Sauces Market Report

The plant-based sauce can be considered a leading opportunity as plant-based diets are today being given major attention. It also means that demand is seen for plant-based sauces which do not contain dairy or meat. These innovations allow plant-based diet followers to also have access to familiar flavors and thus will not compromise their choice of lifestyle. According to a report by the United States Department of Agriculture states that the global market for plant-based food is expected to be more than US$ 162 billion in 2030 compared with US$ 29.4 billion in 2020. Also, according to data from the World Animal Foundation, there is a global vegan population of 88 million for the year 2023. The increasing demand for vegan or plant-based diets continues to expand the market for these sauces.

The growing food service industry is creating a vast demand for sauces as the restaurants and catering services multiply and diversify. More varied menu options in such businesses increase the demand for sauces to complement different dishes. For instance, a restaurant that serves burgers, steaks, seafood, and pasta all require different sauces to enhance flavor and create unique dining experiences.

According to the National Restaurant Association's data Also, the food service industry is projected to be worth nearly US$ 1 trillion in sales in 2024, according to the National Restaurant Association many chefs create a signature sauce as it stands out more within the market. Often becoming the core element of an establishment, these chef-driven, customized sauces bring new customers looking for the next different flavor; in turn, they expand on the demand of a particular sauce market. Also as per research, there are over 68 thousand fast food restaurants globally and over 7,700 in the state of Mexico.

Shelf life becomes the biggest challenge to the sauce market as it directly encroaches on product quality and consumer health. To improve shelf life, preservatives have been added by many manufacturers to prolong the shelf age of sauces. Although preservatives hinder microbial spoilage, they tend to have some side effects on the human body. For example, some preservatives can lead to allergies, digestive problems, and sometimes long-term health issues after consuming large amounts. This has become a dilemma for sauce-makers as they have to strike a balance between the applications of preservatives in prolonging shelf life and the healthiness and safety of the consumer. In its absence, the shelf life of the sauce is very short. During that short period, it will spoil, and this will reduce its marketability and lead to wastage of food.

Having a lot of fats and sugars in sauces are challenge to the sauce market. With the emerging health consciousness of people around the world, they opt to consume fewer sugary and high-fat foods. This negatively impacts demand for traditional-style sauces, because many consumers nowadays are afraid of the negative aspects of consuming too much sugar and fat as obesity and heart disease. This shift makes people prefer healthier alternatives, and high-fat, high-sugar sauces are no longer popular. The strict government regulations on sugar and fat content in food also increase the difficulty level for such sauces to remain in line with the regulations. Due to this reason, manufacturers have to alter their recipes according to the changing health trends. This increased demand for healthy alternatives places pressure on the market for sauce.

Some sauces might contain common allergens that trigger problems in people with food sensitivities. An instance is creamy sauces which normally contain dairy that can upset those who are lactose intolerant or are allergic to milk. Examples are soy sauce and pasta sauce, which commonly have gluten; the protein that is harmful to persons with celiac disease or gluten sensitivity. Nut allergies, like the case of pesto and peanut sauce, invoke sometimes serious reactions to nut-allergic individuals which acts as a major challenge.

At least 240 units of spaghetti sauce produced by a popular Southern company were recalled after it was discovered that they could contain an undeclared allergen. The undeclared allergen was eggs. They were among the ingredients added to Englewood Cannery's Traditional Country Canning Spaghetti Sauce. The ingredient had not been declared on the product label, although eggs are considered one of nine major allergens that the United States has identified. Food and Drug Administration (FDA) needed to be labeled on all foods which had them in the U.S. The other eight ingredients were milk, soybeans, fish, crustacean shellfish, tree nuts, peanuts, wheat, and sesame.

New product launches in this sauces market are the ones majorly driving the market through such novel flavors, healthier options, and convenience-focused offerings including ready-to-use sauces. All of these products have tapped the evolving consumer preferences toward diversity and quick meal solutions. Using clean-label ingredients, unique spices, and global influences helps drive the competitive edge for those consumers, expands choice among them, and boosts growth across the market.

