The sauces, dressings and condiments category benefitted from cost-conscious consumers increasingly eating at home in 2009. However, as the United States (U.S.) economy continues to strengthen, this category is expected to face challenges, as consumers gradually return to foodservice. Despite this, consumer demand for the category is expected to grow in the future. This report will focus on the herbs and spices sub-category, which is one of the largest within sauces, dressings and condiments, and is expected to see strong value growth from 2012 to 2016.
An increasingly ethnically diverse population, as well as consumer tastes for ethnic and spicy flavours, present an opportunity for new culturally authentic products as consumers look for flavourful food experiences. Premium product growth is also expected as consumer preference for high quality ingredients and artisanal products increases. The growing Mexican consumer population in the U.S. presents a promising market for authentic, culturally inspired flavours, such as sofrito (which is a blend of garlic, onion, bell pepper and tomato), or cumin and oregano.
Consumer awareness of health and wellness and the trend toward natural health products are key drivers in new product development for sauces and seasonings. Products with natural and organic ingredients are increasingly present, as well as those with no additives or preservatives. Kosher claims are also growing, along with
allergen-reduced products.
However, the trend in sodium reduction, which has affected other sectors, is a challenge for sauces and seasonings, due to the prominent use of salt. While consumers are interested in healthier products, they don't want to have to compromise on taste.
The trend toward convenience is also having a significant impact on the sauces and seasonings category and has led to the launch of seasoning products that save time in the kitchen and are easy to use, such as prepared mixed herbs. Convenient packaging, which caters to evolving households, such as the growing number of single-person households, is also forecast to be an area for future development in the sauces and seasonings category.
Mintel predicts that future product opportunities for herbs and spices exist in providing convenient, partly processed, fresh seasoning alternatives to consumers. An example of this is fresh herbs and spices that are lightly processed and packaged in jars, tubes and tubs. Opportunities for product innovation also include chilled, ready-to-use seasonings that are already peeled and chopped, as well as a wider range of ingredients that provide increasing alternatives to cooking sauces.
Private label sauces, dressings and condiments experienced strong value share growth in 2009 as cost-conscious consumers prepared more food at home. However, in 2010 these products saw only a small share increase and accounted for 13% of the market. Many private labels also now offer gourmet features and a variety of ethnic flavours to cater to diverse consumer tastes.
