Shelf-stable fermented sauces are growing tremendously. In the past year, fermented sauces grew 41%, with sales reaching $275 million. Soy sauce still dominates with 70% of the market share, but sales of both fish sauce and gochujang increased over 50%.

“I think a lot of brands are thinking ‘Are we going to hang onto this new [normal], this new baseline?’ This is a segment of products that’s really having its baseline reset,” says Kevin Snodgrass, solutions architect for SPINS. Snodgrass shared insights in a TFA webinar, Retail Trends for Fermented Sauces. “Brands are going to continue to experience this great growth in the months and years ahead.”

The increase is significant — sales growth in the one year from 2019 to 2020 was 5.7%. This improvement is attributable to multiple trends across the food industry — more people are buying healthy food and cooking at home, the American kitchen is becoming more globalized, and more consumers are embracing the unique flavors of fermented sauces, especially those from Asia.

“It definitely coattails a lot on the acceptance and growth of the fermentation market as a whole,” says Jared Schwartz, a TFA Advisory Board member who moderated the webinar. Schwartz is the founder of fermented sauce producer Poor Devil Pepper Co., and director of operations and quality for Farm Ferments, a facility in Hudson, N.Y., that is home to Hawthorne Valley Farm. “As consumers are becoming more open to reaching for fermented foods, kind of the next step is adding a flavorful, fermented hot sauce.”

Brands Growing, but Room for More

The top 10 selling fermented sauce brands in both natural retail grocers (like Whole Foods) and traditional (MULO) outlets (like Wal-Mart and regional grocery chains) are all experiencing double-digit growth. “That’s a great sign,” Snodgrass notes.

Kikkoman, Bragg, San-J, Coconut Kitchen, Lee Kum Kee and Big Tree are among the top 10 brands in both the natural and MULO channels. Smaller brands like Red Boat, Mother-In-Law’s, Ohsawa and Yamasa thrive in the natural channel,; La Choy, BetterBody Foods and Chung Jung One are strong in MULO. 

The category is ripe for continued innovation, Snodgrass says. Smaller brands can emerge, even with competition from larger, established brands, so it can be worthwhile to start a fermented sauce brand. 

Label Claims & Consumer Education

SPINS found certain product attributes on fermented sauces help sales.. Certified gluten-free fermented sauces grew 40.8%; USDA organic, up 40% and non-GMO increased 33.8%.

Since many sauces don’t put “fermented” on their label, many consumers may not be aware they are, notes Snodgrass. He says that these products could benefit from using “fermented,” as it would suggest that there may be health benefits to the sauces.

Schwartz agrees. He points out Tabasco as a fermented hot sauce, even though producer McIlhenny Company doesn’t market it as such. Educating the consumer would also help the category. Probiotics are a selling point but they confuse buyers. And there’s a clear difference in health benefits between shelf-stable and refrigerated fermented sauces. Refrigerated sauces may have live, beneficial bacteria; shelf-stable ones are pasteurized, killing any good bacteria in the process.

“At the end of the day, I think it comes down to flavor,” Schwartz says. Fermented sauces are “funky and vinegar-free. It’s got this like natural layers of complexity that you can’t really achieve without fermentation.”