Some Like It Hot
Mexican sauces and condiments are in vogue with younger consumers, with hot sauces selling particularly well.
Mexican dishes have become awfully popular in the foodservice channel as of late. During the third quarter of 2012, the number of Mexican entrées offered here increased 4 percent — to 2,525 — compared to the same period in 2011, reports MenuMonitor, a resource from Chicago-based Technomic that tracks the menus of the top 500 restaurant chains.
"And these are in no way [being introduced only] at Mexican restaurant brands," says Mary Chapman, Technomic's director, product innovation. "The top two entrée types are tacos and burritos, both of which had [their] menu incidence go up by 9 percent year over year."
This growth in the foodservice channel is influencing the retail side. Jack Kichura, business development analyst with Mizkan Americas, Mount Prospect, Ill., says companies are introducing more and more products — including sauces and condiments — that incorporate Hispanic flavors and ingredients.
"We can expect this trend to grow as consumers continue to watch their expenditures [and] recreate the restaurant experience at home — and as younger consumers begin to make food purchases on their own," he explains.
Matthew Hudak, U.S. research analyst with Euromonitor, Chicago, reports that Mexican sauces and condiments are "trending quite a bit" with younger consumers.
"In particular, hot sauces … are doing incredibly well, with almost all varieties experiencing solid growth due to the boldness of younger consumers when it comes to flavor," he explains.
Trends with traction
Already, a number of companies have introduced multi-use sauces and condiments. But during the next year, they are expected to roll out more multi-use sauces and condiments — including Mexican ones — to help streamline the at-home cooking process for consumers, Kichura says.
For example, sauces will serve as both a marinade and a sauce so that consumers have more flexibility in the types of meals they make," he points out.
On the packaging side, the trends toward calling out of specific ingredients on front-of-pack labeling and providing more details about specific ingredients are expected to keep growing, as consumers search for more information about what they're eating — and retailers and consumer packaged goods companies seek to become more transparent with shoppers, Kichura notes.
Trends on the horizon
Down the road, companies are expected to use labeling more to draw attention to authentic ingredients and product quality Kichura states.
"Stating the origin of an ingredient — e.g., Hatch Valley chile peppers — gives the ingredient an identity beyond its flavor to tell the story about the food," he points out.
Speaking of Hatch chiles, the peppers are expected to become "the next jalapeñ\os," even though they are from New Mexico, not Mexico, says Daniel Granderson, analyst for the Packaged Facts division of Rockville, Md.-based MarketResearch.com. And he suggests that retailers have an opportunity to use these peppers to develop a number of store brand products — including Mexican and Southwestern sauces and condiments.
"The root of the Hatch chile trend is about celebrating authentic flavors and highlighting regional specialties in menu and product development," he says. "As U.S. culture becomes more diverse,
more consumers are growing to recognize a broad array of chiles and developing a deeper appreciation for refined Mexican and Southwestern cuisines. Products developed around chiles also speak to the Latin audience — a growing demographic in all parts of the country — as well as millennials, who seem to dip into new flavors with ease."