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 750 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 depend 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
The average seasoning and dressing manufacturer employs about 58 workers and generates over $36 million annually.
- The seasoning and dressing manufacturing industry consists of about 750 firms that employ 43,500 workers and generate over $27 billion annually.
- The industry is concentrated; the top 50 companies account for between 80% and 90% of industry revenue.
- Mayonnaise, dressing, and prepared sauce manufacturers account for 46% of establishments and 48% of total industry revenue, while spice and extract manufacturers account for 54% of establishments and 52% of industry revenue.
- Major companies, which include Kraft/Heinz, Campbell Soup, and McCormick, have a global presence. Large conglomerates like Unilever and Clorox also produce seasonings and dressings. Privately held companies include McIlhenny/Tabasco, Ken’s Foods, and Newman’s Own.
- The US ranks eighth in the world in spice consumption. India is the world’s largest consumer of spices, accounting for about 39% of global consumption.
Industry Forecast
Seasoning and Dressing Manufacturers Industry Growth
Recent Developments
Oct 23, 2024 - Getting The Lead Out
- Testing by Consumer Reports has found high levels of lead in cinnamon powder and multi-spice blends from a dozen brands. The consumer research and advocacy nonprofit tested 36 products, a third of which had lead concentrations high enough that just a quarter-teaspoon contained more lead than should be consumed in a day. Earlier this year, the FDA warned consumers not to buy six brands of cinnamon and, after further testing, added 11 more to the list. The agency began testing cinnamon for lead after several brands of apple puree pouches sold by major retailers were linked to lead poisoning cases in over 460 children. Amid growing concerns over lead in the global supply chain, the American Spice Trade Association and FDA recently briefed lawmakers on Capitol Hill on creating collaborative public-private initiatives to combat lead poisoning and promote a safe global supply chain.
- The producer price index (PPI) for seasoning and dressing manufacturers, which measures prices before reaching consumers, hit a new high in July, rising 1.6% compared to a year ago after climbing 7.7% in the previous July-versus-July comparison, according to the latest US Bureau of Labor Statistics data. At the retail level, the July consumer price index (CPI) for spices, seasonings, condiments, and sauces rose 2.3% year over year. Employment by the industry dipped 2.4% in July compared to a year ago, while average wages at food manufacturers rose 4.4% YoY in August to $23.49 per hour, BLS data show.
- To attract younger consumers and extend its reach to more occasions, Hellman’s has introduced a line of flavored mayonnaises, Food Dive reported in August. Hellman’s hopes to boost sales of its $2-billion-plus brand with varieties including Chile Lime, Garlic, Italian, and Chipotle. The flavored mayonnaise market is estimated at $210 million, according to Circana data provided by Hellman’s owner, Unilever. Flavored mayonnaise has seen “significant growth” at Unilever, with sales “almost doubling” in 2023, Chris Symmes, Unilever’s head of marketing, dressings, and condiments in North America, told Food Dive. Despite “significant growth,” Symmes says the flavored mayo line is unlikely to overtake the original Real Mayonnaise, which captures the majority share of the brand’s sales.
- Another chili pepper shortage threatens the availability of a popular sriracha sauce, The New York Times reported in May. Huy Fong Foods recently canceled all forthcoming shipments of its signature Huy Fong Sriracha to distributors and notified them that production is on pause until after Labor Day when the next chili season begins. According to a letter obtained by the Washington Post, the company says the peppers haven’t achieved the ideal shade (they’re still too green), and it would affect the hue of the finished product. Huy Fong has struggled with supply chain issues for the red jalapeños it needs to make its sriracha sauce since 2017, resulting in limited production. Huy Fong’s production problems illustrate the vulnerability of manufacturers that rely on a single or limited source of supply, as well as the dangers climate change and extreme weather pose to key ingredients used in sauces and dressings.
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