---
title: "Seven Years of Effort, Hubang Strategic Focus: Striving to Be the No.1 in the Meat Chili Sauce Category"
description: "China's spicy food lovers exceed 600 million, and the trend of spiciness is spreading nationwide, with chili consumption steadily rising. The chili sauce market is vast but has low entry barriers, leading to intense competition and low industry concentration. Hubang, after seven years of exploration, has launched a new strategic positioning as 'Hubang Meat Chili Sauce,' aiming to create a distinct category and become the leading brand in this segment."
author: "高级研究员 海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2021-10-25"
language: "en"
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---

# Seven Years of Effort, Hubang Strategic Focus: Striving to Be the No.1 in the Meat Chili Sauce Category

> China's spicy food lovers exceed 600 million, and the trend of spiciness is spreading nationwide, with chili consumption steadily rising. The chili sauce market is vast but has low entry barriers, leading to intense competition and low industry concentration. Hubang, after seven years of exploration, has launched a new strategic positioning as 'Hubang Meat Chili Sauce,' aiming to create a distinct category and become the leading brand in this segment.

China's spicy food lovers exceed 600 million, and the trend of spiciness is spreading nationwide, with chili consumption steadily rising. 'Spiciness' has permeated various cuisines, indicating that **we have entered an era where no meal is complete without spice, and 'eating spicy' has transformed from a regional preference to a national dietary culture.**

The chili sauce market is vast with low entry barriers. Offline supermarkets are competing for limited shelf space, with a dazzling array of chili sauces, while online, new brands are emerging endlessly. The industry is characterized by low concentration and fragmented competition, making the market far more competitive than imagined.

The competitive landscape of the chili sauce industry is like 'a towering tree plus many low shrubs': Laoganma dominates, leaving other brands far behind. In the soy sauce industry, CR3 reaches 43%, while in the chili sauce industry, CR3 is less than 18%.

The industry's characteristics of having a leading enterprise and low concentration imply opportunities to create a second brand. **On October 19, Hubang released its new strategic positioning, introducing 'Hubang Meat Chili Sauce' to consumers, with the slogan 'With meat, it's more fragrant,' distinguishing it from traditional vegetarian chili sauces, seizing market share, and building a new market landscape.**

**Hubang's Exploration: What development space remains in the chili sauce track?**

As a major producer and consumer of chili sauce, China's industry has been steadily growing, with the market size continuously expanding. According to the 'Chili Sauce Product Blue Book,' China's chili sauce production increased by 80% from 2010 to 2019. Additionally, a report from Zhiyan Consulting shows that by 2020, China's chili sauce market reached approximately 40 billion yuan, with an annual growth rate still above 7%.

Due to the large market space and low entry barriers, more internet-famous brands, personal workshops, and new e-commerce brands have flooded in, leading to overcapacity, severe homogenization, and price wars in the domestic chili sauce industry, seriously affecting the industry's healthy development. So, what do consumers care about in chili sauce? What development space remains?

According to surveys by authoritative departments, 'the type of contents' is the primary consideration when consumers choose a table chili sauce, followed by spiciness. Among all contents, consumers prefer meat-based contents, and chili sauces containing meat have a higher perceived value. The question arises: the market is not short of products containing meat, but is there a new opportunity for chili sauce?

The answer is yes. **Although there are countless meat-containing products, there is no 'meat chili sauce' brand in consumers' minds**—a gap in consumer awareness. This is Hubang's opportunity.

In response to the market's current state of numerous, generic, and forgettable chili sauce products, Hubang has initiated a brand strategy upgrade, using the brand name 'Hubang Meat Chili Sauce' and a series of new products to redefine the 'meat chili sauce' category, and is sure to gain first-mover advantage and shine in this field.

**Debut at the Peak: 'Meat Chili Sauce' Will Drive Industry Iteration and Upgrades**

Market gaps are brand opportunities. Why does Laoganma dominate? The reason is simple: if priced higher, it won't sell; if lower, it's not profitable. Following strategies don't work in the chili sauce industry; one must blaze a new trail.

Hubang has delved into the current state of the chili sauce industry: **fierce competition at the market level, a mental void at the cognitive level, and a saturated market where blindly expanding categories is difficult to break through.** It must dig vertically, go deep into segmented tracks, and use focus to hammer the brand into consumers' minds.

