A New Secret Sauce for Success?

The secret sauce to driving revenue in the food sector for restaurants and manufacturers in 2026 could be, well, sauce—or, more precisely, premium condiments.

With soaring prices driving up costs on both the production and commercial side, food firms are betting on specialty sauces and artisanal condiments to serve as an “elevated trade-up" while keeping prices down. Even before last week’s blockbuster announced $65 billion merger between a major packaged foods company and a spice manufacturer, experts predicted premium condiments would be a focus for food leaders this year. The deal, as reports noted, creates a “sauces-to-spices behemoth,” spanning hot sauces, mayonnaise, marinades, and seasoning mixes. 

Chris Von Der Ahe, a senior client partner in the Consumer Markets practice at Korn Ferry focusing on consumer foods and restaurants, says branded sauces are a way to drive value by upgrading homemade recipes or existing menu items. “They can be a differentiating factor in a crowded market where consumer buying habits are changing fast,” he says, pointing to how some chicken chains are as popular for their dipping sauces as for their food. At the same time, Von Der Ahe says premium condiments also serve as “an affordable luxury” for consumers who are cutting back on dining out and trading down at the supermarket. Recent surveys show that nearly 40% of people are dining out less frequently, and more than half says they are concerned about grocery prices. “It’s still a struggle to drive growth,” says Christopher Fuqua, a senior client partner and head of Korn Ferry’s Restaurant practice.

Turning to spices and sauces is a far less drastic step than reinventing menus or slashing prices on core items—and that’s the point, one that leaders in other industries experiencing similar struggles may want to consider. Instead, premium condiments become the focus, and interest in them isn’t just a matter of cost and value. Alexandra Blakeslee Hartwell, a principal in the Food and Agribusiness practice at Korn Ferry, says specialty sauces and artisanal condiments have captured the consumer zeitgeist. She points to the popularity of shows like “Hot Ones,” where the host conducts celebrity interviews while eating wings with hot sauces of escalating degrees, and viral videos showcasing how to “elevate” basic recipes with them as generating “huge consumer interest.”

That interest is translating into big dollars. The overall sauces and condiments market is estimated at about $200 billion annually, with premium sauces and condiments priced at $8 or more accounting for roughly $34 billion of that figure. But premium sauces are projected to grow by 13% annually, more than double the 5% for the condiment market overall.

From a leadership perspective, Hartwell says restaurants and food manufacturers can now develop new sauces and incorporate them into existing products or even package them for store shelves to keep up with changing consumer tastes faster thanks to AI. Fuqua agrees, adding that fast food and quick-service restaurants can incorporate new sauces into special menu items, in-app promotions, and other marketing channels at a low cost. “Leaders need to find efficient ways to get people excited about dining out again,” he says. 

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