Peanut Butter Market

Market Overview

The global peanut butter market size was valued at USD 5.67 billion in 2021 and is projected to reach USD 10.23 billion by 2030 at a CAGR of 6.78% from 2022 to 2030.

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.

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.

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.

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.

Segmental Analysis

This peanut butter market share can be segmented on the basis of types, distribution channels, regions and competitors. In terms of revenue, the crunchy segment accounted for over 45% of the market in 2021. The greater market share is due in part to consumers' increased consumption of crunchy peanut butter and fondness for the product. Given that it has more fibre and less saturated fat than creamy peanut butter, crunchy peanut butter tends to be a little bit healthier. Due to their growing appeal among children and young people, crunchy varieties of peanut butter are anticipated to have strong growth over the forecast period.

During the projection period, it is anticipated that the other segment will increase at a pace exceeding 7.3%. Other fruits, nuts, and seeds are added to peanut butter in the "others" section. This sort of peanut butter is still in its infancy and is at this point in its development. To boost the nutritional content of their products, numerous companies are introducing fortified versions of their products.

The offline sector represented the biggest revenue share in 2021 when broken down by distribution channel. Hypermarkets, department stores, supermarkets, convenience stores, specialty shops, and other establishments are included in the offline portion of the distribution route. Due to its lengthy history and ubiquitous accessibility worldwide, the offline segment has a larger market share. The bulk of customers still chooses to purchase goods through offline distribution channels since they can be guaranteed the quality and veracity of the products.

The global market is predicted to experience the fastest growth rate in the online distribution channel. Online merchants are becoming more and more prevalent, and new ones are opening up all over the world, which makes them easier to access and more readily available. This promotes segmental growth. In addition, rising smartphone usage and internet penetration are predicted to fuel the expansion of the online market. Online growth, which was also considerably boosted by the COVID-19 epidemic, is anticipated to be driven by qualities like comfort, convenience, and ease of payment.

Regional Analysis

In terms of revenue, North America held the largest market share in 2021 (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.

Recent Developments

• The first mango peanut butter in the world was released onto the Indian market on July 23, 2022, by Ambrosia Organic Farms.
• A farmer-owned processor situated in Georgia, United States, called American Peanut Growers Group, revealed expansion plans in November 2021 that would cost USD 85 million to produce peanut butter and other products.
• Chobani announced in September 2021 that, as part of historical cooperation with Edesia Nutrition, it would launch nutritious spreads flavored in peanut butter under the Chobani Ends Child Hunger brand. The mission of the nonprofit organization Chobani is to eradicate childhood hunger. Newborns can choose from a special line of peanut butter-flavored nutritional spreads. It is intended to decrease the danger of choking associated with the American Academy of Pediatrics' advice for the introduction of peanuts at a young age (AAP).
• The Skippy Squeeze Pouch of peanut butter was introduced by Hormel Foods Corporation in Malaysia in May 2019.

Peanut Butter Market Segmentation

By Type

• Crunchy
• Creamy
• Other

By Distribution Channel

• Online
• Offline

By Regional

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa