The Indian seasonings, dressings & sauces (SDS) sector is expected to grow from INR186.3bn (US$2.6bn) in 2019 to INR270.3bn (US$3.5bn) by 2024, recording a compound annual growth rate (CAGR) of 7.7%, says GlobalData, a leading data and analytics company.

GlobalData’s report, ‘India Seasonings, Dressings & Sauces – Market Assessment and Forecasts to 2024’ reveals that the sector is particularly driven by growth in the condiment sauces category, which is forecast to register the fastest CAGR of 12.4% during 2019–2024. The category is closely followed by ‘tomato pastes & purees’, which is expected to record a CAGR of 12.3% during the next five years.

Mohammed Masiuddin Shajie, Consumer Analyst at GlobalData, says: “Growing popularity of international cuisines, such as Chinese and Italian, is driving the condiment sauces category in India. Moreover, the increasingly busy lifestyle of urban consumers is fueling the demand for SDS products such as tomato pastes & purees, and chutneys & relishes, as these products help the time-pressed consumers to prepare a quick meal.”

The report further reveals that ‘herbs, spices & seasonings’ was the largest category with value sales of INR100.6m (US$1.4bn) in 2019. The category also led the sector in volume terms with sales of 3,342.6 million kg in the same year. The per capita consumption of herbs, spices & seasonings stood at 2.5kg in India, which is not just higher than other SDS products in the country, but also significantly higher compared to Asia-Pacific (APAC) and global levels.

Hypermarkets & supermarkets accounted for the majority share of 70.4% in the distribution of seasonings, dressings and sauces in 2019. It is followed by convenience stores and food & drinks specialists, which held shares of 22.4% and 6.7%, respectively in the same year.

Tata Sons Limited, Unilever and Nestle SA are the leading players in the Indian SDS sector. Tata, Kissan, Maggi and Everest are the most popular brands in India. On the other hand, private labels held a value share of just 4.6% of the overall SDS sales in 2019. However, in the dressings category, these retailer brands accounted for 12.9% share in the same year. Moreover, private labels are growing at a higher CAGR than brands, as they are perceived as value for money products by consumers in the Indian SDS market.

Shajie concludes: “Although, the market for seasonings, dressings and sauces with health and wellness (H&W) claims is at a niche stage in India, with growing health awareness among the consumers, this is expected to grow in the next five years. Food intolerance attributes such as ‘gluten-free’ is expected to be the most sought after H&W claim in the sector.”