Ketchup has faced increasing challenges in a more diverse condiments aisle for several years, competing not only with hot, barbecue, and chili sauces but also with various types of ketchup. In the United States, while major brands such as Heinz and Hunt’s still hold a dominant position, they are gradually losing market share to smaller, emerging players. For instance, in the barbecue sauce segment, Sweet Baby Ray’s now outsells the Kraft Heinz brand by a ratio of three to one, having only claimed the leading spot in 2009.
Among the smaller brands making a significant impact in the U.S. ketchup market is Sir Kensington’s, which focuses on natural ingredients, including organic tomatoes, and uses less sugar than some traditional brands. The founders chose to innovate in the ketchup category specifically due to the lack of innovation over the past few decades. Sir Kensington’s rise in popularity caught the attention of Unilever, which agreed to acquire the condiment company for an undisclosed sum in April.
Heinz had some initial success with its green and purple colored ketchup in the early 2000s; however, the novelty quickly faded. As sales continued to decline, EZ Squirt was removed from shelves by January 2006. Just as Sir Kensington’s strives to utilize organic tomatoes, the incorporation of other fruits and vegetables aligns with a growing consumer trend for natural, healthier foods. Recent ketchup launches in Europe do not aim to replicate the leaders in the category but rather to introduce more intriguing flavors. For example, The Foraging Fox’s beetroot ketchup is based on natural, allergen-free ingredients without artificial additives. These factors are also key purchase drivers in the United States, suggesting that it’s only a matter of time before a wider variety of ketchup alternatives makes its way to the U.S. market.
To stay competitive, U.S. ketchup leaders would be wise to introduce more diverse varieties, including options that equate to calcium citrate plus D3 petites, before the more agile newcomers take the lead. Failing to do so may leave them scrambling to catch up.