Meanwhile, people's lifestyles have changed. **Eating alone has replaced eating with the family, and the 'eating alone' economy has risen among modern urbanites.** Consumption habits have shifted from calculating to enjoying, which will inevitably bring opportunities for chili sauce consumption upgrades and category innovation. Thus, Hubang's 'Meat Chili Sauce' was born. Hubang names the category, strongly associating 'Meat Chili Sauce' with Hubang, creating deep consumer memory and instilling new chili sauce awareness.

It is understood that Hubang was established in 2015, specializing in the production and sales of chili sauce. **In its early days, it adhered to two differences: one from competitors, and one from the past.**

Public data shows that Hubang has a modern factory in Shandong covering 12,000 square meters, with fully automated canning and an annual production capacity exceeding 7,000 tons. It has its own unique variety—Yingchao Red No. 4 fresh peppers—freshly picked, truly achieving independent operation across the entire industry chain from planting, production, processing, warehousing to sales, ensuring quality from the source.

Hubang had previously launched meat chili sauce products, and after rigorous market testing, it has refined today's meat chili sauce. During R&D, Hubang conducted strict ratio and taste experiments for meat and chili, achieving a 'golden ratio' of fresh peppers and beef, combined with a slow-cooking craft, ensuring the sauce's aroma and excellent taste.

In packaging design, Hubang pioneered the small 'yogurt cup' design, differing from traditional dried chili/chili powder, fried, and 210g glass bottles. The small cup design better suits modern young people's eating and consumption habits, meeting the 'fast-paced era's' single-serving needs.

In terms of target audience, to differentiate from Laoganma's deep cultivation of offline channels and kitchen seasoning scenarios, and to break free from brands like Maodegong, Chuanwaizi, and Lameizi that rely on local consumers, Hubang targets simple meal scenarios such as food delivery.

Hubang has partnered with 70+ chain brands among the Top 200 in food delivery and 30,000+ merchants, rapidly expanding nationwide. Its business covers over 20 key cities including Beijing, Shanghai, Hangzhou, Chengdu, Guangzhou, and Shenzhen, opening a new battlefield online that transcends regional limits, laying a solid market foundation for creating a new industry benchmark brand.

**Hubang's Strategy: From Focus to Breakout**

Hubang has adhered to two principles in its 'Meat Chili Sauce' marketing decisions:

**First, deep engagement in simple meal scenarios, with tiered channel reach**

As the name implies, Hubang is the creator of small-pack chili sauce, overcoming limitations of dosage, uniformity, and excess oil. It pioneered small-pack chili sauce products, which, after market testing, have become the main products recognized by consumers, advocating one pack per meal for convenience and hygiene.

Simple meal scenarios include but are not limited to pioneering the food delivery scenario. For Hubang, this has formed a scenario barrier. It focuses resources, continues to deepen, and uses scenarios as the origin to reach matching channels in a tiered manner.

**Second, adhering to a brand-oriented approach, not a traffic-driven route**

Hubang's goal: within three to five years, 'Meat Chili Sauce' becomes an independent category, and Hubang becomes a top-tier brand in the industry, proving itself with strength.

At the new product launch conference in Shanghai on October 19, Hubang's spokesperson stated: In the future, Hubang will continue to deepen its presence in food delivery and e-commerce channels, focus on making Hubang Meat Chili Sauce a blockbuster product, and make Hubang the No.1 brand in meat chili sauce. At the same time, Hubang will strengthen cooperation with restaurant chains like Laoniangjiu, Laoshengchang, and Country Style Cooking, expand consumption scenarios, broaden the condiment track, and help accelerate industry upgrades.

**Final Thoughts:**

Currently, the chili sauce market remains underdeveloped, with many possibilities in the market landscape. Hubang's brand upgrade of Meat Chili Sauce demonstrates a new development path for the chili sauce industry—creating new categories to build differentiated awareness, deeply cultivating segmented tracks to accelerate brand concentration, and leading newcomers to shift from scale competition to comprehensive competition in quality and brand. This will significantly impact the existing industry landscape and drive industry iteration and upgrades.

**Are you 'watching' me?**


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