingredients.
Growth of Demand for Processed Sauces Owing to Surge in Health Concerns
The food and beverages industry encountered a surge in demand for processed sauces and dips not just about their convenience and ready-to-eat factor, but raised health concerns. Fast pacing life has raised the standard of living along with the availability of affordable fitness routines, such as Zumba. Aerobic, yoga, and others. Moreover, rising gym culture for better body shape and health has cultivated the demand for a healthy diet. A healthy diet involves a better cooking style and ingredients. This has led to a shift towards sloe cooking such as Mediterranean cooking, smoke cooking, or baking of food. This style involves the consumption of vegetables with additional sauces and dips for flavoring of food. Also, the rising demand for meat and poultry products has surged the demand for sauces and dips since they are used along with these products for a better dining experience.
Rising Cross-Culture Influence and Food Habits
Rising cross-culture influence is another reason the market has seen a surge, especially in the Middle East and Asian Pacific region. Except for the traditional Chinese cuisine sauces, sauces, and dips like mayonnaise, BBQ sauce, and others are considered a western concept in the area and are gaining fame. Also rising penetration of multi-cultured cuisine and processed food has further expanded the market size. Moreover, the growing social trend of food exploration and travel has burgeoned the growth of the sauces and dips market.
The Market Is Also Driven by Hotel, Restaurants, and Cafeteria Industry
A surge in travel enthusiasm, along with internet penetration resulting in digitalization of traditional tedious planning and booking process has also impacted the market growth, but positively. With the growing demand for quick and convenient services, the HoReCa industry is adopting the usage of processed food, maintaining quality and customer satisfaction. Firms in the market are also capturing this opportunity to gain more market. Veeba for instance has contracted with several multi-chain retail outlets such as Dominos, Bunger King, Taco Bells, PVR Cinemas, and others to supply its sauces and dips, capturing the fast-food market. Such strategies give the market player a competitive edge over others.
Geographically, North America and the European region have a large market share. The prime reason behind this considerable part is fast-moving life, consumption of fast-food and processed food in the region. The Asia Pacific region as well is anticipated to grow at an exponential rate owing to rising disposable income, surging health concerns, growing cross-culture influence, and adoption and consumption of processed food. Growing demand for fast food and booming cuisine enthusiasm in the region are other reasons driving the growth of the market.
COVID Insights and Emerging Opportunities
The coronavirus pandemic harmed the market size of sauces and dips market. Due to nationwide lockdown, supply channels were disturbed, reducing the supply in the market. Further, the shutdown of hotels, restaurants, cafes, and other gathering areas considerably reduced the demand for sauces and dips in the market. However, the market is expected to resume normal operations to curb the spread of the virus.