Sauces, dressings and condiments market expected to reach $1.84B by 2013

Changing dietary habits, an increase in at-home consumption and growing health concerns including childhood obesity are fueling the growth of sauces, dressing and condiments in Australia.

According to Datamonitor’s latest report Sauces, Dressings and Condiments in Australia to 2013, the market for sauces, dressings and condiments clocked total sales of A$1.8 billion ($1.58 billion) in 2008.

Wet cooking sauces and seasonings contributed more than half of total sales.

In comparison, table sauces, dressings and pickled products together contributed about one-third of the total market, while condiments and dips formed the remaining share.

The increasing waistline of Australians is forcing consumers re-look their daily dietary habits.

According to the recent discussion paper by the Australian Government’s Preventative Health Taskforce, titled Australia: the Healthiest Country by 2020, obesity is one of the focal points in the government’s agenda to improve the average health of Australians.

This increased focus on obesity is also evident by the “Low Fat” claim which has become a regular feature in new product launches in the sauces, dressings and condiments category in Australia.

“Although the health trend is not new to the sauces category, an increased focus by the government will push manufacturers to address the health issue with greater liability,” says Niraj Lalka, senior consumers analyst at Datamonitor.

Valued at more than A$500 million in 2008, the wet cooking sauce category is currently the largest sauce category in terms of annual sales.

As an ingredient in daily cooking, wet cooking sauces are expected to attract a greater health focus.

Seasoning, which is the largest category in the sauces, dressings and condiments market, seems to have plateaued at the current market size of A$518 million, and is expected to grow at a marginal annual growth rate of 1% over the next five years.