Peanut Butter Market

Market Overview

The global peanut butter market size was valued at USD 6.05 billion in 2022 and is projected to reach USD 10.92 billion by 2031 at a CAGR of 6.78% from 2023 to 2031.

It is economically feasible to produce oil, butter, flour, confections, and snack foods from peanuts, a staple crop that is grown all over the world. The most well-known culinary spread is peanut butter, which is made by crushing and dry roasting peanuts. It is a meal that is high in energy and is frequently offered as a dairy-free replacement for butter. Additionally, it has unsaturated fats, proteins, fibre, and a range of minerals like magnesium, zinc, and potassium, as well as vitamin E.

The increase in health consciousness worldwide has a very favorable effect on the market expansion. The growing trend of health consciousness and the rising demand for food products high in protein among young people and millennials are driving the global market for peanut butter. On the other hand, as consumers become more concerned about their health due to the rise in chronic conditions like high blood pressure and heart disease, new opportunities for the peanut butter industry will appear. Growth in the popularity of quick meals and changing lifestyles also contribute to the global industry's progress.

Market Dynamics

Drivers for the Global Peanut Butter Market

• A Rise In Disposable Income Is Driving The Market

Over the course of the projected period, it is anticipated that growing disposable income in developing nations and rising global awareness will fuel market expansion. In addition, industry participants should expect new business possibilities to expand their product range due to the leading competitors' continued expansion and the increased number of product releases. Food-on-the-go trends are expected to grow, which would benefit the sector. People today are less adept at cooking and have a higher level of technology literacy, which makes them more likely to purchase readily available, wholesome food items from the market. This is attributable to the present "food-on-the-go" trend and is the main concern of customers when buying food products.

• The Rise In Obesity And Urbanization Is Driving The Market

The rate of market expansion will accelerate due to the rise in obesity rates. With the global rate of obesity on the rise, consumers everywhere are choosing healthier breakfast and snack options. Additional factors driving market value growth include expanding urbanization and rising levels of disposable income. Furthermore, the market growth of the peanut butter market would be tempered by the rising prevalence of chronic disorders like high blood pressure and cardiac difficulties. The rising knowledge of the health advantages of peanut oil is a crucial element driving the market's growth rate.

•  Food on the go Trend

The trend toward food-on-the-go is expected to grow, which will benefit the business. People today tend to lack cooking skills and have a higher level of digital literacy, which makes them look for easily accessible, nutrient-dense food products on the market. This has been ascribed to the current "food-on-the-go" trend and is what shoppers value most when buying food products.

Additionally, increased urbanization and rising disposable income levels will fuel market value growth. Additionally, the market for peanut butter will have a slower rate of growth due to the rising frequency of chronic conditions like high blood pressure and cardiac difficulties. The rising knowledge of peanut oil's health advantages is a crucial element affecting the market's growth rate.
Global Peanut Butter Market Restraints

Restraints for the Global Peanut Butter Market

• Tariffs And Inconsistent Raw Material Pricing Hamper The Market

The primary barrier preventing market penetration in the Asia Pacific is a lack of consumer knowledge about the product. The expansion of the market is also impacted by inconsistent production and changes in the price of peanuts. The important nations' implementation of import and export taxes is once again impeding market expansion. For instance, the European Union suggested in 2018 that it would impose higher import taxes on peanut butter from the United States.

•  Government initiatives

During the projection period, there will be more government programs to promote health consciousness, which will lead to new market possibilities.

Additionally, an increase in strategic alliances and the emergence of new markets will act as market drivers and increase favorable prospects for the industry's growth rate.

Opportunities for the Global Peanut Butter Market

• Lifestyle Changes And Government Initiatives Will Bring In New Opportunities

Due to the shift in lifestyle and food consumption patterns, the market is anticipated to have high growth throughout the forecast period. New market opportunities will emerge during the forecast period as the number of government campaigns to promote healthy consciousness rises. Furthermore, a rise in strategic alliances and the development of new markets will act as market drivers and increase favorable prospects for the industry's growth rate.

