Sauces, Dressings and Condiments in Latvia

2020 IMPACT

With consumers stocking up and spending more time at home, COVID-19 will provide a significant boost to retail current value sales growth

The rate of growth in retail current value sales of sauces, dressings and condiments will double during 2020, with COVID-19 the main driver. Consumers have been seeking to stock up on essentials and cooking more meals at home due to the pandemic.

Premiumisation and increased cosmopolitanism drive value sales growth

In general, retail current value sales growth in sauces, dressings and condiments is driven by premiumisation for more mature offerings, such as mayonnaise and pickled products, while emerging products like chilli and oyster sauce usually relate to international cuisine and are characterised by relatively high prices and limited demand. Nonetheless, the influence of international cuisine, particularly Asian street food, is increasingly noticeable in sauces, dressings and condiments, with soy sauces and oyster sauces among the top performers during the review period.

A widening product portfolio helps Orkla Foods Latvija SIA strengthen its leadership position

Since it acquired the Spilva brand in 2015, Orkla Foods Latvija SIA has strengthened its leadership position in sauces, dressings and condiments. The Spilva brand is widely recognised and respected by local consumers and strongly backed by marketing.

RECOVERY AND OPPORTUNITIES

Pasta sauces will suffer a pandemic hangover but quickly bounce back

Growth in retail current value sales of sauces, dressings and condiments will slow significantly during 2021, returning to its pre-pandemic level. Unsurprisingly, products that consumers stocked up on during the early stages of the COVID-19 outbreak, most notably pasta sauces and cooking sauces, will see the steepest decline in retail current value sales growth during 2021.

Private label will grow in importance with the arrival of Lidl

The retail value share of private label in sauces, dressings and condiments is likely to rise over the course of the forecast period with the entry of German discounter Lidl into the local market. Smaller brands are likely to come under particular pressure, as these tend to compete mainly on price.

Value sales will become more concentrated

In general, the level of consolidation in sauces, dressings and condiments is set to increase during the forecast period. International brands like Hellmann’s and Heinz will be more widely distributed, while established players, particularly Orkla Foods Latvija SIA, will continue to regularly launch new products that cater to the increasingly cosmopolitan tastes of local consumers.