Sauces, Dressings and Condiments in Pakistan

PROSPECTS

Switch from unpackaged to packaged products

Sauces, dressings and condiments is benefiting from the shift from unpackaged to packaged products, which is also being seen in categories such as edible oils. This trend is particularly prominent in herbs and spices, the largest sauces, dressings and condiments category, and ketchup, both of which are characterised by the broad availability of unpackaged products, with demand for unpackaged herbs and spices being particularly high in rural areas.

Changing diets boost growth

Changing dietary habits, driven by the hectic pace of urban lifestyles, are driving a rise in demand across several sauces, dressings and condiments categories. While foodservice sales are beyond the scope of this report, the growing trend towards Western-style fast food is affecting consumer preferences and boosting retail sales of ketchup, in particular.

Modern grocery retailing to grow in importance

The ongoing expansion of modern grocery retailing, particularly the supermarkets channel, is set to influence the development of sauces, dressings and condiments during the forecast period. Independent small grocers remained the dominant distribution channel in the category in 2018, though it had seen its share of sales eroded significantly over the review period.

COMPETITIVE LANDSCAPE

National Foods retains lead

National Foods remained the largest player in sauces, dressings and condiments in 2018, thanks to the strength the National brand in herbs and spices, and ketchup. National is a well-established brand in the Pakistani market, having achieved high levels recognition and trust amongst local consumers, partly through its strong marketing activity.

Major multinationals present

While domestic players, National Foods and Shahi Foods, lead value sales in sauces, dressings and condiments, major multinationals have also established a presence in the category. Nestlé and Unilever are foremost amongst these with their internationally recognised Maggi and Knorr brands.

Room for smaller players

While the established brands and strong distribution networks of the major players represent a significant challenge to newcomers to sauces, dressings and condiments, the diversity of the category and the way in which demand is being driven by changing habits and lifestyles means that smaller players are gaining share. Indeed, the combined share of players outside the top five grew by more than 10 percentage points between 2013 and 2018 and is expected to go on growing during the forecast period.

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