Table Sauces are the new eye candy for food industry in India: Bonafide Research
Fast urbanization, rise in disposable incomes in the age group that likes experimenting with food, and busy lifestyle are helping Indian consumers to adapt to sauces, dressings, and condiments. Companies are coming up with more inventions & expansions of their brands which is making consumers more inclined towards an easy solution for their daily life habits.
According to a recently published report of Bonafide Research, “India Table Sauces Market Outlook, 2021”, the total market size of table sauces is anticipated to cross INR 5,000 crore by 2021. The demand for sophisticated taste in a meal is becoming an emerging trend in the food industry that is making a positive impact on the table sauces market in India.
NANDO’S – NEW PLAYER ENTERING THE RETAIL MARKET
In May 2017, South African restaurant chain – Nando’s – forayed into the retail sauce market in India. Globally, the company has something called the grocery division which specializes in FMCG business. Unlike selling the sauces in just their 12 restaurants, the brand is now selling them with retail partners and is also available for online sales. Nando’s has introduced six Peri-Peri sauce flavors in India priced at Rs. 390 for 250 ml and Rs. 250 for 125 ml. The brand, which has sauces, marinades, and a lot of many products in its portfolio globally, now wants to create a popular culture in India. It aims to be an ultimate ingredient in the country, along with a local positioning even when it is a global chain. In the next five years, Nando expects to sell around two million bottles every year and enter around one million Indian households. Their plan is to be in more than 2,000 stores within the next two years. Globally, the brand already has an app that is active in the UK, Malaysia, and other countries and soon it is planning to introduce it in India. The brand is also planning to introduce the delivery system which is completely connected to the consumer where the consumer places an order on the app, the confirmation comes, the consumer knows which driver is coming with the food, how much delivery time it will take, track the driver, etc; thus giving the complete power to consumers.
EXPANSION OF EXISTING PLAYERS
Specialty condiments manufacturer and supplier Veeba Food Services has raised about Rs. 40 crore in fresh funding, in a round led by Belgian family office Verlinvest and venture capital firm Saama Capital. Proceeds from the Series B round will be utilized by the Delhi-headquartered company to further build its manufacturing infrastructure, strengthen its distribution network and marketing. Founded in 2013, Veeba caters to both – institutional and retail segments. It supplies to some of the country’s largest quick-service chains – a list that includes, Starbucks, Domino’s, Pizza Hut, Taco Bell, and Burger King, among others. It also entered the retail space, offering specialty sauces, preserves, and dressings in 2015.
Not only expansion is happening in the Indian market, but players with a global reach are also expanding widely. After more than a century climbing to and holding its position as one of the largest global producers of Chinese sauces, Hong-Kong-based company Lee Kum Kee is set to enter a new phase of transformation with its expansion in South-east Asia. The firm had first entered South-east Asia via markets such as Singapore and Malaysia, which had a strong consumer base. Their focus is to tap mainstream consumers who are not Chinese. For its South-east Asia expansion, Lee Kum Kee intends to focus on developing countries where its sauces are already sold, and increase its market share. Last year, the company set up an R&D base in Malaysia, shifting its South-East Asia R&D headquarters from Hong Kong. It has also embarked on varying its product packaging to suit the different income levels of consumers in developing countries. For example, to cater to the consumers with less income, the company launched smaller 145g bottles of Panda Oyster Sauce in the Philippines and Indonesia and 30g sachets of Panda Oyster Sauce in Vietnam. Digital marketing has helped increase the brand’s visibility among younger people. As a result, Lee Kum Kee’s two to three-minute cooking tutorials on YouTube also garner more than 50,000 hits. South-East Asia is one of their key regions and is very much in the spotlight for Lee Kum Kee.
INCREASING POPULARITY OF MAYONNAISE
The middle-income class – the most aggressive consumers in India and ever-widening working people engaged in corporate jobs are helping in the boom of mayonnaise in India. Ketchup, which is still more popular in the country, is usually consumed only as dip however mayonnaise is way more versatile and is consumed in the form of a spread, dip, binding agent, and a base sauce for many other sauces. This multi-utility aspect of mayo is making it more preferable over ketchup now. The mayo consumer is a new-age mother who is career-oriented, does not feel guilty about using smart solutions to make food tasty, and seeks variety for her kids. Mayo as an ingredient now comes as a mother’s friend. With the increase in consumption of mayonnaise, dips, and spreads in Indian households, a rise has been observed in the demand for the category.
The new tasteful ingredient for the Indian kitchen – mayonnaise has lately become the new alternative for products like butter, cheese, and ketchup and is now extensively being used in almost all types of meals. India is the only country where Dr. Oetkar has introduced vegetarian mayonnaise and has only one egg variant. While globally, mayonnaise has over 80% fat & cholesterol, in India the brand has come up with a 20% fat variant and zero cholesterol. Dr. Oetker has been adapting to the taste of Indian consumers, but it needs to be wary about spreading itself too thin. A brand like Del Monte launched its extended range of mayonnaise products in the market, comprising of 8 variants like Eggless Mayo, Egg Mayo, Mint Mayo, Tandoori Mayo, Cheese Garlic Mayo, Sandwich Spread, Cheesy Dip, and Tartare Dip in vibrant new packaging. The range seeks to provide Indians consumers with more options to indulge in.
Major companies operating in the table sauce market of India are Bajoria Foods Private Limited (American Garden), Capital Foods Private Limited, Cremica Food Industries Private Limited, Dr. Oetker India Private Limited (FunFoods), FieldFresh Foods Private Limited, G.D. Foods MFG. (India) Private Limited (Tops), Heinz India Private Limited, Hindustan Unilever Limited, Nestle India Limited, Scandic India Food Private Limited (SIL), Suresh Kumar & Co. (Impex) Private Limited (Remia) and United Distributor Inc. (Tabasco).