Global Hot Sauce Market - 2021-2028

Global Hot Sauce Market - 2021-2028

Market Overview Hot sauces are generally made from chilli peppers and other ingredients such as salt, vinegar, garlic, xanthan gum, and many others. In terms of nutrients, hot sauces do not contain significant amounts of fats, carbohydrates, proteins and vitamins, but are yet gaining wide popularity across the globe. Increasing young population coupled with increasing globalization has led to an advent of diversity in food choices of young people, who are significantly proffering spices, thus fueling revenues in the global hot sauce market. Further rising consumption of fast food among busy city dwellers can be considered as another factor for the increasing demand for hot sauces, particularly in the developing countries of Asia Pacific. Global hot sauce market is likely to reach USD xx million in 2028, from its recorded value of USD xx million in 2020, growing with a CAGR of XX% during the forecast period. Market Dynamics: Increasing demand for healthy indulgence The global marketplace has witnessed a considerable growth trajectory of hot sauces due to their evolving popularity and enhanced consumer's inclination towards innovative and bold flavors. There is a rise in the consumption of fast food among the busy urban population, which is also considered another factor for the increased demand for sauces. Customers worldwide are opting for healthy indulgence in a way that provides taste and beneficial traits such as superior nutritional profiles, non-GMO, and organic retail positioning. This trend is set to deliver a significant spur to the sales of these sauces both in developed and developing markets. Moreover, premium product offerings in the market are expected to make higher profit margins in the upcoming years. According to the U.S. Bureau of Labor Statistics, the price trend for sauces, condiments, spices and seasonings, has seen an uptick of 10.89% in the last few years. A part of this increase is attributed to the increasing availability of innovative and premium product offerings attracting customers' attention due to their functional superiority. Several companies are indulged in the production of various premium chili sauces in the market to capitalize on the ongoing trend. For instance, Gringo Bandito incorporates various premium ingredients to produce a premium cayenne pepper sauce variety. Ingredients used are Scotch bonnet peppers, habaneros, water, distilled vinegar, Mexican onions, garlic, salt, spices, and xanthan gum. However, a major restraint in the hot sauce industry is the price fluctuation, especially raw materials used, such as tomatoes, pepper, chili, jalapenos, and others. The sudden outbreak of the COVID-19 pandemic globally can cause a disturbance in the transportation service, which is predicted to hamper the raw material prices. For instance, China and India are the leading exporters of tomatoes. The sudden outbreak of COVID-19 across the globe is expected to impact the exports of various regional vegetables, including tomatoes. This could eventually result in a shortage in the market. As a result, the prices of tomatoes are predicted to increase. Similarly, the retail prices of chili peppers in China rose in the year 2018 as there was a delay in the entrance of dried chili peppers in the market due to bad weather conditions. This further resulted in product scarcity in the market. The prices of straight peppers, pointed peppers, and sweet peppers also increased. Market Segmentation: Tabasco pepper sauce segment to hold major share in upcoming years The tabasco pepper sauce segment accounted for XX% share in the global market in 2020. The rising consumer's inclination towards bold, spicy, and combination flavors is expected to support the steady growth of the segment. The popularity of sweet and spicy sauce is growing considerably across the globe due to their tastefulness, as well as healthy quotient. Moreover, premiumization in sweet and spicy sauce offerings, increasing popularity of ""better for you"" ethnic food products, and rising consumer interest in innovative condiments that are laced with exotic and spicy flavors are projected to offer huge growth opportunities to the segment. Based on the distribution channel, the supermarkets and hypermarkets segment accounted for highest market revenue share of XX% as they are highly preferred by consumers for the shopping of condiments and food ingredients such as chili sauce. However, in the upcoming years, sales of chili sauce through online retail channels are expected to expand due to the increasing consumer interest in online shopping as they offer high convenience and wide product & brand choices. Moreover, the rising internet penetration in emerging economies is anticipated to support the steady growth of the segment. Geographical Penetration: Asia Pacific contributed for highest market revenue share of XX% in the year 2020 This region's dominance in this market is attributed to consumers' high spending power. Also, the intensifying diversification in food flavors makes it possible for chili sauce to become a potential staple in the American kitchen rather