Do consumers like mustard? But of course!

The mustard category, more than any other condiment category, has left producers perturbed, as they have chased changing tastes. Yet, opportunities abound as mustard satisfies many consumers’ demands.

Mustard is a low-fat product, can provide a lot of taste with few calories and can accommodate any number of flavor elements, which gives it both the ability to track trends and the flexibility to work with a wide variety of food. Thus, mustard is a condiment that can perk up everyday foods and enhance exotic dishes with equal effectiveness.

In the 52 weeks ended Jan. 27, according to ACNielsen, the condiments/gravies/sauces category gained 2.1% in dollar terms after a modest gain the year earlier at food, drug and mass, excluding Wal-Mart, following two years of modest decline. Ketchup suffered its fourth—and most severe—down year in the span, falling 8.5% to $275.1 million. Conversely, mustard was up 2.4% after three down years to $295.3 million.

To satisfy consumer curiosity about new flavors, Kraft has taken one of its most iconic brands in an altogether new direction. “Grey Poupon, for the first time, is moving out of the dijon category,” noted Lisa Gibbons, a Kraft spokeswoman. The Grey Poupon Specialty Mustard line includes Harvest Course Ground, Savory Honey and Hearty Spicy Brown. “They are really on trend,” Gibbons said.

Organic may become a growth segment for condiments. The link between organic and gourmet that has been firmly established by Whole Foods and foodies who associate natural with better taste has pushed the segment toward sophisticated and trendy products. “Organic is certainly a consideration for any manufacturer, purchaser or end user as people pay more attention to what they eat,” said Eric Rygg, marketing manager for Silver Spring Gardens, which, in March, won five medals at the Napa Valley Mustard Festival. “Organic is pretty hot right now and more businesses are offering organic alternatives. From a marketing point of view, in a condiment company such as Silver Spring, we must offer organic alternatives to customers to give those on the fence no reason to switch to another brand and to satisfy the customers who prefer organic over non [organic]. We think this group that prefers organic will continue to grow.”

Still, a tension exists between the demand for premium products and a willingness to pay for them.

“Distribution rollout for our organic products has been relatively slow and the market is taking a little longer to accept the higher price,” Rygg noted.

Still, consumers have responded to innovation. “From a business point of view, new flavors and innovative products will continue to drive our sales growth, at least for the time being,” Rygg said. “Distribution rollout for our newest mustard flavors, peppered mustard sauce and habañera mustard, has picked up quite nicely and is already gaining traction in the market.”