Global Peanut Butter Market By Flavor (Plain/Original, Fruits, Chocolate, and Others), By Product Type (Smooth Peanut Butter and Crunchy Peanut Butter), By Application (Snacks and Cookies, Desserts and Ice-creams, Spreads and Dips, and Others), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Retail, and Others) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The global Peanut Butter Market size is expected to be worth around USD 10,764.9 Million by 2033, from USD 5,991.0 Million in 2023, growing at a CAGR of 4.9% during the forecast period from 2023 to 2033.

The peanut butter market has been experiencing steady growth over the years owing to various factors such as increasing awareness for healthy and fit lifestyles, innovation and new product development, government incentives and initiation for the food processing industry projected, as well as global expansion of peanut butter manufacturers among other such factors.

The market’s growth is indicative of a broader trend towards healthier, low-calorie, and fiber-rich food products in various sections of the population, reflecting a shift in consumer preferences and an increasing focus on health and wellness. Growing trends for vegan, gluten-free, and low-carb food have accelerated the need for peanut butter. Peanuts and peanut butter are both gluten-free and vegan in their natural forms.

Most of the brands of peanut butter in grocery stores are also gluten-free which is more preferred and popular spread consumed worldwide.  Moreover, peanut butter is a good source of copper, a mineral that helps maintain bone health, immune function, and blood vessels. Furthermore, there are different types of peanut butter available such as natural peanut butter, crunchy peanut butter, and creamy peanut butter.

Peanut butter is a concentrated source of nutrition that offers potential health benefits. Peanut butter contains oleic acid and omega-6 which helps in lowing the body’s insulin resistance. In addition, peanuts contain manganese, vitamin E, coumaric acid, and B vitamins antioxidants. These compounds prevent and repair cell damage in the body, and this effect can lower the risk of chronic diseases.

Key Takeaways

• The global peanut butter market will be valued at USD 5,991.0 Million in 2023.
• The global peanut butter market is projected to reach USD 10,764.9 Million by 2033.
• Among flavors, plain/original peanut butter accounted for the largest market share of 3%.
• Among product types, smooth peanut butter accounted for the majority of the market share with 5%.
• Based on application, spreads & dips are expected to account for the largest market share in 2023 with 6%.
• Based on distribution channels, supermarkets/hypermarkets are expected to account for the largest market share in 2023 with 4%.
• Increasing demand for natural and organic products is expected to drive the market.
• North America is the leading region in the global market with a revenue share of 1%.
• APAC is expected to register a higher CAGR during the forecast period.

Flavor Analysis

The Plain/Original Segment Holds the Majority of Market Share Owing to Rising Awareness About Healthy Lifestyles

Based on flavor, the global peanut butter market is segmented into plain/original, fruits, chocolate, and others. Among these, plain/original flavor is estimated to account for a 67.3% revenue share in the global peanut butter market in 2023. This share is mainly due to a rise in awareness about healthy lifestyles and an increase in the consumption of organic, high-fiber, and protein-rich foods.

In addition, the rapid surge in the organic and authentic flavors of peanut butter among health-conscious consumers, fitness enthusiasts, and nutritionists, has increased the overall market share for plain/original peanut butter. Plain/original peanut butter is mostly allergy-free and may be suitable for sensitive individuals. As allergen awareness increases, the demand for allergen-friendly products like the plain peanut butter segment grows during the forecast period.

Product Type Analysis

Smooth Peanut Butter Derived Peanut Butter is Most Consumed Owing To Their Smooth Texture Preference By The Consumer

Based on product type, the market is further divided into smooth peanut butter and crunchy peanut butter. Among these, smooth peanut butter accounted for the largest market share of 58.5% in 2023. Smooth peanut butter is versatile and widely used in several recipes such as in sandwiches, milkshakes, protein bars, chocolates, desserts, sauces, and others.

Consumer preferences for the smooth texture of peanut butter make it the most preferred choice among consumers. The availability of various flavors and ingredients in smooth peanut butter has further increased the demand. In addition, smooth peanut butter is perceived as healthier than other forms of peanut butter, and the demand for smooth peanut butter is expected to increase in the coming years.

Application Analysis

Increasing Demand for Healthier Snacks Aids the spreads & dips Gain the Market Share.

Based on application, the global peanut butter market is segmented into snacks & cookies, desserts & ice-creams, spreads & dips, and other applications. Among these, the spreads & dips segment held the majority of the market share at 68.6%. The spreads & dips segment caters to a segment of the population concerned with dietary fat’s role in weight management and heart health.

