The condiment and sauce market in China by Daxue consulting

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April. 2019
HONG KONG | BEIJING | SHANGHAI
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1
By DAXUE CONSULTING
THE CONDIMENT AND
SAUCE MARKET IN
CHINA

© 2019 DAXUE CONSULTING
ALL RIGHTS RESERVED
OVERVIEW
I. KEY FINDINGS AND MARKET DRIVERS
II. CONSUMER ANALYSIS
III. COMPETITION ANALYSIS
IV. DISTRIBUTION & PROMOTION
V. MARKET TREND ANALYSIS
2

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Condiments and sauces products are more diversified
The demands of condiments and sauces is growing
3
Spice is the most popular flavor of local consumers
Supermarkets are the most common purchasing channel
International brands provide both western and Chinese
products
KOLs are an effective way of promoting condiments and sauces

Market drivers for international brands in China
1.
2.
3.
4.
5.
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More consumers accept western sauces and condiments
Increasing income allows consumers to afford imported goods
Foreign restaurants are becoming more popular
The market has not been dominated by local brands
E-commerce platforms enable foreign brands to easily access the market
4

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CONSUMER ANALYSIS
5

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The main products of the sauce and condiment market
6
Among all kinds of sauce and condiment products, soy sauces, vinegar, salt, monosodium glutamate, cooking
wine and sugar are the most frequently used in Chinese families.
Mayonnaise, Soy sauces, Vinegar,
Ketchup, Mustard, Salad
dressings, Chilli sauces, Soybean
paste, etc.
Herbs and spices, Pepper, Salt, Sugar,
Monosodium glutamate, Soy sauces,
Ginger, Onions, etc.
Table sauces Cooking ingredients

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Consumption and market size in China
7
Source: http://www.scharvestcap.com/college/study/2018/2018/0803/1157.html
http://www.pangda.com.cn/news/588327.htm
150.6
191.7
205.8
234.9
264.9
274.7
307.3
332.2
100
150
200
250
300
350
2010 2011 2012 2013 2014 2015 2016 2017
China's condiments market size
(billion RMB, 2010-2017)
 From 2010 to 2017, the compound annual growth rate of sales revenue in the condiments industry exceeded 11%.
 In 2017, the market size of China's condiments industry reached 332.2 billion RMB, increased by 8.1%. By 2020, it is
expected the market size will exceed 400 billion RMB.

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Consumer analysis: Chinese flavors preferences
8Source: https://new.qq.com/omn/20190410/20190410A01IMP00
33.62%
30.81%
16.07%
5.22%
14.27%
Flavors preferences of the Chinese people
(2019)
Spicy
Salty
Others
Sour
Sweet
Spice is the favorite flavor of Chinese
people, while only 5% of people like
sour. Spicy and salty condiments &
sauces have huge market potential.
Spicy sauce is the most popular Chinese sauce.
Families with babies usually prefer sweet soybean
pastes and tahini instead of spicy sauces. The most
popular foreign condiments are ketchup, salad
dressings and black pepper.
75.34%
56.83%
34.46%
29.08%
14.67%
13.45%
12.75%
8.45%
6.70%
6.65%
4.82%
Spicy sauce
Soybean paste
Tahini
Sweet soybean paste
Barbecue sauce
Seafood sauce
Bolognese sauce
Satay sauce
Compound sauce
Mushroom sauce
Others
Types of Chinese sauces people usually use
(2019)

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Consumer analysis: The main purchasing channels and sizes
 Supermarkets are the most common channels for Chinese consumers.
 In offline and online shops, the most common size of condiments is 500ml per bottle.
9
69%
13%
9%
6%
3%
The main purchasing channels of condiments in China
(2019)
Supermarket
E-commerce
platforms
Food market
Convient stores and
community shops
Others
Source: 2019 Condiments consumption report
http://dy.163.com/v2/article/detail/EAPVPBIL0522R3DP.html
60.52%
18.50%
14.14%
6.84%
500 ml Lager than 1,000 ml 500-1,000 ml Smaller than 500 ml
The main sizes of condiments purchased by the Chinese
consumers (January-March 2019)

