Sauces, Dressings and Condiments in Estonia

2020 IMPACT

Volume growth led by niche products thanks to growing interest in foreign cuisines in Estonia

In 2020, fish sauces and oyster sauces, which are common ingredients in Asian cuisine, are expected to demonstrate the fastest retail volume growth, albeit from a particularly low base. Although there is still relatively little awareness of these products in Estonia, they are considered new and exciting, which is expected to contribute to the growth in the category.

Advertising is a key factor in competitive category as international brands put increasing pressure on local players

Sauces, dressings and condiments in Estonia is expected to remain a highly competitive category in 2020, with an extensive assortment of products present. Competition will intensify further in 2020 as the category continues to expand, and the consumer base shrinks in line with population decline.

Taste for foreign cuisine drives continued expansion and growth in sauces, dressings and condiments

Estonian sauces, dressings and condiments are highly differentiated from those of Western Europe, with common varieties including extremely strong mustard and a wide range of pickled cucumber. For this reason, Estonians are still actively experimenting with foreign sauces, dressings and condiments, with new product launches continuing to add interest to the category.

RECOVERY AND OPPORTUNITIES

Category will continue to expand as Estonians develop more adventurous tastes

With the development of different foreign cuisines in Estonia, it is expected that the demand for sauces, dressings and condiments will see positive retail current value growth throughout the forecast period. This will also be supported by increased unit prices as a result of the growing production costs of the increasing range of products available in Estonian sauces, dressings and condiments.

Pickled products to lose momentum as table sauces remain dynamic thanks to changing tastes and product development

Pickled products have a robust and traditional positioning in Estonia, with growth coming primarily from inflation, with the traditional appeal and aspect of the products leaving little room or need for innovation. When it comes to table sauces and cooking sauces, the opposite is true.

Cross-category competition could limit growth in table sauces and herbs and spices

Over the forecast period, it is expected that demand for some product types within sauces, dressings and condiments will continue to be constrained by changing consumer preferences and competition from other packaged food offerings. For example, some Estonians now favour using sour cream or Greek-style yoghurt mixed with herbs and spices as an alternative to dips and table sauces.