The sauces and condiments industry has been growing and expanding in the past few years. In order to attract consumers’ attention, companies have been experimenting with new and different ingredients and flavors to create new and tastier condiments and sauce recipes. As a result, the industry has witnessed an explosion of variety. While previously there was only a handful of ketchup and tomato sauces, mustards and mayonnaises, now, there are numerous competing products on the market. Despite this, ketchup and tomato sauces, mustard, and mayo remain near the top of the list of most-used sauces overall, especially in the US. However, when dining at restaurants or in other food establishments, an increasing number of people is searching for specific sauces with distinctive flavor. Currently, the number of consumers, who are looking for products with no additives or artificial preservatives, is increasing. In fact, the term behind this trend, which is called clean labelling is becoming more popular. Most of the people, nowadays, are aware of clean label claims and these claims influence their buying decisions in regard to sauces and condiments products. Demand for products with such labelling is increasing and people are inclined to pay a premium price for products with this specific label. In order to respond to the emerging clean label trend, companies within the sector are trying to appeal consumers by reformulating their ingredients and offering preservative-free products. Meanwhile, demand for “free from” products such as gluten free, sugar free, dairy free and more has also increased. Therefore, companies have been choosing higher-quality, additive-free ingredients for their products. Monosodium glutamate, in particular, has been considered unhealthy by many consumers worldwide, due to which they have been actively avoiding it in sauces and condiments. Instead, many of them have shifted to compound condiments such as stock cubes and soy sauces as tastier and premium products. Similarly, some companies have also decided to exclude high-fructose corn syrup from their formulations. Instead, they typically replace it with sucrose in the form of cane sugar or brown sugar.
The ketchup market is projected to register a CAGR of 5.2% during the forecast period (2022-2027). For instance, Best Foods Inc. launched a ketchup and tomato sauces that is sweetened with honey. Furthermore, due to the underlying shift in people’s perceptions about food, demand for organic spices has also substantially increased. This is especially valid for commodities such as chili, ginger and garlic. As a matter of fact, industry experts have estimated that the size of the global organic spices market accounts for about 5-7% of the total market, which is more than 750 million USD. Regionally, India, China and Vietnam are among the leading exporters of organic spices.
The rising urbanization levels and the increasing disposable income have led many individuals to opt for on-the[1]go food. These food types are rapidly gaining popularity, especially among Generation Z and the millennials. Ketchup is a vital food item used across many fast-food types. Thus, these factors are likely to bring tremendous growth opportunities for the ketchup market in the coming years.
Additionally, consumers’ rising preference for organic ketchup is driving the growth of the market. Their growing concerns about the possible health risks of consuming artificial additives and genetically modified organisms (GMOs) have accelerated the consumption of sauces and condiments labeled as natural, organic, and non-GMO. Private-label ketchup brands have been performing better than well-established brands in many countries such as the United Kingdom, France, Germany, and others. The major players are focused on providing new varieties to cater to changing consumer demands.
Growing popularity of ready-to-eat (RTE) food products
The market is primarily driven by rising demand for ready-to-eat (RTE) fast foods around the world, particularly among millennials. Fritters, pizzas, sandwiches, burgers, and French fries all benefit from the addition of tomato ketchup. Consumers’ changing lifestyles, increased spending capacity, and changed nutritional choices are all contributing to market expansion. Food and beverages that take little time to prepare and can be eaten on the go are preferred by consumers. The use of readily available and convenience food products has increased as a result of the growing working population and demanding schedules, positively boosting the demand for condiments such as tomato ketchup. Tomato ketchup comes in cans, bottles, and pouches, which adds to its convenience and hence increases demand.