Regional Analysis

In terms of revenue, North America held the largest market share in 2022 (almost 50%). The greater consumption of peanut butter in the United States is mostly to blame for the region's larger market share. One of the most common flavors in America, peanut butter is consumed routinely by 90% of American households, according to the National Peanut Board. Higher market share in North America can be attributed to greater peanut output, producing firms, and consumer awareness of the product. Additionally, the region's increased demand for and consumption of peanut butter is made possible by the region's simple accessibility, higher disposable income, and well-developed retail sector.

Over the upcoming years, the Asia Pacific is expected to experience a considerable growth rate. The increased product awareness in nations like India, China, Japan, South Korea, and others is primarily expected to be responsible for the region's greater growth rate. The demand for processed meals in the area is being greatly fueled by rising disposable income and shifting lifestyles. To understand the potential of the regional market, major businesses are launching peanut butter products and taking significant actions. Over the course of the forecast period, it is predicted that the introduction of new products and the emergence of new players in the region, together with advancements in the retail sector, will drive market expansion.

Segmental Analysis

Based on product type, the global organic baby food market is segmented into crunchy, creamy and other.

The Global Organic Baby Food Market offers a wide range of product types to cater to the diverse tastes and developmental needs of infants. The crunchy type of food is often recommended for older babies as it serves multiple purposes. It can help soothe teething discomfort and also allows them to become familiar with firmer textures. This aids in the development of their chewing skills, which are important for their overall oral motor development. The creamy variant is specifically designed to have a smooth consistency, making it a suitable choice for younger infants as it helps facilitate their transition from a milk-based diet to solid foods. In addition, the market provides various specialized product types that cater to specific nutritional or developmental needs. This wide range of choices allows parents to select products that best suit their children. 

Based on nature, the global organic baby food market is segmented into organic and conventional.

In the Global Peanut Butter Market, products are mainly categorized by their nature into two segments: Organic and Conventional. Organic peanut butter is made using peanuts cultivated without the use of synthetic fertilizers, pesticides, or genetically modified organisms (GMOs). With a growing trend towards healthy and clean-label food consumption, there's been an increasing demand for organic variants. On the other hand, conventional peanut butter, which dominates the market, is produced using traditionally grown peanuts, and might contain additional preservatives or additives. As consumers become more health-conscious, the divide between these two categories is seeing shifts, with organic options gaining more traction.

Based on category, the global organic baby food market is segmented into plain and flavored. 
In the diverse Global Peanut Butter Market, products are primarily bifurcated based on their category into Plain and Flavored varieties. Plain peanut butter offers the traditional, unaltered taste of peanuts and is a staple in many households due to its versatility. Meanwhile, the flavored category spices things up a notch, with varieties like Chocolate and Honey leading the pack, followed by other innovative flavors. As consumers look for more exciting and varied taste profiles, flavored peanut butter, especially chocolate and honey-infused ones, are witnessing a surge in popularity, bringing a gourmet twist to this classic spread.

Based on distribution channel, the global organic baby food market has been categorized into offline (Supermarkets and hypermarkets, convenience stores, specialty stores and others) and Online.

Within the Global Peanut Butter Market, the distribution dynamics are categorized mainly into Offline and Online channels. The Offline segment, which encompasses Supermarkets and Hypermarkets, remains dominant, offering consumers the tactile experience of selecting their preferred peanut butter jar. Specialty Stores are the go-to places for those seeking gourmet or niche brands, while Convenience Stores cater to the on-the-go consumers, ensuring they can grab their favorite spread quickly. On the other hand, the online channel is rapidly gaining traction, catering to the tech-savvy, convenience-driven generation that prefers doorstep delivery and a wider array of options with just a click.

Recent Developments

• In December 2022, At the company's 2022 Investor Day, The J.M. Smucker Co. (NYSE: SJM) will highlight developments on its strategic priorities and update its ongoing transformation.
• In June 2022, Conagra Brands Unveiled a Vast Summer Product Innovation Lineup.
• In January 2022, The inventors of the SPAM brand, Ewa and Jeromy Ko of Nom Life, released a limited-edition product line. The new SPAM Brand x Nom Life Collection, which is only available on SPAM.com while supplies last, consists of five unique apparel and accessory items that were all chosen and co-designed with Nom Life.