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Why choose supermarkets and e-commerce platforms
10
 Consumers usually believe that
supermarkets always offer a larger
selection of different sauces than
other offline channels.
 Some consumers believe the
products from the supermarket are
relatively new. That’s why many
people purchase condiments there.
 Reasonable price is an important
reason for consumers to choose e-
commerce platforms as the main
purchasing channels.
Source: https://new.qq.com/omn/20190410/20190410A01IMP00
80.66%
93.06%
36.67%
27.58%
51.09%
38.33%
18.87%
50.61%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Supermarket E-commerce platforms
Why consumers choose supermarket and e-commerce as purchase
channels (2019)
Easy to buy New arrivals Authertic goods Reasonable prices

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Consumer analysis: The main influence factors
 When the Chinese consumers buy sauces, the top considerations are tastes, brands reputation and production
dates.
 KOLs’ opinions also can affect consumers’ purchase decisions, but mainly focus on high-income families.
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Taste
85.8%
The main considerations when China’s consumers buy
sauces
Brand
Name
67.23%
Freshness
46.93%
Easy to
storage
34.64%
Standard
size
30.44%
Reasonable
price
31.15%
Good
package
design
30.44%

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Baidu index analysis- Interest trends (1/2)
Baidu index of Soy sauce Baidu index of MSG
• The number of searches of soy sauce peaked on
October 15, 2018, when Jiangsu province published a
report comparing the quality of different brands of soy
sauce products
• When people search soy sauce on Baidu, they usually
browse soy sauce products and the way of using soy
sauces.
Data from 2018.6 – 2019.6
12
Baidu is the #1 search engine
in China. The volume of
search (more than ¾ of the
total search made on Chinese
Internet) exhibits the market
digital trends
• The number of searches of monosodium glutamate (MSG)
fluctuated around the average index, and the search number
reached the highest point in November 2018 when CCTV
released the news that MSG is not harmful to the human body.
• When people search MSG on Baidu, they usually browse
benefits and harm of MSG.
Data from 2018.6 – 2019.6
Jiangsu province published a report
comparing the quality of different brands
of soy sauce products
CCTV released the news that MSG is
not harmful to the body.

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Baidu index analysis- Interest trends (2/2)
Baidu index of Fresh ginger Baidu index of Oyster sauce
• The number of searches of fresh ginger remained high
from June to October in 2018, but in January 2019 the
search number declined and reached its the lowest point
during the 2019 Spring Festival.
• When people search fresh ginger on Baidu, they
usually browse the efficacy and possible uses of fresh
ginger.
Data from 2018.6 – 2019.6
13
Baidu is the #1 search engine
in China. The volume of
search (more than ¾ of the
total search made on Chinese
Internet) exhibits the market
digital trends
• The number of searches of oyster sauce remained high
from Jan to Feb in 2019, reaching the highest point
during the Spring Festival.
• When people search for oyster sauce on Baidu, they
usually browse oyster sauce products and the way of
using oyster sauces to make tasty dishes.
Data from 2018.6 – 2019.6
The 2019 Spring Festival
The 2019 Spring Festival

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Baidu Index – Semantic analysis (1/4)
The most related keywords to “Soy sauce” are “Haitian” (a Chinese soy sauce brand), “Soy
sauce brand” and “Fried rice”.
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Fried rice with soy
sauce
Soy sauce
Haitian
Which soy sauce brand
is better?
Foshan Haitian Flavouring
and Food Co.,Ltd.
Soy sauce brand
Haitian soy sauce
What is the harm of having
too much soy sauce
Food
Light soy sauce
Search index: low High
Search trends: rising trend declining trend

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The most related keywords to “Monosodium glutamate” are “Chicken seasoning”, “Rose’’ and “Harmful
effects of Monosodium glutamate”.
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Monosodium glutamate
Taobao.com
Harm
Market
Harm of chicken
essence
Harm of monosodium glutamate
What will happen when having
too much monosodium
glutamate
Which is more harmful,
chicken seasoning or
monosodium glutamateChicken seasoning

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The most related keywords to “Fresh ginger” are “Efficacy and effect of fresh ginger”, “Efficacy” and “Fresh
ginger is a cure for hair loss”.
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Treating hair loss
Efficacy
Fresh ginger and brown
sugar
Brown sugar Effects
Products made
from fresh ginger
Sand ginger
Efficacy and effects of
fresh ginger
Fresh ginger is a cure for
hair loss
Fresh ginger
Garlic

