The market for sauces - Italy (2023)

1.2 World Market

Global sales in the sauces and spices market will increase at a CAGR of *.* percent from **** to ****, while volume sales of sauces and spices will grow by *.* percent during this period. In the sauces and spices segment, Japan and Switzerland have the highest annual per capita revenues in ****.

Global segment turnover: sauces and spices World, ****-****, in billions of $ Source: ****

The graph illustrates the percentage shares of sales in the sauces and spices segment for five different geographic areas: Europe, Asia, America, Africa, and Australia & Oceania. Most of the turnover comes from Asia, which accounts for ** percent of the total. This is followed by America with ** percent and Europe with ** percent. Africa and Australia & Oceania account for a smaller share of turnover, *% and *% respectively. Thus, it is clear that the Asian market is the largest for the sauces and spices segment, followed by the American and European markets.

Market revenue share: sauces and spices World, ****, in % Source: ****

1.3 Italian Market

In the last year (***) sauces reached a total turnover of *.* billion euros. this is what emerges from the report 'Reds and ready-made sauces in the year of the energy and inflationary crisis' prepared by Iri.

The largest market, reds, boasts a year-on-year turnover of more than *** million euros. Tomato puree remains the most conspicuous segment, as it accounts for ** percent of value sales and ** percent of volume sales. It is followed by tomato pulp (***).

Segment performance: Detailing this analysis further and examining the short- and long-term performance of the individual segments that make up these two markets shows that;

In the Reds , it is Tomato Puree that is the segment that has developed the most in the last four years: in fact, in **** there is a growth of +*.* percent compared to ****, while in value terms the increase is almost +** percent. For Tomato Concentrate, the volume dynamic is also positive. However, the impact on the Rossi total is limited since the segment accounts for only *% of the category total. Tomato Pulp and Pelati&Pomodorini, on the other hand, are also down compared to ****. As for UHT Sauces, on the other hand, all segments are growing strongly compared to both **** and ****. The Other ...

1.4 Imports and Exports

The graph shows the trends in exports, imports, and the coverage rate of sauces and other seasonings from and to Italy over the years **** to ****. Exports increased steadily over the years, from $***.* million in **** to $****.* million in ****. The largest increase occurred between **** and ****, when exports increased from $****.* million to $****.* million. Imports, on the other hand, remained relatively stable between **** and ****, with a slight increase in **** and **** to $***.* million. The coverage ratio, which indicates the ratio of exports to imports, has gradually increased over the years, from *.* in **** to *.* in ****. This means that exports of sauces and other condiments from Italy exceeded imports by about *.* times in ****. The year with the highest coverage rate was ****, with a value of *.*.

Imports and exports of sauces and other seasonings Italy, ****-****, in millions of $ Source: ****

In ****, Germany was Italy's leading partner for imports of sauces, condiments, mixed seasonings, and mustard, with an annual volume of more than ** million kilograms. Italy's second largest partner for imports of sauces, condiments, mixed seasonings and mustard is Poland, with about **.* million kilos.

Volume of imports of sauces, dressings, mixed seasonings and mustard into Italy in ****, by main country of origin Italy, ****, in millions of kilograms Source: ****

In ****, the ...

1.5 Covid-19 impact

The COVID-** pandemic has had a differentiated impact on various sectors of the Italian food industry, including sauce manufacturers. While some segments have suffered severe difficulties due to restaurant closures and lockdowns, others have thrived due to increased domestic consumption, sometimes reversing previously declining trends.

Now, these sectors are faced with planning how to consolidate their positive results, despite the gradual return to pre-COVID normality. These products, mainly distributed through large retailers, are distinguished by their long durability and have been rediscovered by many households during extended periods spent at home.

A representative example is vegetable preserves, an important sector of the Italian food industry with a total turnover of more than * billion euros, * billion of which comes from international markets.

The tomato and tomato-based sauces segment accounts for about ** percent of this turnover. However, within the canning sector, this segment is particularly exposed to the restaurant (***) channel. About ** percent of tomato-based preserves are sold in restaurants, particularly pizzerias, which have been closed or operating with restrictions for a long period of time.

Italians have generally rediscovered products based on Italian raw materials, often with health-promoting properties, from the plant-based world. Looking ahead, the emphasis will increasingly be on innovation, as ...

2.1 Sales volumes of various products

Sauces, and especially tomato sauces, have traditionally been a passion for Italians, and this is certainly also demonstrated by the value of this market within Italian Distribution. In fact, in the last year, the Rossi market and the UHT Sauces market together reached a turnover of more than *.* billion euros In the context of UHT sauces, the segmentation is divided between Tomato Base Sauces, Pesto Base Sauces, and "Other Sauces"(***) and **% of the volumes. Red and UHT Sauces- Sales and weight % of the different segments Sales and % weight of the Reds segment Italy, ****, as % of total sales Source: ****

Sales and % weight of Uht Sauces segment Italy, ****, as % of total sales Source: ****

2.2 The Italians and Tomato Base Sauces

Consumption of the young

Regarding purchasing behavior, even in the youngest age groups, passata represents for **% of respondents, the most purchased option combining practicality and affordability. This is followed by pulp (***). Bringing up the rear is tomato paste, preferred in only *% of cases.

