CONDIMENTS MARKET SET TO ROCKET BY NEARLY $50BN BY 2027, BOOSTED BY HEALTHY OPTIONS
The condiments market is set to grow significantly between 2022 and 2027, with Technavio predicting a $48.64bn increase over the forecasted period. This will be driven by increased sales of healthier sauces, dressings, mustards and pickles, high in particular nutritious ingredients, the analyst said.
Growth momentum will accelerate at a CAGR of 4.95%
According to Technavio, Sauces rich in lycopene – an antioxidant with strong anti-inflammatory properties, will help lead the growth because of its heart health benefits, including reducing the risk of atherosclerosis.
Additionally, regular consumption of condiments such as herbs and spices helps the body’s detoxification by removing carcinogens and reducing the growth of existing tumours, the report said. These health advantages of condiments help to increase their popularity across a variety of end users, which in turn helps the market grow.
However, Technavio also noted that frequent product recalls could hamper the growth of the condiments market during the forecast period. Product recalls damage the brand’s reputation and causes participants to experience operational and financial failures. The market has seen a sizable number of these recalls in recent years, where vendors or safety organisations like the Food and Drug Administration (FDA) have issued warnings and recalls because of the risk of bacterial contamination or the presence of unwanted ingredients.
The condiments market share growth by the table sauces segment will be significant, Technavio said. The expansion of the sauce-based condiment market in the US, Canada, Mexico, and the Netherlands has been attributed to a rise in sauce acceptance and consumption.
Currently, salad dressings are the most popular kind of dress on the condiments market. These dressings include mayonnaise, ranch, Italian, coconut cream, zesty lemon, agrodolce, and balsamic vinaigrette.
In addition, APAC will account for 42% of the market’s growth during the forecast period. Due to numerous regional and international manufacturers, the condiments industry in APAC is highly fragmented. The major factor fueling the growth of the market in APAC is the increasing number of respiratory and infectious diseases.
The competitive scenario categorizes companies based on various performance indicators. Some of the factors considered include the financial performance of companies, growth strategies, product innovations, new product launches, investments, and growth in market share, among others, Technavio commented.
ADF Foods Ltd., Ajinomoto Co. Inc., Conagra Brands Inc., Cremica Food Industries Ltd., Dabur India Ltd., Dr. August Oetker KG, General Mills Inc., Halcyon Proteins Pty. Ltd., Hormel Foods Corp., Kerry Group Plc, Kewpie Corp., McCormick and Co. Inc., Midas Foods International, Nestle SA, NutriAsia Inc., Patanjali Ayurved Ltd., PepsiCo Inc., The Kraft Heinz Co., Three Threes Condiments Pty Ltd., and Unilever PLC. are some of the major condiments market players.
In stark contrast to the growth in the condiments market, the snack food market is predicted to decline at a CAGR of 6.51% over the same forecast period, Technavio said. However, the size of the market overall is still forecast to increase by $300.56 billion.
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The growing preference for savory snacks is notably driving the market growth, although factors such as the rising number of health effects may impede the market growth.
All this points towards a consumer who is increasingly health conscious, and looking for convenient, nutritious ways to make meals more nutritious.
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