The Mayonnaise Market is estimated to be valued at US$ 11.83 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Mayonnaise is an emulsified, creamy dressing made primarily of oil, egg yolks, and an acid, usually vinegar or lemon juice. It is a stable emulsion of oil, egg yolks and/or whole eggs, acid, and water. Some varieties of mayonnaise contain other ingredients like mustard, herbs, and spices. Mayonnaise has gained popularity around the world as a spread in sandwiches, rolls and burgers owing to its creamy texture and taste.
Market key trends:
One of the key trends driving growth of the mayonnaise market is increasing demand for plant-based alternatives. Consumers are increasingly looking for plant-based substitutes for animal-based food products due to health and sustainability concerns. Growing vegan and vegetarian population is creating demand for plant-based mayonnaise that contains no eggs or dairy. Major brands like Just Mayo and Hellmann's have introduced plant-based egg-free mayonnaise made from ingredients like chickpeas, soybean oil and vinegar. Flavor innovations and availability of plant-based options in organic and non-GMO varieties is helping drive their popularity. Innovative ingredients like avocado and olive oil are also gaining traction in premium mayonnaise varieties. This growing shift towards plant and healthy alternatives is expected to support market growth over the forecast period.
Porter's Analysis
Threat of new entrants: Low capital requirements and established brand loyalty reduces threat of new entrants. However, established players have economies of scale.
Bargaining power of buyers: Large retail chains have significant bargaining power over mayonnaise producers. Buyers can negotiate lower prices and demand better trade terms.
Bargaining power of suppliers: Major suppliers of ingredients like eggs, oils, and vinegars face less pressure due to availability of substitutes.
Threat of new substitutes: Products like salad dressings, sandwich spreads, and sauces pose threat of substitution. However, consumer preferences and habits favor mayonnaise.
Competitive rivalry: Intense competition exist among established brands due to product maturity. Brand loyalty, marketing activities, and pricing strategies determine competitive edge.
SWOT Analysis
Strength: Wide availability in retail outlets and restaurants. Versatility and universal appeal as a condiment boosts sales.
Weakness: Perceived as unhealthy due to high fat and calorie content. Difficulty differentiating products leaves scope for competition.
Opportunity: Growing preference for plant-based and organic products provide opportunities. Expanding food service industry boosts out of home consumption.
Threats: Stringent regulations on nutrition labeling and fat content. Volatility in prices of key ingredients like oils impacts margins.
Key Takeaways
The global mayonnaise market is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand for condiments and spreadable food products. The market size for mayonnaise in 2023 is estimated to be US$ 11.83 Bn.
Regionally, North America dominates the mayonnaise market owing to widespread adoption in households and food services. Europe follows suit due to high consumption in countries like Germany, UK, and Russia. Asia Pacific is expected to witness fastest growth led by China, India and other Southeast Asian countries. Rising income levels and shift toward western food habits fuel market growth.
Key players operating in the mayonnaise market are Nestlé SA, Ajinomoto Co., Inc., McCormick & Company, Inc., Kraft Heinz Company, Unilever, Kewpie Corporation, Sauer Brands, Inc. (Duke's Mayonnaise), Kensinton & Sons, LLC, Spectrum Organic Products, LLC, Woodstock Foods, and others. Major players focus on new product launches, acquisitions, and geographical expansion to strengthen their market presence.
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