Purchasing habits of young people's tomato derivatives, by most purchased solution Italy, ****, as % of total respondents Source: ****

Packaging turns out to be fundamental among young people, especially as a vehicle of information: more than * out of ** respondents say, in fact, that they always or fairly often read the provenance and place of packaging of the product to be purchased, with the most attentive ones showing a greater propensity to choose Italian as synonymous with quality and safety. Despite this, there is little awareness of the origin of the raw material used for tomato preserves produced in Italy: only * out of ** respondents know that it is *** percent Italian. Packaging is crucial in the choice of preserved product, where glass takes the lead, allowing a direct view of the product.

Knowledge of the phenomenon of caporalato Italy, ****, as % of total respondents Source: ****

Regarding the phenomenon of caporalato, that is, the illegal form of recruiting and organizing labor in wage labor, ...

2.3 Average monthly household expenditure

The graph shows the average monthly household expenditure on sauces and condiments, in current euros, from **** to ****. In ****, the average expenditure was *.** euros. This increased by about *.* percent in ****, reaching *.** euros. In ****, the average expenditure increased again, reaching *.** euros, which represents an increase of about *.* percent over ****. In ****, the average expenditure increased significantly, reaching *.** euros. This represents an increase of about *.* percent compared to ****. However, in ****, average spending decreased slightly to *.** euros, a decrease of about *.* percent compared to ****. In ****, average spending remained the same as in ****, at *.** euros. However, in ****, the average expenditure increased to *.** euros, an increase of about * percent compared to ****. overall, the graph shows a trend of increasing average household spending on sauces and condiments from **** to ****, with a small decrease in **** and stabilization in ****.

Average monthly household expenditure on sauces and condiments Italy, ****-****, in current euros Source: ****

2.4 Pasta consumption as a demand driver

Pasta consumption is proportionally related to the consumption of sauces and gravies for several reasons, related to both eating habits and practical and gustatory aspects. This close relationship between the two aspects has a significant impact on food markets, especially in countries like Italy, where pasta is a staple food and sauces are an integral part of culinary preparations.

Flavor complement: Sauces and dips are often used as condiments to enrich the flavor of pasta. Pasta by itself can be relatively neutral in terms of flavor, but sauces made with tomato, meat, fish, cheese, or other varieties give pasta a complexity of flavors that makes it more palatable. Variation and customization: Pasta offers a neutral base on which endless culinary variations can be expressed through the choice of sauce. People can adapt the sauce to suit their personal tastes or the occasion, creating a wide variety of dishes that keep pasta as the central element but with diversified flavor. Culinary tradition: In many cultures, such as Italian, pasta is a staple food with a long history and deep cultural roots. Culinary traditions often emphasize the importance of sauces and sauces to complement and enrich pasta dishes. This tradition helps to keep ...

2.4 Omnichanneling

Buzzoole research shows that ** percent of Italians follow influencers for culinary advice. Beverage-themed content has also increased in the past year.

On social networks, people are increasingly talking about food. That of food & beverage-themed content is a long-standing trend, but one that has seen a further increase in the past year. According to data from an analysis by Buzzoole, a martech company specializing in influencer marketing technologies and services, there has in fact been a +**.* percent increase in food-themed posts, which have reached a total of *.** million pieces of content in the past year. The analysis is based on a database of more than two million profiles and *** million pieces of content monitored globally by the Buzzoole Discovery platform on five different social channels (***) during ****.

The growth recorded is most likely a consequence of the lockdown that has prompted users to spend more time on cooking, but already in previous years the food sector has launched new trends, sometimes even bizarre ones, and new celebrities, increasingly expanding its audience of followers. And in fact, ** percent of Italians follow the culinary advice of food influencers[***].

Newcommunications opportunities for culinary companies that are adapting to new trends in social promotion by establishing partnerships ...

3.1 Market actors

As can be seen from the graph below, the number of enterprises has gradually decreased in recent years: from from *** enterprises in **** to **** enterprises in ****, for adecrease of **, or **.* percent. However, this trend was reversed during the pandemic: in ****, the number of enterprises increased by ** to *** with an increase of *.*% over ****. If one relates this downward trend in the number of enterprises to the trend in turnover and production (***), it can be seen that there has been a process of concentration in the industry with more market share concentrated in fewer enterprises.

Number of enterprises in the spices and seasonings industry Italy, ****-****, in units Source: ****

In terms of industry employment, on the other hand, we find an upward trend; this confirms that there has been a process of concentration with fewer firms but with an enlargement of the remaining firms. During the period under consideration, ****-****, the number of employed people has increased from **** employees in **** to **** in ****, an increase *** employees. Apart from ****, only years of growth in the number of employees were observed during the period under consideration. The most notable growth occurred during the pandemic; in **** the number of staff increased by *** ..

