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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, 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

                                  Coronavirus Update

                                  Jun 6, 2022 - Plant-Based Salad Dressings
                                  • Manufacturers of oil-free salad dressings and marinades are among those benefiting from the growing popularity among vegan and weight-conscious consumers for plant-based foods. The global plant-based market is projected to grow from $30 billion in 2021 to $160 billion by 2030, making up to 7.7% of the global protein market by 2030 according to Bloomberg Intelligence. Beyond plant-based meat and milk alternatives, oil-free dressings and sauces incorporate fat from nuts and seeds to provide the same fatty, oily texture, without all the calorie density of pure oil. While smaller brands like Primal Kitchen are making headway in the plant-based dressing market, mainstream brands including Hidden Valley are getting in on the plant-based trend.
                                  • The USDA in May raised its 2022 food inflation forecasts again, with grocery food prices hikes at the highest level seen in 42 years. The agency raised its estimated range of 6.5%-7.5% year-over-year increase from a range of 5%-6%, according to the May Food Price Outlook report. Eggs (up 10.3%), poultry (up 3%) and dairy products (up 2.4%) posted the largest increases in April versus May, while fats and oils, key ingredients in many dressings and sauces, rose 1.5% month over month.
                                  • Edible oil prices are expected to increase by double digits in the coming months compared to January, according to a recent article in the Economic Times. The price of palm oil, in particular, is soaring following Indonesia’s ban of crude palm oil exports in mid-April. Indonesia is by far the world's biggest palm oil producer, generating roughly 60% and exporting about 53% of the world's supply, NPR reports. Palm oil, the most used edible oil in the world, is an ingredient in many salad dressings because it is very stable and is rich in Vitamin E, a natural antioxidant. The World Bank expects the price of palm oil to continue to rise by more than 20% by the end of 2022.
                                  • Recent developments in seasonings include McCormick & Co launching a clean label product - 5 Simple Ingredients Homestyle Ranch Dip, Dressing, and Seasoning Mix. Demand is rising for hot seasonings in dips, salsas, and hummus as well as Asian-inspired flavors, like kimchi.
                                  • Plant-based alternatives to dairy ingredients are gaining ground. The industry is developing plant-based dressings and mayonnaise, substituting dairy ingredients with oils and butters made from seeds, grains, and nuts. The move expands the market for dressing and mayonnaise products to consumers with lactose intolerance and plant-based diets.
                                  Get A Demo

                                  Vertical IQ’s Industry Intelligence Platform

                                  See for yourself why nearly 40,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                  Build valuable, lasting relationships by having smarter conversations -
                                  check out Vertical IQ today.

                                  Request A Demo