According to Custom Market Insights (CMI), The Global Peanut Butter Market Size was valued at USD 5.56 billion in 2021 and is estimated to reach USD 7.89 billion by the end of 2030 at a CAGR of approximately 7.5% during the forecast period 2022-2030.
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Peanut is an essential crop that is grown around the world and is most dominantly used for the production of oil, butter, flour, snack products, and among others. Peanut butter is a fine and crunchy paste made it from the ground or roasted peanut. It contains essential ingredients such as sweeteners, salts, emulsifiers, and others and it involves 45% of oil and 25% of proteins. It is widely consumed across the globe.
Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. North America is the dominant region in the peanut butter market and accounted for 51.25% of the total market share during the forecast period. According to data revealed by National Peanut Board in the U.S., 90% of households consume peanut butter regularly which is likely to impact the market positively during the forecast period.
In addition, Canada and Mexico country also contributed to the growth of the market. This is attributed to the fact that, growing awareness about a healthy lifestyle, and rise in the number of health-conscious people and the growing trend of looking fit and healthy have been projected to enhance the sales of the peanut butter market in the North America region. Furthermore, the launch of new flavours and types of peanut butter is likely to attract market growth which is one of the most popular flavours in America.
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Increase in the production rate of peanut butter
Increasing awareness about a healthy and fit lifestyle among people will drive the peanut butter thus, increases overall potential sales of the peanut butter market. For instance, according to a report published by entrepreneur India annually, 10,000 to 12,000 tonnes of peanut butter is produced in the state and over 90% is exported across the globe. This is expected to enhance the overall demand for the peanut butter market will grow exponentially.
High production cost
Peanut butter offers various health benefits such as good and healthy fat, protein-rich content fiber, and low calories. However, it has a high price rate which will likely hamper the market. In addition, the availability of various substitutes for high-cost peanut butter is hampering the market growth.
Rising preference for healthy products
In response to this, rising trends among the young and millennial population regarding health consciousness and consumption of healthy fat-contained food have increased the overall market growth. Another key factor impeding market expansion is an increase in the number of heart-related diseases that have provided new opportunities for the market.
Furthermore, the adoption of healthy lifestyles, an increase in disposable income among people, and a rise in the purchasing power of consumers have escalated the overall market growth. These factors are anticipated to enhance the overall demand for the peanut butter market during the forecast period; thus, offering the most lucrative opportunities.
Lack of awareness
Over the forecast period, the peanut butter market will hamper its growth rate due to a lack of awareness about its health benefits and less emergence of and launch of products in rural areas is likely to be one of the challenging factors for the market growth. These factors will act as a challenging factor for the growth of the peanut butter market.
Depending upon the product type, the peanut butter market is segmented into crunchy and creamy.
The crunchy product type-based segment dominated the market in 2021 and accounted for a total of 46.56% of the total share during the forecast period. The higher preference for the crunchy type of peanut butter will increase total market share. In addition, crunchy peanut butter is healthier than creamy due to less content of saturated fat. This factor will drive the market for the crunchy type of peanut butter market.
Based on distribution channels the global peanut butter market is studied online and offline. It is expected that the global offline distribution channel segment to hold a dominant position during 2022 -2031 with a total market share of 35.86%. The offline distribution channels involve supermarkets, stores, speciality markets, hypermarkets, departmental stores, and many others.
Factor such as ease of availability in the stores has driven the overall market during the forecast period. In addition to this, most people across the globe still prefer offline shopping for consumer goods. For instance, according to an article published by RIPEN, the vast majority of US retail sales, 92%, still happen offline. These are the major driving element for the growth of the market.
The online distribution channel also witnessed significant growth during the forecast period.
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Furthermore, growing disposable income among people and an increase in the purchasing power of the consumer are driving the market growth. In addition, the rise in the number of online retailers, advancements in technology, and fast delivery services have escalated the market growth.
|Feature of the Report||Details|
|Market Size in 2021||USD 5.56 Billion|
|Projected Market Size in 2030||USD 7.89 Billion|
|CAGR Growth Rate||7.5% CAGR|
|Prominent Players||M. Smucker Company, Kellogg Company, Conagra Brands, Inc., Hormel Foods Corporation, Kraft Foods, Mars, Inc., Oetker Group, The Hershey Company, Unilever Plc, Associated British Foods plc, and Others|
|Key Segment||By Product Type, By Distribution Channel, and By Region|
|Report Coverage||Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends|
|Regional Scope||North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America|
|Buying Options||Request tailored purchasing options to fulfil your requirements for research.|
- The crunchy type segment dominated the market in 2021 and is expected to grow over the forecast period with a total market share of 46.56%.
- A global offline segment held a dominant position during 2022 -2031 and accounted for 35.86% of the total market share during the forecast period.
- North America is the dominant region in the bio-butanol market with a total market share of 51.25% during the forecast period.
- November 2021: Gujarat’s homegrown peanut butter brand, Mustin, the peanut butter and Seeds Company, has launched its most popular product variant, Chocolate-Hazelnut spread, for the first time in the country. Customers are obsessed with its creamy texture and ultra-delicious taste. Mustin is the only PB (peanut butter) brand that has introduced a wide range of flavoured products, including Choco Peanut Butter and super flavoured ones like Strawberry, Vanilla, and Choco Almont Peanut Butter, which are extremely unique savoury flavours in India. This strategic product launch is expected to enhance Mustin’s potential sales for the peanut butter market.
- August 2022: Icelandic company, has launched Good’s peanut butter spreads that comes in creamy and crunchy varieties, are 99% sugar-free and are made using dietary fibres from chicory root. This strategic product launch has widened the peanut butter market in the U.S.
Key market players in the peanut butter market
- M. Smucker Company
- Kellogg Company
- Conagra Brands, Inc.
- Hormel Foods Corporation
- Kraft Foods
- Mars, Inc.
- Oetker Group
- The Hershey Company
- Unilever Plc
- Associated British Foods plc
Segments covered in the report
Key market segments
By Product Type
By Distribution channel
On the basis of Geography
- The U.S.
- The UK
- Rest of Europe
- South Korea
- Rest of Asia Pacific
The Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- Rest of Latin America