Number of people employed in the ...

3.2 Value Chain

3.3 Distribution channels

Ready-made sauces are very common food products and can be distributed through a variety of channels. Distribution channels depend on the company's strategy, target market, and product type. Here are some common distribution channels for ready-made sauces:

Supermarkets and hypermarkets: This is one of the main distribution channels for ready-made sauces. Supermarkets and hypermarkets offer a wide range of food products, including sauces, that are easily accessible to consumers. Products are generally arranged on the shelves in dedicated sections. Specialty grocery stores: Some specialty grocery stores, such as Italian produce stores or delis, may focus on high-quality ready-made sauces or regional sauces. These stores attract an audience looking for authentic and unique products. Restaurants and catering services: Ready-made sauces can be distributed directly to restaurants and catering companies that use them as ingredients for their dishes. This channel requires packaging and quantities suitable for commercial use. Online sales: Selling directly to consumers through e-commerce platforms is increasingly popular. Companies can sell their ready-made sauces through their own website or through third-party platforms that specialize in food e-commerce. Food distributors: Companies can work with food distributors who have a network of contacts in food distribution. Distributors can provide greater geographic coverage and ...

4.1 Products

Classics

Mother sauces

- Spanish sauce (***)

- béchamel and velouté (***)

- tomato sauce

Basic sauces

- white sauces (***)

- Brown sauces (***)

Derived or compound sauces

- which are derived from the parent sauces or tomato sauce, e.g. port sauce which is made by adding port to demi-glace sauce .

Not derived from the parent sauces

- Neutral sauces (***)

- Fish-based sauces (***)

- Emulsified sauces

As we will go into more detail below, emulsions can be stable (***).

Other sauces

- Cold sauces (***)

- Hot or cooked sauces (***)

- Marinades (***)

- Condiments or dressings (***)[***].

4.2 Prices

In UHT Sauces, on the other hand, the increase in the average price already accelerates from the beginning of the summer, while the sharp decrease in the promotional level is present in the preceding months. In fact, as shown in the graph below from December ****, we were already beginning to see a decrease in promotions on both Tomato Base and Pesto Base Sauces. Change % average volume price for Pesto Base and Tomato Base sauces Italy, ****-****, in % Source: ****

Difference in promotional points for tomato base and pesto base sauces Italy, ****-****, in % Source: ****

For sauces and condiments, from ISTAT data, it is possible to derive the time trend of the consumer price index for the entire community, explained in the graph below.

Consumer price index for the whole community for sauces and condiments Italy, ****-****, (***) - monthly data Source: ****

4.3 Trends

There are a number of trends in the sauces market:

Low-fat , low-caloriesauces are gaining ground.in food consumption, the most relevant finding emerging is undoubtedly that of a new approach to food, characterized by an increasing attention to the health aspects of food; there is a growing awareness among consumers that proper nutrition is the most appropriate tool for preventing and managing physical dysfunctions such as excess cholesterol, hypertension, diabetes and obesity.as for our country, it emerges that ** percent of Italians consider themselves overweight and ** percent (***). Among the most popular diet changes, as revealed by Nielsen research, fighting fat remains the top priority with ** percent agreeing[***] Asian-inspired sauces benefiting from a more globalized cuisine Unilever Food Solutions introduces the new Knorr Ethnic Sauces: Curry Sauce with vegetables and pineapple, Sweet and Sour Sauce with pineapple and peppers, Chili Sauce with tomatoes, onions, peppers and borlotti beans, and Mexican Sauce with peppers, onions and chili peppers. Four different products to quickly and easily give life to authentic dishes of Asian and Mexican cuisine, protagonists in recent years of a growing passion on the part of consumers, looking for new proposals of taste, contamination, and alternatives to the more traditional Italian cuisine[***] Vegetarianand ...

5.1 Regulation

The production of sauces and gravies in Italy must comply with various regulations at the national level and, if intended for export, European regulations as well. Some of the main regulations that must be considered include:

General Food Safety Law: This law establishes the general principles for food safety and sets out the responsibilities of producers in terms of traceability, labeling and compliance with hygiene standards.

Regulation (***) No. ***/****: This regulation defines hygiene requirements for food, including the production of sauces and gravies. It covers the structure and management of establishments, personal hygiene requirements, hygiene of food contact materials, cleanliness and production control.

Regulation (***) No. ****/****: This regulation covers food labeling and provides detailed guidance on what must be stated on the label, including ingredients, allergens, nutritional information, and country of origin.

Law No. *** of July **, ****: This Italian law covers products derived from tomato processing. It establishes minimum quality requirements for tomato processing products and may be relevant to tomato-based sauces and gravies.

Regulation (***) No. ***/****: This regulation sets specific standards for the production of meat products and may be relevant to sauces and gravies that contain ingredients of animal origin.

Regional Requirements: In addition to national laws, there may be specific requirements defined ...

6.1 Segmentation

• Barilla Group
• Rana (Groupe Giovanni Rana)
• Mutti
• Acetum S.p.a
• Ponti S.p.a