Check the Price Tag Before Grabbing a Bottle of Ketchup For Your Barbecue

The cost of condiments may make you think twice before squirting ketchup on your hot dog at this weekend’s barbecue.

According to Datasembly’s Grocery Price Index, the average price of a 32-ounce bottle of ketchup rose from $4.08 in the week of May 16, 2022, to $5.22 in the week of May 15, 2023, marking a nearly 28% increase. Mustard prices also went up approximately 13%, while relish saw a 12% increase for 26-ounce bottles and jars.

In comparison, proteins remained more reasonably priced, with beef hot dog prices rising only 3%. Those who prefer their burgers without buns were in luck, as the price of 80/20 fresh ground beef remained relatively flat.

However, when factoring in the costs of hamburger buns, hot dog buns, relish, mustard, burgers, hot dogs, and ketchup, the total cost increased by nearly 9% compared to last year.

While the price hike may not come as a surprise, as grocery shoppers have been experiencing food inflation, it’s worth noting that food prices have consistently outpaced overall inflation.
According to the Bureau of Labor Statistics’ Consumer Price Index, grocery prices rose 7.1% in the year through April, while prices overall increased by 4.9%.

The higher prices of condiments may be attributed to the rising costs of commodities such as sugar and wheat, which impact the manufacturing process.

Carman Allison, Vice President of Thought Leadership for North America at NIQ, explained that ingredient, labor, and fuel prices all contribute to the overall costs of consumer packaged goods companies, which produce items like ketchup and buns. Additionally, some companies have used inflation as an opportunity to increase their profits.

Retailers strategically adjust pricing before holidays, offering discounts on some items like hot dogs while maintaining higher prices for others like ketchup.

This tactic aims to entice customers to purchase complementary products. Retailers understand that customers may be less focused on price during holiday weekends, such as Memorial Day, when time pressures and convenience play a larger role in decision-making.

The increasing prices of condiments may also be influenced by new innovations and premiumization within the industry. Manufacturers and retailers have responded to consumer demands by introducing new and elevated options.

For example, Kraft Heinz launched a line of “elevated sauces and spreads,” including infused honeys. Moreover, the company recently unveiled a prototype machine that allows people to mix their own ketchup flavors, potentially leading to more unique products on store shelves.