In, November 2024, Pure Harvest Smart Farms (Pure Harvest), the region’s leading sustainable technology-enabled agribusiness farmed high quality, safe, sustainably grown fresh produce, announced the launch of its brand of 100% natural tomato sauces. The range was exclusively available at Spinneys and Waitrose outlets across the UAE for two months, before expanding to other retailers. Pure Harvest’s sauces were crafted with the company’s award-winning, sustainably farmed tomatoes and contained no added sugar or artificial ingredients. The company utilized visually imperfect and/or seasonal excess in production to supply this new sauce line, which mitigated food waste risks in the company’s value chain.

In, September 2024, McCormick For Chefs welcomed three new versatile sauces for chefs Cattlemen’s Hawaiian Tangy Sweet BBQ Sauce, Frank’s RedHot Garlic Buffalo Wings Sauce, and McCormick Mayonesa con Limón. The wide range of products delivered high-quality, consistent flavor with every use and ensured chefs didn’t sacrifice quality, time, and labor in the back of the house. Cattlemen’s Hawaiian Tangy Sweet BBQ Sauce complemented the existing line of regional flavors inspired by the United States BBQ meccas.  Frank’s RedHot Garlic Buffalo Wings Sauce was on fire with patrons. Made specifically for food service, it was in the same ready-to-use format chefs knew and loved. McCormick Mayonesa con Limón, México’s #1 Mayonnaise, was now available for professional chefs in the U.S. It was a versatile ingredient featuring a touch of lime juice and a creamy texture that withstood high temperatures.

In January 2024, McIlhenny Company the manufacturers of sauces introduced a new product in the form of the TABASCO Salsa Picante. The first attempt of its brands in Mexican-style hot sauce was rich and fulfilling and carried a lively spicy flavor along with a tingle of heat. The new liquid was crafted with the standard quality fans have come to expect from the brand's more than 150 years of pepper know-how. TABASCO Salsa Picante was the latest addition to the brand's lineup of squeeze format offerings-including flavors like TABASCO Sriracha Sauce, TABASCO Buffalo Style Sauce, and TABASCO Sweet & Spicy Sauce. The bottle was designed to ensure easy drizzling and dipping of this thicker-style sauce. TABASCO Salsa Picante was priced at MSRP $3.56 and was available at Walmart and Amazon across the country.

North America is a very appealing market because of the rising demand for both sauces and junk food. The region, especially the U.S., can be cited as the largest market for consumers of junk food. According to data from the National Library of Medicine, an overwhelming percentage of 92.7% of kids and 86.0% of adults in the U.S. consume junk food on any particular day, which indicates it is widely consumed and included in regular diet. Besides this, the market for North American sauces is growing at a very high rate, too. According to Pristine Market Insights, the regional market for sauces is expected to grow to an impressive value of $28,985.9 million by 2025, further signifying a growing consumer demand.

The increasing awareness of health and animal welfare has highly driven the demand for plant-based food products in Europe. This increased interest among consumers has made the plant-based food market a very lucrative business. According to a report by The Good Food Institute, retail sales of plant-based products in Europe reached as high as US$ 5.6 billion by 2023, an increase of 5.5% from 2022. Such consumption is a sign that the world is moving towards more sustainable eating habits, which will boost the growth of the vegan market. Product lines under this category that are anticipated to grow rapidly include plant-based sauces, which include plant-based alternatives to traditional pasta sauces, as more vegan and plant-based consumers will need a complement to their food products.

The requirement for sauces in the Asia Pacific region, especially China is expected to increase a lot because more people are using and selling different sauce products. According to the World Bank Group, in 2023, China exported 197 billion kg of soy sauce worth US$ 193 million. This increase in export volume showcases the growing global demand for Chinese sauces, which will drive the market even further. The increased adoption of Chinese sauces, particularly soy and other traditional condiments, by more countries, will spur the growth in exports that can further boost local production as well as international distribution to expand the overall sauce market in the region even further.