Abstract

The report looks at the sales of condiments in FDM channels. The market is divided into seven segments, and the top four segments- Mexican sauce, ketchup, barbeque sauce, and mustard- accounted for 77% of the total sales in the market in 2006. With the exception of Mexican sauce, all three top segments have exhibited less than desired sales performance.

To better understand the usage pattern and opportunity-enhancing attributes, Mintel conducted its exclusive survey. One important revelation is that consumers are most likely to look for low-sodium condiments, which are virtually non-existent on retail shelves.

In 2006, the market for condiments is estimated at $3 billion. Despite consumers' growing interest in bolder and ethnic flavors, the market growth has remained stagnant since 2001. Aging population, in part, has been responsible for less than optimistic sales growth, primarily due to absence of desired products by this population group. Competition from other food categories such as seasonings and marinades also present challenges. Condiments have suffered from over-exposure due to growing trend of eating out at quick service restaurants, which most of the time carry the same brands popular at retail.

The positive growth in the market is stimulated from a few niche premium brands in each category, indicating that many consumers have chosen to upgrade their choice of condiments. This report discusses the opportunities to attract consumers on the basis of flavors and other new product offerings.

This report covers the retail market for condiments purchased for at-home consumption. The following products are included in the report:

• Mexican sauce (including picante sauce, tomato salsa, and taco sauce)
• Ketchup
• Barbecue sauce
• Mustard (yellow, spicy/brown, Dijon, honey mustard)
• Steak/Worcestershire sauce
• Hot/Cajun sauce
• Others (chili/hot dog sauce, dairy/cheese sauce, horseradish/horseradish sauce, cocktail sauce, seafood sauce, and tartar sauce)

The following are not included in this report:

• Salt and pepper
• Seasonings (packets or bottles)
• Cooking sauces and marinades
• Oriental sauces (soy sauce, other oriental sauces)
• Pickles, olives, relish, and chutneys
• Herbs (dried, wet, frozen, and fresh)
• Spices
• Mayonnaise
• Salad dressings

