Sauces, dressings and condiments exhibited strong growth in 2018 as the home cooking trend picked up pace in a number of key markets including Brazil, Mexico and Argentina. Consumers have also started to move towards higher value-added categories, such as natural and preservative-free ingredients or those with premium packaging. Brand equity also remains high in the region, benefiting multinational companies.
In Brazil and Argentina, economic recovery has led to an increase in consumers’ purchasing power. With that, the growing trend for cooking gourmet dishes and meals at home influenced by cooking shows has helped boost the sales of sauces, dressings and condiments. Demand for Italian dishes has particularly led to a surge in pasta sauces in Brazil.
The growing health and wellness trend in Latin America boosted the demand for healthy variants of sauces and dressings. Leading players such as Unilever and Cargill have leveraged this growing trend and launched products with natural ingredients such as cooking and table sauces including olive oil and honey.
Independent small grocers and supermarkets are the dominant distribution channels for SDC in the region. In Brazil, supermarkets and hypermarkets accounted for almost 78% of total value sales of SDC in 2018. On the other hand, 45% of value sales of SDC in Colombia in 2018 was from independent small grocers.
In the Chilean market, consumers prefer gourmet products with new and innovative flavours that are made with traditional ingredients. Manufacturers have adopted a premiumisation strategy and continue to launch new varieties of flavours to cater to the growing consumer demand for products with traditional ingredients such as merkén and smoked chili pepper.
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