The growing trend towards home-cooked meals amid the COVID-19 pandemic has fueled the demand for seasonings and sauces.
Subsequently, India’s seasonings, dressings and sauces market is projected to grow from INR217 billion (US$2.9 billion) in 2021 to INR290.6 billion (US$3.4 billion) in 2026, at a compound annual growth rate (CAGR) of 6.0%, says GlobalData.
The report finds that the market growth is mainly driven by the dressings category, which is forecast to register the fastest value CAGR of 11.2% during 2021–2026.
The dressings category is followed by the wet cooking sauces category, which is forecast to register a CAGR of 10.1% over the same period.
“In the backdrop of COVID-19, healthy diets have become a priority across all age groups, which is reflected in the growing consumer preference for seasonings, dressings and sauces with less sugar content,” says consumer analyst Bhavin Naik.
“Moreover, as restrictions continue to be imposed on foodservice venues and public places, consumers began prepping and consuming meals and snacks at home, and resulted in boosted demand for seasonings, dressings and sauces.”
Hypermarkets and supermarkets was the leading distribution channel in the Indian seasonings, dressings and sauces market in 2021, followed by convenience stores, and food and drinks specialists.
Per capita expenditure of seasonings, dressings and sauces in India increased from US$0.6 in 2016 to US$1.1 in 2021 and is expected to reach US$1.2 by 2026.
It was lower compared to both the global (US$11.4) and the regional (US$7.4) levels.
Tata Sons Limited, Unilever, and Nestlé were the top three companies in the Indian seasonings, dressings and sauces market by value in 2021, and Tata and Maggi were the leading brands.
“Consumers have become increasingly aware of the health benefits and advantages of home-cooking, and they are relying on seasonings, dressings and sauces to make their meals and snacks more appetizing with less effort,” said Naik.
“These consumers are pressuring manufacturers to launch seasonings, dressings and sauces in easy-to-use formats, and with formulations that contain more natural ingredients, less added-sugar, and no chemical additives.”