Category Analysis: Innovation in Dips
The global dips market is projected to grow from USD $112.80 billion in 2026 to USD $172.20 billion by 2034, exhibiting a CAGR of 5.43 percent according to online media sources. Flavor exploration and an increase in consumers choosing convenient snacking over meals are energizing the category.
“The lines between meals, snacks and everything in between are becoming more fluid, creating new opportunities for products that can work across a range of everyday eating moments. At the same time, consumers continue to look for great taste, convenience and quality ingredients without added preparation. We see those needs reflected across our portfolio: Sabra gives consumers versatile refrigerated dips and spreads; Tostitos Chunky Guacamole, made with Hass avocados, builds on the familiar chips-and-guacamole occasion; and Alvalle refrigerated gazpacho, made with vegetables and extra virgin olive oil, offers a convenient, ready-to-eat option for an appetizer, a meal or on the go,” noted Marisa Perez, Senior Vice President and General Manager, Fresh Experiences Portfolio at PepsiCo Foods US.
“Cheese dip is a very social food, so the more people are gathering, the more opportunities there are for the category,” responded Andrew Arbogast, Founder & Owner of Arbo’s Cheese Dip. “For Arbo’s specifically, I’m excited about continuing to build on the retail growth we’ve experienced and getting more consumers to discover the brand. We started with a 30-year family recipe in my home kitchen in 2021, and we’ve learned a tremendous amount as we’ve scaled into major grocery retailers. The biggest challenge now is one that I think many emerging brands face: distribution alone doesn’t equal success. Getting onto the shelf is incredibly difficult, but once you get there, the real work starts.”
“The GLP-1 trend is big—and Oolie makes foods that are nutritious and delicious but also provide the protein these consumers must have, with flavors and textures that are truly satisfying. When consumers are super conservative about what goes into their bodies, Oolie’s simple and familiar foods that deliver with protein-forward ingredients really make a daily difference,” Faith Ferguson, VP Sales & Marketing of Oolie Foods, shared previously.
“Consumers are turning to the pre-packaged dips and spreads category for smarter, convenient ways to fuel their daily fiber intake beyond raw fruits and veggies; many are turning to fiber staples like avocados, but pre-packaged for stress-free convenience. The WHOLLY brand’s High-Pressure Processing (HPP) for products like guacamole and avocado minis and bowls ensures the great flavor is locked in,” reported Diana De Loza, Senior Director of Retail Marketing at MegaMex. “This way, the consumer has a convenient way to enjoy real produce benefits with zero prep and no preservatives added.”
“Dips, in our estimation, are always a great snack and versatile year-round ingredient,” shared Elizabeth Fujas, CEO of Rising Sun Farms. “Our DipnSpreads and Cheese Tortas have always had the shortest ingredient list, and you can pronounce them all. I formulated them to freeze, then thaw at the store level, giving them a fabulous shelf life of 18 months frozen and eight weeks refrigerated. This keeps the flavor fabulous and the retailer happy.”
“We are especially excited about continuing to show consumers that ¡Yo Quiero! is more than guacamole. Our portfolio includes award-winning guacamoles, salsas, quesos, bean dips, white dips and more, so there is an opportunity to meet shoppers across a wide range of occasions and flavor preferences,” described Tara Murray, Vice President of Marketing at ¡Yo Quiero! “The challenge is continuing to earn attention in an increasingly crowded refrigerated set. Innovation alone is not enough.”
Leaders in dip innovation are taking on the category through new approaches and reimagining old classics.
“Retailers are looking for innovation that can drive category growth, bring incremental value to shoppers and create excitement beyond a single product launch. They want partners who understand how consumer behaviors are changing and can translate those insights into differentiated offerings across more occasions, dayparts and store formats,” replied Perez of PepsiCo.
“Retailers are always looking for price. However, when you think a cup of coffee is $6, I think consumers demand quality and will pay a bit more for a clean label with less sugar and preservatives,” said Fujas of Rising Sun Farms.
“We wanted to eliminate as much food waste as possible from modern food manufacturing,” explained Ferguson of Oolie Foods. “As product leaders with decades of experience, we found ways to upcycle what was once unusable and also meet the unique needs of dairy-free consumers with Oolie’s savory dips and custardy, creamy yogurt alternatives.”
“There can be a tendency in food innovation to believe that innovation has to mean creating something consumers have never seen before. Sometimes the bigger opportunity is simply making something familiar significantly better. That philosophy has shaped Arbo’s from the beginning. We started with Original, expanded into Spicy and then Queso Blanco. Our Queso Blanco has become our top seller, which reinforced something for me: consumers are very willing to try a new brand when the product is recognizable, approachable and delivers once they taste it,” said Arbogast of Arbo’s Cheese Dip.
With the HERDEZ brand as a leading authentically Mexican salsa brand in the US, we consistently produce quality products that capture bold flavors and meet consumer needs, while also focusing on authenticity and innovation. Leaders in the industry who can consistently deliver on consumers’ growing demand for convenience and quality and their growing appetite for unique flavors that sit outside of the established norm will see growth in the coming years,” noted De Loza at MegaMex.
“The leaders will be the brands that can combine great taste with meaningful innovation, strong consumer trust and a clear understanding of how people are actually eating. That means innovating around real consumer needs rather than simply launching new flavors, offering the right formats and portion sizes for different occasions, and helping retailers merchandise the category in ways that inspire additional purchases,” reflected Murray at ¡Yo Quiero!
