Global Peanut Butter Market by Form (Crunchy, Creamy, and Other Types), By Type (Plan, Regular, Low Sodium, and Low Sugar), By Distribution Channel (Online and Offline) By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032
- Published date: Oct 2023
- Report ID: 17049
- Number of Pages: 319
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Report Overview
In 2022, the global Peanut Butter Market accounted for USD 5.0 billion and will reach USD 8.6 billion by 2032. Between 2023 and 2032, this market is estimated to register a CAGR of 5.6%.
Peanut butter is a popular spread made from ground peanuts typically mixed with oil, sugar, and salt. It is commonly used as a sandwich filling as an ingredient in baked goods and as a dip for vegetables and fruits. The global peanut butter market has experienced steady growth over the years due to increasing demand for convenient and healthy snacking options.
The market is dominated by major players like The J.M. Smucker Company, Hormel Foods Corporation, Kraft Heinz Company, and Conagra Brands, Inc. These companies offer a wide range of peanut butter products which includes natural and organic options as well as flavored varieties like chocolate and honey.
The market is also segmented by distribution channel with peanut butter products sold through supermarkets and hypermarkets, convenience stores, online retailers, and other channels. North America is the largest market for peanut butter followed by Europe and Asia-Pacific.
Key Takeaways
- Market Value and Development: In 2022, the global Peanut Butter Market was valued at USD 5.0 billion; by 2032 this amount is projected to increase with an anticipated compound annual growth rate (CAGR) of 5.6%.
- Product Overview: Peanut butter is an iconic spread crafted from ground peanuts combined with oil, sugar, and salt for flavorful spreadability. Common uses for it include filling sandwiches or used as part of baked goods recipes as an ingredient; serving as a dip for vegetables and fruit as dippers for snacks on-the-go; sandwich fillers; ingredient in baking goods products or topping foods at parties and gatherings.
- Driven By Factors: Peanut butter’s market growth can be explained by factors including its health benefits and versatility as a food ingredient and snack option. Peanut butter provides many essential fiber, proteins, and essential dietary components that appeal to health-minded consumers.
- Restraining Factors: Allergies and health concerns, competition from other spreads (like almond butter and cashew butter) as well as price instability due to peanut costs can all pose difficulties to this market.
- Form Preferences: Crunchy peanut butter held the highest revenue share and compound annual compound growth projected of 5.1% between 2018-2022, as many consumers preferred its unique texture and nutty flavors.
- Type Preferences: Peanut butter holds an impressive market share with an annual compound annual growth rate of 4.9%. Produced using ground-roasted peanuts and used in various dishes like baked products and smoothies, its popularity can’t be ignored.
- Distribution Channel: As of 2022, offline channels were the dominant contributor to revenue share with an expected compound annual compound annual growth rate of 5.6%. Physical retail stores, supermarkets, and specialty shops are popular outlets for selling peanut butter.
- Growth Opportunities: Businesses possess potential growth opportunities by expanding into new markets, developing product variations for various markets and forging partnerships with other brands. Peanut butter’s increased popularity across European and Asian regions provides additional growth potential.
- Latest Trends: Clean labels and natural ingredients are on trend, with manufacturers producing peanut butter with minimal additives and natural sweeteners like honey as part of this growing consumer movement. Plant-based and vegan options have also become more prevalent to satisfy customer demand.
- Region Analysis: North America was home to the highest revenue share in 2022, thanks to major brands that dominated its markets. Asia-Pacific however is expected to experience exponential growth owing to shifting diet trends and rising disposable income levels.
- Key Players: Conagra Brands, Inc., Mars Inc., Unilever Plc, The Kellogg Company and JM Smucker Company all hold key stakes.
Driving Factors
Popularity and Taste, Health Benefits, and Convenience Versatility are Drives the Peanut Butter Market.
The peanut butter market is driven by a variety of factors that contribute to its popularity and growth. One of the main drivers is the health benefits related to consuming peanut butter. Peanut butter is a rich source of fiber, protein, and essential nutrients like vitamin E, magnesium, and potassium. It is also known for minimizing the risk of heart disease like diabetes, and certain types of cancer.
