Ketchup Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Ketchup Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The ketchup market is projected to register a CAGR of 5.2% during the forecast period (2022-2027).

The COVID-19 pandemic has placed unprecedented stress on the demand for ketchup because of the shutdown and stringent government guidelines across the world. However, the situation saw scope in the rising demand from foodservices, which facilitated take-aways, and off-trade channels. This led to a shortage of ketchup in the market post the pandemic. Taking a stand on this, in 2021, Kraft Heinz increased its production line to facilitate the production of foodservice products by 25%, resulting in the creation of 12 billion packets of ketchup in a year.

The rising urbanization levels and the increasing disposable income have led many individuals to opt for on-the-go food. These food types are rapidly gaining popularity, especially among Generation Z and the millennials. Ketchup is a vital food item used across many fast-food types. Thus, these factors are likely to bring tremendous growth opportunities for the ketchup market in the coming years.​

Additionally, consumers' rising preference for organic ketchup is driving the growth of the market. Their growing concerns about the possible health risks of consuming artificial additives and genetically modified organisms (GMOs) have accelerated the consumption of sauces and condiments labeled as natural, organic, and non-GMO. Private-label ketchup brands have been performing better than well-established brands in many countries such as United Kingdom, France, Germany, and others. The major players are focused on providing new varieties to cater to changing consumer demands.

Key Market TrendsIncreasing Inclination Toward Organic Food

The growing demand for organic ketchup is one of the significant trends that is gaining market traction. The rise in health-conscious consumers due to their growing preference for organic products for their natural and healthy ingredients further fuels the market growth. The key players in the market have understood the changing needs of consumers and are investing in meeting those needs. Some of the companies providing organic ketchup include The Kraft Heinz Company, Annie's Homegrown Inc., and Orchard Lane. The increasing sales of organic ketchup have led to the rise in product innovation by firms. The market giant Unilever catered to the market demand by acquiring an organic and clean-label ketchup brand, Sir Kensington. These organic ketchup brands are focused on extending their product lines to attract more customers. For instance, in 2021, Sir Kensington launched two varieties of ketchup, i.e., classic and spicy, in the Canadian market. The products of this brand are made from tomatoes and organic sugarcane.

North America Holds the Largest Market Share

North America holds a large share of the ketchup market. The evolving lifestyles and changing dietary habits of people, especially in developed countries, drive the growth of the market. Companies in the region generally do not use flavors other than tomato because tomato is native to North America, and the availability of tomatoes as raw material for ketchup is high in the region. Also, consumers in the region prefer to use ketchup among all the other sauces and condiments. According to different surveys, around 97% of households in United States consume ketchup. The consumption of ketchup is gaining popularity day by day due to the increasing change in the food habits and consumption of fast-food products like Chinese, continental, and other convenient snacking items. This shift toward spending less time on food preparation or opting for more convenient options will likely affect the growth of the ketchup market globally. Consumers have increased their consumption of ketchup as it has become a convenient replacement for other sauces and condiments, with innovative and easy packaging.

Competitive Landscape

The ketchup market faces high competition and is a fragmented market. The leading players in the market include Del Monte Foods Inc., The Kraft Heinz Company, Conagra Brands Inc., Nestlé SA, and Unilever PLC. The key players have intensely embarked on industry consolidation by leveraging their distribution networks, entering partnerships with local distributors, especially in the emerging economies, and developing new products with customization for different end-user industries. Moreover, these players are focusing on online distribution channels for the online marketing and branding of their products to expand their geographic reach and customer base.

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