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Dips and Sauces Sit at the Intersection of Experience and Versatility and Consumers Expect Both in New Innovation

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Dips and Sauces Sit at the Intersection of Experience and Versatility and Consumers Expect Both in New Innovation TRENDING FLAVORS AND INGREDIENTS DIPS AND FLAVOR FLASH SAUCES “Dips and sauces sit at the intersection of experience and versatility and consumers expect both in new innovation. The pandemic has given rise to positive sales growth for categories specifically tied to cooking and at-home snacking occasions. As con- sumers transition into their post-pandemic routines, brands will need to reinforce these newly created routines, inspire continued use of their product through new applications, and deliver flavor innovation that rivals the elevated flavors found in foodservice.”— Alyssa Hangartner, Mintel KEY TAKEAWAYS 1 2 3 INCREASED FOOD COSTS BLEND TRADITIONAL WITH MAKE GLOBAL ARE GOOD NEWS FOR BOLD ACCENTS TO INNOVATE FLAVOR PROFILES DIP AND SAUCE BRANDS FOR A WIDE AUDIENCE ACCESSIBLE AT HOME Rising food costs, especially More than half of consumers are Brands can keep for proteins, will put pressure interested in trying traditional sauces consumers engaged through on consumers to stay within with new flavors, indicating that elevated flavor innovation grocery shopping budgets. consumers seek new experiences, that delivers global cuisine Dips and sauces can help: yet don’t want to roam too far out experiences at home delivering versatility to mundane their comfort zones. Smoky and spicy and encourages exploration. and economical meals and flavor profiles top the list of preferred elevating the flavor experience. dip and sauce flavors, suggesting that classics like mayonnaise or ranch may be ready for extension. HOME MEALS AND SNACKS SUPERCHARGE DIP AND SAUCE SALES Big shifts in consumer routines during 2020 resulted in impressive, sometimes double-digit sales growth for most dip and sauce categories. Going forward, it is inevitable that consumers will return to many of their pre-pandemic behaviors seeking convenience and versatility, yet three quarters of consumers who increased cooking and meal planning anticipate keeping newfound habits. $3,500M $3,000M $2,500M $2,000M $1,500M $1,000M $500M $0 Refrigerated/ Shelf-stable Salsa and Ketchup Mustard Mayonnaise Barbeque Dressing Other Frozen Dips and Picante Sauce Sauce Condiments Dips and Spreads Spreads ■ 2018 ■ 2019 ■ 2020 Total U.S. retail sales by segment, at current prices. Note: “Other Condiments” include steak, Worcestershire, Cajun/hot, hollandaise/béarnaise/dill, tartar/cocktail/other seafood, chili/hot dog, and horseradish sauces. Source: Based on IRI InfoScan® Reviews; U.S. Census Bureau, Economic Census/Mintel. ELEVATED COOKING APPLICATIONS INDICATE CONSUMERS OF ANY AGE ARE OPEN CONSUMERS SEEK UNIQUE EXPERIENCES TO68 EXPLORATION70 61 While in a state of flux during the pandemic, with changing Growth for brands can come from two types of new trial: approaches to shopping, cooking and mealtime, consumers flavor and ingredient53 innovation51 in dips and sauces and targeted 44 were still, if not even more, hungry for new ideas and versatility, application development43 of existing products. While43 there are 41 especially with somewhat limited access to foodservice options. established notions that older adults37 are steadfast37 in their habits 34 Going forward, dip and sauce brands and retailers will need to and less open to exploration than younger counterparts, the continue to help consumers find adventure and experience in meal pandemic and its circumstances created meal and snack time preparation and perhaps more so in meal planning, while also changes among consumers of all ages that demonstrated the creating efficiencies that sustain convenient at-home cooking. contrary and benefitted brands. Increased engagement with 9 3 more diverse dip and sauce applications, especially for cooking, “HOW HAVE YOU USED DIPS/SAUCES IN in recipesFor or asAs a a marinade,For demonstratedIn that Asnew a experiencesAs None THE PAST THREE MONTHS? PLEASE areDipping importantCondiment at any age.Cooking Recipes Marinade Appetizers SELECT ALL THAT APPLY.” “HOW HAVE YOU USED DIPS/SAUCES■ 2020 ■ 2021 IN THE PAST THREE In percent MONTHS? PLEASE SELECT ALL THAT APPLY.” In percent 64 68 70 61 61 72 53 45 51 66 44 40 38 34 43 43 41 49 37 37 72 34 40 46 41 59 61 51 50 48 74 62 52 9 3 41 37 42 For As a For In As a As ForNone As a For In As a As Dipping Condiment Cooking Recipes Marinade Appetizers Dipping Condiment Cooking Recipes Marinade Appetizers ■ 2020 ■ 2021 ■ Generation Z ■ Millennials ■ Generation X ■ Baby Boomers Survey base is 1,934 internet users aged 18+ who have used dips and sauces in the past three months and conducted January 2020 and March 2021. 