Chinese, Hot and Barbeque Sauces are surpassing demand due to increasing international QSRs like Subway, Pizza Hut, Domino’s, KFC, etc and other domestic restaurants and cafes serving western foods. These food joints are now attaining more popularity and increasing in number due to acceptance by the millennial to new food options.
QSR stands for Quick Service Restaurants which serve mainly fast food and beverages. The consumption of Chinese, hot and barbeque sauces is much more in these food joints as they serve multi cuisine which is trending in recent times. These sauces are used either as an ingredient in the main dish or as an sider as a dip. Having navigated to different countries, millennial is accepting the new food culture that is evolved in India. The numbers of outlets of these QSR's are increasing significantly across India. Also they have started entering Tier-II and Tier-III cities owing to the penetration in the metros.
According to the report on 'India Chinese, Hot and Barbeque Sauces Market Outlook, 2023' published by Bonafide Research, the India overall market for Chinese, Hot and Barbeque Sauces is anticipated to reach more than 700 crores in the year 2022-23. Due to increasing customers’ appreciation for Western cuisine, increased retail consumption, easy availability of sauces and many other factors, the market has grown with a CAGR of more than 15% during review period starting from 2011-12 to 2016-17. The Chinese sauces include red chilli sauce, green chilli sauce, soya sauce and Schezwan sauce. Hot sauces include sauces like chilli garlic sauce, hot chilli sauce, pepper sauce, salsa sauce, sweet chilli sauce and other sauces like Thai sauce.
There is a considerable increase in the number of QSRs in the country. For instance, McDonald’s has increased its outlets in India from 170 to 400, which is an increase of around 1.35 times. Similarly, Kentucky Fried Chicken, popularly known as KFC, has increased its outlets from just 50 in 2009 to 350 currently. Subway has 600 outlets in the country currently, which has increased from 350 in 2013. Moreover, there are many unbranded QSRs, pubs, bars fine dining restaurants and casual dining restaurants, who are customers of these sauces. Hot sauces are used in burgers, soups, salads, etc. In addition to this, the number of street stalls is also increasing because of people’s inclination towards eating more Chinese food outside. So, the institutional trade is increasing due to this factor.
Subway uses barbeque sauce in its subs, which has a strong smoky aroma and a very distinct pungent taste-tomato sauce mixed with vinegar, onion, pepper and other spices. Also, it uses Chipotle Southwest Sauce, Sweet Onion, Red Chilli Sauce, Harissa sauce, which is a chilli garlic sauce. Currently, the newly introduced Chicken SubWrap is being served with Harissa sauce.
‘India Chinese, Hot and BBQ Sauces Market Outlook, 2023’ gives a comprehensive analysis of the Chinese, hot and barbeque sauces industry in India. Owing to benefits such as easy availability of sauces, increased demand due to travelling abroad, increased consumption in social gatherings, demand for Chinese, hot and barbeque sauces is growing gradually.
The India Chinese, Hot and BBQ Sauces Market has shown a growth with a CAGR of more than 10% in the period from FY 2011-12 to FY 2016-17. The highest contribution in Chinese, Hot and Barbeque Sauces market comes from Chinese sauces market, which is around 75% of the overall market. Major companies operating in this market are Capital Foods with its brand Ching’s Secret, FieldFresh Foods Pvt. Ltd with Del Monte brand and Dr. Oetker India Pvt. Ltd. with its brand FunFoods. But the market is facing a pull-back in the demand due to challenges like non-compliance of food standards by some un-organised players, lack of awareness of the use of these sauces, presence of many unorganised players and difficult product innovation.
All these three brands hold more than 70% of the market currently. Also, companies like Veeba have institutional sales to the brands like Tea post, which is an Indian brand. Moreover, the institutional trade for Chinese, Hot and Barbeque sauces is expected to account for around one-third of the total sales of the market in the forecasted year 2022-23.
Moreover, the red chilli and green chilli sauce together contribute more than two-third of the total Chinese sauces market, whereas Soya sauce only contributes least. It is so, because in the preparation of Chinese dishes like Chow Mein or Manchurian, the quantity of soya sauce used is quite less in proportion than that of red or green chilli sauce. Hot sauce market is expected to grow with CAGR of more than 20% during forecast period.
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