Asia Pacific Hot Sauce Market Size, Share & COVID-19 Impact Analysis, By Type (Tabasco Pepper Sauce, Habanero Pepper Sauce, Jalapeno Sauce, Sweet and Spicy Sauce, and Others), By Distribution Channel (Mass Merchandisers, Specialist Retailers, Convenience Stores, Online Retail, and Others), and Regional Forecast, 2023-2030

Asia Pacific secured the second position in the global hot sauce market. It is projected to grow at a CAGR of 8.00% during the forecast period. The global market for hot sauce is projected to grow from USD 2.89 billion in 2022 to USD 5.09 billion by 2030.

In today’s era, with the rising economy due to liberalization and more consumption from consumers of all classes, food as something to be enjoyed and as part of culture is a famous topic. With changing lifestyles, the food habits of individuals have also changed, whether it is dining out, a preference for western cuisine, or using products that make cooking at home convenient. These are some of the factors that led to the growth of the food and beverage industry. In Asia Pacific, hot sauce is used as a primary ingredient in the cooking and dressing of a variety of food preparations and added for contrasting flavor to the prepared meal.

Our report on the Asia Pacific market share covers the following countries/regions – China, India, Japan, Australia, and the Rest of Asia Pacific.

LATEST TRENDS

Rising Demand for Customized Hot Sauces Propels the Regional Growth 

Across all food & beverage industries, the past few years have consistently shown the trend of customers turning to novel flavors in order to fulfill their needs. Dips and hot sauces have played a significant role in home cooked food during the pandemic phase, as they allow adding vivid flavors to the familiar dishes as per the choices and building on classic entrees. Nowadays, the changes in the food manufacturing businesses are occurring alongside a shift in what consumers need from their meals. Thus, there is a move toward customized products, including hot sauces to ensure that the individual eats as per their choices.

• For instance, in September 2022, Griffith Foods, an India-based food manufacturer, introduced a new line of culinary sauces, including these sauces, which are specially customized to cater the demands of the Indian market. The company launched a variety of sauces such as Mango Habanero Sauce & Guntur sauce, Naga Jolakia sauce, and others.

DRIVING FACTORS

Surging Consumption of Fast Food across the Region Escalates the Growth Rate 

The Asian market is thriving at a significant rate and has grown incredibly in the past few years. Sauces have been an inevitable part of many Asian cultures across the globe due to the growing surge in cross-cultural influence and rising demand for savory flavors. As there is growth in the adoption of western cuisines, the demand for fast food and snacks has increased considerably among young consumers. Moreover, street foods are also playing a major role in the growth of the hot sauce segment, as sauces are often combined with a majority of dishes in order to make them more flavorful and exciting. Furthermore, with the escalated surge in tourism and travel and enthusiasm for food exploration, the food processing industry is expected to witness a spike in demand for hot sauces with food items. Thus, the startups and other prominent players are also collaborating with other leading players, which, in turn, will improve the product offerings.

• For instance, in July 2022, Ishka Farms, an India-based company, introduced a range of new hot sauces, such as Kerala hot sauce, sweet chili sauce, passion fruit hot sauce, and others. The products are widely available across supermarkets in the Indian market. Thus, these new launches are expected to drive the company’s revenue via product sales across the market.

According to FAOSTAT data, the production of raw materials for hot sauce rose by a slight percent of 0.30% in 2020 from 2019.

RESTRAINING FACTORS

Raw Material Adulteration to Impact Product Quality and Impact Market’s Growth 

One of the major factors impacting the hot sauce acceptance among consumers is the adulteration of raw materials. Using adulterated raw materials, such as spices and chilies, in hot sauce manufacturing impacts the product’s quality and makes the product unsafe for consumption. The use of chemical additives such as mercury sulfide to improve the color of chilies can result in long-term damage to health. For instance, on November 2020, adulterated chili powder was seized from a sauce-making unit in Cuttack, India. This deters consumers from buying products and impedes the Asia Pacific hot sauce market growth. Thus, governments in different countries are adopting strict measures and safety protocols over the manufacturing plants to ensure that safe and better quality raw materials are used for manufacturing such products.

KEY INDUSTRY PLAYERS

In terms of competitive landscape, East by Northeast, Integrow Brands Pvt. Ltd., and El Diablo Sauces are the leading players of the Asia Pacific market due to their extensive efforts in expanding their product offerings by actively collaborating or acquiring other companies.

Other prominent players such as NAAGIN Sauces and Thaitan Foods International Co. Ltd. are also leading the market due to their strong market penetration and increased focus on adding new flavor variants to their portfolios.

LIST OF KEY COMPANIES PROFILED:

• East by Northeast (India)


• Integrow Brands Pvt. Ltd. (India)


• Pico Sauces (India)


• El Diablo Sauces (India)


• NAAGIN SAUCES (India)


• Thaitan Foods International Co. Ltd. (Thailand)


• Dabur (India)


• The Kraft Heinz Company (U.S.)


• Unilever Plc. (India)

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Hook & Arrow Brand launched their limited edition of two packs of hot sauces, including mild Strawberry Ghost Pepper and Blueberry Ghost Pepper, across Tokyo. The brand was launched by two brothers during the COVID-19 phase.


• October 2020: Del Monte, one of the premium brands, launched its latest range of momo dip and sweet chili sauce across the Indian market. The sweet chilli sauce is a classic oriental sauce that can be used as a dip with fast foods. Thus, such exotic product launches will help the company fulfil the rising demand of consumers, which will further help in improving its product sales.


• May 2020: Surya Foods, a prominent food manufacturer, has entered the sauce category by launching a new brand, “Thai Dragon”. The brand offers a variety of sauces, such as Sriracha Hot Chilli Sauce Original, Sriracha Hot Chilli Sauce Wasabi Flavor, Black Fire Extra Hot Chilli Sauce, and Sweet Chilli Sauce, among others. This will open numerous opportunities for the company to grow across the condiment market.

REPORT COVERAGE

The market research report provides qualitative and quantitative insights on the market and a detailed analysis of the market size & growth rate for all possible segments in the market. Along with the market forecast, the research report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are overview of the number of procedures, an overview of price analysis of product types, overview of the regulatory scenario by key countries, new product launches, key industry developments – mergers, acquisitions & partnerships and, the impact of COVID-19 on the market.

Report Scope & Segmentation