Sauces and Seasonings - China - December 2014

INTRODUCTION
Definition
Methodology
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Retail market size of sauces in China, by value, 2009-19
Figure 2: Retail market size of chicken granules in china, by value, 2009-19
Companies and brands
Figure 3: Share of sauces and seasonings retail market, by value, by company, 2012 and 2013
The consumer
Interestingly, high earners do more home cooking
Figure 4: The responsibility for cooking at home, September 2014
The healthy eating trend is seen by changes in sauces and seasonings consumption
Figure 5: Trends in sauces and seasonings consumption, September 2014
Opportunities in bringing foreign sauces to China
Figure 6: Interest in foreign sauces, September 2014
Many buy products to prepare a special meal, not just simply to restock
Figure 7: Occasions for buying sauces and seasonings, September 2014
Healthy product features and high-quality ingredients are what people are most willing to pay more for
Figure 8: Factors that consumers are willing to pay more for, September 2014
Consumers have a variety of problems when buying and using sauces and seasonings
Figure 9: Consumers’ problems with sauces and seasonings, September 2014
Consumer attitudes towards sauces and seasonings
Figure 10: Attitudes towards sauces and seasonings, September 2014
Five consumer segments identified by Mintel
Key issues
Specialised sauces to match different ingredients and cooking methods
How to enhance healthy perception through packaging
Opportunities for more ready-to-use sauces
What we think
ISSUES AND INSIGHTS
Specialised sauces to match different foods and cooking methods
The facts
The implications
Figure 11: Examples of sauces designed for Steaming (Meiweixian, Q2 2014) and Braising (Shinho, Q4 2012)
How to enhance healthy perception through packaging
The facts
The implications
Figure 12: Packaging example from American Pasteurized Prepared Cheese product launched by Kraft (US), Q3 2014
Figure 13: Packaging example from juice drink by Sainsbury's British Strawberry & Rhubarb (UK), Q3 2014
There are opportunities for brands to launch more ready-to-use sauces
The facts
The implications
TREND APPLICATION
Minimize Me
Guiding Choice
Figure 14: Examples of building linkage between sauces and the recommended ingredients, China, 2014
The Big Issue
Figure 15: Examples of marking calories per serve on the package, UK, 2014
MARKET SIZE AND FORECAST
Key points
Sauces
Figure 16: Retail market size of sauces in China, 2009-14
Seasoning: chicken granule
Figure 17: Retail market size of chicken granules in China, 2009-14
The sauces and seasonings market enjoys fast growth
Forecast
Figure 18: Retail value of sauces market in China, 2009-19
Figure 19: Retail value of chicken granules market in China, 2009-19
Forecast methodology
Key market drivers
Potential lower cost of production for the industry due to the abolishment of salt supply monopoly
Rising spending power supports trading up
The increase of cooking at home
Key challenges of growth
Concerns about the bad effects on health
A matured market of traditional Chinese condiments
The varied taste preferences of Chinese people
MARKET SEGMENTATION – SAUCES
Key points
Figure 20: Sales of retail sauces market in China, by value and volume, 2009-14
The retail sauces market is dominated by soy sauce and vinegar
Figure 21: Year-on-year growth of retail sauces market in China, by value and volume, 2009-14
Oyster sauce leads the growth in traditional Chinese sauces
Foreign sauces are getting popular among Chinese consumers
Figure 22: Segment share of sauces – foreign sauces, 2009-14
MARKET SHARE
Key points
A fragmented market dominated by local players
Figure 23: Retail market share of sauces and seasonings in China, by value, 2012 and 2013
Haitian further strengthened its leading position
Online presence may contribute to market share increase
WHO’S INNOVATING?
Key points
Top claims of new launched products over 2011-14
Figure 24: Top claims in new sauces and seasonings products launched in China, 2011-14
Brands are upgrading consumers to premium products
Figure 25: Examples of premium soy sauce Haitian (Q2, 2014), Shinho (Q4, 2014) and Jiajia (Q3, 2014), China
Figure 26: New vinegar products launched in China, by price, 2011-14
Figure 27: Examples of premium vinegar, China, 2014
The market sees more ready-to-use sauces for certain dishes
Figure 28: Examples of ready-to-use sauces, China, 2014
Leading brands are launching sauces for children
Figure 29: Share of new sauces and seasonings designed for children and babies, selected countries, 2011-Nov 2014
Figure 30: Examples of soy sauce for children from Chubang (Q2, 2014), Zhi Mei Zhai (Q3, 2013), Shinho (Q3, 2012), China
Global: manufacturers in South East Asia are launching coconut vinegar
Figure 31: Examples of coconut vinegar from global, 2014
COMPANIES AND BRANDS
Foshan Haitian Flavouring Food Co., Ltd.
