Elote dip is the fastest-growing dip in the U.S, according to Datassential, with its sales up 250% over the past four years.
The dip is made with corn, mayonnaise or sour cream, lime, chiles and a Mexican cheese, such as cotija. While sales are on fire, penetration in stores and restaurants is low — under 1%, meaning it's on the menu at less than 1 in 100 restaurants.
But according to Menucast, Datassential's artificial intelligence-powered menu projection tool, elote is predicted to grow 86% over the next four years.
“Salsa, guacamole and queso are prevalent on menus, and that paves the way for Mexican flavors found in elote dip,” said Emily Murawski, research and insights manager with Datassential.
Hot on the heels of elote dip are whipped feta dip, smoked salmon dip and nacho cheese dip, all growing rapidly, but also with less than 1% of penetration (except smoked salmon, which has penetration of 1.5%).
Rhome, Texas-based Yo Quiero Brands launched its elote dip in 2022, and it's becoming more popular, says Tara Murray, vice president of marketing.
“Consumers seem to really enjoy the crunchy corn and creamy texture,” Murray said.
New Seasons Market, Portland, Ore., does not offer elote in its 21 stores, but it is aware of the dip's growing popularity and often cross-merchandises elote ingredients with corn displays during the season.
“Our customers are looking for exciting, approachable ways to elevate their fresh produce,” said Produce Director Chris Harris.
The bestselling dips at Bronx, N.Y.-based Morton Williams Supermarkets are guacamole and salsa, followed by ranch and blue cheese, says Marc Goldman, director of produce. He merchandises them near the store-cut vegetables and vegetable platters and says sales of veggies inspires sales of dips and vice-versa.
“It makes the vegetables more exciting,” he said.
Dips and sauces are an inexpensive and easy way for consumers to add flavor, according to market research company Mintel in its 2023 report, “Trending Flavors and Ingredients in Dips and Sauces.”
Shoppers are looking for interesting flavors, and real ingredients and plant-based products are gaining momentum, the report reveals. And if they're “better-for-you” items, they get a bonus boost, especially with products like avocados or swapping out sour cream for the healthier Greek yogurt.
But versatility is important, says the Chicago-based company, and since 45% of consumers are using them interchangeably, it's a good idea for manufacturers to remove “uses” from packaging to allow consumers to be creative in how they eat them.
Also trending
There are other popular dips that are growing more slowly but are better known. Overall, guacamole is the most prevalent dip, followed by salsa, queso and hummus, according to Datassential.
Yo Quiero's guacamole products remain its bestsellers.
“Guacamole has grown beyond Taco Tuesday. Avocados being so nutrient-dense, they have become a staple at any meal,” Murray said.
But over the last few months, the company has launched an avocado and egg spread, a crunchy corn salsa and, more recently, a creamy black bean dip “due to the popularity of black beans,” Murray said. “We are glad that the majority of our dips fit into a plant-based diet.”
Dips are increasingly popular as consumers snack more and eat meals less.
At New Seasons Market the demand is “robust” for these products, Harris says.
“International and culturally diverse flavors continue to gain popularity, as our customers are looking to explore new cuisines and spice up their meals,” he said.
Harris sees an uptick in both dips and salad dressings in the summer months, “correlating with the increased availability of fresh, local vegetables and the general preference for lighter meals.”
Yo Quiero's goal is to be a one-stop shop for dips. Avocados feature heavily in the lineup because “people eat them for breakfast on their toast, for lunch on their salads and for dinner and snacks as guacamole,” Murray said.
Yo Quiero also caters to consumers who are on the go — or those seeking portion-control — with 2-ounce guacamole and Avocado & Egg mini cups.
Grocery store gambits
New Seasons Market strategically merchandises shelf-stable dressings, sauces and spreads throughout the produce department with complementary food items. For refrigerated SKUs, the company places them near items with which they pair well — such as hummus adjacent to the cut vegetables section.
It offers house-made salad dressings and merchandises them next to its robust selection of packaged salads.
“This not only inspires customers to grab a fresh, convenient salad, but also encourages them to try one of our gourmet dressings to complete their meal,” Harris said. “It's about making the shopping experience as seamless as possible while also encouraging delicious pairings.”
