Growers in Europe and the UK are facing challenges due to high costs and low potential retail prices for their winter crops. Some have closed down as they are unable to cope with debts and costs. However, some growers have been able to increase their revenues by creating derivatives of their produce and retailing them at higher prices, expanding their product portfolio. Indoor farms are seeking to reduce costs and increase revenue by reevaluating their operations and seeking new sources of income. The sauces and condiments market is expected to grow annually by 2.75% between 2022 and 2027, with demand coming from adult consumers under 45 seeking restaurant-centric flavors. Companies such as Gotham Greens and Local Bounti have recently added new products to their portfolios, while Edible Garden and Well Juicery have made acquisitions and partnerships to expand their product lines. Nonetheless, the market has been impacted by inflation rates, a lack of raw materials, and the COVID-19 pandemic.
Indeed, due to the current market conditions, which include rising energy costs and significant inflation rates, indoor farms are considering changes to their operations and the types of crops they grow in order to reduce expenses and find new sources of revenue. Some growers in Europe and the UK are discontinuing their winter crops because the cost of production exceeds the potential retail price, leading some farms to shut down due to financial struggles. However, other growers have been able to increase their profits by creating and selling higher-priced derivatives of their produce, expanding their product offerings in the process.
Nevertheless, according to Statista, the sauces and condiments market is expected to grow by 2.75% per year between 2022 and 2027, with revenues in this segment reaching USD 28.93 billion in 2022. Despite this growth in terms of revenue, the number of units sold is lower than in previous years due to the impact of inflation rates on company revenues and reduced demand for these sauces as they are seen as nonessential rather than vital products.
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