While Sabra helped make hummus a household word – if not staple – in many US homes, the brand’s market share is not what it once was: Falling from more than 60% in mid-2021 to 31% in the first nine months of 2022 before rebounding slightly to 37% in June 2023.
The decline partly reflects Sabra’s recent struggles, including a warning letter from FDA in 2021 about Current Good Manufacturing Practice violations and a substantial recall related to food safety a few years earlier. But it also reflects increased competition in the segment as emerging brands gain shelf space and consumer recognition for their clean labels, bold flavors and premium positioning as a better-for-you snack and plant-based protein.
In this episode of FoodNavigator-USA’s Soup-To-Nuts podcast, two emerging hummus brands share what it will take for the US hummus category to break $1 billion. Ithaca Hummus Founder Chris Kirby and Little Sesame Co-founder and CEO Nick Wiseman reveal what US consumers want from hummus, including clean ingredients, bold flavors and modern processing techniques. They also discuss how they are boosting consumption and usage occasions and the role strategic partnerships can play in the long-term success of their brands and the larger hummus category overall.
Subscribe to FoodNavigator-USA’s podcast
Never miss an episode of FoodNavigator-USA’s Soup-to-Nuts podcast or our recently launched Founders’ Fundamentals podcast. Subscribe today.
Catch up on past episodes of Soup-To-Nuts, including:
Breaking out & securing share in a fragmented landscape
Hummus, which traditionally blends chickpeas, garlic and lemon juice, is a longtime dietary staple in the Middle East and Mediterranean, but is relatively new in the US, according to Kirby, who notes hummus was relatively unheard of in the US as recently as 20 years ago.
And while it has grown exponentially in that time, he cautions sales have stagnated in recent years – suggesting a need for innovation.
“Over the last 20 years, [the hummus category] has experienced periods of exponential growth … and the household penetration of the category grew from low-single digits to the high 20% range,” said Kirby.
But, he added, “in the recent five or so years, that growth has really plateaued. So today, the category’s total volume growth if you include all channels, including Costco and club, is around $1 billion. But its only growing 1% to 3% on average over the last few years.”
On average, he added, US consumers buy hummus about four times a year and those purchases are heavily concentrated around holidays when people gather and need a “crowd-pleaser.”
Kirby argues sales of ready-to-eat hummus have stagnated in the US in part because the taste, texture and flavor of leading brands and many private label options do not mirror that of hummus prepared at home or a restaurant. And without quality as a differentiator, players instead compete on price and promotion, which he says devalues not only individual brands but the category overall.
Offering a higher quality eating experience and premium product is where Kirby says Ithaca can win. He explains that Ithaca’s quality stands out, in part, because its hummus is cold processed with high pressure pasteurization, which he says protects the nutrition and flavor of ingredients.
“Over the last 20 years, [the hummus category] has experienced periods of exponential growth … and the household penetration of the category grew from low-single digits to the high 20% range."
Chris Kirby, Founder of Ithaca Hummus
“Heat is the enemy of flavor. At the end of the day, you don’t want to heat products more than you have to because they start to lose flavor and nutrient integrity,” he said.
Wiseman agrees that hummus sales in the US have been held back by the quality of many existing brands, and like Kirby, he says the way that Little Sesame makes its hummus helps its standout from the competition.
“Quality at the end of the day wins,” which is why Little Sesame self-manufactures its hummus in small batches with many of the inclusions prepped by hand and freshly squeezed lemon juice, he said.
“The intentionality in the process, we really feel, shows up on shelf,” he added.
Two paths to flavor innovation to drive trial, repeat purchase
Flavor innovation is also key component to both brands’ growth strategy – although both take different approaches.
Kirby explains Ithaca Hummus is recreating the beloved flavors of less healthy dips and using hummus to offer a better-for-you option. For example, it recently launched a French Onion Hummus that tastes “almost exactly like the sour cream-based French onion dip that we all grew up eating, but instead of sour cream, it is chickpea based.”
Little Sesame approaches flavor from a culinary perspective that Wiseman said is grounded in the founders’ roots as chefs and restaurateurs as well as through collaborations that create excitement through co-branding.
“We think about flavor innovation a bit differently. We’ve done a lot of fun collaborations with brands that we admire to try to bring new energy and excitement into the category,” said Wiseman.
Past collaborations include a Mexican Street Corn Hummus with Vista Hermosa and a Pumpkin Chili Crisp Hummus made with Fly By Jing.
Hummus’ health proposition for people, the planet
To further drive sales, both brands are leaning into consumer interest for food that is healthier for them and the planet.
As Kirby explains, hummus stands out as an OG plant-protein that is craveable and feels indulgent, but is packed with health benefits. And, he adds, chickpeas are a critical crop in the regenerative ag movement.
Wiseman explains that Little Sesame has always sourced its chickpeas from regenerative growers in Montana, which it allows it to not only check the sustainability box for consumers but also meet the rising demand for clean label products.
The ladder of which, Wiseman explains, Little Sesame reinforced by recently becoming Clean Label Certified. He notes the certification helps set the standard for providing transparency in the industry and ensuring consumers that Little Sesame products are free from toxins, such as a herbicide glyphosate.
Moving hummus beyond dip
For US hummus sales to meet and exceed $1 billion in the next five to ten years, both brands agree that it needs to expand beyond dip and into new channels – including mass and convenience stores.
Wiseman notes that 40% of people still eat hummus with a carrot, but in other parts of the world it is enjoyed as a center of the plate protein and as a key ingredient in larger dishes. Before that shift can happen in the US, Kirby notes, more Americans need to try hummus and, from a business perspective, he says the dips, spreads and snacks categories are the best bet because barriers to trial are lower.
With that in mind, both companies are focused on expanding distribution – and have their eyes on big box stores – as a way to introduce to more consumers not only their companies but hummus more generally and the diverse ways to use it.