As more consumers become health-conscious and seek out nutritious foods the demand for peanut butter is likely to increase. Another driver of the peanut butter market is its versatility as a food ingredient. Peanut butter can be used in a variety of dishes from sandwiches and snacks to desserts and sauces. This versatility makes it a popular choice for both home cooks and food manufacturers.
The convenience of peanut butter is also a key driver. It is easy to store does not require refrigeration and can be consumed on its own or with a variety of other foods. Additionally, the popularity of peanut butter as a snack food makes it an attractive option for busy consumers who are looking for quick and easy meals and snacks.
Lastly, the availability and affordability of peanuts and peanut butter also play a significant role in driving the market. Peanuts are widely cultivated and are available year-round which ensures a steady supply of peanuts and peanut butter to consumers. Additionally, the production of peanut butter is relatively inexpensive which makes it an accessible and affordable food option for many consumers.
Restraining Factors
Allergies and Health Concerns, Competition from Other Spreads, and Volatility of Peanut Prices are Restraining the Growth of the Market.
Because of the widespread concern over peanut allergies, the demand for peanut butter may decline significantly. Due to the high level of fat in peanut butter, some customers may prefer to substitute healthier options for their health. Almond butter, cashew butter, and other nut-based spreads are fierce competitors in the peanut butter industry.
The demand for peanut butter may be impacted by the fact that these goods are frequently promoted as healthier substitutes for peanut butter. The cost of making peanut butter might vary depending on the price of peanuts. Price fluctuations can lead to price instability, which can significantly affect demand. Rapid shifts in consumer preferences may affect the market for peanut butter.
For instance, the demand for peanut butter may fall if there is a rapid trend toward plant-based diets. There is a big influence on the environment of pesticide and water consumption when growing peanuts. The market for peanut butter may be impacted as consumers migrate towards more sustainable and ecologically friendly goods as they become more concerned about the environment.
By Form Analysis
The Crunchy Segment Accounted for the Largest Revenue Share in Peanut Butter Market in 2022.
Based on form, the market is segmented into crunchy, creamy, and other types. Among these types, the crunchy is expected to be the most lucrative in the global peanut butter market, with the largest revenue share of 47.7% and a projected CAGR of 5.1% during the forecast period.
Some people prefer the spread’s crunchy texture and nutty flavor to regular smooth peanut butter’s smoother consistency. Crunchy peanut butter can be spread over toast or used as a dipping sauce for fruits and vegetables.
In making recipes for baked products like cookies, cakes, and other baked products can use it. In terms of nutrition, crunchy peanut butter offers a rich supply of protein, good fats, and other necessary elements including vitamin E, magnesium, and potassium. The additional peanuts in crunchy peanut butter may result in a minor increase in calories and fat.
By Type Analysis
The Regular Type Holds a Significant Share in the Type Segment of the Peanut Butter Market.
Based on type, the market is divided into plain, regular, low sodium, and low sugar. Among these, the regular segment is dominant in the type segment of the peanut butter market, with a market share of 37.8% and a CAGR of 4.9%.
It is also called smooth peanut butter because peanuts are ground into a creamy paste. It is made from ground-roasted peanuts. Regular peanut butter is used in many dishes such as baked products, smoothies, and sandwiches. Also, regular peanut butter is used as nutrition such as protein, fiber, and healthy fats, as well as it contains minerals vitamins, etc.
Low Sodium is Identified as Fastest Growing Type Segment in Projected Period.
Low sodium is also an important type segment in the peanut butter market and it is expected to grow faster in the type segment in the peanut butter market with a CAGR of 5.3%. For people who are trying to reduce their salt input while still experiencing the flavor and nutritional advantages of peanut butter, reduced sodium peanut butter can be an excellent option.
Sodium is a mineral that is required for our body, but eating too much sodium can have negative effects on health like heart disease and high blood pressure. Low-sodium peanut butter is made with the same as regular peanut butter by using less salt.
By Distribution Channel Analysis
The Offline Segment Accounted for the Largest Revenue Share in Peanut Butter Market in 2022.
Based on the distribution channel, the market is segmented into online and offline. Among these types, the offline segment is expected to be the most lucrative in the global peanut butter market, with the largest revenue share of 58.6% and a projected CAGR of 5.6% during the forecast period.
