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 680 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

Americans are increasingly incorporating plant-based foods into their diet, a change that favors the salad dressing category.

Industry size & Structure

The average seasoning and dressing manufacturer employs 52 to 56 workers and generates between $29 million and $34 million annually.

    • The seasoning and dressing manufacturing industry consists of about 680 firms that employ 37,000 workers and generate over $22 billion annually. Within the seasoning and dressing manufacturing industry, mayonnaise, dressing, and other prepared sauce manufacturers consist of just over 300 firms that employ over 17,000 workers and generate over $10 billion annually. Spice and extract manufacturers consist of about 380 firms that employ about 20,000 workers and generate just over $11 billion annually.
    • Companies that manufacture mayonnaise, dressings, and prepared sauces account for 45% of firms and 48% of total industry revenue. Companies that manufacture spice and extracts account for 56% of firms and 52% of industry revenue.
    • The industry is concentrated; the top 50 companies account for between 80% and 90% 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 is the world’s largest consumer of spices, both in consumption and imports, according to NPR.
                                  Industry Forecast
                                  Seasoning and Dressing Manufacturers Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 10, 2022 - Avocado Oil Trending in 2023
                                  • Avocado oil is on the Whole Foods Market’s Trends Council’s list of top 10 food trends for 2023. While avocado oil has been around for some time, WFM expects it to finally go mainstream in packaged products across the board next year. Its rise in popularity is being driven by positive attributes including a high oleic fatty acid content and a high smoke point. A heart-healthy oil, avocado oil contains vitamin E and also helps the body absorb other fat-soluble vitamins. Avocado oil is replacing other oils like canola and safflower oil in snacks, mayonnaise, salad dressing, ready-to-eat meals and more, Prepared Foods reported in October.
                                  • In a preemptive strike intended to smooth approval from antitrust regulators for its mega-deal with Albertsons, Kroger in October 2022 proposed spinning off as many as 375 stores under a new Albertsons subsidiary called SpinCo, Bloomberg Law reported in October. A merger of Kroger and Albertsons – two of the US’s largest grocery chains – would reshape the supermarket landscape by creating a supermarket giant with nearly 5,000 stores, 66 distribution centers, and annual revenue of about $200 billion. As such, it’s expected to draw scrutiny from the federal regulators and lawmakers. The companies say their merger would put them on better competitive footing against Walmart and Amazon. The US Senate plans to hold a hearing in November to examine competitive and consumer concerns arising from the $24.6-billion deal.
                                  • Ongoing shortages and supply-chain problems at food manufacturers that typically provide funding to supermarkets to support discounts and promotions are limiting production and leaving fewer products available to be put on sale, leaving grocers to shoulder promotional costs, The Wall Street Journal reported in September 2022. As a result, supermarkets are offering fewer and smaller promotions than before the pandemic. On average, 20.6% of food and beverage products were sold with price reductions in Q3 2022, according to research firm Information Resources Inc. (IRI), down from 25.7% for the same period in 2019, according to WSJ. Promotional levels are down from 2019 levels for all grocery categories except meat, IRI data shows. In today’s current inflationary environment, grocers are faced with a difficult choice between offering sales on less popular items, or losing money offering discounts on staples proven to bring in shoppers.
                                  • McCormick & Company has begun packaging its colored food dyes in bottles made from 100% post-consumer recycled (PCR) polyethylene terephthalate (PET), Packaging World reports. McCormick’s move to using 100% PCR PET, as opposed to virgin material, is part of the spice and seasonings maker's effort to achieve its 2025 greenhouse gas commitments by increasing the circularity of its packaging while reducing associated CO2 emissions. A life cycle assessment estimates McCormick will realize a reduction of 86.8 metric tons of CO2 emissions with the new PCR bottle in comparison to the same bottle made from virgin material, amounting to a 59% reduction in CO2 emissions, according to Packaging World. McCormick, along with other food, beverage, and consumer packaged goods companies are under growing pressure to reduce their carbon footprints and use sustainable packaging materials.
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