Hot sauces drive condiments growth across Amazon, and Mayo is back at brick and mortar.
Hot sauce was a leading driver behind condiments sales on Amazon in the past 12 months. Meanwhile, more classic condiments such as mayonnaise, ketchup and barbecue sauce saw a much larger share of brick and mortar space sales, but a smaller share of sales on Amazon, according to a recent webinar hosted by C.A. Fortune and SPINS.
Sales of condiments on Amazon saw a 3% increase in the past 12 months compared to one year ago. Additionally, condiments sales growth officially reached $225 million in the past year, marking a three-year high for the category after slight declines one year ago.
“Within the Amazon space, we start to see a very different picture than we did in the brick and mortar space,” says Jessica Schmidt, the senior vice president of Business Intelligence at C.A. Fortune. “Where we saw those classic condiments such as mayo, ketchup and mustard seeing strong growth and a large share, we’re actually seeing significant declines and also much smaller share of the category compared to in the brick and mortar space.”
In an effort to keep tabs on the latest changes in the sauces and condiments industry, C.A. Fortune and SPINS co-hosted a perspective on sauces and condiments webinar. The event focused on the four key consumer mentality shifts that brands need to focus on to succeed: lifespan to healthspan, new global notions, protecting the planet and intentional indulgence.
Beginning with lifespan to healthspan, this mentality shift signifies consumers are trying to find healthier options in the sauces and condiments category. In the past year, there has been a 21% growth in sales of condiments, dressings and marinades with probiotics. Additionally, the spotlight has increasingly shifted onto seed oils, which tend to have negative health effects.
“When we think about lifespan to healthspan, there’s a focus on seed oils. [Consumers are asking]: ‘Are these products damaging to my overall health? What are the implications of having seed oils?’” says Alice Mintz, Director of Solutions Architecture at SPINS. “When you’re thinking about your product, when you’re thinking about risks, where it could go wrong and what someone could criticize you for, that is typically where you’ll find your next ankle-biting competitor.”
In addition to consumers thinking more about their health, new global notions are challenging the sauces and condiments sector. Region specific sauces, such as Blue’s Hog barbecue sauce from Memphis, Tennessee, are beginning to take center stage. Additionally, brands are now more likely to tell the story of their region, and consumers are more likely to appreciate their elevated storytelling.
Many food sectors have seen consumers care more about sustainability in recent years, and the sauces and condiments category is no different. Consumers are continuously searching for condiments that use sustainable ingredients and have elevated levels of certification. In the past year, there has been a 10% increase in sales of specialty condiments that use the perennial plant konjac as an ingredient.
“Consumers continue to think about how their choices impact the health of their families, the flora, the fauna and the farm workers of the community that we live in,” says Mintz. “An interesting way that we’re seeing this come to fruition is with different sustainable bases and sustainable elements that you can add to your products. Looking for these products that have a strong supply chain, are in abundance and also provide a functional benefit is a way to tap into these notions and desires of today’s consumers.”
The fourth and final consumer mentality shift being observed is one of intentional indulgence. As the sauces and condiments category evolves, consumers look for new forms of familiar products, as well as innovation in the space and surprise combinations. A prime example of this is the reinvention of mayonnaise, which has seen an increased amount of flavors enter the market in recent years.
“Mayonnaise was once demonized. It was lightened up, it was whipped, it was set to the side because it did not align with diets that people were adopting,” says Mintz. “We saw this really change with Primal Kitchen when they changed the base of their mayonnaise and ‘premiumized’ the space, and we continue to see this premiumization happening based on what the core foundation of mayonnaise is.”
As the sauces and condiments sector continues to evolve, brands will need to do their best to keep up with the ever-changing consumer mindset. In order to do so, C.A. Fortune and SPINS recommend three tips to succeed in the future of sauce: focus on the base by gameplanning around functionality and form, hone your heritage through innovative storytelling, and be multi-purpose by accelerating purchases through your packaging.
If you’re interested in reaching out to C.A. Fortune or SPINS to learn more about how they can help your business, please contact growth@spins.com and businessdevelopment@cafortune.com.