23 Dec 2020
Posted in Consumer
APAC seasonings, dressings & sauces sector to reach US$70.2bn in 2024, forecasts GlobalData
The Asia-Pacific (APAC) seasonings, dressings & sauces sector is the largest in the world and is expected to reach US$70.2bn in 2024, growing at a CAGR of 6.2% during 2019-2024. Improving standard of living and exposure to international cuisines are spurring the demand for the sector in the region, says GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Opportunities in the Asia-Pacific Seasonings, Dressings & Sauces Sector’, reveals that the condiment sauces category led the sector in value terms and is projected to register highest value CAGR at 6.4% over 2019-2024.
New Zealand, Japan, Vietnam and China emerged as the high-potential countries based on GlobalData’s unique scoring system, which involves the risk-reward analysis derived from multiple metrics. These metrics include market size and growth assessment, and political, economic, social, and technological assessment of 26 major economies in the APAC region.
The report states that China was the largest market in the seasonings, dressings & sauces sector in the region, in both value and volume terms in 2019. China is forecast to register highest value growth during 2019–2024 while Vietnam is projected to register the highest volume growth during the same period.
Sanchi Agarwal, Consumer Analyst at GlobalData, says: “The APAC region is expected to register the fastest growth during 2019–2024 on account of rising disposable income in developing countries across the region, which enables consumers to spend on premium sauces for a rich, gourmet experience at home. Moreover, the increasingly busy lifestyle of urban consumers is fueling the demand for SDS products as these products help the time-pressed consumers to prepare a quick meal.”
The dry cooking sauces consumption is expected to increase in all high potential countries except China while herbs, spices & seasonings is expected to decrease in consumption share in all APAC countries except Vietnam and Japan. Among the high-potential countries, the consumption share of chutneys & relishes, dips and tomato pastes and purées are forecast to increase only in New Zealand. The consumption share of dressings and wet cooking sauces is expected to increase in only China among all high potential countries.
Shanghai Totole Flavouring Food Co. Ltd., Kikkoman Corporation and Lee Kum Kee are the leading market players in the APAC seasonings, dressings & sauces sector. Shanghai Totole Flavouring Food Co. Ltd held the highest value share in the bouillons & stocks and condiment sauces categories in 2019. With the presence of majority of the leading companies, condiment sauces remained the most competitive category in the APAC in 2019. Sensory indulgence and health & wellness are the top trends that get along very well with the APAC seasonings, dressings & sauces sector.
Ms. Agarwal concludes: “Consumers in the APAC region are paying huge attention to food ingredients and increasingly opting for products with health & wellness claims such as natural, food minus and free from. Thus, manufacturers in the seasonings, dressings & sauces sector need to identify a suitable alternative to bad ‘elements’ such as salt to ensure product stability and appeal to these consumers.”