Pesto Sauces Market to Grow by USD 1.12 Billion (2025-2029), Boosted by New Product Launches, Report on AI's Impact on Market Trends - Technavio

NEW YORK, Jan. 21, 2025 /PRNewswire/ -- Report on how AI is redefining market landscape - The global pesto sauces market size is estimated to grow by USD 1.12 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 4.9% during the forecast period. New product launch is driving market growth, with a trend towards expanding retail space. However, fluctuating price of raw materials poses a challenge. Key market players include Barilla G. E R. Fratelli Spa, Belazu Ingredient Co., Buitoni Food Co., F.lli De Cecco di Filippo SpA, F.lli Sacla Spa, Fattorie Umbre S. R. L., Filippo Berio USA LTD., Food Service India Pvt. Ltd., Frontier Co op., Mezzetta, Napolina, Nestle SA, Rana USA Inc., Raos Specialty Foods Inc., Roland Foods LLC, Saucery Foods Pvt. Ltd., Sorrentina Honestly Italian Pvt. Ltd., Telluric Foods Ltd., Ugo Foods Group Ltd., and Unilever PLC.

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Market Driver

The Pesto Sauce market is witnessing notable trends with the increasing preference for healthy foods and eco-friendly ingredients. Consumers are now leaning towards authentic flavors and seeking to avoid artificial ingredients, saturated fats, and high sodium levels. Metal cans are being replaced by glass jars as consumers opt for premium and clean label pestos. Pesto is widely used as a spread, marinade, dip, and even as a pizza topping. Market players in the Italian cuisine industry are focusing on research and development to cater to health-conscious consumers. Convenience foods like ready-to-eat sandwiches and pasta are major revenue pockets for pesto sauce manufacturers. Trade regulations, import-export analysis, and sustainable sourcing are key considerations for market growth. Market leaders are optimizing their value chains and catering to various segments like gluten-free, organic pesto, sun-dried tomato, and pesto-based pasta sauce. The fast food industry, hotels, and restaurants are significant buyers of pesto. The market is witnessing innovation with the use of locally sourced ingredients, PET packaging, pouches, and cartons for increased durability and long shelf life. Pesto is also used in salads, appetizers, and Italian dishes, making it a versatile and popular condiment. 

The global pesto sauces market is experiencing growth due to the expanding retail landscape. Supermarkets, hypermarkets, convenience stores, and discount stores remain the primary distribution channels. However, e-commerce sales are on the rise, with platforms like Amazon driving significant growth. Traditional retail sales have been increasing, but the shift towards online shopping is noteworthy. This trend is expected to continue, contributing positively to the market's expansion. 

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Market Challenges

• The Pesto Sauce market faces challenges in catering to health-conscious consumers' demand for authentic, eco-friendly flavors. Artificial ingredients, saturated fats, and high sodium levels are major concerns. Metal cans and cream-based pestos, common in convenience foods like pizza and sandwiches, are under scrutiny due to their long shelf life and disposability. However, the market sees revenue pockets in organic pestos made with locally sourced ingredients, such as sun-dried tomatoes, garlic, pine nuts, and cheese. Market players focus on research and development of pesto-based pasta sauces, spreads, marinades, and dips in glass jars or sustainable PET packaging. Trade regulations, import-export analysis, and value chain optimization are crucial for market growth. Taste and flavoring remain key differentiators, with a shift towards high-quality, clean label, and premium offerings. The fast food industry, hotels, and restaurants are significant consumers, along with grocery stores and specialty stores. Consumers seek convenience without compromising their healthy lifestyle, making it essential for the industry to adapt to changing preferences.
• The global pesto sauces market faces challenges due to the volatile pricing of key ingredients, particularly olive oil and garlic. Garlic, a crucial component, experienced price fluctuations in countries like China, Spain, Argentina, and others. China, the largest garlic producer, saw price increases in 2024 compared to 2013. Olive oil, another essential ingredient, also experiences price volatility, impacting the market growth. The unpredictability of ingredient costs poses a significant challenge to market expansion.

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Segment Overview

This pesto sauces market report extensively covers market segmentation by

1. End-user 
• 1.1 Retail
• 1.2 Food service
2. Packaging 
• 2.1 Glass bottles
• 2.2 PET
• 2.3 Cans
• 2.4 Pouches
• 2.5 Cartons
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 South America
• 3.4 APAC
• 3.5 Middle East and Africa

1.1 Retail- The pesto sauce market is experiencing growth due to the rising demand for Italian cuisine among consumers. This trend is driving sales of pesto sauces through various retail channels, including supermarkets and hypermarkets. These retail channels offer consumers convenience and a wide selection of brands. Supermarkets and hypermarkets are the preferred choices for consumers due to their extensive product offerings. Additionally, the increasing popularity of private label brands by these retailers is a positive trend that will contribute to the market's growth. Online sales are also gaining traction as consumers prefer the convenience of shopping from home. These factors will collectively boost the growth of the retail segment in the pesto sauce market during the forecast period.

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Research Analysis

The pesto sauce market encompasses a variety of delicious and versatile green sauces, including sun-dried tomato pesto, pesto for baking, and pesto for breakfast. These sauces are not just limited to Italian cuisine and can be found in gourmet shops, supermarkets, and online. Pesto is perfect for salads, dips, and even as a flavoring ingredient for snacks, vegan dishes, and marinades. With the rise of health-conscious consumers, there is a growing demand for gluten-free, low-sodium, and low-fat pesto options. The pesto sauce market is also expanding into new areas such as pesto for brunch, parties, and grilling. The Italian food industry, food service industry, and food safety regulations play a significant role in the market's growth. Additionally, there is a focus on reducing food waste by using plastic containers and promoting the use of healthy ingredients such as basil, garlic, and pine nuts. The market faces challenges such as increasing competition and maintaining consistent product quality. Overall, the pesto sauce market is a vibrant and dynamic sector of the food industry that continues to innovate and evolve.

Market Research Overview

Pesto sauce, a classic Italian condiment made from fresh basil, garlic, pine nuts, cheese, and tomatoes, has gained significant popularity in the global food market due to the increasing trend towards healthy foods and eco-friendly ingredients. This versatile sauce is used as a spread, dip, marinade, and even as a base for pasta dishes and pizzas. The market for pesto sauce caters to various segments, including convenience foods, sandwiches, salads, and Italian cuisine. The market for pesto sauce is witnessing growth due to the convenience it offers in today's fast-paced lifestyle. The sauce is available in various packaging formats, such as metal cans, glass jars, and disposable PET packaging, pouches, and cartons. The sauce is also available in ready-to-eat formats, making it a popular choice for consumers. The market for pesto sauce is driven by the health benefits associated with its authentic flavors, which include the presence of essential nutrients like garlic, onions, and tomatoes. The market is also witnessing a trend towards organic pesto, made from locally sourced and sustainably sourced ingredients, catering to the health-conscious consumers. Trade regulations and revenue pockets, such as disposable income, are key factors influencing the growth of the pesto sauce market. The market is also witnessing significant research and development activities to optimize the value chain and cater to the demand for high-quality pesto. The market is expected to grow further due to the increasing popularity of Italian dishes and the convenience they offer in the fast food industry, hotels, and restaurants.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Retail
• Food Service
• Packaging
• Glass Bottles
• PET
• Cans
• Pouches
• Cartons
• Geography
• Europe
• North America
• South America
• APAC
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio