Source | Zhengdian Consumption According to Haitian Flavoring's Hong Kong IPO prospectus, among the world's top five condiment companies by 2024 revenue, Unilever, Kraft Heinz, Nestlé, McCormick, and Haitian Flavoring held market shares of 3.3%, 3.0%, 2.5%, 2.2%, and 1.1%, respectively, with compound annual revenue growth rates from 2013 to 2024 of 2.5%, 4.6%, 0%, 4.5%, and 10%. Image source: Haitian Flavoring prospectus (screenshot) China, as the world's second-largest condiment market (after the United States), had a market size of 498.1 billion yuan in 2023. It is projected to achieve a compound annual growth rate of 7% from 2024 to 2029, with the market size expected to reach 699.8 billion yuan. Given the vast market and opportunities, global giants have made China their most important strategic market, and the Chinese market has become the largest single market for these giants' condiment businesses. In response to changes in the Chinese market, these giants have recently been making frequent moves regarding their condiment business segments. The Hundred-Billion Giants Each Excel in Their Own Fields From a competitive perspective, the above five giants dominate the global market primarily due to their differentiated product category strategies. For example, Unilever's soups and chicken essence, Kraft Heinz's ketchup and mayonnaise, Nestlé's chicken essence and chicken juice seasonings, McCormick's spices and salad dressings, and Haitian Flavoring's soy sauce and oyster sauce—these products have basically achieved the world's number one position in their respective subcategories. Focusing on the Chinese market, Unilever's condiment business mainly relies on B2B Unilever Food Solutions and B2C retail operations. Products include Knorr chicken juice, chicken essence, chicken powder, spicy fresh sauce, Knorr first-extract fresh soy sauce, and butter-spicy sauce, among others. Kraft Heinz plans to split the company into two independent listed companies through a tax-free spin-off: "Global Taste Elevation Co." (tentative name) and "North American Grocery Co." The condiment business will be assigned to "Global Taste Elevation Co." According to the latest news from Kraft Heinz, Steve Cahillane will become CEO, effective January 1, 2026. He will also join the board of directors and serve as CEO of "Global Taste Elevation Co." after the split. In the Chinese market, besides the well-known Heinz ketchup and mayonnaise, Kraft Heinz has also acquired the famous soy sauce brand "Weishida" and "Guanghe" fermented bean curd through mergers and acquisitions. In 2024, 60% of Kraft Heinz's business in China came from Chinese-style sauces, and 40% from Western-style sauces. In terms of channels, B2C retail accounts for about 70%, while B2B food service is growing rapidly, accounting for about 30% of the business. Compared with the above two giants, Nestlé's condiment business in China is relatively more independent and is well-known to the public due to its high C-end penetration. Currently, Nestlé's Chinese condiment business mainly relies on four brands: Totole, Haoji, Meiji, and Chaotianxiang. Among them, Totole, Haoji, and Chaotianxiang were all acquired from Chinese local brands. In December 2023, Totole announced that it had achieved its previously set "ten-billion" goal. Although performance may have declined in the past two years, Totole's official website still states: "The company is one of the top three condiment companies in China and the unit that formulates the industry standards for chicken essence and chicken powder in China." McCormick, which established its first factory in China in 1989, had already exceeded 1 billion yuan in sales in China by 2011. McCormick invested 900 million yuan to acquire Wuhan Yatai Food Co., Ltd., bringing its "Daqiao" and "Chushile" chicken essence brands under its umbrella, and established McCormick (Wuhan) Food Co., Ltd., greatly improving its channel coverage in the domestic market. In 2018, McCormick introduced the American-style chili sauce "Frank's RedHot" and the classic yellow mustard brand "French's" to China. Image source: McCormick China official website According to some data, in 2023, McCormick's revenue in China reached 15.75 billion yuan, and from the growth trend of its condiment business, this segment contributed significantly. Fortunately, among the world's top five condiment companies, a Chinese condiment company has squeezed in—Haitian Flavoring. As the only condiment company listed on both A-shares and H-shares, Haitian Flavoring is well-known to the public. In the Chinese market, Haitian Flavoring has been the largest condiment company in China for 28 consecutive years. Its soy sauce and oyster sauce products have ranked first in the Chinese condiment market for many years, and its condiment sauces, vinegar, and cooking wine also rank among the top in the Chinese market. In the global soy sauce market, Haitian Flavoring holds a 6.2% market share, while Kikkoman has only 4.5%. However, Kraft Heinz also has a 1.8% share in the soy sauce category. In the oyster sauce category, Haitian Flavoring's advantage is more obvious, with a market share of 24.1%, which is higher than the combined share of the second-place Lee Kum Kee (9%) and Nestlé (4%). It is no exaggeration to say that whether consumers prefer Chinese or Western cooking, these five giants can basically meet all their condiment needs in a "one-stop" manner. New Changes Under High-Pressure Competition Due to different product categories and market strategies, the performance of the five giants in 2024 varied. According to data cited by Haitian Flavoring from Frost & Sullivan, also by revenue, the market shares of Unilever, Kraft Heinz, Nestlé, McCormick, and Haitian Flavoring increased by 0.1%, 0%, -0.1%, 0%, and 0.1%, respectively. Due to different growth rates and scales, the compound growth rates of these giants also changed. However, for the condiment industry in the Chinese market, there is a saying: "Those who win the food service channel win the world." Therefore, major brands particularly focus on the development and penetration of the food service channel. Among them, Unilever Food Solutions directly serves about 700,000 customers in China (one customer usually has multiple restaurants), accounting for 30% of its global business revenue. Thus, Unilever's emphasis on the Chinese condiment market is evident. Therefore, it continues to increase investment in the Chinese market, such as setting up new factories, creating more professional seasoning solutions, and launching more products that fit the food service channel based on market demand. It is worth mentioning that Unilever's new CEO, Fernando