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The most related keywords to “Olive oil” are “The efficacy and effect of olive oil”, “How to use olive oil” and
“Efficacy”.
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Olive oil prices
Olive oil
Vegetable oil
Olive
Effects of olive oil
Peanut oil
Can olive oil be used for Stir-Frying?
Olive tree
Stir-Frying with
olive oil
How to use olive oil
Top ten olive oil brands
Notes on cooking with
olive oil
Brand
Efficacy and effects
of olive oil
Efficacy of olive oil
Edible
Which olive oil brand is better
Olive oil

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18
On Zhihu, the most common questions and posts about condiments consist of the following:
• Chinese netizens are curious about the importance of condiments in Chinese food and its effect.
• What kinds of condiments are healthy (e.g. contain low calories)?
• What other culture’s sauces or condiments can be good to mix with Chinese food?
Q: What kind of Japanese condiments can be used in
Chinese dishes? I’m tired of using light and dark soy
sauce; so any recommendations like Teriyaki sauce? And
what dishes can they fit well?
A: Teriyaki sauce can certainly be used in Chinese dishes.
Using directions varies by the property of different condiments.
For example, Teriyaki sauce can be used to replace part of the
sugar and soy sauce due to its sweetness; it works well with
chicken.
Zhihu
Q: What kind of dressings and condiments are acceptable
for people on a diet?
A: Pepper and chili powder is fine. In addition to calories,
sodium content is also something you need to be aware of. For
me, I only add a little soy sauce. Any kinds of dressings are not
recommended.
Q: Is it the rich use of condiments that makes Chinese food
so delicious?
A: I think Chinese food is delicious for a wide range of choice of
condiments rather than the large quantity.
1.8 M
80.3 K
8.2 K
Zhihu is the first Q&A website in China, and has transitioned to a social media
sharing platform gathering more than 100 million answers on various topics.
The platform is especially relevant to reach higher-, well-educated social
classes
Consumers’ questions on Zhihu

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19
Positive perceptions on Weibo & Wechat:
• Most Chinese people love the taste of condiments and
sauces.
• Some condiments are good for health and are
appreciated by Chinese people.
• Condiments can help beginners to make tasty dishes
more easily.
Weibo
Vinegar is widely used by Chinese people. It can help to
stabilize the level of blood sugar as well as improve insulin
sensitivity.
One Chinese cook made a perfect combination of the curry and
crayfish which is popular among Chinese people during
summer. The condiment originally came from India made the
crayfish taste good.
Why foreigners hate cilantro so much? I suggest that we should
form a “league of cilantro”! Do you know how to cook cilantro?
Welcome to share your ideas!
Weibo
Wechat
427 615 20
22.1 K 18.7 K 61.3 K
Wechat
18 K
100 K
I recently developed a recipe that is quite friendly for all
amateurs. It is suitable for almost all kinds of seafood, and you
can successfully make it by just using right condiment
Wechat is the #1 social media in China and an absolute must-have for a
market entry promotion. It accounts for over 1 billion active users.
Weibo is China’s biggest social media network that was launched in 2009.
Over the past years, it has transformed from a Chinese equivalent of
Twitter to a comprehensive platform.
Consumers’ positive perceptions

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20
I feel the food with heavy taste is becoming more popular. These
dishes always use too much condiments, so that people cannot
taste the original taste of Ingredients and even don’t know
whether the ingredient is fresh. Nowadays, fewer young people
are willing to learn how to cook.
Negative perceptions on Weibo & Wechat:
• Most sauces and condiments contain high calories that
may increase consumers’ weight.
• Too much intake of some condiments may lead to
health problems.
• The excessive use of condiment can cover the original
taste of food.
Although the chicken powder is tasty, it almost contains no
nutrition. Chicken powder lacks calcium, forum, vitamin, etc. It
may lead to Suboptimal health with long-term intake.
Weibo
Wechat
348 592 117
10 causes of weight gain that are often ignored: 1. frequent
boredom eating; 2. sleep deficiency; 3. like having dessert after
the meal; 4. shopping while hungry; 5. “I’m hungry” self-
suggestion; 6. alcohol and beverage consumption; 7. absence of
breakfast; 8. the portion of the meal; 9. low fat doesn’t mean low
calories; 10. the intake of sauce and condiments.
The market suggests that people nowadays tend to care more
about ingredients rather than condiments. Traditional Sichuan
food, in the past, mainly uses condiments like chili to mask the
low quality of ingredients. But now, with the rising awareness
of healthy consumption, the market of “food with heavy taste”
is shrinking.
Wechat
Wechat is the #1 social media in China and an absolute must-have for a
market entry promotion. It accounts for over 1 billion active users.
Weibo is China’s biggest social media network that was launched in 2009.
Over the past years, it has transformed from a Chinese equivalent of
Twitter to a comprehensive platform.Weibo
Consumers’ negative perceptions

