Sauces, Dressings and Condiments in South Korea

2020 IMPACT

Cooking ingredients rebounds as the pandemic alters consumers’ dining habits

The COVID-19 outbreak boosted sales of sauces, dressings and condiments as home cooking increased in 2020. Sales of soy sauce, chilli sauce and other sauces, dressings and condiments had been contracting in recent years as home cooking had been on the decline while dining-out had been on the ascendency.

Demand for exotic sauces may increase due to travel restrictions

The popularity of exotic sauces continued on a growth trajectory in 2020. Prior to the pandemic, a driving force for growth was the rise in global tourism and foodservice channels, which ultimately stimulated demand for and lowered resistance to exotic foods.

Demand for Kimchi increases from households during the pandemic

Increased home consumption naturally drove a sales increase in kimchi. This is one of the many traditional Korean dishes, which is classified as pickled products in Euromonitor International definitions.

RECOVERY AND OPPORTUNITIES

Convenience drives consecutive growth in overall sales despite stagnation in traditional categories

Total retail sales of sauces, dressings and condiments are expected to increase in both volume and value terms over the forecast period, after a dramatic decline in the early years post the pandemic. The initial sales plunge will be more dominant in traditional categories that are generally used in home-cooked meals from scratch, affected by naturally reduced home consumption after the virus is eradicated or a vaccine found.

Traditional sauces, dressings and condiments leverage an emerging category

Emerging trends in other packaged food categories could offer some indication around how traditional sauces, dressings and condiments could be revamped. For instance, sales of frozen categories in staple foods (ready meals, processed potatoes and processed meat and seafood) have benefited from increasing penetration of air fryers in South Korean households.

Size innovation set to boost product appeal among young generations

One packaging innovation to gain traction in sauces, dressings and condiments is mini-sized individual pouches. While individually packaged products are more expensive than traditional package types compared to volume, the lifestyle of younger generations explains the reason why they prefer individual packaging.