Sauces, Dressings and Condiments, Oh My! An Emerging Market Trend

With March being National Sauce month it’s a great time to wrap up the month by taking a deeper look into the sauces, dressings and condiments market and share more on a major trend we see driving that market.

Cultural Condiments on the Rise
Sauces and dressings launching in the US market in recent years are showing a definite flair for specific ethnic and cultural flavors. What’s more, they’re reporting rapid growth. It’s not uncommon to see flavors such as Indonesian sambal oelek, Korean Kim Chi, Argentine chimichurri and South African peri peri on a typical grocery shelf now.

According to Euromonitor.com, “This reflects a shifting preference among Americans, particularly younger generations, toward healthier and more flavorful products and a growing desire to incorporate into their diets dishes and ingredients from a wider variety of cultures.”

Here are a few stats we gathered about this trend:

  • Condiment consumption growth is now being driven by three product categories: ethnic sauces, gourmet condiments and natural/organic condiments.
  • Herbs and spices, soy sauces and chili sauces all achieved strong growth in 2016, experiencing retail value growth rates of 7%, 5% and 6%, respectively
  • By the close of 2017, hot sauce production in the U.S. is expected to be a $1.3 billion industry.
  • Additionally, the retail condiment market is expected to reach nearly $22 billion by the end of 2017.

The Association of Dressings and Sauces (ADS) represents manufacturers of salad dressing, mayonnaise, and condiment sauces, along with suppliers of raw materials, packaging and equipment to this segment of the food industry. Each year they present two category winners to recognize and celebrate truly innovative and delicious sauce products.

The 2016 ADS annual winners fell squarely in the growing ethnic and cultural bucket:

Outlook Group will be attending the next ADS Technical Meeting April 28 – May 2, in Portland, OR. We’d be happy to discuss how we can help with your dressing, sauce or condiment labeling needs.

Author - Danielle Jerschefske
Business Development Manager, Sales