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Context of consumption in China
The picture has been taken from a video shows people how to
make delicious sauce by mixing different condiments.
The picture has been taken from a consumer’s kitchen and
shared on Weibo. In the picture, the consumer is using salt to
cook.
21
Source: sample of posts on WeChat/Weibo
Based on information from Weibo, WeChat and other Chinese social media platforms, the most common
purposes of buying condiment and sauce among Chinese customers are:
1) Use them directly during cooking 2) Making new flavors by mixing different condiments
3) Sterilizing food (salt and vinegar)

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Online trends : consumer perception
22
 On Tmall/Taobao and JD, besides good tastes, other positive feedback includes high quality, extensive use,
satisfied free gifts, fresh production date, good packages, reasonable price and fast delivery.
 Negative feedback focuses more on bad taste, small size, broken packages, expired products and high price.
Positive feedback on Tmall/Taobao and JD Negative feedback on Tmall/Taobao and JD
The product is high quality and it appears the same as shown in
the picture. The package is intact and I am happy with the free
gift. The price is reasonable.
I feel there is a lot of MSG in this product.
The size is much smaller than the ones sold in supermarket,
and the price offered at physical stores is cheaper with
promotional sales.
The oyster sauce tastes good, and it can be mixed with all kinds
of dishes. It can replace chicken powder. Reasonable price, fresh
production date, good package and efficient logistics. Highly
recommend!
Bad package. The box is broken and the bottle is damaged.
Good taste with fresh production date. It’s an ideal choice for
cooking!

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COMPETITION ANALYSIS
23

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Competition analysis: Table sauces
Brands
Domestic
vs
International
Sales on Tmall/Taobao
in June 2019
Top seller
price on Tmall
Price range on
Tmall/Taobao (RMB)
Haday
(海天)
Domestic 163,348 items 15.9 RMB 4.9 to 198
LAO GAN MA
(老干妈)
Kewpie
(丘比)
International 648,662 items 29.9 RMB 4.5 to 342
McCormick
(味好美)
International 126,158 items 33 RMB 3.8 to 408
Source: taosj.com
24
 On Taobao/Tmall, domestic and international brands both have high sales, some international brands even more
popular than Chinese ones.
 The main reasons are some International brands localized their products by catering to the popular taste in China
and more Chinese people accepted foreign dishes/tastes.

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Competition analysis: Cooking condiments
Brands
Domestic
vs
International
Sales on Tmall/Taobao
in June 2019
Top seller
price on Tmall
Price range on
Tmall/Taobao (RMB)
Lee Kum Kee
(李锦记)
Domestic 333,677 items 15 RMB 7.6 to 388
Totole
(太太乐)
Heinz
(亨氏)
International 82,552 items 12.9 RMB 7.9 to 999
Knorr
(家乐)
International 81,664 items 9.6 RMB 3 to 520
Source: taosj.com
25
 Chinese brands have much more sales than international brands on Taobao/Tmall since their products better fit
Chinese people’s flavors.
 International brands offer both Chinese and foreign condiments to attract more local consumers, thus their
competitiveness is increasing.

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E-commerce landscape of Soy sauce
26
On Tmall, the price range of soy
sauce which weighs around 800ml
is huge (more than 900 RMB).
Popular products are usually
about 49 RMB.

Foreign brands of soy sauce
products online are usually more
expensive. In order to attract
consumers, these products can be
purchased on installments.
Top seller Soy sauce
Brand: Qianhe
Price: 48.8RMB
Most expensive Soy sauce
Brand: Heinz
Price: 999RMB
Cheapest Soy sauce
Brand: Haidi
Price: 12.5RMB
Source: Tmall.com

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E-commerce landscape of table salt
27
On Tmall, the price range of edible
salt which weighs around 300g
varies widely. The top seller and
cheapest goods are the same
product at 2.7 RMB. Many
consumers like cheap edible salt.

