Report: Condiments - US - July 2008 TOC

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Well-established market with high usage
Category competition compounds
Condiment segments are highly differentiated, resulting in varying success
Demographic factors impacting condiment sales
Economic uncertainly leads to more home cooking
Highly fragmented supply chain
Innovation trends toward more natural, premium and convenient packages
The condiment consumer
Usage
Frequency
Brands
What consumers want!
Shopping habits
Nutrition and condiments
Retail purchases of condiments
Ethnic differences in condiment use
Market Size and Forecast
Key points
Mature market remains flat
Condiment sales and forecast
- Figure 1: U.S. FDMx sales and forecast of condiments, at current prices, 2002-12
- Figure 2: U.S. FDMx sales and forecast of condiments, at inflation-adjusted prices, 2002-12
Wal-Mart sales
Competitive Context
Competition from categories within the retail environment
The foodservice factor
Segment Overview
Key points
The standard in condiments
Going gourmet
Sales and forecast of condiments by segment
- Figure 3: U.S. FDMx sales and forecast of condiments at current prices, by segment, 2002-12
- Figure 4: FDMx condiment sales, by segment and sub-segment, 2005 and 2007
Segment Performance--Pickles, Olives and Relish
Key points
Limited use and little innovation create lackluster interest
Positive sales in olives help segment remain steady
Sales and forecast of pickles, olives, and relish
- Figure 5: U.S. FDMx sales and forecast of pickles, olives, and relish, at current prices, 2002-12
Segment Performance--Ethnic Sauces
Key points
New ethnic experiences build sales opportunities
The influence of restaurants
Sales and forecast of ethnic sauces
- Figure 6: U.S. FDMx sales and forecast of ethnic sauces, at current prices, 2002-12
Segment Performance--Mustard and Ketchup
Key points
Impact of health trends
Impact of packaging changes
Sales and forecast of mustard and ketchup
- Figure 7: U.S. FDMx sales and forecast of mustard and ketchup, at current prices, 2002-12
Segment Performance--Sauces for Meat
Key points
Meat sauce sales struggle--challenged by convenience and alternative flavorings
Products that skew to the gourmet realm attract consumers
Sales and forecast of sauces for meat
- Figure 8: U.S. FDMx sales and forecast of sauces for meat, at current prices, 2002-12
Segment Performance--Other Sauces
Key points
Hot/Cajun sauces support segment growth
Specific-use products limit sales opportunities
Sales and forecast of other sauces
- Figure 9: U.S. FDMx sales and forecast of other sauces, at current prices, 2002-12
Retail Channels
Key points
Supermarkets dominate...
...other outlets on a path of growth
Retail Channels--Supermarkets
Key points
Private label--a point of differentiation
Supermarket sales
- Figure 10: U.S. sales of condiments at supermarkets, at current prices, 2002-07
Market Drivers
Shifts in demographics influence market sales
Positive: the ethnic influence
Negative: core children users decline in population
- Figure 11: Households, by presence of children under age 18, 1996-2006
- Figure 12: Households, by number of members, 1996-2006
- Figure 13: Trended volume of ketchup used per household per month, by presence of chldren in home, 2003-07
Home condiment usage may suffer as a result of growing QSR sales
- Figure 14: Total U.S. QSR sales and forecast, at current prices, 2005-10
- Figure 15: Types of restaurants visited in the past month, by presence of children in home, January 2008
Cooking at home increases in uncertain economic times
Interest in cooking is on the rise
- Figure 16: Sales of cookware and kitchen cutlery, segmented by type, 2005 and 2007
Leading Companies
Key points
Kraft still leads the market
Private label builds market share
Brand leaders seek to diversify usage opportunities and add value
- Figure 17: Leading manufacturer sales of condiments, 2007 and 2008
Brand Share--Pickles, Olives and Relish
Key points
Mt. Olive making pickles snackable
Kraft' s Claussen grows sales through premium positioning
Manufacturer and brand sales of pickles, olives, and relish
- Figure 18: FDMx brand sales of pickles, olives, and relish in the U.S., 2007 and 2008
Brand Share--Ethnic Sauces
Key points
Tostitos sauces build sales through association of its trademark chips
Manufacturer and brand sales of Mexican sauces
- Figure 19: FDMx brand sales of Mexican sauces in the U.S., 2007 and 2008
Kikkoman dominates Oriental but private label may be stealing its thunder
Manufacturer and brand sales of Oriental sauces
- Figure 20: FDMx brand sales of Oriental sauces in the U.S., 2007 and 2008
Brand Share--Mustard and Ketchup
Key points
Heinz dominates segment--focus on packaging innovation
ConAgra' s Hunt' s and Gulden' s brands making steady progress
Manufacturer and brand sales of mustard and ketchup
- Figure 21: FDMx brand sales of mustard and ketchup in the U.S., 2007 and 2008
Brand Share--Sauces for Meat
Key points
Sweet Baby Ray' s supports sub-segment sales with its gourmet position
Manufacturer and brand sales of barbecue sauce
- Figure 22: FDMx brand sales of barbecue sauce in the U.S., 2007 and 2008
A1 sustains sales through innovation
Manufacturer and brand sales of steak/Worcestershire sauce
- Figure 23: FDMx brand sales of steak/Worcestershire sauce in the U.S., 2007 and 2008
Brand Share--Other Sauces
Key points
Kraft uses Taco Bell brand to promote snacking opportunities
Reckitt Benckiser remains hot--promoting food and beverage usages
Manufacturer and brand sales of other sauces
- Figure 24: FDMx brand sales of other sauces in the U.S., 2007 and 2008
