Cooking Sauces Market Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global cooking sauces market size was USD 38.35 billion, in 2018 and is expected to grow with a CAGR of 3.5% during the forecast period, 2019 to 2025. Cooking Sauce is anticipated to see high growth, owing to the growing demand for easy meal preparation along with exciting and authentic food flavors. Additionally, the introduction of new aromas by the key players is expected to be the key driver of the market.

Moreover, the rising number of distribution channels has made product availability much easier for the customers as well as the rising number of advertisements and marketing campaigns have increased product awareness, which is further expected to boost the market demand for cooking sauces.

Rising technological development in the food industry has created a wide opportunity for the sauces market. Moreover, with the continuous product development, various new flavors sauces have been introduced in the market, which is anticipated to fuel the demand for the market. Furthermore, consumers are shifting towards a healthy lifestyle, due to hectic working hours and changing eating habits of consumers. Additionally, the rising disposable income of middle-class consumers, rapid urbanization products innovations are some of the key driving factors for the market growth in upcoming years.

The growing emphasis on R&D activities has increased the product assortment and its benefits. Moreover, the rising number of working women and changing taste & preferences of the rural population towards processed food is anticipated to create a huge opportunity for the cooking sauces market.

Product Insights

Based on Product, the market is segmented into wet and dry. The wet segment has accounted for the largest market share, in 2018, owing to the rise in the consumption of convenience, processed, and packed food among the working-class population. This segment contains mustard, chili, tomato sauce, soy, tomato purees, and barbecue. Moreover, hectic working hours and changing eating habits of the consumers are shifting the preferences of the consumers towards packaged and ready-to-make food products, which is anticipated to fuel the demand for the segment over the forecast period, 2019 to 2025. Additionally, the launch of new products with unique ingredients and flavors is expected to fuel the demand for the product in the younger generation, which will help the market to grow in the next few years.

The dry segment is anticipated to witness significant growth over the forecast period, 2019 to 2025. Rising demand for ready-to-use sauces and growing preference for convenient-to-store and long-lasting sauces in developed countries like the U.K., Germany, U.S., and Canada. These products are available in semi powders and bouillon cube form. Moreover, consumers of these countries are more inclined towards ready to eat and make products, due to hectic working schedules. Therefore, manufacturers are continuously focusing on product development and adding new flavors to the products every year. Furthermore, the growing demand for fat-free and cholesterol-free products is likely to contribute to the growth of the market.

Distribution Channel Insights

Based on the distribution channel, the market has been bifurcated into online, hypermarket & supermarket, and convenience stores. In 2018, the hypermarket & supermarket segment accounted for the highest market value USD 19.21 billion, owing to the increasing number of retail stores and product assortment in the supermarkets & hypermarkets. Additionally, the easy availability of the variety of products and real-time exposure to the product provides greater satisfaction to consumers, which will traction the customer towards hypermarket & supermarket and augment the sales of the segment.

The Online segment is anticipated to grow with a CAGR of 4.0% over the forecast period, 2019 to 2025. The market is gaining traction with the growing number of online service providers such as Grofers, Big Basket, and Dunzo. Moreover, market growth is attributed to the expanding implication of e-commerce players, and additional benefits provided by them like discount coupons, cash-on-delivery, and doorstep delivery, are expected to augment the demand for market growth in upcoming years. Additionally, rising internet penetration and the growing use of smartphones in rural areas have created a huge opportunity for food retailers and service providers. The growing emergence of online channels has also led to a decrease in operational cost, as the sellers can save the money required to run a store.

Regional Insights

Based on the region, the market is divided into North America, Asia Pacific, Europe, Middle East, and Africa, and Central and South America. The Asia Pacific is expected to see the fastest growth over the forecast period, 2019 to 2025. This revenue growth is attributed to high growth opportunities in developing countries, like Indonesia, Thailand, India, and China.

Europe has held the largest market share, in 2108 and is anticipated to reach USD 18.89 billion, by 2025. Growing demand for ready-to-use and wet sauces is anticipated to fuel the demand for market growth over the forecast period, 2019 to 2025. Additionally, increasing product innovations, capacity expansion, and partnerships with product manufacturers in the new market are the key strategies adopted by the top players in the region. Furthermore, the growing penetration of branded goods and the introduction of new flavors by the established players in the region is anticipated to drive the market growth in the coming years.

Asia Pacific market is anticipated to see significant growth during the forecast period, 2019 to 2025. Rising disposable income of middle-class consumers, product innovation, and an increasing number of online service providers in developing nations such as Thailand, India, and China are expected to propel the demand for the market in upcoming years. Additionally, changing lifestyles and inclination towards western culture foods are anticipated to fuel the demand for market growth. Growing product awareness and hectic working lifestyles in the regions like Central and South America, Middle and East Africa, and the Asia Pacific, are expected to positively affect the market demand.

COVID-19 Impact Insights

The cooking sauce market has been negatively impacted by the COVID-19 outbreak, as most restaurants and hotels had to be closed down which constituted the majority shares of consumers for cooking sauces. Further, household consumers of cooking sauces were looking to stock basic food items anticipating a complete lockdown. Moreover, retail stores were also closed and production of cooking sauces was also disrupted due to the lockdown.

However, as the lockdown got extended and people were still not comfortable ordering food from outside. This led to consumers trying out new dishes at home and experimenting with food. This led to a slight increase in demand for cooking sauces, and other cooking ingredients. Further, the manufacturers of cooking sauces came up with new product launches, to offer more variety of cooking sauces. For example, on 06 August 2020, Jubilant FoodWorks Ltd, has launched a wide range of sauces & pastes under the brand name “ChefBoss” through the e-commerce channel. Thus new product launches and reopening of restaurants and other food joints are expected to create new demand for cooking sauces.

Cooking Sauces Market Share Insights

Some of the key players operating in the market include McCormick & Company Incorporated; Nestle SA; Conagra Brands Inc.; Tas Gourmet Sauce Co.; Bolton Group; The Unilever Group; General Mills Inc.; The Kraft Heinz Company; Del Monte Foods Inc., and Kikkoman Corporation. Rufus Teague launched a new range of sugar-free barbecue cooking sauces, in 2019, with fitness-conscious consumers in mind. These companies have implemented numerous competitive strategies such as merger & acquisition, product& technological advances, and capacity expansion, which help them to capture significant market share.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Million Insights has segmented the global cooking sauces market report based on product type, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)
    • Dry
    • Wet

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
    • Online
    • Supermarket & Hypermarket
    • Convenience Store

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • the Asia Pacific
        • India
        • China
    • Central & South America
        • Brazil
    • Middle East & Africa
        • South Africa