Sauces, Dressings and Condiments in Ireland

2020 IMPACT

Stockpiling focussed growth on ketchup, mayonnaise and mustard

Retail sales of more standard and cheaper sauces, such as ketchup, mayonnaise and mustard, will show growth in 2020, as many consumers stockpiled these products at the initial stage of the lockdown. More niche products such as fish sauces, oyster sauces and yeast-based spreads will also grow as a consequence of stockpiling, due to their long expiry dates.

The home cooking boom driving sales of chilli sauces and soy sauces

As home cooking is becoming more popular in 2020, various sauces, dressings and condiments are being purchased to augment new recipes. This is having a particularly positive impact on retail sales of chilli sauces and soy sauces.

Difficulties in the retail supply chain providing opportunities for private label

The largest producers of sauces, dressings and condiments are Unilever, Heinz and Mars. These companies will be able to maintain their leading positions in 2020, as they enjoy preferential shelf space and advantageous pricing at the major distribution channels of supermarkets, hypermarkets and discounters, most of which also offer e-commerce and home delivery).

RECOVERY AND OPPORTUNITIES

Barbecue sauces to gain from consumers’ desire to experiment with new tastes

Over the forecast period it is expected that more mature products such as ketchup, mustard and mayonnaise will cede ground to less established ones that have higher potential to attract new customers, such as barbecue sauces, chilli sauces and salad dressings. The mature categories are attempting to react to this change in consumer behaviour by creating new flavours and mixtures of sauces, such as with Heinz Saucy Mayonnaise Ketchup, and Tesco’s Chef and Organic private label reduced sugar and salt ketchup.

Stockpiling mentality to continue to influence consumer behaviour

Retail volumes of dry products with longer expiry dates are anticipated to increase, due to the stockpiling mentality that is being formed in Ireland, and widespread downtrading due to a slowdown in the economy. Dry products will also benefit from the increasing prevalence of home cooking, as a growing number of Irish consumers are working from home.

Economic concerns to drive growth in private label

Premium products are expected to see their retail sales wane in the forecast period in comparison with previous years. While some Irish consumers are still willing to pay more for products that are of a higher quality, organic or contain less salt or fat, the majority of consumers are becoming more price-conscious.