Whether containing iodine or not
is an important criteria for
purchasing edible salt online. Now
people prefer to buy edible salt
without iodine.
Top seller salt
Brand: CNSIC
Price: 2.7 RMB
Most expensive salt
Brand: Kroger
Price: 260 RMB
Cheapest salt
Brand: CNSIC
Price: 2.7 RMB
Source: Tmall.com

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E-commerce landscape of fresh ginger
28
On Tmall, the price range of fresh
ginger with the same weight (such
as 500g) is small (around 22 RMB).
Popular products are usually
about 10RMB.

Freshness is an important criteria
for purchasing ginger online.
There are no imported ginger
products on the market.
Top seller ginger
Brand: Nobalao
Price: 9.8RMB
Most expensive ginger
Brand: Hanlaoda
Price: 29.6RMB
Cheapest ginger
Brand: Tudizhi
Price: 6.8RMB
Source: Tmall.com

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Business cases – Kraft Heinz (卡夫亨
氏)
Digital activity
Kraft Heinz is a famous F&B brand
from the USA and officially entered
China’s condiments and sauces
market in 2010 by merging a
Chinese condiment company.
Then the brand built factories in
China to increase output and
expand market share.

In order to adapt to the Chinese
market, the brand provides
traditional Chinese soy sauces
and also sells Western sauces
(such as tomato ketchup) to
attract young consumers who
prefer western cuisine.
https://www.kraftheinzchina.com/
29Source: Taobao/Tmall and brand website
Platform Presence
Official
account
Volume (sales, product reviews or
traffic)
kraftheinz.com.cn Yes Yes 33,576 visits per month
Taobao/Tmall Yes Yes 327,590 sold items in June 2019
JD.com Yes No More than 600,000 comments
Kaola Yes Yes 115,384 followers on Kaola
Pinduoduo No No The brand isn’t selling on Pinduoduo

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Business cases – Kraft Heinz (卡夫亨氏)
E-reputation in China
The most related keywords of
“Heinz” are “Heinz’s tomato
ketchup”, “Heinz's rice noodles”,
“Kraft Heinz recruitment”, “Kraft
Heinz company” and “The stock of
Kraft Heinz”.

On social media, Kraft Heinz
usually posts info about new
arrivals and important events.
Recently, the brand started to use
Ed Sheeran as new spokesman,
he is a famous singer from
England and also has many fans
in China. Platform Presence Followers
Posting frequency in
June 2019
Wechat Yes 6,040 3
Weibo Yes 678,944 9
30
Kraft Heinz started to use the
popular English singer Ed Sheeran
as its new spokesman and made a
video ads to promote the tomato
ketchup of the brand.
Heinz
Heinz’s ketchup
Mars company
Heinz’s rice noodles
Kraft Heinz
recruitment
Kraft Heinz company
The stock
of Kraft
Heinz
Kraft Heinz

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Business cases – Knorr (家乐)
Digital activity
Knorr is an international brand
created in Germany and bought by
the Unilever Group. The brand
entered China’s market in 1993.

Knorr’s main products are chicken
essence, soup bases and other
compound condiments for cooking.
In order to attract local consumers,
the taste and package design of
those products adapt to the
Chinese people’s needs.

Knorr’s official website mainly
displays products, cooking tips,
and healthy recipes.
http://www.knorr.cn/
Platform Presence
Official
account
traffic)
Knorr.com.cn Yes Yes 5,000 visits per month
JD.com Yes No More than 200,000 comments
Kaola No No The brand isn’t selling on Kaola
Pinduoduo No No The brand isn’t selling on Pinduoduo

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Business cases – Knorr (家乐)
On e-commerce platforms
(Taobao/Tmall), the positive
feedback consists of “cheap
price”, “good quality”, “nice taste”,
“nice package” and “long expiry
date”.
Negative feedback focuses on
bad taste.

On social media platforms, Knorr
mainly publishes video ads, new
arrivals and promotion activities,
such as lucky draw and discount.
The brand also works with some
of China’s food KOLs to expand
brand awareness.
Platform Presence Followers
February 2019
Wechat Yes 22,663 1
Weibo Yes 131,132 6
32
Knorr promotes its new arrivals
(sauces) during the Chinese
valentine's day. The brand launched
discount activities on Tmall.com.
Reasonable
price
Good quality Nice taste
Long expiry
date
Cheap
products
Nice package
High value for
money

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Business cases – McCormick (味好美)
Digital activity
McCormick is an American brand
and entered China in 1989 by
opening a factory in Shanghai.

