Overview
Vinegar is a versatile product that has been used in all corners of the world for over thousands of years. Having long been viewed as a necessityfor every home with its various applications, vinegar is increasingly popular with consumers as new blends, uses and specialty products continueto enter the marketplace. While vinegar is a global product, its varieties vary by region. Today, traditional vinegar products specific to regionalmarkets are appearing globally as new and innovative goods with marketable health benefits and multiple uses.
Global Vinegar Market
With an increase in health consciousness in major markets worldwide, as well as the popularity of new meal seasonings, demand for vinegar isrising. This was evidenced by a large rise in the number of new vinegar products introduced worldwide between 2002 and 2005, an approximate1,162% increase. In particular, balsamic and infused or flavoured vinegars are dominating the market and seeing continued growth. Europe iscurrently the world's top region for vinegar sales, followed by North America. Top vinegar importers and exporters worldwide are listed belowand represent key markets of entry and major competitors in the global vinegar market respectively.
World's Top 10 Vinegar Importers (2006)World's Top 10 Vinegar Exporters (2006)Canada's Target Markets Canada's Competitors
CountryImports (CAD$ millions)Canada's Share of Country's ImportsCountryExports (CAD$ millions)
United States$87.62.01%Italy$216.9Germany$44.20.01%France$25.8United Kingdom$28.30.05%Spain$24.5France$25.50.01%Germany$20.3Canada$22.0N/AUnited States$14.3Italy$17.10.003%Japan$12.4Japan$11.30.00%China$10.1Austria$10.90.00%Greece$7.7Spain$9.50.00%South Africa$6.6Australia$9.40.04%United Kingdom$5.5
While vinegar is a global product, its uses and variations vary considerably by market. From North America's household staple white vinegar, torice vinegar in Asia, to Italy's balsamic or Britain's malt vinegar, the similarities and differences between vinegar varieties can act as bothbarriers and areas of opportunity for Canadian producers in the world vinegar market.
Europe
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The European marketplace is home to some of the finest traditional vinegars worldwide; therefore, marketing innovative vinegar varietiesof the best quality Canadian ingredients may be most successful in European countries.
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Due to its renowned products and long history of vinegar consumption, Europe holds six out of the world's ten largest vinegar markets,with four of which also ranking as the largest vinegar exporters worldwide (Greece also made the top exporters list with eighth place in2006). These figures position Europe a key target market for premium Canadian vinegar products; however, Canada faces considerablecompetition in the region from European countries, especially European Union (EU) states, which primarily source imports from oneanother.
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However, the EU maintains a high level of protectionism for many of its regional foodstuffs through a quality system regulation program,making it increasingly challenging for Canadian products to enter the European marketplace. Currently, such regulations only impactCanadian balsamic vinegar producers (additional information is provided under Balsamic Vinegar in the Vinegar Varieties section of thisreport). There is also an EU protected designation for organic products. This organic regulation will also impact Canadian vinegarproducers looking to sell organic products in Europe, as they will have to comply with EU organic certification standards. Detailedinformation on the EU's organic designation and its regulations can be found atec.europa.eu/agriculture/qual/organic/index_en.htm.
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Specific vinegar varieties of interest may include organic, blueberry, cranberry, Saskatoon berry, Icewine, maple syrup, and dessertproducts.
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High-end European foodservice and hospitality sectors may hold the most opportunity for Canadian vinegar products.
North America
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The United States vinegar market is fairly similar to that in Canada, and consumer tastes and vinegar uses are comparable.
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Not surprisingly, Italy remains the largest source for imported vinegar in the United States, a total of $62.4 million in 2006. Spain ($7.9million), France ($4.4 million), Japan ($4 million) and China ($2.4 million) follow Italy as major vinegar suppliers to the United States, just ahead of Canada with $1.7 million in 2006. Canadian vinegar producers, therefore have to compete with high quality Europeanvarieties and inexpensive Asian products in the American marketplace.
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Introducing vinegar made with famous top-quality Canadian products, as well as innovative vinegar varieties (e.g. apple, Saskatoonberry, pumpkin, Icewine) may be well received in the American marketplace.
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The gourmet foodservice and retail grocery industries may hold areas of opportunity for Canadian vinegar exporters.
Asia Pacific
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Countries in the Asia Pacific region vary greatly in levels of development, wealth, and consumer markets; therefore, vinegar opportunitiesfor Canadian products significantly differ by market.
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In Asian countries, such as China and Japan, rice vinegars are extremely popular and have been a part of local cuisine and culture formany years. In fact, vinegar as a beverage has become increasingly popular in Japan and is enjoyed mixed with champagne, water ormilk. Such beverages along with health vinegar are increasingly being consumed for their nutritious properties. The Japanese market forhealth vinegar was estimated at $559.6 million in 2005, and is projected to grow 15% annually.
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The Chinese market remains highly saturated with inexpensive vinegar varieties, making it difficult for Canadian producers' high qualityproducts to compete in the marketplace. Therefore, potential opportunities for Canadian exporters may only lie in offering unique,gourmet vinegar varieties to upper class consumer segments in wealthy, urban areas of China, including Hong Kong.
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Particular gourmet vinegar varieties that may well received in China and other Asian markets include maple, Icewine, Saskatoon berry,pumpkin, and dessert vinegar.
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Given the huge popularity of Canadian Icewine in Asian markets, Icewine vinegar may prove a particularly successful niche productamongst consumers.
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The Asia Pacific region primarily relies on China and Japan (i.e. the sixth and seventh largest vinegar exporters worldwide respectively)for its bulk of vinegar imports, closely followed by several European countries and the United States. In fact, Hong Kong, Singapore,Taiwan, South Korea, Australia and India all meet their import vinegar requirements from many of such countries. Therefore, Canadianvinegar exporters will likely be competing alongside premium European brands and regional leaders with popular inexpensive products.
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Top vinegar exporters supplying the Japanese market in 2006 included Italy ($4.6 million), China ($3.6 million), France ($1.5 million),the United States ($426,491), and Spain ($404,709). Japan's affluent consumer market's tastes are reflected in its choice of key vinegarimport sources, i.e. high quality products from top European vinegar exporting countries through to large imports from China, likelybeing inexpensive traditional Chinese rice wine—a long-time staple of the region.
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In contrast to other Asian markets, sugar cane vinegar is popular in India, the Philippines, and Indonesia. Opportunities in such marketsmay lie in vinegar products made with quality Canadian goods (e.g. wheat, berries/fruit, honey, herbs).
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Popular vinegar varieties in Australia include balsamic, red and white wine, cider and malt.
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