Hot Opportunity
Sauces and condiments experienced tremendous growth during the Great Recession. But as the country has recovered, consumers have been eating out more often, flattening category growth. However, a rising interest in premium products is now sustaining growth for the category, according to “Sauces, Dressings and Condiments in the US,” a December 2013 report from London-based Euromonitor International.
Among sauces in demand are those used in cooking ethnic dishes — including Mexican ones — Euromonitor notes. Americans’ growing interest in Mexican and Asian cuisines led to fairly large increases in sales of Mexican and Asian sauces in 2013.
Trends with traction
With Mexican sauces and condiments, authenticity is of growing importance to shoppers, says Jennifer Tracy, senior marketing services manager at Mizkan Americas, Mount Prospect, Ill. Historically, the category comprised products assumed to be authentic — but only because they stood alone in the category.
“More recently, some manufacturers have introduced items that are positioned as truly authentic — meaning they are prepared in the way that respects tradition, using the same or similar techniques or ingredients,” she explains. “As consumers become more adventurous and explore regional cuisine, demand for authentic and semi-authentic items will grow to create a broad range of items in the Hispanic sauce and condiment aisle.”
As for packaging, demand for pouches will continue to grow in the Mexican sauces and condiments category as time-starved consumers continue to seek convenient meal options.
“Consumers don’t necessarily have the time or confidence to prepare healthy, flavorful meals, particularly if they require more than a few steps,” Tracy says. “Pour-and-cook formats — e.g., skillet sauces, slow cooker sauces — are the next wave of meal solutions for this category because they significantly reduce the preparation and ingredients required; they’re easy to use; and they provide consistent, great-tasting results.”
Trends on the horizon
Recent foodservice menu launches have shifted from a general “ethnic” theme focused on heat and Hispanic or Asian flavors to a focus on provenance, Tracy points out. This reality could serve as inspiration for retailers in the coming year.
“In addition to the excitement created around trying something new, these attributes of origin create a story that helps to create an experience,” she states. “We become more connected, not only with these regional cuisines and cultures, but with each other as we share these new food experiences. Retail will start showing hints of this trend, most likely with label callouts of specific regional ingredients or flavors.”
And this shift in focus could go beyond the sauces and condiments category. According to Tracy, retailers could start focusing on provenance with full meals, satisfying consumers’ curiosity with region-specific meal solutions.
But provenance need not be limited to Mexico. According to “Cooking Sauces, Pasta Sauces and Stocks,” a March report from global market research firm Mintel, Mexican-Korean hybrid sauces could see a warm reception from consumers, considering the success of Los Angeles’ Kogi Korean BBQ, a Korean-Mexican fusion food truck widely credited with starting the U.S. food truck craze.
Demand for pouches will continue to grow in the Mexican sauces and condiments category as time-starved consumers continue to seek convenient meal options.