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

                                  Mar 15, 2023 - Growing Trend Toward Private Label
                                  • A majority of consumers say they plan to continue purchasing private label products when the economy improves, Retail Dive reports. A survey of 2,000 US residents conducted in January by consumer research firm Attest shows cost savings at the grocery store have become vitally important to shoppers. Recent rampant food inflation coupled with improved quality and selection of private-label goods led 73% of those surveyed to say they’ve acquired a taste for private label brands and plan to keep buying them even as inflation and supply chain disruptions ease. Just 9% of those surveyed said they will not stick with private label options. Features such as non-GMO certifications, premium packaging and functional ingredients are attracting consumers to private-label products. Different levels of premiumization – from basic store-branded products to more upscale ones – also offer private label consumers a choice, according to Retail Dive.
                                  • The American Spice Trade Association (ASTA) has petitioned the US Food and Drug Administration to include spices under its definition of “healthy” foods in labeling, according to a February press release. ASTA noted the exclusion of spices and herbs from the FDA’s proposed definition of “healthy,” despite being recognized for their health benefits by the US Dietary Guidelines for Americans (DGA). The group asserts that spices and herbs help consumers build healthier diets by making foods taste better, reducing added sugars, saturated fat, and sodium intake, and encouraging the consumption of more nutrient-dense foods such as vegetables, fruits, and whole grains. “Beyond improving nutrition, a growing body of research shows that culinary spices and herbs may benefit heart, metabolic, and gut health, cognition, cancer prevention, and weight management,” said ASTA Executive Director Laura Shumow.
                                  • Plant-based meals now are the default option at 11 public hospitals operated by NYC Health + Hospitals, Food Service Director (FSD) reported in February. Between last March and the end of 2022 almost 350,000 plant-based meals had been served to patients and medical staff. Food service provider Sodexo began offering Meatless Mondays to patients in 2019 and debuted plant-based lunches by default last March. It began rolling out plant-based dinners in September, and all hospitals were on board by December, according to FSD. Sodexo credits the successful rollout to a gradual, well-coordinated education and marketing campaign to gain patient acceptance that involved chefs and dietitians, among others. Some 50% to 60% of patients have opted for plant-based dishes – a change that favors the salad dressing category – and satisfaction is "well over 90%," according to Samantha Morgenstern, senior director of nutrition services for acute care at Sodexo.
                                  • As of January 1, 2023 sesame must be declared on the label of any packaged food containing it as an ingredient, according to the US Food and Drug Administration. The Food Allergy Safety, Treatment, Education, and Research (FASTER) Act, signed into law in 2021, named sesame the ninth most common food allergy among children and adults. While companies had until the start of this year to comply with the agency’s requirements for food allergens, many companies have been voluntarily declaring sesame as an allergen on the label prior to the law’s effective date. Other major allergens include shellfish, peanuts, wheat, and soybeans. All FDA requirements applicable to major food allergens, including labeling and manufacturing requirements, apply to sesame, according to the agency.
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