Physical retail stores, supermarkets, grocery stores, health food stores, and specialty shops are some of the offline distribution channels for peanut butter. In addition to carrying some peanut butter brands and varieties, supermarkets, and grocers may also sell shop brands. On the other hand, health food shops and specialty shops may stock a more curated variety of peanut butter brands and varieties, with an emphasis on natural and organic selections.
Customers still prefer to buy peanut butter through offline distribution channels since there are so many alternatives and deals to choose from in physical retail stores, supermarkets, grocery stores, health food stores, and specialty shops.
The Online Segment is the Fastest Growing Distribution Channel Segment in Peanut Butter Market.
The online segment is projected as the fastest-growing distribution channel segment in the peanut butter market from 2023 to 2032 at a CAGR of 5.9%. Products containing peanut butter are often sold through e-commerce sites like Amazon, Walmart, and other online merchants as part of the online distribution channel.
Many peanut butter manufacturers also have online stores where consumers may buy their products. Customers can buy peanut butter items conveniently and effectively without leaving their homes by using the internet distribution channel. Additionally, it enables businesses to reach a larger audience and broaden their clientele outside their immediate region.
Key Market Segments
Based on Form
- Crunchy
- Creamy
- Other Types
Based on Type
- Plan
- Regular
- Low Sodium
- Low Sugar
Based on Distribution Channel
- Online
- Offline
Growth Opportunity
Expansion into New Markets, Introduction of New Product Variations, and Partnership with Other Brands are the Opportunities in the Market
Although historically North America has led the peanut butter industry, peanut butter is becoming more and more popular on other continents like Europe, Asia, and Africa. Businesses might broaden their distribution networks and delve into new markets to seize this opportunity. Manufacturers of peanut butter can create fresh flavors, textures, and packaging to draw in new clients and set their products apart from those of rival companies.
For instance, peanut butter with additional nutrients or distinct flavor profiles may appeal to consumers who are health-conscious or seeking out novel culinary experiences. Among the items that go effectively with peanut butter are bread, fruits, and chocolates. Strategic partnerships among businesses can help them create new goods, cross-promote their current offerings, and expand their customer base. Concerns over the welfare of supply chain workers and the effects of food production on the environment are growing among consumers. Companies can set themselves apart by highlighting ethical and sustainable procurement methods, such as using fair trade or sustainably sourced peanuts.
Latest Trends
Clean Label and Natural Ingredients and Plant-Based and Vegan Options are the Latest Trends in the Market
The demand for products with straightforward, all-natural, and easily identifiable ingredients is rising. Manufacturers of peanut butter are reacting by providing products with clean labels, few additives, and natural sweeteners like honey. There is a significant need for peanut butter that doesn’t contain any ingredients produced by animals due to the popularity of plant-based diets. To meet the needs of this market, peanut butter manufacturers are introducing vegan and plant-based versions.
To appeal to consumers’ tastes, peanut butter manufacturers are producing fresh and creative flavors. Spicy, sweet, and savory flavors including chocolate, maple, and pumpkin spice are among the new flavors. Consumers are increasingly looking for quick and portable eating solutions. To meet this demand, peanut butter manufacturers are producing single-serve packages, snack bars, and other portable versions. Consumers are looking for goods that provide additional health advantages to basic nourishment. Products containing probiotics, omega-3 fatty acids, and plant-based proteins are being introduced by peanut butter manufacturers as additional health benefits.
Regional Analysis
North America Accounted for the Largest Revenue Share in Peanut Butter Market in 2022.
North America is estimated to be the most lucrative market in the global peanut butter market, with the largest market share of 48.2%, and is expected to register a CAGR of 4.4% during the forecast period. The intake of peanut butter is highly correlated with cultural practices and dietary patterns in many American households. Major brands like Jif, Skippy, and Peter Pan dominate the market, but there is also a rising need for natural and organic peanut butter.
Asia-Pacific is Expected as Fastest Growing Region in Projected Period in Peanut Butter Market.
Asia-Pacific is expected as fastest growing region in the forecast period in the peanut butter market with a CAGR of 5.1%. The peanut butter market is driven by shifting eating habits and rising disposable wealth. China, India, and Japan are the main consumers of peanut butter in the area. Market share is dominated by regional brands, and demand for better-quality, healthier peanut butter products is rising.