Jiangsu Hengshun Vinegar-Industry Co., Ltd
Figure 32: Hengshun’s vinegar product portfolio, November 2014
Nestlé S.A.
Lee Kum Kee International Holdings Ltd.
Guangdong Meiweixian Flavoring Foods Co., Ltd.
Jiajia Food Group Co., Ltd.
H J Heinz Company
Figure 33: Main sauces and seasonings products of Heinz China, November 2014
Yantai Shinho Weidamei Food Co., Ltd.
THE CONSUMER – RESPONSIBILITY FOR COOKING AT HOME
Key points
Despite busy lifestyles, still majority of consumers cook at home
Figure 34: The responsibility for cooking at home, September 2014
Figure 35: The responsibility for cooking at home, “I cooked/prepared all meals in my home”, by gender and age, September 2014
Brands could cultivate the habit of cooking among young consumers
Figure 36: The responsibility for cooking at home, “I prepared all meals in my home”, by gender and age, September 2014
High earners not necessarily cooking less at home
Figure 37: Responsibilities to cook at home, by age and personal income, September 2014
THE CONSUMER – TRENDS IN SAUCES AND SEASONINGS CONSUMPTION
Key points
Figure 38: Trends in sauces and seasonings consumption, September 2014
Consumers are moving away from MSG
Vinegar is gaining popularity among consumers
Figure 39: Consumers who have eaten more vinegar in the past six months, by gender and personal income, September 2014
Soy sauce has the least change in usage level
People from tier one cities are moving towards a lighter taste
Figure 40: The sauces and seasonings that people are eating less, by city tier, September 2014
THE CONSUMER – INTEREST IN FOREIGN SAUCES
Key points
Figure 41: Interest in foreign sauces, September 2014
High acceptance of tomato sauce shows good prospect for foreign sauces
Consumers call for sauces that can go with vegetables
Consumers are very likely to repurchase BBQ sauce and curry paste
Figure 42: Interest in BBQ sauces and curry paste: “have eaten and interested in eating again”, by gender and age, September 2014
Potential for brands to launch more niche sauces and seasonings
Figure 43: Drop rate of foreign sauces, September 2014
Figure 44: Example of small packaging of sauces from Ass Kickin' (US), Q2 2010
Regional influences
Figure 45: Interest in foreign sauces, “Have eaten and interested in eating again”, by cities, September 2014
Figure 46: Map of cities and interested foreign sauces, September 2014
THE CONSUMER – OCCASIONS FOR PURCHASE
Key points
Opportunities for companies to launch condiments for popular cuisines
Figure 47: Occasions for buying sauces and seasonings, September 2014
Families with children are likely to try more new products
Figure 48: Occasions for buying sauces and seasonings, by children in household, September 2014
Respondents show high loyalty in buying sauces and seasonings
THE CONSUMER – FACTORS THAT CONSUMERS WOULD BE WILLING TO PAY MORE FOR
Key points
Health factors come first as something consumers would be willing pay more for
Figure 49: Factors that consumers are willing to pay more for, September 2014
Figure 50: Selected factors that consumers are willing to pay more for, by city tier, September 2014
Ingredient plays a key role in demonstrating high product quality
Consumers call for products designed for specific dish/ingredient
Convenient packaging also adds value to consumers
Figure 51: Examples of convenient packaging from Mizkan in Japan, Q1 2014
Good ingredient and brand reputation are more important to entice trial purchase
Figure 52: Occasions for buying sauces and seasonings, “to restock on the ones I commonly use” versus “to try a new product launched to the market”, by influence factor, September 2014
THE CONSUMER – PROBLEMS ENCOUNTERED WHEN BUYING/USING SAUCES AND SEASONINGS
Key points
Consumers have more problems in buying sauces and seasonings
Figure 53: Consumers’ problems with sauces and seasonings, September 2014
Give more information about taste to differentiate the products
Figure 54: Problems encountered when buying sauces and seasonings, September 2014
Figure 55: Examples of taste measurement scale on product package, China, November 2014
There is scope for companies to appeal to consumers via taste trials
Low earners need even more help deciding which products to buy
Figure 56: Problems encountered in buying sauces and seasonings, by personal income, September 2014
Figure 57: Examples of taste description on product label. Kewpie (China), 2014
Use smaller packages
Apply small gadgets to help consumers make measurements
Figure 58: Example of measuring gadget in packaging from Nestlé (US), Q4 2012
THE CONSUMER – ATTITUDES TOWARDS SAUCES AND SEASONINGS
Key points