The increase in the popularity and ongoing trend of using plant-based vegan diets have increased the popularity of peanut butter as a spread & dip.  Furthermore, a rapid surge in the demand for spreads and dips from plant-based vegan ingredients such as peanut butter makes it an ideal option for those consumers who are seeking for Western dietary lifestyle.

Several manufacturers are developing innovative flavor variations and formulations to cater to evolving consumer tastes and preferences. Crunchy, smooth, or creamy types of peanut butter with the addition of flavors such as spicy, honey, vanilla, cinnamon, chocolate, and others flavors go well with spreads and dips. These flavor innovations help attract new consumers and drive growth in the spread and dips segment.

Distribution Channel Analysis

Ease accessibility and availability of various flavors augments the share of Supermarkets/Hypermarkets in this market

Based on distribution channels, the global peanut butter market is segmented into supermarkets/hypermarkets, specialty stores, convenience stores, online retail, and others. Among these, supermarkets/hypermarkets held the majority of the market share at 51.4%. Supermarkets and hypermarkets are significant sources of distribution channels for the peanut butter market globally.

Most consumers across the globe still, prefer offline services such as going into supermarkets and hypermarkets. The accessibility and availability of various flavors and types of peanut butter make this segment popular. Through strategic shelf placement and promotional activities, supermarkets and hypermarkets influence consumer choices and preferences, significantly impacting brand awareness and sales volumes.

Offers and discounts in these outlets, from premium to economy brands, ensure that they meet the diverse needs and preferences of consumers, thereby reinforcing their position in the peanut butter market.

Key Market Segments

By Flavor

• Plain/Original
• Fruits
• Chocolate
• Others

By Product Type

• Smooth Peanut Butter
• Crunchy Peanut Butter

By Application

• Snacks & Cookies
• Desserts & Ice-creams
• Spreads & Dips
• Others

By Distribution Channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• Online Retail
• Others

Drivers

Increasing Awareness for Healthy Lifestyle Is Driving the Market’s Growth.

Rising global populations, coupled with an increase in awareness about healthy lifestyles, and proliferation in the preferences for highly nutritious food have led to an increased production of peanut butter across the globe. Countries such as the US, China, India, and others have increased their production capacities for peanut butter, especially the US which is the largest producer of peanuts and peanut butter.

Peanut butter is popular in the US and it is used in varieties of foods such as in sandwiches, peanut butter cookies, peanut brittle, and even peanut butter hummus. For instance, according to an article published by agMRC, it states that The U.S. total peanut production in 2022 measured 5.57 billion pounds from 1.45 million acres. The rise in the number of fitness freaks young population and gym lovers have started taking protein-rich, high-fiber, low-calorie foods. Peanut butter holds all the proteins, fibers, vitamins, and antioxidants that make it the most preferred food option for fitness enthusiasts and athletes.

• Per capita consumption of peanut butter reached an unprecedented 4.4 pounds in 2023, up from previous years.

Growing awareness of protein, low-calorie, and fiber-rich food in fitness increases, and the demand for peanut butter has escalated. Individuals leading busy-scheduled lifestyles seeking peanut butter and its by-products offer convenience and high nutrient density, making it an attractive food choice. Peanut butter provides a quick and easy source of protein, healthy fats, and energy, making it suitable for pre and post-workout snacks, breakfasts, and on-the-go meals.

Furthermore, rising urbanization and increasing levels of disposable income will drive market value growth. Also, the growing prevalence of chronic diseases such as heart problems and high blood pressure will cushion the growth rate of the peanut butter market. Moreover, growing trends among consumers and the young population regarding the consumption of healthy and good fat-contained food have increased market production for peanut butter.

Government Incentive and Initiation for Food Processing Industry Projected to Driver Peanut Butter Market

Government support, initiation, and investment in the food processing industry have had a positive impact on the global peanut butter market in recent years. In addition to this, peanut butter contains high fiber, vitamins, antioxidants, good fats, and other minerals owing to which it has been widely accepted and approved food by government authorities.

For instance, according to a report published by the National Institute of Food Technology Entrepreneurship and Management (NIFTEM), it stated that peanut butter is a low-calorie, high-protein product, and an ideal substitute for milk butter. It also stated that it contains good fats and oleic acid due to which it has chances to reduce 21% of developing type 2 diabetes in women. These factors together are expected to fuel the market growth during the forecast period.

Moreover, peanut butter is widely consumed in the US and government bodies have approved the consumption of peanut butter as it can reduce heart diseases, control blood sugar levels, and cholesterol, and make the body healthier. In addition, the US government offers subsidization on the production of peanuts.

For instance, an article written by CEPR in May 2020, said that, the US NGOs named Meds & Food for Kids (MFK) and Partners in Health work with Haitian farmers and give them substantial support to Haiti’s peanut production. Such initiatives help Haitian peanut growers enhance their peanut productivity and assist them in harvesting goobers free from aflatoxin, a carcinogenic mold that is a major problem affecting Haitian peanuts.

In Europe, people are becoming health conscious leading to increased demand for organic, plant-based protein food which has driven the peanut butter market growth. These factors are anticipated to act as one of the driving factors responsible for the growth of the peanut butter market in the forthcoming years.

Restraints

The Food Safety Risk and Imposition of Norms and Regulations Associated with Peanut Butter

The global peanut butter market is large and booming across the globe. However, peanut butter tends to get contaminated with harmful bacteria such as Salmonella, E. coli, and Listeria monocytogenes, which can cause foodborne illnesses. Contamination can occur during various stages of production, including the handling of raw peanuts, processing, packaging, and storage. Improper storage conditions, inadequate sanitation practices, and equipment hygiene can also contribute to microbial contamination.

• Approximately 7-14% of patients with peanut allergy experience accidental peanut exposure annually, and one-third to one-half may experience anaphylaxis.

A data published by MDPI in June 2022, stated that peanut butter tends to contain Salmonella spp., and biological aflatoxins which may have adverse health effects on consumption. Furthermore, big food corporations have to adopt norms and regulations for the production of peanut butter such as Good Agricultural Practices (GAPs), Grocery Manufacturers Association (GMA) guidelines, Hazard Analysis of Critical Control Points (HACCP) or International Organization for Standardization (ISO) as a benchmark for food quality assurance.

Such implementation of norms and regulations for the production of peanut butter may hamper the market demand. Furthermore, peanuts are one of the top allergens, and even trace amounts of peanut residues can trigger severe allergic reactions in individuals with peanut allergies. For instance, an article published American College of Allergy, Asthma & Immunology states that peanuts tend to cause a life-threatening reaction in some individuals.

It is also called food allergens and is commonly associated with anaphylaxis condition, which requires immediate treatment. Thus, several key manufacturers have started developing other substitutes for peanut butter that are safe and non-toxic for human consumption. For instance, soy butter, almond butter, sunflower butter, pea butter, and others are available in the markets. These factors are projected to restrain the market growth during the forecast period.

Opportunity

Emergence of the Baking and Confectionery Industry

The growth of the bakery and confectionary industry is fueled by factors such as an increase in disposable income among consumers, a surge in the preferences for on-go-food, and convenient snacks, an emerging immigrant population, and the adoption of Western culture has boosted the confectionery and bakery industry.  The creamy and smooth texture of peanut butter is more popularly used in the baking industry.

It offers extra proteins in products such as peanut butter cupcakes and peanut butter brownies with peanut butter icing and also satisfies the gluten-free trend. Thus, bakers and confectioners widely use various flavors of peanut butter such as chocolate peanut butter, hazel-nut peanut butter, crunchy peanut butter, and many others. These toppings when added to desserts and bakery products enhance the aesthetics of the product and mitigate a diverse range of consumer taste preferences; thus, increasing overall sales of the peanut butter market. In addition, the evolution of the baking and confectionery industry in packaging, quality assurance, healthy, and hygiene-assured products open up new opportunities for the peanut butter market. In response to this, the emergence of advanced technology in this industry, government support for small business bakers, tax-free businesses, subsidies, and incentives have also fueled the peanut butter market share in the growing bakery and confectionary industry’ Thus, offering the most remunerative opportunities in the future.

Trends

Weight Management and Health Wellness

Health-weight wellness is becoming a significant trend nowadays and helps in shaping the peanut butter market. Health-conscious consumers are increasingly seeking nutrient-dense food options such as peanut butter. Peanut butter is a valuable source of plant-based protein, making it particularly appealing to vegetarians, vegans, and individuals looking to reduce their weight.

The protein content in peanut butter helps satisfy hunger and sustain energy levels, making it a popular choice for athletes, fitness enthusiasts, and those following active lifestyles. With the growing popularity of low-carb and ketogenic diets, there is increasing demand for peanut butter products that fit within these dietary patterns. While peanut butter contains some carbohydrates, it is relatively low in net carbs, making it suitable for individuals following low-carb or keto diet options.

Manufacturers are now focusing on developing products that meet the weight wellness criteria while also catering to the taste preferences and convenience needs of consumers.  The trend toward weight wellness is building the peanut butter market, influencing product development, marketing strategies, and consumer preferences. As consumers continue to prioritize health and wellness, especially concerning weight management, it is expected that this trend will continue to drive innovation and growth in the peanut butter market.

Geopolitical Impact Analysis

Geopolitical Tensions Significantly Disrupted the Growth of the Peanut Butter Market Owing to Trade Policies and Tariffs as well as Economic Sanctions

Countries that are major producers of peanuts, such as the United States, China, and India, might impose export restrictions or tariffs that can influence global supply and pricing dynamics. For instance, if the U.S. increases tariffs on peanuts or peanut products, this could elevate the cost of peanut butter in countries that rely on imports from the U.S. Moreover, new or renegotiated trade agreements can either bolster or hinder the peanut butter market.

For instance, agreements that reduce tariffs and simplify import/export procedures can enhance market access and reduce costs for manufacturers, potentially increasing the availability of peanut butter in new markets. Additionally, Economic sanctions on a country that is a key supplier of peanuts or peanut oil can disrupt the supply chain, leading to shortages and increased prices. For instance, sanctions on a country like Argentina, which is a significant exporter of peanut oil, could lead to global supply constraints.

Regional Analysis

North America is estimated to be the Most Lucrative Market in the Global Peanut Butter Market.

North America held a largest revenue share of 48.1% in 2023. North America is showcasing the high growth potential for the peanut butter market due to the increase in awareness of healthy and fit lifestyles and consumer preferences for nutritious and protein-rich spread have gained the market value in the North American region. Furthermore, peanut butter possesses cultural significance in North America, where it is a most loved staple and iconic food item. The popularity of peanut butter is deeply rooted in American cuisine and culture.

The US and Canada are some of the top producers, exporters, importers, and consumers of peanut butter. For instance, according to an article published by Zipdo in April 2024, it stated that about 61% of the global peanut butter export share goes to Canada. Canada’s agricultural industry is booming due to factors such as rising demand for plant-based protein, and an increase in the adoption of vegan and organic food have influenced the farmers to opt for developing and innovating agricultural practices. These all factors together have influenced the global peanut butter market production during the forecast period.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Key Players Are Evolving and Dominating Through Innovation in Product Development

Key players in the global peanut butter market are evolving and asserting their dominance through a combination of strategic initiatives and innovative practices. These companies are focusing on developing new and innovative products to meet the growing demand for natural and clean-label products.

This product innovation is often targeted at new formulations that cater to specific health benefits or consumer preferences. The key players in the global peanut butter market are successfully navigating market challenges and opportunities through innovation, strategic expansion, and continuous investment in R&D, thereby solidifying their market dominance.

Market Key Players

To expand their market reach, these players are also investing in increasing the production capacities of their existing plants or setting up new production facilities. This expansion not only caters to the growing market demand but also helps in diversifying their product portfolio. Research and Development (R&D) is a critical area of focus for these companies.

By investing in R&D, they can bring forth new flavors that meet the evolving needs of the market, particularly in terms of quality, efficacy, and sustainability. In addition to these strategies, market leaders are also engaging in geographic expansion, partnerships, collaborations, mergers, and acquisitions. These strategies help them to enter into new markets, leverage synergies, and enhance their competitive edge.

The following are some of the major players in the industry

• Kraft-Heinz
• Kellanova
• Hormel Foods Corporation
• The Hershey Company
• The J.M. Smucker Company
• Hindustan Unilever Limited
• Post Holdings Inc.
• Oetker Group
• Amul
• Sonya Foods Pvt. Ltd
• Pintola
• Smart Balance
• Other Manufacturers

Recent Development

• In 2024, Kraft-Heinz was acknowledged for its innovative practices and was named to Fast Company’s annual list of the World’s Most Innovative Companies for 2024. This recognition highlights their efforts in reimagining product development and leveraging breakthrough technologies.
• In 2023, Hershey is advancing its commitment to sustainability by pledging to reduce its global emissions by more than 50% by 2030. This initiative underscores their dedication to environmental stewardship as part of their broader corporate social responsibility goals​​.
• In 2020, Hormel Foods Corp. has introduced three fresh product ranges within its Skippy peanut butter brand: Skippy squeeze peanut butter and peanut butter spreads, Skippy peanut butter spreads with no added sugar, and Skippy peanut butter with added protein.

Report Scope