Interest in packaged sauces, dressings, and
condiments has been rising in the United States (US), a big boost in retail as
eating occasions of consumers, especially millennials, move into their homes
amid the coronavirus and the restrictions.
The Euromonitor Digest said emerging and premium
brands are still positioned for growth over the next few years with their
expected renewed focus on innovative products as restrictions are lifted.
“When it comes to sauces, dressings, and
condiments, consumers increasingly want to experiment with new products that
can add flavor and excitement to their meals. The millennials are key drivers
behind this trend, with younger generations placing a greater focus on experiences.
Also, with a looming economic recession, pricing will remain an important
consideration for many shoppers,” said the monthly online publication of the
Department of Trade and Industry-Export Marketing Bureau (DTI-EMB).
The report said consumers may be willing to
spend the extra money for a better product especially if they feel that they
are saving money by not ordering foodservice.
“These contrasting demands could create space
for the further expansion of private labels, with producers often able to
deliver premium products but at more competitive prices than the equivalent branded
options,” it added.
The Euromonitor Digest said private labels have
also seen dynamic growth in 2020 due to the economic downturn, with its
competitively priced pasta sauces attracting the interest of price-conscious households.
Moreover, the report said the shift in shopping
behavior towards e-commerce could become permanent as many consumers have
turned to e-commerce as a convenient way to stock up on groceries.
“Innovations on the part of the retailers to
make online grocery shopping even more convenient will serve to boost
e-commerce further over the forecast period,” it said.
It said the demand for convenience was a key
growth driver within packaged food.
“As consumers will increasingly have busy lives,
manufacturers had to make their products be more portable and should help
consumers save time while still providing a good taste,” it added.
The Euromonitor Digest said the coronavirus
disease 2019 (Covid-19) saw many consumers being forced to work from home,
allowing more time to prepare and eat meals.
“However, once Covid-19 is contained and people
begin heading back to the office and school, time-saving will likely regain its
importance and consumers will again start seeking out ways to minimize the time
spent on preparing meals. As such, shoppers will likely look into sauces,
dressings, and condiments for support in creating quick, easy,
and tasty meals,” it said.
Source: PHILEXPORT News and Feature
July 19, 2021