than being a fringe ethnic food. The wide popularity of chili sauce in countries such as the United States and Canada has positively impacted the trade of the product across the region, which is a beneficial aspect associated with the growth of the market. The United States and Canada are among the top five global importers of chili sauce. Moreover, the gradually growing population in major Asian economies, such as China and India, and the expansion of the foodservice industry in these economies are aiding in escalating the sales volume of various chili sauces in the Asia Pacific region. The developed western markets have witnessed significant growth in the inflow of different immigrants, mainly from the Asia Pacific and South American regions. This particular factor has resulted in the rising popularity of their cuisines which are known to utilize various types of chili sauces, in which spicy condiments are primarily used. There is a growth in the hospitality and the tourism sector worldwide, which has further deepened the internationalization of various cuisines. Competitive Landscape The market studied is fragmented with key players such as McIlhenny Company, McCormick & Company, Inc., The Kraft Heinz Foodservice, B&G Foods, Inc, and Baumer Foods Inc., among others. The emergence of new key players during the upcoming years and multiple innovative product launches are predicted to extend the global market's scope. Companies operating in the global market are embarking on new product launches and partnerships with relevant stakeholders for product marketing and portfolio broadening. For instance, in February 2019, McCormick & Co. Inc. signed a partnership agreement with Buzzfeed to launch a new app called ""Flavor Maker,"" as it is expected to have an impact on growth by focusing on young consumers. Similarly, in March 2019, TPZ Ventures, a manufacturer and cultivator of cannabis products, introduced a cannabis-infused 'Puerto Rican-style' hot sauce for sale at dispensaries throughout Iceland. In February 2019, Nando's introduced Peri-Peri Vuse- a combination of African Bird's Eye Chilli, garlic, and lemon in Tesco stores in the U.K. COVID-19 Impact: Negative impact on the global hot sauce market due to limited availability of raw materials The coronavirus pandemic has affected businesses with varying degrees of intensity across different regions and stages of the value chain. The demand for hot type of sauces has increased as consumers are requested to practice home quarantine in most countries, which has given them a platform to cook fresh at home. On the other hand, people are advised to stock up essentials and packaged food products that can positively affect the global market. The shortage of raw materials and laborers has negatively affected the hot sauce market growth in the initial few months. The industry is now reworking its current models to navigate the impacts of the COVID-19 pandemic. This will certainly require serious efforts on lines of innovation and technology upgrade. In the food segment, hot sauce and cooking are witnessing a steady spike as people are getting smart with their culinary experiments. They are experimenting with different cuisines to bring out the joy of dining out at home as restaurants and cafes continue to remain closed amid the pandemic. Despite the strong demand for cayenne pepper sauces, supply chain disruptions have led to a delay in product processing, manufacturing, and demand-supply volatility. Although the demand for hot sauces is increasing during this period, mandatory government laws such as complete lockdown in various economies have negatively impacted the hot sauce market. The border closure situation in major spice and herb producing and exporting countries like India, China, and others has disrupted the trade of raw materials required to produce the sauce mentioned above. The imposed lockdown and stay-at-home orders led people to cook their meals at home, which positively impacted cayenne pepper sauce sales. With more relaxations on rules, the market for cayenne pepper sauce has started gaining more traction. The growing inclination towards home cooking to maintain overall health and wellness is projected to support the market's growth. Why Purchase the Report?
• Understand the current market scenario and viability of global hot sauce market over the forecast period.
• Visualize the composition of the global hot sauce market in terms of type, packaging, end-user and distribution channel to identify major players, growth potential, and market strategies
• Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period
• Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market What we offer?
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Excel data sheet with valuable data points of the global hot sauce market – Regional and Country level segmentation
• Product mapping in excel for the key products of all major market players
• Market Share Analysis covering business revenues ($) and revenue share (%) of key market players Target Audience
• Food and Beverage Processing Companies
• Food Service Industry
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals