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Cottage food, and why sauces are usually outside it

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Cottage food law is what lets somebody sell baked goods and jam from a home kitchen. An acidified sauce is usually outside it, for the same reason it is inside the federal regime.

What those laws are for

They exist so low-risk products can reach a market without a licensed facility, and the lists are built around things that are forgiving: baked goods, jams and jellies, some confectionery. The common thread is that safety does not rest on a process somebody has to supervise.

A sauce rests on exactly such a process, and on a measured result. That is the thing cottage food law is designed to avoid having to oversee, so it tends to sit outside.

The jam comparison again, because it is the useful one

A jam maker and a sauce maker in the same kitchen at the same scale are in different regulatory positions. Jam is named in the exclusion list of the acidified foods definition and is typically named on a cottage food list. A sauce is neither. Nothing about the equipment or the skill distinguishes them; the regulation does.

Some states carve out specific products

A few do allow particular acidified items, usually with a stated acidity requirement and sometimes with a testing condition attached. So "sauces are excluded" is a reliable starting assumption rather than a universal rule, and the thing not to do is infer your own position from a maker in another state.

Refrigerated is a different question again

A sauce sold refrigerated rather than shelf stable is not automatically simpler. It leaves the acidified-food process behind and picks up a cold chain instead, with a shorter life and a narrower route to market. Makers sometimes reach for it to dodge the filing and find they have traded a one-off cost for a permanent operating constraint.

References

Michigan State University Extension. Cottage food law: which preserved products are covered. canr.msu.edu
21 CFR 114, Acidified Foods, including the 114.3 definitions and the exclusion list. Code of Federal Regulations, Title 21. law.cornell.edu
Written from federal regulation and published extension guidance, not from a laboratory. An acidified food is a federal category with a filed process behind it, and your state enforces it. Anything here is a starting point for a conversation with your state department of agriculture and a process authority, not a determination that you comply.