How a budding sauce market is edging out Dhaka’s imported sauces
In recent years, locally produced sauce brands have been making a mark and expanding the market despite challenges
My first taste of dipping sauce was in 2015 when I reluctantly tried chicken wings with ranch—a happy departure from tomato ketchup. The ranch was refreshing and offered a condiment that suited my palate.
Fast-forward to 2024, and the sauce industry in Bangladesh has undergone significant development. Households have moved beyond stocking just tomato ketchup and chilli sauce, embracing a variety of flavours and experimenting with fusions of flavours.
When eateries like Takeout, Chillox and Madchef burst onto the Dhaka food scene, they introduced a variety of sauces on a much larger scale; and people quickly developed a taste for these new flavours.
However, sourcing these sauces was a challenge. They weren't available for purchase locally and the only option was to buy imported products, which people did, despite limited accessibility and high prices.
Recognising this gap, a wave of sauce enthusiasts conducted market research and began entering the market with short trial runs.
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"It all started in 2020 when my business partner created achari chilli with tetul, inspired by the unique recipes his mom would make—flavours commonly found in Bangladeshi households. He began a home business, letting friends and family sample it, and opened a Facebook group where interested people could place orders," shared Nomrota Sarker, partner and chief operations officer at Saus Taus.
The positive response prompted Sarker to take a leap of faith. Intrigued by the potential in this budding market, she quit her job as an analyst in a venture capital firm in 2021 and joined her partner in the sauce business, with no intention of looking back.
According to The Financial Express, Bangladesh imported food worth Tk105,000 crore in 2023, with sauces and condiments accounting for 5% of this total, amounting to approximately Tk5,000 crore.
Currently, 70% of these sauces and condiments are imported from Singapore, India and Thailand. The remaining 30% of the market is dominated by local brands such as Ruchi, Pran and others, although their focus is on tomato ketchup or chilli sauce only.
"The imported products did not appeal to many Bangladeshi tastes. The imported mayonnaise options, for instance, lacked the localised flavours—such as honey mustard or garlic mayo—that Dhaka's restaurant chains had popularised. People were actively seeking these familiar, localised tastes, and our flavours successfully met their demand for 'restaurant-style' options," Sarker added.
In September-October 2021, Saus Taus introduced four to five flavours to the market, gaining significant traction. Their success led to a collaboration with Chillox, which placed an order for 100 litres of sauce. However, as part of the agreement, these sauces were not permitted to be sold separately to customers.
"Saus Taus is the first condiment solutions brand in Bangladesh that launched with flavoured mayo and sauce and eventually wants to lead in other condiments like curry sauce, marinades, mixes etc," Sarker emphasises.
Another notable sauce brand in the market is Nom Nom, which launched in October 2023. With popular flavours like 'Naga BBQ,' 'Sweet Chilli,' 'Garlic Mayo,' and 'Honey Mustard,' they quickly made their mark. However, like many other cloud kitchens, they face challenges.
"There are certain spices, like Peri Peri, that we have to import because they aren't available locally. If the shipment is delayed, we can't always offer our Peri Peri sauce. Another challenge is the lack of sufficient storage space for our inventory which allows us to make a limited amount of products only," shared Ifteker Mahmud, partner at Nom Nom.
"The imported products did not appeal to many Bangladeshi tastes. The imported mayonnaise options, for instance, lacked the localised flavours—such as honey mustard or garlic mayo—that Dhaka's restaurant chains had popularised. People were actively seeking these familiar, localised tastes, and our flavours successfully met their demand for 'restaurant-style' options."
However, Nom Nom managed to bring their prices 10% down due to frequent sales and a vision to expand further in the market.
The Eastern Pickle Company initially focused on selling pickles as their name suggests. However, in 2023, they expanded into sauces, and as demand surged, they gained significant growth in 2024, establishing a fresh presence in the market.
"Food bloggers and customers have recently embraced the craze for dipping sauces. We see many bloggers engaging with our sauces and encouraging others to try something new, which has greatly amplified demand," said Mehedi Hasan Onik, brand manager at Dotlines Bangladesh.
High demand, persistent challenges
"The limited shelf life and the need for refrigeration due to perishable ingredients have been difficult to manage. Our products are all natural and free from added chemicals," he added.
Logistics, a persistent challenge for these companies, has proven to be a significant hurdle. Saus Taus, for instance, opted for a shift from plastic to glass jars to align with customer preferences for sustainable packaging. However, this decision came with substantial costs and risks, primarily borne by the owners themselves.
Sarker revealed that despite generating Tk1.2 crore in revenue, a significant 20% was lost due to logistical issues. Paperfly, their delivery partner, frequently damaged products, even though they were marked as fragile. This financial burden, coupled with insufficient investment, has hindered Saus Taus' growth.
Many SMEs face similar challenges, often overshadowed by larger corporations and lacking the necessary government support to thrive in the long run. To establish a strong market presence, sauce companies require substantial funding and robust infrastructure to overcome logistical hurdles and ensure product integrity.
