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Sauces and Seasonings - China - December 2015

Sauces and Seasonings - China - December 2015

“Niche segments of the sauces and seasonings market in China have potential to grow vigorously in the future. Foreign sauces need to better adapt to Chinese dietary habits. Brands can provide culinary assistance and utilize social media to better engage with young people. Packaging innovation remains a white space.”

– Karen Liu, Senior Research Analyst

This report looks at the following areas:

Foreign sauces adapt to Chinese dietary habits
Engaging young amateur cooks
Scope for packaging innovations


OVERVIEW
What you need to know
Products covered in this report
Figure 1: Definition of low/mid/high MHI groups, by city tier
EXECUTIVE SUMMARY
The market
Figure 2: Retail value of sauces market in China, 2010-20
Figure 3: Retail value of chicken granules market in China, 2010-20
Companies and brands
Figure 4: Retail market share of sauces and seasonings in China, by value, 2013 and 2014
The consumer
Figure 5: Cooking frequency in last six months, by age group, August 2015
Figure 6: Consumers who have steamed and grilled food in the last six month, by city, August 2015
Figure 7: Purchase channel of sauces and seasonings, 2015 vs 2013
Figure 8: Dropout rate (% of have bought but will not buy again account for total who has bought) of selected sauces, 2015 vs
2014
Figure 9: Consumers who claim to have bought and will rebuy the brands, by region, August 2015
Figure 10: Important factors in buying sauces and seasonings, August 2015
Figure 11: Purchase behaviour of and attitudes towards sauces and seasonings, August 2015
Figure 12: Purchase behaviour of and attitudes towards sauces and seasonings, August 2015 (continued)
What we think
ISSUES & INSIGHTS
Foreign sauces adapt to Chinese dietary habits
Engaging young amateur cooks
Figure 13: Examples of Kraft “Recipe Makers”, US, 2013
Scope for packaging innovations
Figure 14: Example of Bertolli 100% Extra Virgin Olive Oil, Canada, 2014
Figure 15: Examples of gifting packs of sauces and seasonings, China and global, 2012-14
THE MARKET
What you need to know
Sauces/seasonings market sees steady double-digital growth
Basic sauces seek opportunity from premiumisation
Smaller foreign sauce segments have potential to grow further
Market size and forecast
Sauces market grows steadily
Figure 16: Retail market size of sauces in China, 2010-15
Chicken granules enjoy rapid growth
Figure 17: Retail market size of chicken granules in China, 2010-15
Sauces and seasonings market enjoys steady growth
Figure 18: Retail value of sauces market in China, 2010-20
Figure 19: Retail value of chicken granules market in China, 2010-20
Market factors
Smaller, niche segments drive market growth
Figure 20: Year-on-year growth rate of soy sauce and vinegar, by value, China, 2010-15
Opportunities to trade up
Busier modern lifestyles may hinder retail growth
Market Segmentation – Sauces
The retail sauces market is dominated by soy sauce and vinegar
Figure 21: Sales of retail sauces market in China, by segment, by value and volume, 2010-15
Foreign sauces are becoming popular
Figure 22: Retail value of foreign sauces market in China, 2010-20
KEY PLAYERS
What you need to know
Opportunities exist in the niche market, although key players strengthened their leading positions
Key players adopt different business strategy to grab share
The market has room for innovation
Market share
A fragmented market dominated by soy sauces companies
Figure 23: Retail market share of sauces and seasonings in China, by value, 2013 and 2014
Haitian and Laoganma further strengthened their leading positions
Foreign sauces stay niche
Competitive strategies
Haitian targets young and continues category expansion
Laoganma believes the best products sell themselves
Nestlé S.A. is the biggest flavour enhancer manufacturer in China
Kewpie’s localisation leads to success in China
Who’s innovating?
“GMO-free” is an increasing claim
Figure 24: Top claims in new sauces and seasonings products launched in China, 2012-15 (November)
Room for launching more products with “minus” claims
Figure 25: new sauces and seasonings products with “minus” claim, China, 2012-15 (November)
Figure 26: Examples of new sauces and seasonings products with “minus” claim, China
Traditional processing technique becomes a selling point
Figure 27: Examples of new sauces and seasonings products using traditional brewing technology, China
The market looks for single-serve packaging
Figure 28: Examples of new sauces and seasonings products with single-serve packaging, global
Table sauces see opportunity to offer novel texture and mouth-feel