Key Regions and Countries
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia and New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East and Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
With several producers and brands active in various areas, the worldwide peanut butter market is quite competitive. The market share of particular businesses varies by location and is influenced by elements including brand recognition, product caliber, and price policies. For example, with an estimated 45% market share, The J.M.
Smucker Company dominates the North American peanut butter industry. The company’s brands include Laura Scudder’s, Smucker’s, and Jif.
Market Key Players
- Conagra Brands, Inc.
- Mars, Inc.
- Unilever Plc
- Associated British Foods plc
- The Kellogg Company
- M. Smucker Company
- Hormel Foods Corporation
- Kraft Foods
- The Hershey Company
- Other Key Players
Recent Developments
- In 2021, The J.M. Smucker Company introduced a series of Jif peanut butter snacks, including Jif Power Ups Bars and Jif Power Ups Chewy Granola Bars. These snacks are made to offer consumers who are constantly on the go a quick and nutritious option.
- In 2021, Conagra Brands introduced the new brand of Peter Pan Simply Ground peanut butter spreads. These spreads are intended to provide a straightforward and healthy substitute for regular peanut butter. They are produced simply with roasted peanuts and a dash of salt.
Report Scope
Report Features Description Market Value (2022) USD 5.0 Bn Forecast Revenue (2032) USD 8.6 Bn CAGR (2023-2032) 5.6% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Form (Crunchy, Creamy, Other Types), By Type (Plan, Regular, Low Sodium, Low Sugar), By Distribution Channel (Online, Offline) Regional Analysis North America – The US, Canada, and Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, and Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, and Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia and New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, and Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, and Rest of Latin America; Middle East and Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, and Rest of MEA Competitive Landscape Conagra Brands, Inc., Mars, Inc., Unilever Plc, Associated British Foods plc, The Kellogg Company, J.M. Smucker Company, Hormel Foods Corporation, Kraft Foods, The Hershey Company, Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the current valuation of the global peanut butter market?The global peanut butter market was valued at USD 5.0 billion in 2022 and is projected to reach USD 8.6 billion by 2032.
What are the driving factors contributing to the growth of the peanut butter market?Factors such as the popularity and taste of peanut butter, its health benefits, and its convenience and versatility are driving the growth of the peanut butter market.
How does the health benefits of peanut butter contribute to its market growth?Peanut butter is a rich source of fiber, protein, and essential nutrients, making it attractive to health-conscious consumers. It is known to minimize the risk of heart disease, diabetes, and certain types of cancer.
What is the role of versatility in the growth of the peanut butter market?Peanut butter can be used in various dishes, including sandwiches, snacks, desserts, and sauces, making it a versatile ingredient for both home cooks and food manufacturers.
How does the convenience of peanut butter impact its market growth?Peanut butter is easy to store, does not require refrigeration, and can be consumed on its own or with other foods, making it a convenient option for quick and easy meals and snacks.
Which form of peanut butter dominates the market?The crunchy form of peanut butter accounted for the largest revenue share in the market in 2022, with its nutty flavor and texture appealing to consumers.
What type of peanut butter holds a significant share in the market?The regular type of peanut butter holds a significant share in the market, with its creamy texture and versatility in various dishes.
What are some key players in the peanut butter market?Prominent companies in the peanut butter market include Conagra Brands, Mars, Unilever, Associated British Foods, The Kellogg Company, Hormel Foods Corporation, Kraft Foods, and The Hershey Company.
What are the different forms of peanut butter available in the market?Peanut butter is available in various forms, including crunchy, creamy, and other types, catering to different preferences and culinary applications.
How is peanut butter distributed to consumers?Peanut butter is distributed through both online and offline channels, allowing consumers to purchase it conveniently either through e-commerce platforms or physical retail stores.
- Conagra Brands, Inc.
- Mars, Inc.
- Unilever Plc Company Profile
- Associated British Foods plc
- The Kellogg Company
- M. Smucker Company
- Hormel Foods Corporation
- Kraft Foods
- The Hershey Company
- Nestlé S.A Company Profile
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