Let's Get Saucy
Consumers' increase in at-home pasta consumption during the economic downturn should help bolster sales of pasta sauces.
Since the economy took a dive, consumers increasingly have been turning to pasta because it is versatile, easy to prepare and relatively inexpensive. This increase in pasta consumption should benefit sales of pasta sauces, says global research firm Mintel International in its Jan. 2011-June 2011 Category Insight: "Cooking Sauces, Pasta Sauces & Stocks," a review on its Global New Products Database.
"Pasta sauces could help to reinforce the image of pasta as a quick meal," Mintel notes.
Trends with traction
In recent years, a number of national brands in various categories have shrunk the size of their packaging to compensate for rising commodity prices. Pasta sauce is one of the categories impacted by this trend. According to Louis DeMent, general manager with Syracuse, N.Y.-based Giovanni Food Company Inc., several national brands have reduced the size of their pasta sauce packaging from 26 ounces to 24 ounces.
However, retailers might want to stick with the 26-ounce size for their store brand pasta sauces — DeMent says the extra 2 ounces of sauce could position the products as better values than the national brand offerings.
DeMent also notes that consumers are increasingly seeking out better-for-you pasta sauces when grocery shopping.
"We have seen a tremendous increase in more health-conscious products that could be classified as low in sugar, low or no salt added, and [we also have seen] the growth in awareness and popularity of gluten-free [products]," he explains. "Vegan products are also on the rise, in terms of requests."
Mintel also notes that demand for all-natural and additive-free products is strong within the category.
"Mintel's consumer research shows that one in four of those who cook at least half of their meals in the household — and who use store-bought sauces — feel that purity claims like ‘natural,’ or ‘no additives and preservatives,’ are important when shopping for cooking sauces and marinades," Mintel reports.
Trends on the horizon
Consumers might be saving money by not dining out as frequently, but they are willing to spend a little more money for a premium product that helps them create a restaurant-style experience at home. Therefore, pasta sauce varieties containing premium ingredients — including higher-end oils (such as grape-seed oil), fancy cheeses and functional/nutritional additives — will "hit big at the retail level next year," DeMent explains.
"Our product development team has seen new requests in each area noted and is working to develop new areas to address some of these current trends," he says.
And with consumers continually looking for products that help them create a truly authentic meal at home, regional pasta sauces also look to be a promising growth area for 2012.
"There is potential for ethnic cooking sauce brands to use regional provenance to strengthen the value of their offering, capitalizing [on both] the specialty and rarity implicit in such branding," Mintel explains.
Mintel also notes that products aimed at one-person households could add value to the category, as consumers are more likely to pay for a convenient product that suits their lifestyle and cuts down on waste.