Analyst Insight by Jack Skelly - Research Analyst
The world’s tolerance for hot sauces appears to be rising. From a global perspective, sales of spicy chili sauces grew by nearly twice as much as packaged food. Moreover, growth was well balanced, with strong performances in both developing and developed markets, which have been struggling – in North America, chili sauces contributed 11% to all additional packaged food growth over 2009-2014, while in Asia Pacific, an extra US$493 million was added by these sauces. This is worth more than total packaged food value sales growth in Bulgaria over the same period. There are several reasons why these sauces are performing so well across the world.
Where has all the spice come from?
High streets and street food are playing an important part in the West’s growing penchant for hot sauces. High street fast food chains are extremely interested in what foods are fashionable in street food. At the moment, there are a couple of standout trends: the first is the irresistible rise of all things Mexican, as Burritos have become ubiquitous. Chipotle, an American fast food chain that sells Mexican cuisine, recorded a 19% CAGR between 2008-2013, and is now expanding globally; Latin American chained fast food grew by 25% in the US over the same period. Elsewhere, Nando’s, which sells Portuguese/Mozambican food that utilises hot sauces, continues to enjoy success, with global sales almost doubling over the last five years. Pan-Asian street food has also risen, with Vietnamese and Korean food becoming particularly prevalent in the US and the UK. Sriracha sauce, which is the Asian equivalent to tomato ketchup, is an essential component of these forms of cooking.