USA TODAY International Edition
Hot sauce sales are on fire
Consumers can’t seem to get enough of the newest, most tongue- burning condiments, heating up struggling packaged goods sector
“Increasingly, we need these greater highs, whether it’s coffees or hot sauces.” Orlando- based global restaurant consultant Aaron Allen
Americans want to beg for water and scream for mercy as their faces catch fire and tears pour from their eyes. Welcome to the world of hot sauces.
Consumers are hotter for peppery sauces than ever, and they are heating up sales. Earlier this month, Tabasco introduced Scorpion Sauce, 20 times hotter than the original, and sold out within a few hours, getting back- ordered to November. Sriracha, once the sole purview of the California company with the iconic rooster logo, can now be found in everything from potato chips to ketchup to jelly beans to cocktails.
And on Monday, McDonald’s enters the fray when it debuts its Sriracha quarter- pound burger.
Hot sauce was a $ 1.31 billion industry in 2016 and is expected to jump to $ 1.37 billion this year and $ 1.65 billion in the next five years, according to the market research firm IBISWorld. That’s fiery growth considering it was $ 1.08 billion in 2008.
“The popularity has just begun, and I don’t see it slowing down any time soon. Incomes are increasing. People are enjoying going out more,” said IBISWorld analyst Chrystalleni Stivaros. “It’ll raise revenues for the industry. Hot sauce is more expensive than simple sauce, so people are able to trade up to premium seasonings.”
Among the biggies are Tabasco Original Red Sauce, McIlhenny Co.’ s 149- year- old classic; Huy Fong Foods’ Sriracha, a recent giant of the genre; Texas Pete; Frank’s RedHot; and Louisiana Hot Sauce.
“People are becoming more experiential with their food,” said Tony Simmons, McIlhenny CEO and great- great- grandson of Tabasco creator Edmund McIlhenny. “They’re more willing to try new flavors and new spices. The use of condiments and flavor enhancers to make their food taste better is what has driven the whole hot sauce industry to be one of the very few parts of the consumer packaged- goods industry that has seen some reasonable growth.”
Until 1994, McIlhenny sold only one product, but it’s since expanded its lineup to include other hot sauces in a variety of heats, including green jalapeno, chipotle, habanero, Sriracha and garlic- flavored cayenne.
The demand for all hot sauce stems from a fiery mix of demographics, socioeconomic trends and expanding consumer tastes. Mexican and Asian cuisines — known for their bold, often hot tastes — are surging in popularity, thanks to vibrant and growing immigrant communities and Americans’ introduction to new foods as they increasingly travel abroad and are introduced to more exotic foods via TV cooking shows, meal kits and recipe blogs.
“Increasingly, we need these greater highs, whether it’s coffees or hot sauces,” said Orlandobased global restaurant consultant Aaron Allen.
And that craveability easily migrates from supermarket shelves to restaurant menus because hot sauce can be incorporated into a new recipes with minimal effort.
“It doesn’t require new equipment, layouts or training. It’s more like ‘ Let’s swap out mayo or spicy mayo.’ ” Allen said. “You can create a new flavor sensation without putting much capital investment into it.”