The total ‘eating enhancer’ (table sauces, dressings and condiments) category is worth over £70m in the convenience channel, an increase of +8.5% over the last year, according to Unilever’s Partners for Growth category advice programme.
Mayonnaise is the largest subcategory with 33% share, closely followed by ketchup with a 23% share – both are key products due to their year-round appeal.
Areas of growth within the category also include flavoured mayonnaise, squeezy formats, salad dressings and other thick sauces such as BBQ and hot sauces.
Home-prepared sandwiches offer a key opportunity for c-stores as they are the biggest food occasion in the UK, representing 9% of all food occasions (equating 5.9 billion, Kantar). They are the single most important food occasion for table sauces and dressings, with 31.4% (Kantar) of all dressings and table sauces being used on a sandwich.
Summer is an important time for this category as consumers BBQ and look to add flavour to their meals. BBQ and Hot Sauces saw a +19% increase in Unit Sales. Stores can encourage incremental purchases by placing complementary products next to each other to prompt purchase – e.g. tomato ketchup by burgers and sausages, mayonnaise/salad dressings by salad bags.
Taste is still the number 1 driver in the category, which has led to a huge increase in non-traditional sauces such as hot and spicy and speciality dressings.
The changing seasons are a huge influencer in the consumption of table sauces. “Summer is a very important season for the table sauces, dressings and condiments category because of BBQs and summer parties. But don’t forget Christmas – condiments is the fastest growing subcategory (Nielsen) during this period so make sure you are well stocked in Cranberry Sauce, Mustard etc” says Lucy Richardson, Unilever UK Category Director.
“With 99% of households buying these products, they are key top-up items in convenience stores. That’s why it is so important to have the top sellers available. If the customer can’t see it or it isn’t available, they will simply shop elsewhere.”
Bing-yu Lee, General Manager, Kikkoman UK, comments: “The gluten free value share of the total soy sauce market remains steady at 8.9% (IRI). It has been gaining popularity over the last few years with increases year on year. Kikkoman is driving the market forward with its Tamari Gluten-Free Soy Sauce, up 4% in value year on year, despite price increases of between 10-15% since pre-pandemic pricing. It has a commanding 66% MAT value share of the sector, up from 64% a year ago (IRI).”
Consumer feedback on Kikkoman Naturally Brewed Soy Sauce suggests that its growing popularity is due to it being a completely natural product with no artificial additives or preservatives. And because it’s vegan friendly it is used increasingly to flavour plant-based foods and meat alternatives.
Kikkoman 150ml soy sauce dispenser remains the brand’s best-selling product. This is followed by Teriyaki Marinade, Tamari Gluten-Free Soy Sauce, Soy Sauce 250ml, and Less Salt Soy Sauce in 150ml.
By far the most popular pack format for soy sauce is still 150ml accounting for 80% of value purchases.
Kikkoman has recently added a host of new products to its portfolio. Kikkoman Mirin-fu, Toasted Sesame Oil, Seasoning For Sushi Rice, Panko Breadcrumbs, Ramen Soup, Sesame Sauce and a Sushi Sauce.
Kikkoman Mirin-fu is a sweet style cooking seasoning with a rich mellow taste and mild sweetness and adds a shine to glazes, dips and stir fries. Compared to traditional mirin, a type of rice wine that’s typically 14% alcohol, Mirin-fu has just 0.3%. Produced using Kikkoman’s original fermentation technique, it works well with other fermented seasonings such as soy sauce, miso and vinegar.
Kikkoman Toasted Sesame Oil is a heart-healthy oil made with 100% pure toasted sesame seeds adding a burst of nuttiness to cold dressings, marinades and dips, or drizzle into sizzling stir fries, noodles and soups at the end of cooking.
Seasoning For Sushi Rice is Kikkoman’s special rice vinegar blend with a particularly low acidity. The balance of sweet, salty, sour and umami means it’s used in salad dressings, sushi, pickles, marinades and deglazing.
Kikkoman Panko – Japanese Style Crispy Breadcrumbs is made from a special crustless white bread that’s very finely ground and dried, resulting in micro-flakes which are lighter than traditional breadcrumbs. It absorbs less oil and fat, giving roasted, deep-fried and baked foods a lighter, crisper texture.
Kikkoman Ramen Soup taps into the growing popularity of ramen dishes. Just add water to this concentrated ramen noodle soup base and add additional ingredients as required. Suitable for vegans and available at an RRP of £4.99 for a 250g bottle.
Kikkoman Sesame Sauce, made from lightly toasted sesame seeds with a creamy consistency to add richness to hot and cold dishes from pasta to salads and sandwiches, is available in a 300g squeezy bottle. In the same packaging format and size is Kikkoman Sushi Sauce. It’s based on its famed Naturally Brewed Soy Sauce but with a smooth and thicker consistency and suitable for vegans. Both Sesame Sauce and Sushi Sauce are at an RRP of £3.35.
Kikkoman Mirin-fu, Toasted Sesame Oil and Seasoning For Sushi Rice are available in handy 125ml bottles at an RRP of £1.85, £2.65 and £1.85 respectively and Kikkoman Panko in 227g boxes, currently RRP £3.40.
Latest IRI data from May 2023 shows the soy sauce market up 7.2% in value and 4.3% in unit sales with a total market value of £33.8M. In fact, unit sales over the last 12 weeks have seen a healthy 10% sales increase versus last year. Kikkoman remains the number one brand at 32.4% value share.