Fernandez, stated in a public statement that the company will reserve approximately $1.74 billion annually for mergers and acquisitions, with a particular focus on the U.S. market. Whether M&A activities will involve the Chinese condiment market remains to be seen. Kraft Heinz's goals are also clear: to make "Heinz" the leading Western-style sauce brand in the Chinese market; to turn "Weishida" and "Guanghe" from regional brands into national brands; and to become the fastest-growing food service provider. Currently, Weishida remains the largest source of revenue for Kraft Heinz in the Chinese market, and it is also the most competitive category. As a Cantonese-style soy sauce, how Weishida can "go north" is something Kraft Heinz has been actively promoting in the past two years. Compared with Unilever and Kraft Heinz, perhaps due to declining performance, Nestlé has also been making frequent adjustments to its entire Greater China business. Focusing on the condiment field, Nestlé's major brands have clear divisions: Totole is the "King of Umami," Haoji is "Authentic Sichuan Flavor," Chaotianxiang focuses on "hot pot base," and Meiji is "International Taste." Additionally, Nestlé Professional Catering also handles some B2B food service business. Starting December 1 this year, Wang Xiaoyun will become the general manager of Haoji, Nestlé's second-largest condiment brand in China. She previously oversaw Haoji's marketing. At the same time, Nestlé's newly acquired "Chaotianxiang" will also be adjusted to operate as a factory, with sales and marketing functions taken over by the Totole team. Previously, Chaotianxiang's main sales system was basically shared with Totole. Image source: McCormick China official website (screenshot) Although McCormick is relatively "low-key," it does not affect its influence in the Chinese market. Previously, McCormick CEO Brendan Foley said during a visit: "Although China's consumption environment still faces challenges, McCormick is confident in the long-term development of the Chinese market and plans to continue driving business growth through investment and innovation." Among them, deepening and expanding cooperation with food service brands will be McCormick's biggest lever. Compared with the aggressive international giants, the local giant Haitian Flavoring hopes to "go global." In addition to the dual listing on A-shares and H-shares, Haitian Flavoring is also actively building overseas channels. In its Hong Kong IPO prospectus, Haitian Flavoring clearly stated its goal: "to increase the proportion of overseas revenue to 15% within 3 years." Based on 2024 revenue, Haitian Flavoring's overseas revenue will need to reach at least 4 billion yuan in the next three years. However, Haitian Flavoring's overseas revenue proportion is still relatively low. In the company's words, it is "still in its infancy." How to open up the overseas market will become the top priority for Haitian Flavoring's future development. Competing in China's "Condiment Arena" Broadly speaking, condiments can be divided into basic seasonings and compound seasonings; by cooking style, they can be divided into Chinese-style and Western-style seasonings. In the Chinese market, the market size of compound seasonings is larger than that of basic seasonings, and the market size of Chinese-style seasonings has more development space than Western-style seasonings. Therefore, judging from the actions of the major giants, in addition to anchoring the food service channel, product compounding and localization have become their main strategies to compete in the Chinese market. Take Unilever as an example. In terms of products, its Knorr brand, besides chicken essence and chicken powder, has also begun to launch various soy sauces and Chinese-style sauces. In terms of localization, Unilever Food Solutions China has four R&D kitchens in Shanghai, Beijing, Guangzhou, and Chengdu, covering 32 provinces, autonomous regions, and municipalities directly under the central government, forming long-term partnerships with nearly one million customers in more than 800 cities across the country. For C-end consumption, control over channels and pricing will be key to stable or even growing performance. In the past two years, Nestlé has been one of the companies that performed relatively poorly, with price inversion, inventory pressure, and channel conflict becoming objective reflections of increased channel pressure. Based on this, Nestlé is also implementing new market strategies under its new management team—shifting from channel distribution-driven to consumer demand-driven terminal sell-out. However, whether the new strategy can be implemented ultimately depends on the company's specific operational methods. As for the local brand Haitian Flavoring, with its brand advantages, scale advantages, and channel advantages, its market position will not change significantly in the short term. Haitian Flavoring is also actively exploring growth opportunities from new categories and new channels. In the domestic condiment market where Chinese and foreign brands compete on the same stage, international giants have an edge in terms of brand, category, and overall strength. Therefore, in the view of Zhu Danpeng, a Chinese food industry analyst: "In the future, the share of several Fortune 500 companies in China's condiment field will become larger and larger." Zhu Danpeng further stated: "Taking Nestlé as an example, the number one and number two brands in the chicken essence category are both Nestlé brands, so its support and investment in the cultivation, research, and development of China's condiment categories are very significant. Other brands may not be as prominent as Totole, mainly due to the categories they operate in." Currently, the domestic chicken essence category and some Western-style seasonings are mainly dominated by foreign companies, but various regions in China have their own condiment industry characteristics and clusters, such as one of the important cores of Sichuan-style seasonings. "Fortune 500 companies have made significant contributions to the development of China's condiment industry," Zhu Danpeng said. "At the very least, they have played a very good role in popularizing and leading Chinese consumers toward Western food, more compound flavor seasonings, and special ingredients." In fact, the innovation, upgrading, and iteration of China's entire condiment industry cannot be separated from the contributions of foreign companies, so I am quite optimistic about the development of foreign condiment brands in China. 【Moving Toward the C-End】The 11th China FMCG Conference Time: March 16-18, 2026 Location: Chengdu, China