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Even though the market for dips is large, it is estimated that about 20% of all dip volume consumed by households in the U.S. is homemade. Also many consumers use refrigerated salad dressings for dips, especially for vegetables, which can be considered the main dip substitute.
? How might the dip category be segmented?
The main segments in the dip market are the "chip dip" category and the "vegetable dip" category. The total dip market is divided in two product types, segmented on its usage; prepared dips (2/3 of total) and dip mixes for at-home preparation (1/3 of total). More than half of the prepared dips sold in supermarkets require refrigeration, and the remaining 45% are "shelf-stable", which means that they are packaged in metal cans, don't require refrigeration and can be placed anywhere in the supermarket...
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