The global Hot Sauce Market is set to gain momentum from the increasing launch of premium and innovative products by renown companies to attract more customers owing to their high functional superiority. In January 2020, for instance, Dabka introduced its new chilli sauce made of ghost peppers, cumin spice, garlic, onion, Californian sun-dried tomatoes, and Roma tomatoes. It would provide rich tastes of classic Mediterranean cuisines.
This information is given by Fortune Business Insights™ in a new report, titled, “Hot Sauce Market, 2021-2028.” The report further states that the market size is projected to grow from USD 2.71 billion in 2021 to USD 4.38 billion in 2028 at a CAGR of 7.1% in the forecast period. It stood at USD 2.54 billion in 2020.
Stay-at-home Norms to Surge Demand amid COVID-19 Pandemic Worldwide
The outbreak of the COVID-19 pandemic has resulted in the implementation of social distancing norms and complete lockdowns across the globe. As people are staying at homes, the demand for hot type of sauces has increased rapidly owing to the rising need to cook restaurant-like dishes. Unavailability of workforces and shortages of raw materials set to affect the market negatively. We are providing authentic research reports to help you take unique business decisions for improving sales.
High Demand for Spicy and Bold Flavors to Drive Tabasco Pepper Sauce Segment
Based on the distribution channel, the market is segregate into mass merchandisers, specialty retailers, convenience stores, online retail, and others. By type, it is divide into tabasco pepper sauce, habanero pepper sauce, jalapeno sauce, sweet and spicy sauce, and others. Out of these, the tabasco pepper sauce segment generated 22.62% in terms of the hot sauce market share in 2020. This growth is attributable to the rising demand for combination, spicy, and bold flavors.
A list of renowned hot sauce manufacturers operating in the global market:
- The Kraft Heinz Company (Pennsylvania, United States)
- McCormick & Company Inc. (Maryland, United States)
- Campbell Soup Company (New Jersey, United States)
- Unilever PLC. (London, United Kingdom)
- Conagra Brands Inc. (Illinois, United States)
- McIlhenny Company (Louisiana, United States)
- Southeastern Mills, Inc. (Georgia, United States)
- Hormel Foods Corporation (Minnesota, United States)
- Baumer Foods, Inc. (California, United States)
- W. Garner Food Company (North Carolina, United States)
The report contains four notable tasks in estimating the present size of the market. Extensive secondary research was conduct to gather data about the peer market. Our next step included primary research to determine these sizing, projections, and findings with several industry experts. We have also used bottom-up and top-down approaches to calculate the market size.
Drivers & Restraints-
Rising Inclination of Youngsters towards Peppery and Spicy Food to Aid Growth
The rapid globalization and increasing young population worldwide is set to augment the hot sauce market growth in the near future. Food choices of youngsters are evolving constantly and they are increasingly shifting towards spicy and peppery flavored food items. At the same time, the surging consumption of fast food because of the busy lifestyles of people living in urban areas is also set to propel growth. Consumers nowadays are looking for organic, non-GMO products that are highly nutritious. However, fluctuations in the prices of raw materials, such as jalapenos, chilli, pepper, and tomatoes on account of the COVID-19 pandemic may hamper growth.
Increasing Diversification in Food Flavors to Help North America Dominate
Geographically, North America held USD 1.13 billion in 2020 in terms of revenue. The region to retain its dominant position throughout the forthcoming years on account of the rapid diversification in food flavors that has made chilli sauce a staple in the American kitchen. In Asia Pacific, the expansion of the foodservice industry, especially in India and China, has made it remain in the second position in 2020. South America to grow significantly backed by the rising usage of hot sauces in a wide range of food products, such as grilled seafood, sandwiches, pizzas, and others.
Key Players Focus on Introducing Novel Products to Compete with Their Rivals
The global market houses numerous prominent companies that are presently focusing on launching innovative products to cater to the high consumer demand. Some of the others are also engaging in the acquisition strategy to broaden their presence. Below are the two latest industry developments:
- March 2021: Barbecue Cart unveiled Saucy’s Southern Premium, taking the proprietary barbecue and wing sauces and infusing them with THC distillate. It was from RIZE concentrates to enhance flavors.
- November 2020: McCormick & Company Inc. acquired Cholula Hot Sauce®, a manufacturer of premium Mexican hot sauce from L Catterton. It would help the company to expand its product offerings for foodservice operators and consumers.