Salsa is a versatile product that is included in several different types of food markets. Despite its familiarity with the American public, salsa sales are still counted in the ethnic food market sales projections. However, it also occupies space in several other markets. Regarded as a condiment along the lines of ketchup, barbeque sauce, and mustard, salsa is considered a part of the Cooking Sauces/Marinades/Dressing market as well as the Chips and Dip market. These markets are all predicted by Mintel to enjoy growth for the next three to four years. For example, Mintel’s report on the Chips and Dip Market reports that between the years of 2008 to 2013, the market grew 28%, and is expected to grow another 40% from 2013 to 2018.1 The salsa market subset in Mintel’s Ethnic Food Market projections is also expected to grow at a relatively steady 2% per annum, with an overall growth of the Mexican food market hovering at 13% between 2008 and 2013.
Figure 1 shows the Indiana salsa market, projected to have a 10 million dollar growth from 2008 to 2018. Figure 2 shows Indiana has a 20.46% of the salsa market share. This implies that the demand for salsa is growing and Indiana has a good share of the market and the product will be sustainable here.
The target market would be the Purdue community, more specifically college students, young adults between the ages of 18 and 34. A Mintel analysis on collegiate food options shows that on average, our product would be well received. In a survey to suggest improvements to campus food options 33% of respondents cited more locally sourced food options as a way to improve food offerings on campus. A salsa made from vegetables grown on Purdue’s Student Farm is a way to achieve this. Young adults are also one of the demographic groups most open to ethnic food (which salsa is still considered a part of).
After contacting the food services department, we were given a file consisting of the amount of salsa ordered annually. The company supplying salsa and the corresponding amount of salsa were given. As a new student run company, it was decided that we would start by producing close to 10% of the annual salsa demand.