McCormick mainly provides both
western sauces and cooking
ingredients such as pepper
products, tomato paste and salad
dressing.

Health is a primary selling point of
McCormick’s goods. The brand’s
condiments and sauces are all
made by pure natural raw
materials, which match the
increasing awareness of health
among China’s consumers.
http://www.mccormick.com.cn/
Platform Presence
Official
account
traffic)
McCormick.com.c
n
Yes Yes 1.05 million visits per month
JD.com Yes No More than 1 million comments
Kaola No No The brand isn’t selling on Kaola
Pinduoduo Yes No Daily sales are 0

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Business cases – McCormick (味好美)
On e-commerce platforms
(Taobao/Tmall), the positive
feedback consists of “fast
delivery”, “good quality”,
“reasonable price”, “nice taste”
and “long expiry date”.
Negative feedback focuses on
bad taste.

McCormick generally posts
important activities, cooking
knowledge and videos with the
brand’s condiments & sauces.
The brand also recommends
some dishes from other countries
to attract more attention from
consumers.
Platform Presence Followers
June 2019
Wechat Yes 283,392 8
Weibo Yes 1,912,907 32
34
McCormick launched a new arrivals
in June 2019, it’s a type of cumin
powder for cooking meat.
Fast delivery Good quality Reasonable
price
Nice taste
Long expiry
date
High value for
money
Large
capacity
The taste is so-so

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Comparing online interest for leading brands
 On Baidu index, Lao Gan Ma showed the highest search frequency and LeeKumKee had the second highest
search index during the past 90 days.
 On WeChat index, Kraft Heinz showed a significant high search frequency in June 2019 when the brand used the
famous English singer Ed Sheeran as its new spokesman.
35
The search brands are
Kraft Heinz
Knorr
McCormick
Lao Gan Ma
LeeKumKee
The search brands are
Kraft Heinz
Knorr
McCormick
Lao Gan Ma

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Brand advertising case study-Lee Kum Kee (李锦记)
 The ad started with a lady bringing dishes while other family members are happily chatting.
 Then follows a close shot of soybeans with seemingly premium qualities.
 The ads then showed when and how consumers can add the product in different dishes.
 In the end, the video displayed diverse dishes placed around the bottle.
36
Only for the
audience in China
By visualizing the high-grade raw ingredients, the ad successfully undermines consumers’ attention regarding additive
use in condiments and gains much credibility for the brand.
Source: https://www.bilibili.com/video/av43287546/

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Brand naming – case studies
The Chinese names of condiments & sauces brands can make consumers easily associate with their products and
they generally contain two meanings:
 Their products have wonderful tastes or can help consumers make delicious dishes.
 Consumers’ family will enjoy the dishes made by their condiments and sauces.
37
味事达
(Master, Kraft Heinz)
• “味” means “flavor / taste”, “事” means “matters / things” and “达” means “reach”.
• The Chinese name implies consumers can quickly make delicious dishes by using the brand’s condiments
家乐
(Knorr)
• “家” means “family” and “乐” means “happy”.
• The Chinese name implies consumers’ family will feel happy after using its condiments to cook.
味好美
(McCormick)
• “味” means “flavor / taste” and “好美” means “very good/delicious”.
• The Chinese name highlights the products (condiments and sauces) of the brand have wonderful tastes.

ALL RIGHTS RESERVED
Distribution and promotion in China
 Restaurants and supermarket are the most important distribution channels for condiment and sauce brands,
because restaurants usually purchase a large number of products and supermarket is the most popular channel for
personal buyers.
 E-commerce platforms are also necessary channels for most brands since they are effective ways of promoting
new arrivals and increase sales.
39
Condiment and sauce
suppliers
Online
Self-operated e-commerce platforms
The third party e-commerce platforms
(such as Tmall/Taobao and JD)
Offline
Restaurants
Supermarket and convenient stores
Specialized condiment shops
Wholesale markets

