Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
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THE MARKET KEY POINTS • The condiment category reached $9.7 billion in sales in 2012. The onset of the recession saw sales increase by 5.6 percent in 2008 and 6.2 percent in 2009. Mintel forecasts conservative growth through 2017 with category sales reaching $10.7 billion. • The condiments category is highly saturated, with some 91 percent of consumers using ketchup, 86 percent using mustard and 84 percent using mayonnaise. Growing future sales will require flavor and usage innovation. Smaller packaging, to encourage sampling, and suggesting uses for unfamiliar items and flavors may encourage purchases. • Pickles, olives and relish lead the category, accounting for 26.1 percent of condiment sales. • Though there was a slight slowdown in sales as the economy improved and people began to dine out more, product launches continued at a steady rate with 848 condiments hitting the market in 2011. New packaging and product relaunches are the most popular occurrences. Other trends included resealable bags and reduced packaging. • Gluten-free claims on new launches rose a whopping 289 percent from 2007 to 2012, while low/no/reduced-allergen claims grew 271 percent. Organic and premium claims declined over the same time period. • As the economy rebounds, consumers view premium attributes—such as smaller, limited-edition formulations, local/regional varieties and fresh/refrigerated blends—as a special treat, traits that will keep them engaged in the category and open them to exploring higher-quality products. SALES OF CONDIMENTS BY SEGMENT 2011 $ Million % Market Share Pickles, olives and relish Mayonnaise Ethnic sauces Meat sauces Ketchup Mustard Other sauces Total 2,547 2,066 1,757 1,265 732 512 701 9,580 26.6 21.6 18.3 13.2 7.6 5.4 7.3 100.0 2012 (est.) $ Million % Market Share 2,530 2,148 1,778 1,274 743 508 727 9,708 26.1 22.1 18.3 13.1 7.7 5.2 7.5 100.0 Change 2011–2012 Total U.S. retail sales of condiments grew slightly from 2011 to 2012; pickles, olives and relish lead the category with a 26.1 percent market share. Mayonnaise is the second largest segment, accounting for 22.1 percent of sales, owing to new flavors and formulations, such as spicy varieties, flavor infusions and reduced-fat and -sodium options. Despite widespread use of ketchup and mustard, their low price point—as well as the popularity of private-label offerings in these segments—keeps dollar sales low. -0.7 4.0 1.2 0.7 1.6 -0.9 3.6 1.3 Total U.S. Retail Sales of Condiments by Segment, 2011 and 2012 SOURCE: MINTEL/BASED ON SYMPHONY IRI INFOSCAN REVIEWS; USDA, ECONOMIC RESEARCH SERVICE TOP 10 MOST POPULAR CONDIMENT CLAIMS Top 10 Claims Kosher All-natural product No additives/preservatives Low/no/reduced allergen Gluten-free Organic Premium Low/no/reduced fat Ethical—environmentally friendly package Ease of use Total 2007 224 117 103 31 28 65 60 35 2008 220 149 116 36 29 81 28 19 2009 119 95 83 58 53 17 31 20 2010 277 174 130 87 85 45 40 50 2011 237 170 134 115 109 39 41 47 2012* 110 57 52 62 62 10 24 13 Share % 2007–2012* 25.2 16.2 13.1 8.3 7.8 5.5 4.8 3.9 — 15 1057 4 28 841 11 18 666 43 27 913 57 32 848 24 16 382 3.0 2.9 — Condiment Launches, by Top 10 Claims, 2007–2012 Note: Share percentages don't add up to 100 as products can have more than one claim * Jan. 1–June 30, 2012 % Change 2007–2012 5.8 45.3 30.1 271.0 289.2 -400.0 -31.7 34.3 — 113.3 -19.8 SOURCE: MINTEL GNPD Gluten-free claims rose 289 percent from 2007 to 2012, while low/no/reduced-allergen claims rose 271 percent. Other Mintel research shows that 52 percent of condiment users are interested in products that are all natural; claims of this sort in product launches grew 45.3 percent during the same time period. Organic claims declined dramatically, and premium claims slipped as well, possibly due to manufacturer interest in keeping costs low for priceconscious consumers during a prolonged period of economic uncertainty. JANUARY/FEBRUARY 2013 109