Consumers are willing to see specific sauces and seasonings
Figure 59: Attitudes towards sauces and seasonings, taste-related statements, September 2014
Figure 60: Attitudes towards sauces and seasonings, “Any Agree”, by income, September 2014
Brands could leverage recipes to promote their products
Figure 61: Attitudes towards sauces and seasonings, taste-related statements, September 2014
Opportunities for restaurants to launch their own-label sauces
Figure 62: Attitudes towards sauces and seasonings, cooking attitude-related statements, September 2014
Figure 63: Examples of own-label sauces from Hai Di Lao and Jia You Hao Mian
Use the homemade concept to enhance authenticity and emotional appeal
Figure 64: Attitudes towards sauces and seasonings, cooking attitude-related statements, September 2014
THE CONSUMER – SEGMENTATION
Key points
Mapping out the different consumer clusters
Figure 65: Target groups, September 2014
Master Chef (14%)
Cooking Apprentice (24%)
Variety Lover (20%)
Condiment Sceptics (18%)
Muddle Along (23%)
APPENDIX – MARKET SEGMENTATION – SAUCES
Figure 66: Retail value sales of sauces, 2009-19
APPENDIX – MARKET SEGMENTATION – SOY SAUCE
Figure 67: Retail value sales of soy sauce, 2009-19
Figure 68: Retail value sales of soy sauce, China, 2009-19
APPENDIX – MARKET SEGMENTATION – VINEGAR
Figure 69: Retail value sales of vinegar, 2009-19
Figure 70: Retail value sales of vinegar, China, 2009-19
APPENDIX – MARKET SEGMENTATION – OYSTER SAUCE
Figure 71: Retail value sales of oyster sauce, 2009-19
Figure 72: Retail value sales of oyster sauce, China, 2009-19
APPENDIX – MARKET SEGMENTATION – CHILI SAUCE
Figure 73: Retail value sales of chili sauce, 2009-19
Figure 74: Retail value sales of chili sauce, China, 2009-19
APPENDIX – MARKET SEGMENTATION – OTHER TRADITIONAL SAUCES
Figure 75: Retail value sales of other traditional sauces, 2009-19
Figure 76: Retail value sales of other traditional sauces, China, 2009-19
APPENDIX – MARKET SEGMENTATION – FOREIGN SAUCES
Figure 77: Retail value sales of foreign sauces, 2009-19
Figure 78: Retail value sales of foreign sauces, China, 2009-19
APPENDIX – MARKET SEGMENTATION – CHICKEN GRANULES
Figure 79: Retail value sales of chicken granules, 2009-19
Figure 80: Retail value sales of chicken granules, China, 2009-19
APPENDIX – THE CONSUMER – RESPONSIBILITY FOR COOKING AT HOME
Figure 81: Responsibility for cooking at home, September 2014
Figure 82: Responsibility for cooking at home, by demographics, September 2014
APPENDIX – THE CONSUMER – TRENDS IN SAUCES AND SEASONINGS CONSUMPTION
Figure 83: Trends in sauces and seasonings consumption, September 2014
Figure 84: Trends in sauces and seasonings consumption – Salt, by demographics, September 2014
Figure 85: Trends in sauces and seasonings consumption – MSG, by demographics, September 2014
Figure 86: Trends in sauces and seasonings consumption – Soy sauce, by demographics, September 2014
Figure 87: Trends in sauces and seasonings consumption – Vinegar, by demographics, September 2014
Figure 88: Trends in sauces and seasonings consumption – Dry seasoning powder for flavour enhancement, by demographics, September 2014
Figure 89: Trends in sauces and seasonings consumption – Spicy/hot condiments, by demographics, September 2014
Figure 90: Trends in sauces and seasonings consumption – Sesame oil, by demographics, September 2014
Figure 91: Trends in sauces and seasonings consumption – Salty seasoning paste, by demographics, September 2014
Figure 92: Trends in sauces and seasonings consumption – Sweet bean paste, by demographics, September 2014
Figure 93: Trends in sauces and seasonings consumption – Peanut butter, by demographics, September 2014
Figure 94: Trends in sauces and seasonings consumption – Prepared/ready-to-use sauces for dishes, by demographics, September 2014
Figure 95: Trends in sauces and seasonings consumption – Prepared soup seasonings, by demographics, September 2014
APPENDIX – THE CONSUMER – INTEREST IN FOREIGN SAUCES
Figure 96: Interest in foreign sauces, September 2014
Figure 97: Interest in foreign sauces – Tomato sauce*, by demographics, September 2014
Figure 98: Interest in foreign sauces – Pasta paste, by demographics, September 2014
Figure 99: Interest in foreign sauces – BBQ sauce, by demographics, September 2014
Figure 100: Interest in foreign sauces – Mayonnaise, by demographics, September 2014
Figure 101: Interest in foreign sauces – Salad dressing, by demographics, September 2014
Figure 102: Interest in foreign sauces – Korean chili sauce, by demographics, September 2014
Figure 103: Interest in foreign sauces – Wasabi, by demographics, September 2014
