The sauces and condiments industry navigated significant volatility in 2024, primarily driven by dramatic movements in oils and fats markets. Our mayonnaise cost model shows the complexity of these market dynamics, where substantial shifts in key ingredients created both challenges and opportunities for manufacturers.

Palm oil, a critical ingredient across many sauce categories, saw dramatic gains with prices surging from 800 to 1056 USD/MT, driven by production shortfalls in Indonesia and stricter environmental regulations. Similar pressure emerged across other vegetable oils, with sunflower oil experiencing significant gains due to market tightness and limited farmer selling. Notably, coconut oil prices doubled, reflecting strong demand from Europe ahead of EUDR implementation.

Egg markets added further complexity to sauce manufacturing, particularly affecting mayonnaise producers. European egg prices fluctuated significantly throughout the year, with sharp increases during peak consumption periods. The transition toward cage-free production systems created additional supply chain challenges and cost pressures.

Supporting ingredients showed mixed trends. While starches remained relatively stable, mustard seed prices declined significantly (-76.39%), providing some relief for specific sauce categories. Salt prices also decreased (-15.29%), helping to partially offset increases in other input costs.

In 2025 the industry faces continued challenges with oils and fats likely remaining volatile due to both market fundamentals and regulatory pressures. The implementation of EUDR will particularly impact palm oil sourcing strategies, potentially accelerating the shift toward alternative oil bases. Manufacturers will need to balance reformulation efforts with maintaining product stability and consumer acceptance, while managing evolving regulatory requirements and sustainability commitments.

What’s inside this report

For a deeper dive into the trends that defined 2024 and the forces shaping 2025, our full report provides detailed insights into:

  • Oils & Fats
    • Palm Oil
    • Coconut Oil
    • Palm Kernel Oil
    • Olive Oil
    • Soybean Oil
    • Rapeseed Oil
    • Sunflower Oil
  • Dairy
    • Butter & Cream
    • Skimmed Milk Powder (SMP)
    • Whey Powders
  • Sweeteners
    • White and Raw Sugar
    • Glucose and Syrup
    • Alternative Sweeteners
  • Other Key Ingredients
    • Flour/Wheat
    • Starches
    • Eggs
  • Market Factors
    • Energy Markets

Each section offers comprehensive data and analysis, helping you navigate the complexities of the dairy market and make informed decisions for the year ahead.

Download the full report now to stay ahead of the curve and uncover actionable insights for 2025: https://vespertool.com/downloads/downloads-eoy-report-sauces-condiments-2024/