Seasoning and Dressing Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 709 seasoning and dressing manufacturers in the US produce condiments, sauces, spices, and seasonings that enhance the flavor of food. Major product categories include prepared sauces; dry mix food preparations; spices, flavorings, and food colorings; and salad dressings, mayonnaise, and sandwich spreads. The category does not include ketchup.
Variable Raw Ingredient Costs
Raw ingredients are agricultural products, which are subject to price fluctuations that are dependent on underlying commodity costs and global market conditions.
Plant-Based Foods Growth
Americans are increasingly incorporating plant-based foods into their diets, a change that favors the salad dressing category.
Industry size & Structure
Industry Forecast
Seasoning and Dressing Manufacturers Industry Growth
Recent Developments
Apr 23, 2024 - Producer Price Hikes Easing
- Producer prices for seasoning and dressing manufacturers were relatively flat (up less than 1%) in March compared to a year ago after rising 5.8% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Price hikes have been easing following record-high food price inflation in recent years. Meanwhile, employment by other food manufacturers, which includes seasoning and dressing manufacturers, grew 2% in January year over year, while average wages at food manufacturing firms climbed to a new high of $23.03 per hour in January, a 3.4% rise over the same time last year, BLS employment data shows.
- Sustained consumer demand for its higher-priced spices and seasonings amid sticky inflation boosted sales and profits for spice giant McCormick in the latest quarter, Reuters reported in March. The company's volumes for the quarter dipped 1% after declining by 3% the previous quarter, while its prices rose 3% after rising 5% in the previous quarter, according to Reuters. In a call with investors, McCormick’s CEO said he expects volume trends to continue to improve. Resilient consumer spending in the first quarter is helping to support aggressive price increases by seasoning and dressing manufacturers without taking too heavy a toll on volume sales. Increased promotional activity and easing up on price hikes are helping to narrow the price differential between McCormick-branded products and private labels, slowing the pace of volume decline, per Reuters.
- US food inspectors have detected “extremely high” levels of toxic lead in cinnamon at a plant in Ecuador that made applesauce pouches tainted with the metal, the Food and Drug Administration announced in December. The recalled pouches have been linked to dozens of illnesses in children in the US. Cinnamon tested from the plant had lead levels more than 2,000 times higher than the maximum level proposed by the FDA, officials said. The head of the FDA’s human foods program, Jim Jones, told Politico in an interview that the lead contamination appeared to be “an intentional act.” Contaminated spices are “incredibly common,” Dr. Diane Calello, executive and medical director of the New Jersey Poison Control Center, told CNN. Some contamination occurs in natural products, including rice and apples, because they’re grown in soil that contains metals. Calello mentioned turmeric as a spice that can be contaminated with lead.
- Prices for spices, seasonings, condiments, and sauces were about 350% higher in 2023 than in 1978 (a $69.94 difference in value), according to the US Bureau of Labor Statistics (BLS). Between 1978 and 2023, spices, seasonings, condiments, and sauces experienced an average annual inflation rate of 3.4%. As such, for an equivalent purchase, spices, seasonings, condiments, and sauces costing $20 in 1978 would cost $89.94 in 2023. However, compared to the overall inflation rate of 3.47% over the same 45-year period, inflation for spices, seasonings, condiments, and sauces was lower, according to BLS data.
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