Dips appeal to most customers, he adds, with some seeking healthy options — in which case they tend to look for organic, as well as and locally sourced items without artificial preservatives.
But other shoppers are seeking gourmet or artisanal offerings that provide a more indulgent experience, often featuring richer flavors or unique ingredient combinations.
“We strive to cater to both ends of the spectrum,” Harris said.
Dips really help produce sales, he says, which boosts their appeal.
“When we position hummus, ranch dips, tzatziki or our in-store guacamole next to cut vegetables, the sales of both categories tend to increase,” Harris said.
Because Yo Quiero products feature only recognizable ingredients, are non-GMO and don't feature any bio-engineered ingredients or preservatives, they're a fit for merchandising in produce sections.
“This allows us to have a much-better-for-you fresh, snacking option,” Murray said.
In fact, this is a major selling point of the products, she says.
“The most important product characteristic is the product must have a nutrient benefit and must have a higher-than-normal satiety level,” Murray said. “Consumers want more from their snack — they want to feel good inside and out.”
The products are typically featured in two areas of grocery store. The company's lightly branded square cup tends to go into produce departments, and its round, more heavily branded cup in the deli. For the produce department, Yo Quiero wanted to create a container that matches stores' produce sets.
“The square, clear, lightly branded product allows the produce manager to add our dips to their sets without disrupting the look and feel of that beautiful wall of fruits and veggies,” Murray said.
Promotional activity
Yo Quiero says it works in partnership with retailers to help them sell the products at the right price, using the right messaging. This might lead to a cents-off deal, a digital coupon or a fun, refrigerated display in the middle of the department.
“We are super flexible and want to do everything we can to partner with retailers to engage customers at the shelf which in turn, creates sales at the registers,” Murray said.
Around half of the marketing budget, which is small, goes towards working “hyper-locally” with retailers, Murray says.
“When they are running programs, have new store openings, etc., we help post to our site as well as run contests to help drive store traffic,” she said.
To encourage sales of dips at Morton Williams stores, Goldman runs promotions — usually $1 off — on salsa or guacamole but tends not to run them on the other dips “because people are going to buy them either way,” he said, while salsa and guacamole are typically more of an impulse purchase.
New Seasons Market regularly features specials and discounts on dressings, dips, sauces and spreads, often tied to seasonal themes or events. It might run a promotion on barbecue sauces and marinades during grilling season, for example.
In addition to price promotions, it runs in-store tastings, “sharing pairing suggestions to inspire customers and encourage them to try something new,” Harris said. It also incorporates social media, weekly ads and its loyalty program to alert customers to these specials and provide additional incentives.
Communicating with consumers
Yo Quiero's posts recipes and product information on social media and partners with the Healthy Family Project and registered dietitians “so they can help their consumers understand the goodness of our product and provide ways to eat better,” by using the recipes and ideas on Yo Quiero's website, Murray said.
Yo Quiero also gets the word out itself by using social media for product images, ideas, talking about its message, increasing brand awareness and more, “to keep our brand top of mind with consumers,” Murray said.
Enhancing dips, enhancing vegetables
Pompeii Juices is getting into the dips game. This Dallas-based company has relaunched its dip product enhancers in resealable packets.
It offers a guacamole seasoning mix and a veggie dip enhancer. The former mixes with avocado to make the dip, with suggestions on the back of the package to “Kick it up!” with additional ingredients, the company says. The veggie mix combines with sour cream and can be paired with any vegetables.
There's a lot of flexibility in how retailers can merchandise the products. Pompeii has shippers that hold 144 packets that can be eye-catching in the produce department — ideally near dippable produce like carrots and celery. There's also a shelf-ready merchandising box, and there are clip strips to hang them above produce refrigerators.
To get the word out Pompeii says it has been showcasing the packages at produce expos and retailer shows, and its brokers introduce them to produce managers.
To encourage sales at retail, Pompeii will offer by-one-get-one offers or get one free with a lime juice, especially around events like Cinco de Mayo “just to get some movement on it,” said Becki Rollins, national sales manager. “We're very open to how we partner with retailers. We come to them with solutions, but we [also] want to hear their suggestions.”