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Market at a glance
• Hot/Cajun sauce attains maximum growth among all seven segments
• Top six manufacturers account for nearly 54% of market share
• Supermarkets command nearly all sales
• Flavor-oriented innovation will drive sales
• Consumers in the condiment market
• Market Drivers
• Households with children drive growth in the market
  • Figure 1: Use of condiments on food, by presence of children in household, October 2006
  • Figure 2: Households with children under age 18 present, 2001-05
• Health concerns affect the condiments market
• Aging population
  • Figure 3: Important attributes in the selection of condiments, by age, October 2006
  • Figure 4: Incidence of certain diseases, by age, 2003
  • Figure 5: U.S. population and projections, by age, 2001-11
• Natural and organic condiments attract consumers, but will remain niche category
• Lack of innovation by major players--consumers incline towards (niche) premium brands
  • Figure 6: Use of condiments on food, by race/ethnicity, October 2006
  • Figure 7: Population, by race and Hispanic origin, 2001-11
• Private labels versus national brands
  • Figure 8: Private label and branded product sales of condiments in the U.S., 2005 and 2006
• Many occasions to use condiments at home are taken away by dining out trend
• Market Size and Trends
• Market size
• Sales including Wal-Mart
  • Figure 9: Total U.S. retail sales of condiments, including Wal-Mart, at current and constant prices, 2001-06
• Sales excluding Wal-Mart
  • Figure 10: Total U.S. retail sales of condiments, through FDM channels excluding Wal-Mart, at current and constant prices, 2001-06
• Market trends
  • Figure 11: New product releases in condiments, 2001-06
• Natural positioning continues to be the top claim in 2006
  • Figure 12: New product claims, 2006*
• Flavor trends
  • Figure 13: Flavors of new condiments, 2006
• Market Segmentation
• Introduction
  • Figure 14: Condiment sales through FDM*, segmented by type, 2004 and 2006
• Mexican sauce
  • Figure 15: FDM* sales of Mexican sauce, at current and constant prices, 2001-06
• Ketchup
  • Figure 16: FDM* sales of ketchup, at current and constant prices, 2001-06
• Barbeque sauce
  • Figure 17: FDM* sales of barbeque sauce, at current and constant prices, 2001-06
• Mustard
  • Figure 18: FDM* sales of mustard, at current and constant prices, 2001-06
  • Figure 19: FDM* sales of steak/Worcestershire sauce, at current and constant prices, 2001-06
• Hot/Cajun sauce
  • Figure 20: FDM* sales of hot/Cajun sauce, at current and constant prices, 2001-06
• Others
  • Figure 21: FDM* sales of other sauces, at current and constant prices, 2001-06
• Supply Structure
• Company and brand sales
  • Figure 22: FDM* sales of major manufacturers in the condiments market in the U.S., 2005 and 2006
• Mexican sauce
  • Figure 23: Selected brand sales and market share of Mexican sauce at FDM* in the U.S., 2005 and 2006**
• Ketchup
  • Figure 24: Selected brand sales and market share of ketchup at FDM* in the U.S., 2005 and 2006**
• Barbeque sauce
  • Figure 25: Selected brand sales and market share of barbeque sauce at FDM* in the U.S., 2005 and 2006**
• Mustard
  • Figure 26: Selected brand sales and market share of mustard at FDM* in the U.S., 2005 and 2006**
• Steak/Worcestershire sauce
  • Figure 27: Selected brand sales and market share of steak/Worcestershire sauce at FDM* in the U.S., 2005 and 2006**
• Hot/Cajun sauce
  • Figure 28: Selected brand sales and market share of hot/Cajun sauce at FDM* in the U.S., 2005 and 2006**
• Others
  • Figure 29: Selected brand sales and market share of other sauces at FDM* in the U.S., 2005 and 2006**
• Manufacturers' profiles
• Kraft Foods Inc.
• H.J. Heinz Company
• Frito-Lay North America (FLNA)
• Campbell' s Soup Company
• ConAgra, Inc.
• Advertising and Promotion
• H. J. Heinz Company
  • Figure 30: Heinz FridgeDoor Fit ketchup packaging TV ad, 2006
• Reckitt Benckiser
  • Figure 31: French' s mustard upside down packaging tv ad, 2006
• Campbell' s Soup Company
  • Figure 32: Campbell' s Pace salsa--three tv ads, 2006
• McIlhenny Company
  • Figure 33: McIlhenny Tabasco sauce tv Ad, 2006
• Frito-Lay
• Retail Distribution
• Overview
  • Figure 34: U.S. retail sales of condiments, by channel, 2004 and 2006
• Supermarkets
  • Figure 35: U.S. supermarket sales of condiments, at current and constant prices, 2001-06
• The Consumer
• Introduction
• Capsule summary
• Household consumption of condiments
  • Figure 36: Household usage of condiments, by race/ethnicity, May 2005-June 2006
• Frequency of consuming condiments
  • Figure 37: Frequency of consuming condiments, by race/ethnicity, May 2005-June 2006
• Use of condiments on food
  • Figure 38: Use of condiments on food, by age, October 2006
  • Figure 39: Use of condiments on food, by presence of children in household, October 2006
• Consumption of condiments to prepare food
  • Figure 40: Use of condiments to prepare food, by gender, October 2006
  • Figure 41: Use of condiments to prepare food, by age, October 2006
  • Figure 42: Use of condiments to prepare food, by race/ethnicity, October 2006
• Preference for flavors in condiments
  • Figure 43: Preference for new flavors, by age, October 2006
  • Figure 44: Preference for new flavors, by presence of children in household, October 2006
• Opinion on using condiments
  • Figure 45: Condiment purchase behaviour, by gender, June 2006
• Important attributes in the selection of condiments
  • Figure 46: Important attributes in the selection of condiments, by gender, June 2006
  • Figure 47: Important attributes in the selection of condiments, by age, June 2006
  • Figure 48: Important attributes in the selection of condiments, by presence of children, June 2006
• Choice of retail channels to purchase condiments
  • Figure 49: Choice of retail channels to buy condiments, by age, June 2006
  • Figure 50: Choice of retail channels to buy condiments, by income, June 2006
  • Figure 51: Choice of retail channels to buy condiments, by presence of children in household, June 2006
• Choice of potential new flavors
  • Figure 52: Choice of potential new flavors, by gender, October 2006
  • Figure 53: Choice of potential new flavors, by age, October 2006
  • Figure 54: Choice of potential new flavors, by income, October 2006
  • Figure 55: Choice of potential new flavors, by race/ethnicity, October 2006
• Choice of branded and private label condiments
  • Figure 56: Preference for brands and private labels, by age, October 2006
  • Figure 57: Preference for brands and private labels, by age, October 2006
  • Figure 58: Preference for brands and private labels, by income, October 2006
  • Figure 59: Preference for brands and private labels, by income, October 2006
• Placement of condiments in supermarkets
  • Figure 60: Placement of condiments in supermarkets, by gender, October 2006
• Kids' consumption of ketchup
  • Figure 61: Children' s cosnumption of ketchup, May 2005-June 2006
• Children' s preference for ketchup
  • Figure 62: Children' s consumption of ketchup, by gender, May 2005-June 2006
• Future and Forecast
• Future trends
• International flavors will continue to see increased growth
• Restaurants and chefs--instrumental in making regional flavors popular
• Low-sodium condiments are capable of driving positive growth
• Consolidation among manufacturers is inevitable
• Market forecast
• Condiments
  • Figure 63: Forecast of total U.S. FDM sales of condiments, including Wal-Mart, at current and constant prices, 2006-11
  • Figure 64: Forecast of total U.S. FDM sales of condiments, excluding Wal-Mart, at current and constant prices, 2006-11
• Mexican sauce
  • Figure 65: Forecast of U.S. FDM sales of Mexican sauce, at current and constant prices, 2006-11
• Ketchup
  • Figure 66: Forecast of U.S. FDM sales of ketchup, at current and constant prices, 2006-11
• Barbeque sauce
  • Figure 67: Forecast of U.S. FDM sales of barbeque sauce, at current and constant prices, 2006-11
• Mustard
  • Figure 68: Forecast of U.S. FDM sales of mustard, at current and constant prices, 2006-11
• Steak/Worcestershire sauce
  • Figure 69: Forecast of U.S. FDM sales of steak/Worcestershire sauce, at current and constant prices, 2006-11
• Hot/Cajun sauce
  • Figure 70: Forecast of U.S. FDM sales of hot/Cajun sauce, at current and constant prices, 2006-11
• Other sauce
  • Figure 71: Forecast of U.S. FDM sales of other sauces, at current and constant prices, 2006-11
• Appendix: Trade Associations
• Appendix: New Product Briefs