Heating up: Due to hot sauce popularity, industry revenue will grow

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 2017. The outlook for domestic hot sauce producers remains largely positive, particularly as demand for US-made condiments continues to rise in export markets. Whereas the previous five years were characterized by increasing market acceptance and usage of hot sauces, the next five years will be characterized by growth in per capita consumption and increasing competition from foreign manufacturers and new industry entrants...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
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Industry Threats & Opportunities

  • Industry growth is largely attributed to the rising popularity of hot sauces and spicy foods
  • Operators ship products internationally and compete against foreign producers for the US market
  • Increasing incomes will enable consumers to continue purchasing hot sauce
  • Industry Report - Industry Locations Chapter

    Hot sauce producers are located close to upstream suppliers, downstream customers, and traditional hot sauce markets. The West and the Southeast regions have the appropriate climate for growing peppers and are heavily influenced by the Mexican and Cajun cuisines. The West is home to the largest number of industry establishments, accounting for 24.2%. California and Texas are also home to significant hot sauce production, 15.7% and 5.3%, respectively. In addition to being traditional food growing and manufacturing hubs, these states also purchase a greater share of hot sauce because of their populations' ethnic heritage and preference for spicy foods. In ...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 is the Hot Sauce Production Industry?

    This 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 food-service 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
  • Food-service industry
  • 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 competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hot Sauce Production Industry

  • Industry Globalization
    McIlhenny CompanyReckitt Benckiser Group PLCHuy Fong Foods
  • Table: McIlhenny Company - financial performance
  • Table: Reckitt Benckiser Group PLC - 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
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Consumer spending (2008-2022)

  • 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
  • Why buy this report?

    IBISWorld’s Hot Sauce Production Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Hot Sauce Production industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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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