Israel-based Strauss Group – joint owner of US hummus manufacturer Sabra Dipping Co. alongside PepsiCo – believes the US market for fresh dips will almost double by 2020.
Strauss, which like PepsiCo owns 50% of Sabra, said total sales of fresh dips – hummus, salsa, guacamole and yoghurt dips – stood at US$1.79bn in 2014. In 2009, the category was worth $1.14bn, representing a compound annual growth rate (CAGR) of 9.5%.
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Speaking at the Consumer Analyst Group of Europe conference on Wednesday (18 March), Talia Sessler, Strauss's director of investor relations, said the company has internally forecast the category will hit $3bn in five years' time.
Hummus is the largest segment, with $724m sold in the US last year, up from $322m in 2009. Sabra is the largest business in the segment, with a market share of 63%, Sessler said, citing IRI data. Its nearest branded rival is Tribe Mediterranean Foods, part of Israel food group Osem Investments, in which Nestle owns a majority stake.
Elsewhere in the US fresh dips category, $292m of fresh salsa was sold in 2014, with $198m of guacamole and $40m of yoghurt dips.
"I'm often asked about the future growth potential of Sabra. If you look at household penetration of hummus is 29% and our household penetration is 21%, so there is still huge potential to increase household penetration," Sessler said.
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By GlobalDataShe said consumption per capita of hummus is "very low" in the US and could be increased through investment in new products, pointing to on-the-go, single-serve lines it has launched in the US.
"Another growth engine is the additional categories in which we currently play – guacamole, fresh salsa and Greek yoghurt-based dips," she added.
Strauss and PepsiCo have bet on the continued growth of fresh dips, doubling capacity at its in hummus plant in Virginia. Both companies spent $35m on the expansion.
