Summer Sauce

With the arrival of warmer temperatures and summer fast approaching, the air is starting to fill with the enticing aroma of grills firing up and the sounds of laughter from backyard gatherings. It’s the perfect time to bring family and friends together to celebrate the sunny season with delicious food and delightful company. Summer is synonymous with outdoor activities and communal dining. Whether it’s a casual barbecue, a festive picnic, or an elegant garden party, these moments are about more than just food – they’re about connection.

Spotlight on Condiments, Dressings, and Marinades
Condiments, dressings, and marinades play a crucial role in enhancing the flavors of our favorite summer dishes. From the tangy bite of ketchup and mustard to the exotic heat of sriracha and chimichurri, condiments add that extra zing to any meal, while dressings elevate simple salads into gourmet experiences, and marinades infuse proteins with deep, savory flavors. These products represent a $15B marketplace, growing incrementally  $887M (+6%) over the past year. Growth has slowed in more recent time periods; however, over the past two years performance remains healthy.

SPINS: Natural Channel & Conventional Multi-Outlet (powered by Circana); Trended 52 Weeks Ending 4.21.2024
Private label, representing $2B (15%) of total annual sales, grew incrementally by $239M (+12%) and captured share from branded products. Another pocket of growth within this space included specialty and wellness positioned products. These products represent 16% ($2.5B) of total shelf stable condiments, dressing and marinades, and contributed nearly ¼ (22%) of the total incremental category growth. This highlights how consumers are spreading dollars across products with ‘better for you’ positioning/claims, as specialty products captured share from their conventional counterparts.

Exploring Growth Drivers
Looking at subcategory performance, there are a few segments that surpass total category growth rates and are driving expansion. Shelf stable and refrigerated mayonnaise, shelf stable BBQ sauce, and shelf stable hot sauce rank among the fastest growing condiment subcategories. Collectively, these segments represent nearly 1/3 (32%) of total category sales and contributed $434M (49%) of incremental revenue.

SPINS: Natural Channel & Conventional Multi-Outlet (powered by Circana); 52 Weeks Ending 4.21.2024

Specialty Mayo’s
Within shelf stable and refrigerated mayonnaise, conventional offerings capture lion’s share (93%) of segment sales, leaving a ‘relatively’ small remaining market of specialty and natural offerings. However, these non-conventional offerings are finding success, playing to their strengths. This is especially true with specialty mayonnaise products, which grew double digits (+34%) over the past year by playing to their cleaner positioned artisanal strengths. Products leaning in on high-quality ingredients (ex. olive and avocado oils), while pulling away from traditional seed oils, are gaining traction with consumers. In combination with elevated formulations, mayo flavors are adding dimension to retailer shelves. Buyers are gravitating towards specialty mayo offerings with garlic (+60%), truffle (+13%) and Sriracha (+11%) flavor profiles.

Hot and BBQ Sauce
Natural hot and BBQ sauce offerings shine bright, posting strong +22% and +78% dollar growth, respectively. Winning hot sauces include new heat sources, including global  influences from Calabrian, Malagueta, and Datil peppers. BBQ sauces are finding success with a combination of regional and global influence. Local honey is lifting traditional BBQ sales, while overseas inspired items, like Korean BBQ flavored products, posted massive growth (+154%) over the previous year.       

Winning in the Condiments, Dressings and Marinades Space
To thrive in the condiments, dressings, and marinades market, accommodate diverse diets, expand across subcategories, and focus on bold, appealing flavors. Use high-quality bases like avocado and olive oils, catering to consumers avoiding seed oils, and meet the growing demand for vinegar-based products. Unique packaging that tells your brand’s story and versatile products that can be used in various dishes will set you apart. Leverage your brand’s heritage and innovation to captivate consumers and ensure your offerings become household staples.

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Looking for more information? Please contact the SPINS Account Manager for PRESENCE, Mike Murphy at mmurphy@spins.com.