ALL RIGHTS RESERVED
Online retail coverage in China
 The number of sauces & condiment brands on JD is far more than Tmall/Taobao, mainly due to the higher
requirements and deposit from Tmall for those brands want to enter the platform.
 Most Chinese brands have built official stores on those e-commerce platforms (such as Taobao/Tmall and
JD), which increased their sales in the market.
40
Market
segments
Number of
brands selling on
Tmall/Taobao
Number of
brands selling
on JD
Soy sauce 199 500
Vinegar 198 482
Salt 189 342
MSG 199 226
Pepper 194 291
Chilli sauces 199 509
Ketchup 199 323
CondimentsSauces
Brands
Brands
Way of ranking: general, popularity, new arrivals,
sales and price
Way of ranking: general, popularity, new arrivals,
sales and price
Package
Categories

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Offline retail: Coverage in Shanghai
Stores
Coverage in
Shanghai
Supermarket 42,940
Wholesale
market
111
Specialized
shops
80
Baidu Map: 109 results Dianping: 743 results
41
Copy the screenshot of the map found on Baidu Map
when searching for the product or service
 Condiments and sauces are mainly sold in supermarkets, convenient stores, wholesale market and specialized
condiments shops
 We use them as examples of distribution channels for condiments and sauces in Shanghai
CondimentsCondiments

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On-the-shelf: representation of the category in stores
42
Source: pictures from stores in Shanghai
 In China, supermarket is the most popular purchase channel of condiments and sauces for consumers
 In those stores, different kinds of condiments and sauces are placed on different shelves or they share the same
shelve but clearly separated by types
 Table sauces often use smaller packages and cooking ingredients generally have larger packs. The main
packages of condiments and sauces are bottles and small bags

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Online sales: volume assessment
Source: taosj.com
Among all kinds of table sauces on Taobao/Tmall, Chili sauces had the
highest sales in June, July and August 2019 since spicy is the favorite
flavor of the Chinese people.
On Taobao/Tmall, soy sauces showed significantly high sales in June,
July and August 2019 as one of the most common condiments among
the Chinese consumers.
43
3.26
6.08
2.29
Vinegar Soy sauce Cooking wine
Sold bottles of daily-use condiments on Taobao/Tmall
(million –June, July and August 2019)
4.51
2.42
3.56
Chili sauces Ketchup Salad sauces
Sold bottles of table sauces on Taobao/Tmall
(million –June, July and August 2019)

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Promotion channels to leverage
for international brands in China
Dedicated Websites/Apps
 Tiaoliao.net (调料网) / Tiaoliao.net
(调料网)
 Cntiaoliao.com (中国调料网) /
Cntiaoliao.com (中国调料网)
 Twzj.cn (调味之家) / Twzj.cn (调味
之家)
Specialized Magazines
 China condiment (中国调味品)
 Chinese Cuisine (中国烹饪)
 Home Gourmet (美食堂)
 ZGDC (中国大厨)
Tiaoliao.net (调料网)
is a dedicated
condiments & sauces
website, it offers
information about
relevant distributors,
sellers and
conferences .
China condiment is a
Chinese magazine
focuses on
condiments. It mainly
introduces different
types of condiments
and how to use them
during the cooking.
44

ALL RIGHTS RESERVED
KOLs related to condiment and sauce-Weibo
 Foodvideo is a KOL account on Weibo mainly posts
videos about cooking process and methods. Condiment
is always important in every post.
 This is a KOL account on Weibo mainly focus on food
recommendation, products testing and recipe sharing.
Condiment and sauce are frequently mentioned in those
posts.
Followers: 4.4 M
45
Source: Sina Weibo
Followers: 352 K
 For international brands, KOLs are a huge part of modern condiment and sauce promotions, and young
consumers are influenced by KOL’s shared opinions and experiences.
 China’s KOLs, who usually post content related to condiment and sauce on Weibo, mostly are food KOLs.

ALL RIGHTS RESERVED
Trends
Due to the increasing health awareness among the Chinese people, many brands are trying to make
products healthier with more natural materials.
Although many people still prefer traditional Chinese condiments and sauces, more young consumers
are willing to buy compound and western condiments to try different tastes.
In order to attract consumers in more effective ways, condiments & sauces brands are working with
some KOLs to promote their goods on Chinese social media platforms.
I.
II.
III.
Health is becoming important
Diversified flavors
Social media and KOLs
47

The condiment and sauce market in China by Daxue consulting

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