Brand Qualities
Claussen builds its identity on freshness
Tostitos salsas ride the coattails of Frito-Lay' s trademark chip
Heinz doing "a common thing, uncommonly well"
A1 plays to its legacy as the original steak sauce
Innovation and Innovators
Innovation performance
- Figure 25: Top 15 product claims for condiment launches, 2005-08*
Consumers' desire for health and wellness equates to more natural and organic products
Kosher
More natural formulations
Trend towards premiumization stimulates innovation
Provenance
Restaurant and celebrity chef branding
Quality ingredients and unusual flavor combinations
Packaging innovations emphasize convenience
Advertising and Promotion
Overview
Points of differentiation
Premium qualities
- Figure 26: Pace Picante Sauce television ad, 2008
- Figure 27: Pace Premium Sauces television ad, 2008
Being the "original"
- Figure 28: Louisiana Hot Sauce television ad, 2008
- Figure 29: A1 Steak Sauce television ad, 2008
- Figure 30: Vlasic Pickles television ad, 2008
- Figure 31: Vlasic Pickles television ad, 2008
Promoting versatility
- Figure 32: French' s mustard television ad, 2008
- Figure 33: Heinz television ad, 2008
- Figure 34: Chi-Chi' s television ad, 2008
- Figure 35: Tabasco television ad, 2008
Usage
Key points
Trended usage of condiments
- Figure 36: Household usage of condiments and sauces, 2003-07
How consumers use condiments
- Figure 37: Ways of using condiments, as a condiment, as an ingredient, by type of condiment, May 2008
Frequency of Use
Key points
How often do consumers really use condiments on a per meal basis?
- Figure 38: Number of meals where condiments are used per week, individuals, May 2008
Larger households and those with children drive condiment use
- Figure 39: Volume of selected condiments used in household, by number of people in household/presence of children, January-November 2007
Usage Occasions
Key points
Meal occasions and condiment use
- Figure 40: Meal occasions for condiment usage, May 2008
- Figure 41: Meal occasions for condiment usage, by age, May 2008
What are Consumers Looking for in Condiments?
Key points
Packaging is most important
- Figure 42: Importance of condiment attributes, May 2008
Health attributes are important to older consumers
- Figure 43: Importance of condiment attributes, by age, May 2008
Interest in new flavors
- Figure 44: Interest in new and different condiment flavors, May 2008
Young adults are open to new flavors
- Figure 45: Interest in new and different condiment flavors, by age, May 2008
New flavor preferences
- Figure 46: New flavor preferences, May 2008
Flavor preferences vary among men and women
- Figure 47: New flavor preferences, by gender, May 2008
Young adults more open to new flavors, but older consumers know what they like
- Figure 48: New flavor preferences, by age, May 2008
Shopping and Usage Attitudes
Key points
Younger, less experienced cooks think less about condiments
- Figure 49: Shopping and usage attitudes about condiments, by age, May 2008
Nutrition and Health Attitudes
Key points
Health beliefs and behaviors around condiments usage by gender and age
- Figure 50: Nutrition and health attitudes about condiments, by gender, May 2008
- Figure 51: Nutrition and health attitudes about condiments, by age, May 2008
Retail Choices for Condiments Purchase
Key points
Where are consumers shopping for condiments?
- Figure 52: Choice of retail outlets for buying condiments, May 2008
Income drives retail channel selection
- Figure 53: Choice of retail outlets for buying condiments, by household income, May 2008
Race and Ethnicity
Key points
Frequency of use
- Figure 54: Household usage of condiments and sauces, by race/ethnicity, January-November 2007
- Figure 55: Volume of selected condiments used by household in past 30 days, January-November 2007
- Figure 56: Number of meals where condiments are used per week, individuals, by race/ethnicity, May 2008
- Figure 57: Shopping and usage attitudes about condiments, by race/ethnicity, May 2008
Brand preferences
- Figure 58: Household usage of ketchup brands, by race/ethnicity, January-November 2007
- Figure 59: Household usage of mustard brands, by race/ethnicity, January-November 2007
How do consumers shop for and use condiments?
- Figure 60: Shopping and usage attitudes about condiments, by race/ethnicity, May 2008
Usage occasions
- Figure 61: Meal occasions for personal condiment usage, by race/ethnicity, May 2008
What ethnic groups are looking for in condiments
- Figure 62: Importance of condiment attributes, by race/ethnicity, May 2008
Interest in new flavors
- Figure 63: Interest in new and different condiment flavors, by race/ethnicity, May 2008
- Figure 64: New flavor preferences, by race/ethnicity, May 2008
Health beliefs and behaviors around condiments usage by ethnicity
- Figure 65: Nutrition and health attitudes about condiments, by race/ethnicity, May 2008
Key Purchase Measures
Consumer insights--condiments
Mustard and ketchup
Mustard
Brand leaders by penetration
- Figure 78: Key purchase measures for the top brands of mustard, by household penetration, 2007*
Ketchup
Brand leaders by penetration
- Figure 79: Key purchase measures for the top brands of ketchup, by household penetration, 2007*
Mexican sauce
Salsa
Brand leaders by penetration
Picante sauce
Brand leaders by penetration
Taco sauce
Brand leaders by penetration
- Figure 80: Key purchase measures for the top brands of Mexican sauces, by household penetration, 2007*
Appendix: Market Share--All Companies
- Figure 81: Sales of condiment companies, 2007 and 2008
Appendix: Trade Associations

Condiments - US - July 2008

Table of Contents