64 61 HOME72 COOKING ASPIRATIONS HAVE STAYING POWER 45 Dip and sauce use66 diversified, especially in cooking applications, over the past year as consumers 40 38 hunkered down and prepared49 and consumed an increased number34 of meals at home through 72 2020, and some of those behaviors are40 lingering46 and show 41longer term potential. Consumers are motivated to59 keep up the61 habits that make them feel good and organized: a number of elements of convenience will be drivers51 going forward50 that 48support dips and sauces use. 74 62 52 “ WHICH OF THE FOLLOWING ARE YOU41 DOING MORE37 OF NOW42 THAN YOU DID BEFORE THE COVID-19 PANDEMIC?” AND “WHICH OF THE FOLLOWING DO YOU ANTICIPATE CONTINUING For As a For In As a As TODipping DO MORECondiment OF AFTERCooking THE COVID-19Recipes PANDEMIC?”Marinade “PLEASEAppetizers SELECT ALL THAT APPLY.” In percent ■ Generation Z ■ Millennials ■ Generation X ■ Baby Boomers 77 74 72 72 67 66 57 53 48 42 29 29 27 25 21 23 16 8 Cooking from Planning Making Shopping Following a Shopping Eating Using Snacking Scratch Meals Shopping Online for Set Meal Online for with Others Convenience in Advance Lists Delivery Routine Curbside Pick Up Virtually Foods ■ Doing more during the pandemic ■ Anticipate continuing to do more after the pandemic (among those increasing this behavior during) Survey base is 1,997 internet users aged 18+ who have a meal/snack or shop for food/drinks and conducted October 2020. Data Source: Lightspeed/Mintel. DIP AND SAUCE VERSATILITY DOES NOT HOMEBOUND COOKS DABBLE IN ASIAN NECESSARILY MEAN BORING FLAVORS PEANUT SAUCE VARIETIES Young adults are value conscious and seek versatility, but they In a year where consumers headed into the kitchen, increased draw the line at boring. These consumers cite interest in trying at-home cooking and cut back on foodservice spending, it seems new, trending flavors, but they need to be made accessible in they were still inspired by favorite Asian flavors made popular format and price point. Gen Z consumers tend to enjoy spicy on menus: peanut sauces. New product introductions of peanut flavors and are interested in dips and sauces with international sauces increased by more than 400% between 2017 and 2020 flavors, but will require usage and occasion inspiration to justify according to GNPD, featuring ingredient varieties like roasted investing in a new product outside of their limited repertoire. garlic, ginger and lemongrass. Spicy ingredients popular in international cuisines, including smoky chipotle, sweet chili, sambal or harissa, can provide a “HOW WOULD YOU DESCRIBE YOUR EXPERIENCE WITH AND new and flavorful spin on classic dip and sauce flavors that are INTEREST IN THE FOLLOWING FLAVORS OR INGREDIENTS already being used in a variety of ways. IN DIPS, SEASONINGS OR SAUCES?” In percent “ WHICH OF THE FOLLOWING STATEMENTS DO YOU AGREE Generation Z 59 13 16 9 3 WITH? PLEASE SELECT ALL THAT APPLY.” In percent Millennials 65 15 11 6 3 57 Generation X 57 11 14 11 6 53 49 48 45 Baby Boomers 51 8 18 18 5 42 39 40 34 ■ “I have tried this, and I liked it.” ■ “I have tried this, and I didn't like it.” 30 28 28 ■ “I haven't tried this, but I would like to try it.” ■ “I haven't tried this, and I am not interested in trying it.” ■ “I've never heard of this.” “I only buy dips/sauces “I like dips/sauces “I am interested in trying that can be used with with internationally traditional sauces a variety of foods.” inspired flavors with new flavors (e.g. sriracha, Thai peanut).” (e.g. spicy ranch).” ■ Generation Z ■ Millennials ■ Generation X ■ Baby Boomers The fastest and most direct route for brands to take a flavor from discovery to awareness to trial may be through younger adults. Gen Z and Millennial consumers are slightly less likely to use flavor as the primary benchmark in product choice, suggesting that other factors, perhaps value, are at play. But, Gen X consumers express elevated interest in trying traditional updates as well as global flavors. MOVE FERMENTED, SOUR AND HERBAL PROFILES BEYOND BORDERS Consumers show signs that they are ready for some flavor disruption from sauces and dips – especially among more mainstream families that top the list of preferred flavors, like creamy, smoky, savory or even vegetable dips. Fermented flavors are commonly associated with Asian cuisines and also have strong ties with trending BFY (better for you) ingredients or benefits – think apple cider vinegar or gut health. Chimichurri, zhug and za’atar feature fresh (or dried), heavily aromatic herbal profiles that can be used on a variety of dishes and meal and snack occasions. “WHICH OF THE FOLLOWING STATEMENTS DO YOU AGREE WITH? PLEASE SELECT ALL THAT APPLY.” 35% 31% 27% 28% 23% 25% 18% 11% 13% People Who Typically Prefer Herbal People Who Typically Prefer Sour People Who Typically Prefer Fermented Dips and Sauces (e.g. pesto, chive) Dips and Sauces (e.g. vinaigrette) Dips and Sauces (e.g. miso, soy) ■ Total Who Like This Flavor Category ■ “I like dips/sauces with internationally inspired flavors (e.g. sriracha, Thai peanut).” ■ “I am interested in trying traditional sauces with new flavors (e.g. spicy ranch).” Data Source: Lightspeed/Mintel. Survey base is 1,934 internet users aged 18+ who have used dips and sauces in the past three months and conducted March 2021.
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