Sauces, Dressings and Condiments in Thailand

2020 IMPACT

Little stockpiling seen, as these products last a long time

Sauces, dressings and condiments has seen only a small change in its growth rate in 2020 as a result of COVID-19, with just a marginal increase. Many packaged food categories saw stockpiling early on in the pandemic, but it is noteworthy that most Thai households did not stock up on sauces, dressings and condiments such as cooking ingredients during the national lockdown.

Staple products used in Thai cuisine perform the best

Thai consumers have a preference for a salty taste in various dishes. Hence, any stockpiling of table sauces during the initial lockdown period focused on must-have frequent-use items for households, such as fish sauces and soy sauces, which have a long history in Chinese culture and have been incorporated into Thai cuisine for a long time, and are considered essential products for the kitchen.

Chef-led events aim to attract consumers to brands

Ajinomoto Sales (Thailand) has maintained its lead in sauces, dressings and condiments in value terms in 2020, and remains the only player to hold a double-digit value share. Its Rosdee and Ajinomoto brands remain the leading brands, thanks to their dominant positions in bouillon and monosodium glutamate (MSG) respectively.

RECOVERY AND OPPORTUNITIES

Stable growth forecast as these are used daily in Thai households

Retail volume growth in sauces, dressings and condiments is expected to see a minor slowdown in 2021, returning to the pre-COVID-19 rate of increase. The virus has been well-contained in the country and more people are expected to be willing and able to eat outside of the home, hampering retail growth.

A move away from less healthy ingredients is forecast, such as MSG

Thai consumers are becoming increasingly health-conscious and better educated about nutrition and food labelling. When it comes to sauces, dressings and condiments, they are opting for products which are low in salt, fat and calories and do not contain preservatives or MSG.

Social media set to be increasingly used to attract younger consumers in particular

In the forecast period more players are expected to use marketing strategies through social media channels. Players commonly use cooking tutorial videos on Facebook, Instagram or YouTube to demonstrate the different applications of their products, encouraging usage and value sales.