There was a spike in retail value growth for sauces, dressings and condiments in Latin America in 2020. This was driven both by the closure of foodservice outlets for periods during the year as well as consumers spending more time at home as a result of lockdowns/quarantines and remote working/learning due to Coronavirus (COVID-19). With more meals being prepared at home as a result, demand for sauces, dressing and condiments increased in the retail channel.
This report comes in PPT.
There is a tradition in some countries, including Brazil, of making seasonings and dressings at home, with consumers growing their own products, creating small vertical gardens even in limited living spaces. However, busier modern lifestyles are seeing consumers looking for more practical alternatives to flavour their home-made food. This will involve them increasingly looking to packaged products, so that natural ingredients and using claims such as “naturally tasty”, “home-made” or “fresh flavour” will be popular. Sales of sauces, dressings and condiments therefore recorded a healthy CAGR over 2015-2020.
In spite of the economic impact of the measures taken to contain COVID-19, the pandemic was driving retail sales of sauces, dressings and condiments in 2020. With the foodservice channel faced with shutdowns and consumers spending a lot more time at home than normally, this saw increased meal preparation in the home for long stretches of 2020, boosting demand for this category’s products.
Pasta sauces is the main product in Brazil, led by Cargill’s popular value-for-money Pomarola brand. Pasta sauces offer solutions for consumers looking for a good cost-benefit ratio as well as those searching for more expensive varieties made with premium fresh ingredients. In Mexico, pickled products lead the way, with this category continuing to see new entrants (eg Knorr) and new launches (eg Conservas La Costeña’s extra hot pickled chili peppers with onions).
Albeit less marked than in some regions, there is a rising trend towards healthier products in Latin America. This should also be driven by new labelling regulations in a number of countries, including Brazil and Mexico, to inform consumers about the high content of certain ingredients in food products such as salt, sugar and fat.
In packaged food we consider two aspects of food sales: 1) Retail sales. 2) Foodservice. Retail sales is defined as sales through establishments primarily engaged in the sale of fresh, packaged and prepared foods for home preparation and consumption. This excludes hotels, restaurant, cafés, duty free sales and institutional sales (canteens, prisons/jails, hospitals, army, etc). Our retail definition EXCLUDES the purchase of food products from foodservice outlets for consumption off-premises, eg impulse confectionery bought from counters of cafés/bars. This falls under foodservice sales. For foodservice, we capture all sales to foodservice outlets, regardless of whether the products are eventually consumed on-premise or off-premise. Foodservice sales is defined as sales to consumer foodservice outlets that serve the general public in a non-captive environment. Outlets include cafés/bars, FSR (full-service restaurants), fast food, 100% home delivery/takeaway, self-service cafeterias and street stalls/kiosks. Sales to semicaptive foodservice outlets are also included. This describes outlets located in leisure, travel and retail environments. 1) Retail refers to units located in retail outlets such as department stores, shopping malls, shopping centres, super/hypermarkets etc. 2) Leisure refers to units located in leisure establishments such as museums, health clubs, cinemas, theatres, theme parks and sports stadiums. 3) Travel refers to units located in based in airports, rail stations, coach stations, motorway service stations offering gas facilities etc. Beyond the scope of the foodservice research are captive foodservice units that serve captive populations around institutions such as hospitals, schools, and prisons. This is also known as institutional sales.
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