The Growing Market Opportunity for Private Label in the Sauces and Condiments Sector

Sauces and condiments are a cost-effective solution to elevate flavor at home. Since the arrival of COVID, people have simply been eating more at home. To broaden their horizons, cooking capabilities, and tastebuds, they’ve turned to condiments in droves. The cook-at-home craze has dipped slightly since its summit in 2020 and 2021, but in 2023, 64% of Americans “cooked to save” and maintain their budgets. More than 81% of consumers prepare more than one-half of theirvmeals at home.

“With inflation hitting our pockets at the store and restaurants, people, especially those with families, will once again return to cooking fresh meals with cultural and flavorful twists,” said Specialty Food Association (SFA) Trendspotter Sheree Williams. In fact, the SFA identified cooking at home as a main driver of growth in specialty categories in 2025. Sauces also provide an inexpensive way to customize food to deliver personalized experiences. “Consumers — particularly the newest group of spenders — have more diverse palates, relationships, travel experiences, and lifestyles,” said Jennefer Lyons, senior marketing manager, Sensient Flavors & Extracts. “They want their food to match that diversity.” It therefore comes as no surprise that the SFA predicts a surge in elevated home cooking with global flavors.

Value is expected to be a key theme in 2025, according to Alastair Steel, executive-client engagement, Circana, as shoppers lean into “affordable luxuries.” “Know your target consumer and your value proposition,” Steel said. “Even lower income households are willing to splurge and trade up.”

As private label sales continue to climb—hitting a record $271 billion in 2024—the market opportunity for sauce and condiment makers is expanding. According to a private label study completed in 2024 by Kearney and NielsenIQ (NIQ), private brands are projected to increase their U.S. dollar market share from 17% in 2023 to 24% by 2030, taking 7% from national brands over the next decade.

“There is this dichotomy between the private label and premium brands in the marketplace,” observed
Stephen Scharafin, a director in BGL’s Food and Beverage investment banking team. “Either consumers are going to buy a private label product because it is actually very high quality and is very cost effective, or they are going to buy the premium brand.”

Our Food & Beverage team has deep sector knowledge and extensive transaction expertise representing branded and private label companies, with an emphasis on specialty products. Coverage spans the global supply chain from ingredients to processing and distribution.

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