Rising Sauces and Dips Consumption
The rising consumption of sauces, dips, dressings, and condiments had surged the demand for sauces and dips to the US$138.195 billion in 2019. As per our report, the market is predicted to grow at a CAGR of 6.97% and will be worth US$207.049 billion in the year 2025. Sauces have been an inevitable part of many cultures around the world. The Chinese traditional dishes were made with soya sauce, chili sauce, oyster sauce, and fragmented bean paste. The 17Th century American households made sauces using salt, pepper, and vinegar, and this was carried by the European nations post colonialization. The British traditional cuisine included gravy, a sauce for the roasted dish. The French as well used sauces to enhanced taste. The traditional sauces were home-made and were made out of fresh herbs and natural ingredients.
However, with fast pacing life and higher disposable income, processed and packed sauces are preferred and consumed. Owing to their convenience, longer shelf-life, and easy availability, ready-to-eat sauces are preferred over home-made sauces. Moreover, processed sauces come in convenient packagings, such as tetra bottles, making consumption easier. Further, rising health concerns and increasing cross-cultural relations are boosting the market.
Quality and Variety of Sauces and Dips
Many companies are offering a large variety of flavors of sauces and dips. It includes soya sauce, chili sauce, tomato sauce, barbecue sauce, mayonnaise, cooking sauce, and more. With increasing competition and high demand for sauces for all purposes, from cooking to ready to eat, companies are innovating and launching sauces with varied cuisine specific flavors. Veeba, for instance, is a leading Indian sauce brand, has a humongous portfolio of sauces and dips, with and without egg. The brand aims to provide fresh and authentic flavors. KraftHeinz is a global leader with over 40 years of experience in the food and beverage industry. Heinz was the first company to offer Processed BBQ sauce. While Veeba offers cuisine specific BBQ sauces, Hickey Bottom Company offers sauces in Grill, Sweet, Hot, Honey, and smokey flavors. With increasing competition, companies are strategizing to increase their market. This involves mergers, accusations, contracts, and innovation. Heinz company, for example, merged with Top pitmasters to launch 5 new flavors of sauces.
Growth in Demand Due to Rising Health Concerns
The growth in consumption of sauces and dips can also be linked with rising health concerns. With the rise in the standard of living, consumers are becoming more health-conscious and pay to scrutinize attention to their dietary intake. Further, the availability of cheap fitness resources such as Zumba, aerobics, and yoga, along with a surge in gym culture has promoted protein-rich diets such as meat and poultry products, pulses, and others. This has also led to a shift in cooking style for better nutrition retention. The common deep-fried cooking method is scientifically proven to reduce the protein content in food and increase fats and cholesterol in the body. A shift towards smoked or baked cooking involves the usage of sauces to enhance the taste. The Mediterranean cooking style is an example of smoke cooking which though involves time but is much healthier. Further, this style also inculcates the consumption of vegetables that are easy to eat and digest. The smoke, bake, or grilled cooking style cooks the food in raw form and involves sauces and dips for additional flavors and spices.
The growing consumption of meat and poultry products for protein requirements is another source increasing the demand for sauces and dips. Meat and poultry products are often consumed with sauces and dips when grilled or smoked. Hence, the market growth of sauces and dips is also dependent on the growth of the meat industry.
Growing Cross-Cultural Influence
A recent surge in cross-cultural influence as well as a dominating factor leading the growth of this market. Particularly in the Asia region, where these are considered as western culture. Though traditional Chinese cuisine involves the addition of sauces such as soy, chili, and oyster, the western flavors such as mayonnaise, pasta, sour crème, and others are gaining popularity in the Country. Moreover, with emerging of local manufacturers along with the adoption of these sauces and dips in street food further boosting the demand. Further, a fusion of these sauces with local cuisine is gaining popularity.
Furthermore, the growing trend of exploring food along with the rise in tour and travel is an impetus in burgeoning the growth of sauces and dips market. Also, with increasing preferability to ready-to-eat food, the market is predicted to boom more as sauces and dips are consumed along with snacks, appetizers, meal courses, and food dressings.
Growing Hotel, Restaurants, and Cafeterias (HoReCa) Has LED to a Surge in Demand for Sauces and Dips
With the surge in tour and travel and enthusiasm for food exploration, the HoReCa industry is expected to see a surge in demand for quality food with the limited waiting time. Due to fast pacing life, consumers expect quality food been available without much waiting time. The pressure to satisfy their customers has led the industry to depend upon processed sauces and dips to save time. Further, growing dining-out and cafeterias trends require innovation and creativity. Hence firms in this industry are highly dependent on partially processed food, such as sauces, which are used as ingredients for cooking, and dips as sides and dressings. Dominos, for instance, use Veeba’s sauce and dips product range while serving their customer. Veeba also serves Burger King, Café Coffee Day, Taco Bell, PVR Cinema, and others for their processed sauces need. Therefore, an increase in the HoReCa business drives the growth of the sauces and dips market.
Geographical, Distribution, and Pandemic Insights
Geographically, Europe and North America have a significant share of the market. Sauces and dips are widely used in the HoReCa industry and households. The Asian region is also predicted to grow at a significant rate owing to rising disposable income, health concerns, and growing cross-cultural influence. With growing internet penetration and rapid urbanization, the online channel of distribution is expected to experience noteworthy growth. However, the offline retail channel still dominates the market.
The covid pandemic has led to a nation-wide shutdown and disturbance in the supply channel. Also, due to physical lockdowns, the shut of the HoReCa industry had severely affected the sauces and dips industry. However, retailers are moving towards an online channel of sales which can open new opportunities for the market. The market size is expected to contract in short term but restrain to normal levels in the long term.
