Global Mustard Ingredient- Market Outlook
Mustard is a member of the Brassicaceae family. Mustard seeds are used during cooking, in particular in condiments. Mustard is being used in culinary application since ancient times, the evolution in food flavors and eating patterns of the consumers around the world is increasing the use of the mustard ingredient in various food products.
One of the influential factors contributing to increased consumption of mustard ingredient is the rapidly rising foodservice industries. Rapid growth in the global condiment market is expected to further support the developing mustard ingredient market in the next few years.
The rise in demand for exotic ingredients is driving the mustard ingredient market
The robust growth in the food ingredient market is expected to fuel the growth of the global mustard ingredient market as well. Urban development and increasing population density with their growing buying power have led to the rapid adoption of convenience foods, resulting in demand for various food ingredients. The high popularity of sauces and seasoning in all the regions across the globe is increasing the demand for the mustard ingredient.
Factors such as the consumers’ hectic work schedules and the rising number of women in the workforce subsequently drive demand for ready-to-cook spice mixes. New aromatic and fusion flavoring varieties produced for particular and exotic foods are gaining popularity over the years.
Because of time- and effort-saving features, the companies are focusing more on improving their supply chains for ready-to-cook spice.
Global Mustard Ingredient Market _ Segmentation
Based on nature, the global mustard ingredient market is segmented as
Based on product type the global mustard ingredient market is segmented as
Based on the region, the global mustard ingredient market is segmented as
Global Mustard Ingredient Market – Key players
Some of the key players of the global mustard ingredient market are McCormick & Company, ABF Ingredients, The Kraft Heinz Company, AmTech Ingredients Colmans, Kancor Ingredients Limited, Rüther Gewürze GmbH, MRT GREEN PRODUCTS, BOS Natural Flavors (P) Limited. and others
Impact of COVID-19 on global mustard ingredient market
The mustard ingredient is primarily used across the application area which is significantly impacted by the Covid-19 outbreak. Most of the QSR and FSR witnessed squeezed operations around the globe and those which were partially operational for take-away. Though a large set of customers preferred coking at home, and household coking rarely use mustard ingredients.
Sales for mustard ingredients demonstrated a sharp decline in the first three months of 2020, which slightly improved in the second quarter of the year. Overall sales performance remained sluggish in comparison to the last fiscal.
Recovery curve mustard ingredient has reflected a V-curve, but the demand is yet to break the December 2019 benchmarks. Month on month sales for 2020 has been improving, yet 30% - 40% less than the same months last year.
Companies are ensuring cash flows and prioritizing regional clusters as well as channel partners that have a minimum payback period. In the first half of the year, the production capacity of manufacturing and processing units also hit rock bottom. Some of the mustard ingredient plants in Southern Europe and the Asia-Pacific region were operating at less than half of their actual capacity.
Apart from demand and supply side impact, the Covid-19 outbreak also disrupted the supply chain, and what the volumes of mustard ingredient produced worldwide were not able to reach to the target customers, due to limited trade and transactions among countries.
Nevertheless, in the second half of the year, the situation seems to be improved from all perspectives. Production plants increased output, supply chains restored and end markets were also opened, which collectively lead to a sales momentum for the companies.
Global Mustard Ingredient Market - Opportunity
In commoditized products like a mustard ingredient, it is a challenge for the companies to explore opportunity pockets. However, the Covid-19 outbreak and associated impact unearthed some of the fundamental challenges in the global mustard ingredient market that needs to be addressed immediately. Resolving these challenges can also unleash a plethora of opportunities for engaged stakeholders and ensure success in the market.
One such opportunity pocket is to ensure local or vicinity based raw material sourcing. As of now most of the mustard ingredient processing companies largely rely on the supply of mustard from other countries, as it ensures cost-effectiveness. Though in the long run and in tumultuous times, such a business model did not seem to be performing at par.
Another concern for the companies is to understand the customer archetypes as well as spending patterns on marketing. Companies need to migrate to digital outreach, away from conventional marketing outreach.