The teriyaki sector is up in value sales versus last year driven in part by price inflation, but unit sales remain slightly behind as consumers rein in spending. Sales on promotions are a fraction higher than last year which could be explained by consumers waiting to purchase when promotions are running. Kikkoman Teriyaki Marinade remains the leading brand with a 36.3% value share, up 4% year on year.
While price inflation is impacting all soy sauce brands, Kikkoman is benefitting well from its price promotional activity. “In these challenging trading times it really is survival of the fittest. We are seeing good brand loyalty to Kikkoman Soy Sauce, and we want to repay this loyalty by a strong price promotional plan. Consumers tell us that Kikkoman scores the highest on taste. They also like that it is naturally brewed (fermented) over a long time and contains only pure ingredients with no additives,” says Lee.
“The best advice is to stick with the soy sauce brands that are guaranteed to move quickly, those that have a strong growth record and where there is major support behind the brand,” adds Lee.
Towards the end of this year Kikkoman will be supporting the brand with a hard-hitting winter digital campaign based around cooking inspiration and sharing of recipes. This will lead into a heavy promotional period around Chinese New Year. A new digital BBQ campaign supporting Kikkoman Soy and Teriyaki brands is scheduled to take place in spring 2024.
“It would be great to see wholesalers running strong promotions, ensuring brands have a big on and off-shelf presence, off-shelf displays work very well and features front of depot, especially around bit dates in the calendar such as Chinese New Year,” continues Lee.
Charlie Holland, Head of Vadasz, part of The Compleat Food Group, comments: “In the whole sauces and condiments category, ambient ‘Pickles, Table Sauce and Condiments’ is immensely popular, valued at £1.3bn with 98% of the UK population buying into it (Kantar). Within this, ambient ‘Pickles, Chutneys and Relish’ are very well established, with the category worth over £124m (Kantar).”
What’s now emerging is a vibrant, new innovative category in ‘Chilled Pickles and Ferments’, which has grown from a very small base to being worth almost £9m in the last three years and is currently up +44% versus the same period last year (Circana).
“The driving force behind this growth is that these products satisfy a number of consumer trends, including health, experimentation with flavours, and meal elevation at home. These are shopper missions we’re seeing across both the grocery multiples and the convenience channel,” adds Holland.
Currently, 86% of the population are trying to improve their diet, with 9% eating foods that directly support their gut health (IGD). This is being reflected in the increased consumer interest in natural and fermented products, which offer functional health benefits.
Recent trends also show that consumers want to experiment more boldly with flavour, with umami, tart and tangy flavours all growing in popularity (The Food People), which pickles and ferments, with their complex taste profiles, are well placed to satisfy.
As the cost of living continues to put pressure on household budgets, consumers are seeking out premium options that they can enjoy at home at a lower price point to dining out. Condiments like kimchi, sauerkraut and pickles help to elevate ordinary, at-home dishes, as they not only add a delicious punch of flavour, but their vibrant colours and crunchy textures add a wow factor to the plate as well.
“Our brand Vadasz is the market leader in Chilled Pickles and Ferments, with a range of fresh kimchi, sauerkrauts and pickles that cater for all three of these consumer demands. Our products are helping to elevate dishes through incredible taste, texture and colour, while appealing to the health-conscious consumer thanks to a variety of gut-friendly ingredients,” says Holland.
“Our top selling products include Kimchi, which taps into the demand for exotic ingredients, helping consumers recreate exciting restaurant quality dishes at home. Other popular products include our Raw Garlic & Dill Sauerkraut, which pairs perfectly with hotdogs at a BBQ, and our Super-Beet Kimchi, which offers a twist on the popular Kimchi but with the flavour profile and health benefits of beetroot.”
In 2023 we have seen multiple trends in the wider food sector that have had a direct correlation with the sauces and condiments sector.
A wider trend within the food industry this year has been a more considered approach to food and cooking by using up leftovers in an innovative way so nothing is wasted. This is a great trend that then directly affects the sauces and condiments sector as there are so many ways to use them to elevate a leftover meal. Cornish Sea Salt is focusing on cupboard staple blends, such as Smoked Paprika sea salt blend or mixed herbs. Both of these blends use everyday ingredients that then can be used to elevate leftovers.
On a similar theme, thrifty cooking has been a big trend throughout this year, including batch cooking and freezer food cooking. Using a condiment / sauce can elevate a simple dish which is what Cornish Sea Salt’s Simple Seasoning range is all about. In 2023 the brand launched its Chip Salts blends with this very much in mind. They can be used with frozen oven chips to elevate them and give them a real kick of flavour.
Earlier this year Cornish Sea Salt launched its chip salt range in Peri Peri and Chicken, created specifically for chips and suitable for vegetarians and vegans. Skin on, skin off, frozen or homemade, chunky wedges or skinny fries, these can be sprinkled over piping hot chips of choice fresh from the oven or air fryer for a flavour explosion.
The brand also launched best-selling Really Garlicky in a 130g pot due to its popularity and demand from customers. Garlic Sea Salt is a special blend of sea salt and roasted garlic. Depth of flavour and a mellow sweetness is added by slow-roasting garlic bulbs. Really Garlicky can substitute fresh garlic in any recipe, and a pinch and a scrunch is all it takes to get the same great flavour.
The gourmet salt market was valued at $289 million in 2021 and is projected to register a CAGR of 6.61% from 2022-2027. Kantar reported Cornish Sea Salt is performing at a higher growth rate than the category. Cornish Sea Salt is the fastest growing UK sea salt with sales globally growing 58% in the past 5 years moving from £3.5 million to £5.6 million turnover.
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