Driven majorly by dry cooking sauces category, the Australian seasonings, dressings & sauces market is projected to expand from AUD3.9bn ($2.9bn) in 2021 to AUD4.6bn ($3.4bn) in 2026, at a compound annual growth rate (CAGR) of 3.1%, forecasts GlobalData, a leading data and analytics company.

GlobalData’s report, ‘Australia Seasonings, Dressings & Sauces – Market Assessment and Forecasts to 2026’, reveals that the dry cooking sauces category is forecast to register the fastest value CAGR of 3.9% over 2021–2026. The category will be followed by tomato pastes and purées, which is expected to record a CAGR of 3.5% over the same period.

Anush Shaw, Consumer Analyst at GlobalData, says: “Australian families have been more inclined to consume home-cooked snacks and meals since the pandemic began. Many consumers took up cooking to relieve the monotony of the prolonged stay at home and tried out new recipes to elevate the at-home consumption experience for their family.

“This has been fuelling sales of seasonings, dressings and sauces. Additionally, the rising interest in health foods such as salads among health-conscious consumers is driving demand for salad dressings.”

Accordingly, the per capita expenditure (PCE) on seasonings, dressings & sauces in Australia increased from US$34.6 in 2016 to US$55.5 in 2021. By 2026, the PCE is expected to reach US$60.8 — far higher than the regional average of US$9.1, and the global average of US$13.8.

​‘Hypermarkets & supermarkets’ was the leading distribution channel in the Australian seasonings, dressings & sauces market in 2021, followed by convenience stores, and food & drinks specialists.

Mars Incorporated, Goodman Fielder, and Campbell Soup Company were the top three companies by value in 2020, and Master Foods and Praise were the leading brands.

Shaw concludes: “The growing propensity among the Australian consumers to explore new tastes and experiment with exotic flavors is generating new growth opportunities in the seasonings, dressings & sauces market. The seasonings, dressings & sauces industry needs to address the consumer demand for products with natural formulations, convenient formats, variety of flavors, food safety, value, and health and wellness attributes. Manufacturers also need to pay attention to the growing preference among Australian consumers for local brands and products.”