Instacart Uses Hot Sauce Demand Data to Highlight Growth in Spicy CPG Categories and Retail Media Potential

Instacart has shared an update.

Instacart released data-driven insights ahead of National Hot Sauce Day (January 22), highlighting U.S. consumer purchasing trends in hot sauce and spicy food categories. According to Instacart, Frank’s RedHot is the most-purchased hot sauce nationally, followed by Huy Fong Foods, Taco Bell, Cholula, and Texas Pete, underscoring the continued strength of classic cayenne-based products. The data also shows pronounced regional preferences, with Frank’s RedHot leading in 31 states, Louisiana Brand dominating much of the South, Tapatío leading in California, and Texas Pete in the Carolinas. Beyond traditional condiments, Instacart reports rising demand for spicy flavors in adjacent categories such as mayonnaise, chips, canned fish, cheese, and frozen meals, suggesting that “heat” is driving incremental growth and product innovation across the grocery aisle.

For investors, this update reinforces Instacart’s strategic positioning as a data-rich commerce platform for consumer packaged goods (CPG) brands and retailers. By monetizing its transaction data through category insights and trend reports, Instacart can deepen partnerships with CPGs, potentially supporting higher-margin revenue streams such as retail media, data services, and co-marketing initiatives. The identified growth in spicy flavor extensions across multiple product categories may translate into increased promotional activity and targeted advertising on Instacart’s platform, which can enhance ad revenue and improve unit economics. Additionally, demonstrating granular regional and category-level demand patterns strengthens Instacart’s value proposition relative to traditional brick-and-mortar insights providers and competing delivery platforms, supporting its competitive position in the rapidly evolving online grocery and retail media markets. While the post does not disclose financial metrics, it signals continued investment in analytics capabilities that can underpin long-term revenue diversification and deeper ecosystem integration with major CPG stakeholders.