Growing Demand from Quick Service Restaurants Predicted to Fuel the Demand for Ketchup Through 2020, Says Technavio

LONDON--()--According to the latest research report released by Technavio, the global ketchup market is expected to reach approximately USD 4.51 billion by 2020.

This report titled ‘Global Ketchup Market 2016-2020‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. To calculate the market size, the report considers the revenue generated through the retail sales of ketchup.

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“As the ketchup is a major accompaniment to many snack foods commonly served in QSRs. Heinz, a key player in this market has supplied ketchup to McDonald's for close to 40 years, and finds resounding popularity among consumers. But, the market is also witness to the growth many small fast food restaurants who buy their ketchup from large supermarkets and hypermarkets in bulk,” said Vijay Sarathi, one of Technavio’s lead industry analysts for food and beverages.

“To leverage the lucrative market, many retailers are likely to increase their investments in perishable food products such as ketchup, sauces, and dressings, for at-home consumption. Walmart, Kroger, Safeway, Carrefour, Auchan, Tesco, Sainsbury's, and Morrisons are some of the few examples of large retailers who offer private label ketchups in their stores,” added Vijay.

Some of the other driving forces behind the growth of the global ketchup market are as follows:

  • Growing popularity of organic ketchup
  • Wide reach through organized retailing
  • Health benefits associated with ketchup

Growing popularity of organic ketchup

One of the most predominant and clear benefits of organic ketchup is the reduction in use of pesticides, herbicides, and chemical pesticides, as they are prohibited in organic farming. The primary factor that persuades consumers to opt for organic ketchup is its health benefit. To target health-conscious consumers, some manufacturers of ketchup have introduced organic variants in the market. This apparently has helped players such as Heinz move its ketchup line into the leading national brand position in France and the US.

Pesticides used to grow non-organic food are known to reduce fertility and affect the human immune system. Thus, health-conscious people prefer organic ketchup over other variants. Ketchup made from organically grown tomatoes contains higher levels of beneficial antioxidant compounds such as polyphenols as compared to ketchup made from conventional tomatoes. Polyphenols aid in reducing the risk of Alzheimer’s and heart disease, which further increases its utility among consumers.

Wide reach through organized retailing

The retail industry in many developing countries is experiencing the growth of organized retailers, thanks to the establishment of supermarkets, hypermarkets, and specialty stores. Convenience and value have become important for consumers because of their hectic lifestyles and work schedules. Ketchup is primarily sold by organized retailers, which signifies the heavy reliance of vendors on them.

It is observed that several vendors are currently competing against each other for the limited shelf space of these major retailers. Consumer shopping patterns also show an increase in the purchase of products from supermarkets and hypermarkets that further increases the importance of organized retailers in this market. Hence, the growth in the number of organized retailers will likely augment an increase ketchup sales during the forecast period.

Health benefits associated with ketchup

Ketchup is the most common condiment used on food products such as French fries. Although consumers consider ketchup to be a flavor enhancer, it has a few notable health benefits. Ketchup is also believed to reduce the risk of prostate cancer in men, as tomatoes are high in lycopene, a powerful antioxidant with anticancer properties. It is also perceived among consumers to be good for eyes and teeth, as tomatoes are rich in vitamin A. Ketchup also reduces bad cholesterol, as tomatoes are rich in nutrients.

Health is a top priority among consumers globally, and as a result, they have become more particular in what they eat without compromising on taste. Hence, the growing awareness about the benefits of ketchup is expected to fuel its demand during the forecast period.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com

Release Summary

According to the latest research report released by Technavio, the global ketchup market is expected to reach approximately USD 4.51 billion by 2020.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770
www.technavio.com
media@technavio.com