Figure 29: Examples of new sauces and seasonings products highlighting “crispy, crunchy and chunky textures” claims, global
THE CONSUMER
What you need to know
Older consumers cook more regularly, while young people see cooking as a hobby and need assistance
Foreign sauces/seasonings gain interest
Safety is still the key purchase consideration factor
Cooking habits
40-49-year-olds and high-income families cook more regularly at home
Figure 30: Cooking frequency in last six months, August 2015
Braising and steaming are popular in-home cooking methods
Figure 31: Cooking methods used in last six months, August 2015
Wealthy people use Western cooking methods
Guangzhou and Shanghai are in favour of steamed dishes, while Beijing likes grilled food
Figure 32: Cooking methods used in last six months, by region, August 2015
Figure 33: Consumers who have steamed and grilled food in the last six month, by city, August 2015
Purchase channels
Hypermarkets see a big drop
Figure 34: Purchase channel of sauces and seasonings, 2015 vs 2013
Figure 35: Chocolate Great Wall in M&M’s World, Shanghai and Orlando
Food stores are gaining popularity
Online purchase increased but only a little
Figure 36: Consumers who have bought sauces and seasonings online in the last six months, by city, August 2015
Interest in selected sauces and seasonings
Salad dressing is the most popular foreign sauce
Figure 37: Interest in selected sauces and seasonings, August 2015
Figure 38: Interest in selected sauces, 2015 vs 2014
Consumers are more open to foreign sauces
Figure 39: Dropout rate (% of have bought but will not buy again account for total who has bought) of selected sauces, 2015 vs
2014
Stronger interest in exploring foreign sauces in tier one cities
Usage of selected brands
Top players have gained strong loyalty
Figure 40: Usage of selected brands, August 2015
Haitian has national popularity while others do well in specific regions
Figure 41: Have bought and will rebuy selected brands, by region, August 2015
Brand name matters
Laoganma and Totole lead their own categories
Important factors in buying sauces and seasonings
Safety is key
Figure 42: Important factors in buying sauces and seasonings, August 2015
“GMO-free” and “organic” claims demonstrate ingredient quality
Consumers aged 30 and above look for “minus claims”
“Fortified protein” and “suitable for vegetarian” stay niche
Purchase behaviour of and attitudes towards sauces and seasonings
Young people see cooking as a hobby rather than a chore
Figure 43: Purchase behaviour of and attitudes towards sauces and seasonings, August 2015
Consumers look for smaller packages
Figure 44: Purchase behaviour of and attitudes towards sauces and seasonings, August 2015 (continued)
Artisan opens new landscape for sauces/seasonings
Figure 45: Purchase behaviour of and attitudes towards sauces and seasonings, August 2015 (continued)
Young people need assistance when cooking
Figure 46: Purchase behaviour of and attitudes towards sauces and seasonings, August 2015 (continued)
Specialised sauces/seasonings attracts households with children
Figure 47: Purchase behaviour of and attitudes towards sauces and seasonings, august 2015 (continued)
Meet the Mintropolitans
Mintropolitans cook less often but use more cooking methods
Figure 48: Cooking frequency in last six months, by consumer classification, August 2015
Mintropolitans are open to using exotic sauces/seasonings
Figure 49: Have bought and will rebuy selected sauces and seasonings, by consumer classification, August 2015
Specialised sauces/seasonings are yet to take off
Figure 50: Attitudes towards specialised sauces and seasonings, by consumer classification, August 2015
APPENDIX
Methodology and abbreviations
Methodology
Fan chart forecast
Mintropolitans
Figure 51: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
Figure 52: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
Abbreviations
Market size and forecast
Figure 53: Retail value sales of Chinese traditional sauces, by segment, 2010-20
Figure 55: Retail value sales of chicken granule, 2010-20
Market segmentation
Figure 56: Retail value sales of soy sauce, China, 2010-20
Figure 57: Retail value sales of vinegar, China, 2010-20
Figure 58: Retail value sales of oyster sauce, China, 2010-20
Figure 59: Retail value sales of chilli sauce, China, 2010-20
Figure 60: Retail value sales of other traditional sauce, China, 2010-20
Figure 61: Retail value sales of total foreign sauces, China, 2010-20*
RESEARCH METHODOLOGY
China Research Methodology
Confidence levels
Sample sizes by city
Sampling methodology and sampling structure
Our research partner - QQsurvey
QQ’s sampling and Quality control
Further Analysis
Appendix

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