Hot Sauce Production in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS OD4627Revenue
$2.7bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
5,016
Businesses
387
Wages
$XXX.Xm
Hot Sauce Production in the US industry analysis
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 2024. 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 2.7% to $2.7 billion over the five years to 2024, including a 0.9% jump in 2024. Even so, rising competition and swelling wage costs characterize the industry, limiting profit to 3.6% in 2024.
Trends and Insights
- The industry's rapid growth has encouraged new producers to enter at a torrid rate. Ballooning price competition has prevented hot sauce producers from expanding profit.
- Smaller companies can't acquire prime shelf space with grocery stores and supermarkets. Major producers leverage their brand and reputation into favorable contracts with downstream markets.
- Producers seek lower transportation costs. Companies will position themselves near well-established infrastructure and trade routes.
- Producers must maintain strong relationships with the entire supply chain. Prices of key inputs can fluctuate violently, and store shelf spaces are extremely limited.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.7 % over the past five years, to reach an estimated $2.7bn in 2024.
Trends and Insights
Consumer tastes shift to new horizons
- Many Americans have adopted foreign tastes, mainly Latin American, Japanese, Thai, Caribbean and Mediterranean cuisines, encouraging more grocery stores and restaurants to cater to these flavors.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Rising discretionary spending supports demand
- As a discretionary good, increasing incomes will enable consumers to continue purchasing hot sauce. Increased discretionary spending also translates to increased demand for the food service sector. In particular, many fast-food chains and restaurants now have hot sauce on tables as it grows in popularity.
Biggest companies in the Hot Sauce Production in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
McIlhenny Company | 249.0 | 46.6 | 18.7 | |
Mccormick & Co Inc. | 154.0 | 44.1 | 28.6 | |
Huy Fong Foods Inc. | 130.9 | 22.3 | 17.0 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Hot, Medium and Mild. Hot is the largest segment of the Hot Sauce Production in the US.
Trends and Insights
Mild hot sauce sales increased during the pandemic
- The mild category includes products that register below 2,500 heat units on the Scoville scale. Well-known peppers that register below 2,500 heat units include Anaheim peppers, poblanos, pepperoncini, pimentos and bell peppers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Canned Fruit & Vegetable Processing in the US
- Seasoning, Sauce and Condiment Production in the US
Complementors
- Supermarkets & Grocery Stores in the US
- Specialty Food Stores in the US
International industries
- Seasoning, Sauce and Condiment Production in Canada
- Tea, Coffee and Other Food Manufacturing in Australia
- Tea, Coffee and Other Food Manufacturing in New Zealand
- Condiments & Seasoning Manufacturing in the UK
- Soy Sauce Production in China
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Developing hot sauceProducing hot sauceDistributing hot sauceCompanies
McIlhenny CompanyMccormick & Co Inc.Huy Fong Foods Inc.Purchase this report to view all 3 major companies in this industry.
Related Terms
SCOVILLE SCALEWHOLESALE BYPASSCAPSAICINTABASCO PEPPERIndustry Code
NAICS 31194 - Hot Sauce Production in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The industry's rapid growth has encouraged new producers to enter at a torrid rate. Ballooning price competition has prevented hot sauce producers from expanding profit.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Smaller companies can't acquire prime shelf space with grocery stores and supermarkets. Major producers leverage their brand and reputation into favorable contracts with down...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Producers seek lower transportation costs. Companies will position themselves near well-established infrastructure and trade routes.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Producers must maintain strong relationships with the entire supply chain. Prices of key inputs can fluctuate violently, and store shelf spaces are extremely limited.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Successful producers are constantly adding new options through consolidation or product innovation. Companies are expanding with Latin American- and Asian-inspired hot sauces...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of McIlhenny Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Mccormick & Co Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Huy Fong Foods Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for McIlhenny Company, and factors influencing its performance in the industry
- Description and key data for Mccormick & Co Inc., and factors influencing its performance in the industry
- Description and key data for Huy Fong Foods Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Producers follow strict FDA guidelines on labeling and product content. Recalls and false content claims can prove ruinous for a producer's reputation.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Hot sauce producers hire skilled labor for research and development divisions, leading to higher wage costs compared with similar food processors. Branding and product innova...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hot Sauce Production in the US industry in United States in 2024?
The market size of the Hot Sauce Production in the US industry in United States is $2.7bn in 2024.
How many businesses are there in the Hot Sauce Production in the US industry in 2024?
There are 387 businesses in the Hot Sauce Production in the US industry in United States, which has grown at a CAGR of 6.1 % between 2019 and 2024.
Has the Hot Sauce Production in the US industry in United States grown or declined over the past 5 years?
The market size of the Hot Sauce Production in the US industry in United States has been growing at a CAGR of 2.7 % between 2019 and 2024.
What is the forecast growth of the Hot Sauce Production in the US industry in United States over the next 5 years?
Over the next five years, the Hot Sauce Production in the US industry in United States is expected to grow.
What are the biggest companies in the Hot Sauce Production in the US market in United States?
The biggest companies operating in the Hot Sauce Production market in United States are McIlhenny Company, Mccormick & Co Inc. and Huy Fong Foods Inc.
What does the Hot Sauce Production in the US in United States include?
Developing hot sauce and Producing hot sauce are part of the Hot Sauce Production in the US industry.
Which companies have the highest market share in the Hot Sauce Production in the US in United States?
The company holding the most market share in United States is McIlhenny Company.
How competitive is the Hot Sauce Production in the US industry in United States?
The level of competition is high and increasing in the Hot Sauce Production in the US industry in United States.
