Hot Sauce Production in the US - Industry Market Research Report

Heating Up: the Growing Purchasing Power of Millennials is Expected to Drive Industry Performance

Hot sauce producers make spicy sauces made of chili peppers and other ingredients, which they then sell to retailers, wholesalers and other food manufacturers. Positive demographic consumption trends and a growing assortment of product varieties have boosted hot sauce demand through 2023. Although the domestic market has become somewhat saturated, the popularity of spicy food has continued to grow. The industry will expand at an expected CAGR of 2. 5% to $2. 6 billion over the five years to 2023, including a 1. 9% jump in 2023 alone as the food service market rebounds from the pandemic.

Even so, rising competition and swelling wage costs characterize the industry, limiting profit to 4. 1% in 2023. 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 food service contractors. This industry excludes producers of pre-made salsa and paste-style products such as hot curry or chili pastes. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.