Players in sauces, dressings and condiments are adapting to the challenges of the pandemic by investing in a direct-to-consumer business strategy. For instance, Heinz has responded to the lockdown and ongoing home seclusion by launching Heinz To Home in July 2020, following the success of its online shop and bundles in the UK.
While pasta sauces have been stockpiled in 2020, over the review period the increasing visibility of other competing sauces such as pesto, passatas and purées had been pushing pasta sauces towards the back of consumers’ minds. Despite the high household penetration rate of pasta sauces, deep discounting and limited brand variety are, 2020 aside, keeping category growth small.
Mars Australia Pty Ltd continues to lead sauces, dressings and condiments in 2020 despite strong competition from private label lines in a highly fragmented category. Its strength lies within cooking ingredients and table sauces, with its largest revenue coming from cooking ingredients, specifically from its Masterfoods, Dolmio and Kan Tong brands, having a wide distribution network combined with a large range of products in comparison with its competitors.
The panic-buying seen during the lockdown means consumers have built up a long-lasting supply of sauces, dressings and condiments, which is now leading to a slowdown in new purchases. At the same time, the reopening of foodservice establishments in Australia is re-establishing normal channel dynamics, leading to fewer consumers buying the products in retail.
The rise of international cuisine, such as Asian fusion cuisine, in Australia has encouraged consumers to incorporate more fish sauces, oyster sauces and soy sauces into their cooking. Moreover, in recent years, cooking shows such as Masterchef and My Kitchen Rules have featured Asian dishes, exposing consumers to the cuisine.
As Australian consumers have become more accustomed to online shopping during the pandemic, more pantry items are expected to be purchased through the e-commerce channel in the forecast period. With Heinz To Home actively demonstrating the direct-to-consumer model, other players are expected to follow the strategy while social distancing remains a concern.
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Understand the latest market trends and future growth opportunities for the Sauces, Dressings and Condiments industry in Australia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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