In terms of value, the annual rate of growth in the condiments and sauces market, as defined by this report, fell from 3.4% in both 2002/2003 and 2003/2004, to only 1% in 2004/2005 (years to August).
This is attributed largely to sales peaks in 2003/2004 for some table sauces, followed by falls in 2004/2005, and declines in most of the condiments markets.The market in total has been driven by a number of factors.
These include brand extensions as long-standing brands have moved into allied or developing market segments; the launch of low-fat and low-carbohydrate variants, notably in salad accompaniments and particularly in response to the Government's anti-obesity campaign; changing eating habits regarding the demise of weekend roasts and cooked breakfasts; the growing popularity of barbecue meals; the effect of television cookery programmes and recipes from celebrity chefs; and the changing demographics within the population.
This last relates to the differing penetration levels of condiments and sauces among older and younger persons.
These factors are having both positive and negative effects on the overall market.Thick and thin table sauces, salad accompaniments, and pickles, chutneys and relishes continue to account for a combined 74.7% value share of the condiments and sauces market.
The largest part of the remaining 25.3% share is held by dish-specific sauces, with smaller shares held by salt, pepper, vinegars, mustards and marinades.The mid-2005 acquisition of the HP Foods business from Danone has reinforced HJ Heinz' position as the major player in condiments and sauces.
Other significant manufacturers are Unilever Bestfoods, Premier Foods, Baxters Foods, RHM Foods, McCormick and Kraft Foods, although these companies tend to be strong in particular sectors of the market only.
However, the overall share of the market held by these companies' brands is estimated by Key Note to have fallen since the previous Market Assessment report on Condiments and Sauces, in favour of smaller brands manufactured or supplied by a number of other companies.
The share held by retailers' own-label products, which are largely made by the major manufacturers and which will add to these companies' absolute share of the market, is estimated to have remained static.The growth rate in the condiments and sauces market is predicted to increase slightly in 2005/2006 from the 1% level in 2004/2005, although it is forecast to stay in the 0.8% to 2.2% per annum range for the period from 2005/2006 to 2009/2010.