The pasta sauce market is expected to grow at an exponential rate during the forecast period owing to the rising pasta consumption and the growing incomes globally. Consumer preference for pasta over the traditional staple meals is expected to drive the demand for pasta sauce. Additionally, the growing appetite for global cuisines coupled with higher acceptance of continental cuisine can create demand for pasta sauce.
The high convenience and health benefits of the sauce are expected to fuel the market growth. A drastic surge in the demand for such products, particularly among working professionals and students is noted. Over the past few years, the world has witnessed huge growth in the middle-class populace which is uplifting the demand for pasta sauce.
Growing international food chains and specialized restaurants, particularly in the emerging markets present potential business opportunities for food-related and retail industries. The surge in the number of upcoming hotels has further led the market towards a growth trajectory. For instance, Marriott plans to launch around 1000 hotels by the year 2024 across the world. The below-mentioned info-graph depicts global pasta production in 2019.
Source: International Pasta Organization
Around 16.5 million tons of pasta was produced in 2019. Countries in the European Union (EU) and other European regions accounted for 31% and 17.5% share respectively. According to the international research by Unione Italiana Food and ICE Agency, during the pandemic lockdowns, there was an increase in pasta consumption, as 1 out of 4 consumers bought more pasta. The consumer's inclination towards Italian taste in their pasta and willingness to try novelties is anticipated to boost the market growth during the forecast period.
In the past few years, the HoReCa industry has witnessed immense growth and is one of the fastest-growing markets across the globe. The industry is a wide hospitality market covering hotels, restaurants, and cafes and is carving a niche in the retail market. Major players in the pasta sauce market increasingly become a part of the HoReCa market that serves the hotel industry. Strong economic growth, a rising populace of millennials, and digitalization are vital factors fueling the growth of the hospitality sector.
Globally, there is a surge in the number of hotels and restaurants, particularly in emerging markets. People now eat out at cafes and restaurants more often than ever and for a wider range of occasions, which in turn, drives the hospitality industry’s growth. According to the U.S. Travel Association, in 2019 travelers spent around USD 278.9 billion on food services. Cafes and restaurants are larger customers for pasta sauce as compared to hotels. Millennials and young demographics are spending more time in cafes, which in turn, is expected to boost the market growth.
Today, consumers’ lives are busier than ever, which drives the demand for ready-to-eat and convenience food products. Owing to the shortage of time, people opt for ready-made sauces that ensure quicker meal preparation. The growing female workforce has seen a decline in home cooking and an upward trend in the consumption of ready-to-eat meals and quick-cooking options, such as pasta, and pizzas. Increasing per capita income and consumption at casual restaurants worldwide are anticipated to drive the demand for pasta sauce.
Social media influence and high awareness of different pasta flavors also augment demand and are expected to positively influence the market growth during the forecast period. Moreover, the millennial population’s preference for varied flavors of pasta sauce and their growing disposable income are expected to oversee demand growth. Strong distribution and retail channels around the world also foster the pasta sauce market growth.
Based on base, the vegetable-based segment is anticipated to record the fastest growth during the forecast period owing to the growing veganism and preference for organic vegetables. Consumers across the globe are looking for ways to include plant-based items in their daily meals to avoid meat and reduce the overall environmental impact. Moreover, increasing diseases such as bird flu among animals and adverse health effects are compelling people to opt for vegetable-based pasta sauce.
Based on the distribution channel, the store-based retail segment is projected to hold the largest market share with online retail having the fastest growth rate. The growth in the store-based retail segment is driven by demographics and socio-economic factors like rapid urbanization, rise in nuclear families, and growing incomes. Furthermore, favorable political factors like government policies and tax exemptions are attracting FDIs which is strengthening the retail sector. The growth in the segment is primarily observed in the emerging economies, such as India, China, Vietnam, and Singapore, among others.
According to the India Brand Equity Foundation (IBEF), the retail industry in India reached USD 950 billion in 2018 and is expected to reach USD 1.1 trillion by 2022, thus highlighting segment growth during the forecast period. Easy availability in hypermarkets, supermarkets, and convenience stores accelerates sales, and the emergence of the online option with attractive discounts further garners consumer interest. With a high internet penetration rate and increased smartphone sales in the developing world, retail shopping is emerging as a potential platform to sell pasta sauce.
Europe is predicted to dominate the global pasta sauce market during the forecast period, backed by the rising pasta consumption and growing popularity of ready-made sauces. Italy, Germany, and France are spearheading the regional market, thereby accelerating product sales. In 2019, Italy and Greece were among the top five countries for high pasta consumption, accounting for 23.1 kg and 11.4 kg, respectively.
The emergence and increasing penetration of pasta in other European countries are facilitating the market growth. According to the International Pasta Organization (IPO), in Italy, almost everybody consumes pasta daily and about 6 Italians out of 10, particularly in the central-southern part, eat pasta every day. The availability of a broad variety of pasta sauce flavors is further expected to attract a considerable consumer base.
Asia-Pacific is expected to present lucrative growth opportunities in the global pasta sauce market. In the last few years, the Asia-Pacific has undergone rapid urbanization and experienced a sudden rise in the young population. It is home to more than half of the world’s population with most residing in urban areas. The rise in working women populace and higher influence of western culture is having a positive impact on the regional pasta sauce market. To capitalize on the growing opportunity, the key players in the market are introducing pasta sauces in different flavors and at lower costs.
The flourishing HoReCa industry and a rise in consumer spending on eating outside are expected to boost the regional market growth. Moreover, the increasing demand for intercontinental food in the developing markets and rapid growth in fast-food chains are supporting the demand for pasta sauce. China and India are front-runners in the Asian market and are anticipated to have potential opportunities for the pasta sauce players. China continues to grow in the fast-food market owing to the rising millennials and growing middle-class population.
Key Players are witnessing the most of their sales from e-commerce and online channels. India is on a similar growth trajectory due to high economic growth. The country is becoming home to career-driven individuals and independent people with high spending capacities. As this population is rising exponentially, it exhibits extreme potential for the pasta sauce market during the forecast period.
Some of the key players profiled in the global pasta sauce market are Barilla G. e R. Fratelli S.p.A, Bertolli (Mizkan America, Inc.), Conagra Brands, Inc., CSC Brands LP, Del Monte Food, Inc., Frontier Co-op, International Gourmet Specialties, Trader Joe’s, B&G Foods, Inc., Lassonde Industries Inc., Premier Foods Group Limited, Mars Incorporated, The Kraft Heinz Company, and many others.