Figure 104: Interest in foreign sauces – Curry paste, by demographics, September 2014
Figure 105: Interest in foreign sauces – Exotic spices/herbs, by demographics, September 2014
Figure 106: Interest in foreign sauces – Fish sauce, by demographics, September 2014
Figure 107: Interest in foreign sauces – Tom Yum Kung, by demographics, September 2014
APPENDIX – THE CONSUMER – OCCASIONS FOR BUYING SAUCES AND SEASONINGS
Figure 108: Occasions for buying sauces and seasonings, September 2014
Figure 109: Most popular occasions for buying sauces and seasonings, by demographics, September 2014
Figure 110: Next most popular occasions for buying sauces and seasonings, by demographics, September 2014
APPENDIX – THE CONSUMER – FACTORS THAT CONSUMERS WOULD BE WILLING TO PAY MORE FOR
Figure 111: Factors that consumers would be willing to pay more for, September 2014
Figure 112: Most popular factors that consumers would be willing to pay more for, by demographics, September 2014
Figure 113: Next most popular factors that consumers would be willing to pay more for, by demographics, September 2014
Figure 114: Other factors that consumers would be willing to pay more for, by demographics, September 2014
Figure 115: Factors that consumers would be willing to pay more for, by most popular occasions for buying sauces and seasonings, September 2014
Figure 116: Factors that consumers would be willing to pay more for, by next most popular occasions for buying sauces and seasonings, September 2014
APPENDIX – THE CONSUMER – PROBLEMS ENCOUNTERED WHEN BUYING/USING SAUCES AND SEASONINGS
Figure 117: Problems encountered when buying/using sauces and seasonings, September 2014
Figure 118: Most popular problems encountered when buying/using sauces and seasonings, by demographics, September 2014
Figure 119: Next most popular problems encountered when buying/using sauces and seasonings, by demographics, September 2014
Figure 120: Other problems encountered when buying/using sauces and seasonings, by demographics, September 2014
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS SAUCES AND SEASONINGS
Figure 121: Attitudes towards sauces and seasonings, September 2014
Figure 122: Agreement with the statement ‘The fewer sauces/seasonings used during cooking, the healthier the dish’, by demographics, September 2014
Figure 123: Agreement with the statement ‘I am concerned about the safety of ingredients in packaged sauces/seasonings’, by demographics, September 2014
Figure 124: Agreement with the statement ‘I am unsure how much salt/sugar/oil I consume every day’, by demographics, September 2014
Figure 125: Agreement with the statement ‘It is necessary to apply particular sauces/seasonings for particular ingredients’, by demographics, September 2014
Figure 126: Agreement with the statement ‘Even within the same category, sauces/seasonings from different cuisine styles vary a lot in taste’, by demographics, September 2014
Figure 127: Agreement with the statement ‘I would like to see more recipes indicating the detailed product name of sauces/seasonings to use for the dishes’, by demographics, September 2014
Figure 128: Agreement with the statement ‘I am interested in cooking dishes at home which I enjoyed when eating out’, by demographics, September 2014
Figure 129: Agreement with the statement ‘Homemade sauces/seasonings are better than packaged products’, by demographics, September 2014
Figure 130: Agreement with the statement ‘The more types of sauces and seasonings used when cooking, the better the dishes will taste’, by demographics, September 2014
Figure 131: Agreement with the statement ‘It is safe to stick to the brand I am used to when buying sauce/seasonings’, by demographics, September 2014
Figure 132: Agreement with the statement ‘Ingredients used are a bigger factor in taste than sauces/seasonings used’, by demographics, September 2014
Figure 133: Agreement with the statement ‘I prefer using prepared sauces rather than cooking from scratch’, by demographics, September 2014
APPENDIX – THE CONSUMER – SEGMENTATION
Figure 134: Target groups, September 2014
Figure 135: Target groups, by demographics, September 2014
Figure 136: Trends in sauces and seasonings consumption, by target groups, September 2014
Figure 137: Interest in foreign sauces, by target groups, September 2014
Figure 138: Occasions for buying sauces and seasonings, by target groups, September 2014
Figure 139: Factors that consumers would be willing to pay more for, by target groups, September 2014
Figure 140: Problems encountered when buying/using sauces and seasonings, by target groups, September 2014
Figure 141: Attitudes towards sauces and seasonings, by target groups, September 2014