Consumers are expected to dine out more often as consumer spending grows
New York, NY (PRWEB) April 28, 2015
The Seasoning, Sauce and Condiment Production industry benefited from increased demand for its products over the past five years. Armed with thicker wallets, as represented by a rise in per capita disposable income, some consumers chose to trade up to premium and more expensive brands, sustaining industry growth. Despite the positive effect of higher income levels, higher prices curbed demand for dressings and condiments at retail stores. Due to higher input costs, manufacturers raised their product prices to maintain earnings. Consequently, many consumers continued to purchase discounted and promoted items at grocery stores or turned to generic brands due to increasing prices, restraining industry growth in the latter half of this period. Overall, IBISWorld expects industry revenue to grow over the five years to 2015, including a projected increase of 2.6% in 2015.
According to IBISWorld Industry Analyst Melissa Imbruglia, “Other factors that influenced the performance of manufacturers during this period include growing health and nutrition concerns among consumers.” Increasing knowledge of the consequences of eating food with high fat and sodium content has caused some consumers to shun fatty and salty condiments and sauces. Consequently, manufacturers have expanded their product lines by introducing healthier brand extensions to appeal to this growing consumer segment. Additionally, the increasing popularity of ethnic cuisines and flavors has spurred demand for imported goods, intensifying the level of competition that domestic producers face. However, manufacturers benefited from the growing foreign demand for sauces and condiments produced in the United States, as exhibited by growing exports.
The industry's future prospects are positive, with demand for seasoning, sauce and condiments expected to remain consistent. “Consumers and restaurant chains alike are expected to continue to adapt to ethnic trends in cuisine, reflecting the increasingly diverse US population,” says Imbruglia. Additionally, consumers are expected to dine out at restaurants more often as consumer spending grows, lifting demand from foodservice providers. As a result of these trends, IBISWorld projects revenue to grow over the five years to 2020. In addition, industry profitability is expected to rise as operators pass down input prices and preparation costs to consumers.
For more information, visit IBISWorld’s Seasoning, Sauce and Condiment Production in the US industry report page.
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IBISWorld industry Report Key Topics
The Seasoning, Sauce and Condiment Production industry manufactures products such as mayonnaise, dressings, spices, extracts and dry food mixes from a variety of ingredients. Industry products are then sold to downstream wholesalers, food manufacturers and retail markets. Ketchup and other tomato-based sauces are excluded because they are part of the Canned Fruit and Vegetable Processing industry (IBISWorld report 31142).
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.