Heating up: The growing purchasing power of millennials will drive industry performance

The Hot Sauce Production industry produces spicy sauces made from chili peppers and other ingredients which are then sold to retailers, wholesalers and other food manufacturers. Following exponential gains in the early 2000s, the industry has settled into more moderate growth in the five years to 2018. Demand for hot sauce has continued to grow steadily, boosted by positive demographic consumption trends, a growing number of hot sauce producers and brands, as well as rising demand from the foodservice and grocery sectors. Although the domestic market has become somewhat saturated, strong export sales have continued to propel the industry forward during the five-year period...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
4.1%
Forecast Growth 18-23
Profit
Employment
2,714
Businesses
285

Industry Threats & Opportunities

  • Growing immigrant populations have introduced a vast assortment of spicy cuisines to US palettes
  • Operators ship products internationally and compete against foreign producers for the US market
  • New companies are likely to enter the market to capitalize on robust demand for hot sauce
  • Industry Report - Industry Key Buyers Chapter

    The Hot Sauce Production industry has a moderate degree of market share concentration, with the top four companies accounting for 43.3% of overall industry revenue in 2018. The remainder of the market consists mainly of small-scale and local companies that produce relatively specialized products for niche markets, such as consumers who desire extremely spicy condiments or sauces made from a specific kind of chili pepper. Industry operators range in size, from multi-national companies offering several types or brands of sauces to small family-owned businesses that produce only a single product variety.Over the past five years, smaller players have entered the industry as demand has grown for an increasing variety of ethnic and specialty hot sauces. The...purchase to read more.

    Additional Insights for the Hot Sauce Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hot Sauce Production Industry are

  • Having a high profile in the market
  • Having a loyal customer base
  • Having a wide and expanding product range
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Price of fruit in the Hot Sauce Production industry impact industry performance..

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    What's in this report

    What is the Hot Sauce Production Industry?

    The Hot Sauce Production industry manufactures spicy sauce made from chili peppers and other ingredients. These products are then packaged and sold directly to consumers or distributed to grocery wholesalers, supermarkets, specialty food stores and foodservice contractors. This industry excludes producers of pre-made salsa and paste-style products such as hot curry or chili pastes.

    Industry Products
  • Hot
  • Medium
  • Mild
  • Industry Activities
  • Developing hot sauce
  • Producing hot sauce
  • Distributing hot sauce
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Price of fruit
  • Trade-weighted index
  • Number of immigrants
  • Demand from food services and drinking places
  • Demand from supermarkets and grocery stores

  • Current Performance
  • Hot commodity
  • A taste of culture
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Stable demand
  • Competition heats up
  • Table: Hot Sauce Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hot Sauce Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Seasoning, Sauce and Condiment Production
  • Supermarkets & Grocery Stores
  • Specialty Food Stores
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Food Service Contractors
  • Fast Food Restaurants
  • Consumers

  • Key Selling Industries
  • Fruit & Vegetable Wholesaling
  • Glass Product Manufacturing
  • Industrial Machinery & Equipment Wholesaling
  • Seasoning, Sauce and Condiment Production
  • Syrup & Flavoring Production
  • Vegetable Farming

  • Products & Services
  • Mild
  • Medium
  • Hot
  • Chart: Hot Sauce Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Grocery wholesalers
  • Foodservice sector
  • Exports
  • Other food product manufacturers
  • Chart: Major Market Segmentation for the Hot Sauce Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Hot Sauce Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hot Sauce Production Industry

  • Industry Globalization
    McIlhenny Company, McCormick & Company Inc., Huy Fong Foods,
  • Table: McIlhenny Company - financial performance
  • Table: McCormick & Company Inc. - financial performance
  • Table: Huy Fong Foods - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hot Sauce Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hot Sauce Production Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Consumer spending (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Tabasco Pepper
  • A variety of chili pepper species capsicum frutescens; the core ingredient of Tabasco brand sauce
  • Capsaicin
  • Chemical compound that stimulates chemoreceptor nerve endings in the skin, especially the mucous membranes
  • Scoville Scale
  • A measurement of the spicy heat (or piquancy) of a product
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to retailers, eliminating the middleman
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Hot Sauce Production is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hot Sauce Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hot Sauce Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hot Sauce Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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