Europe Peanut Butter Market Size (2024-2030)

The global peanut butter market was valued at USD 1.35 billion and is projected to reach a market size of USD 2.03 billion by the end of 2030. Over the forecast period of 2024–2030, the market is projected to grow at a CAGR of 6%. 

A spread produced from ground, dry-roasted peanuts is called peanut butter. Its flavor is frequently characterized as being rich, creamy, somewhat sweet, and distinctly nutty. Its texture is frequently described as velvety and smooth, with a little roasted peanut flavor. In the past, peanut butter was not very well known in European countries. As such, production and consumption were limited. Presently, with globalization, a greater number of brands have been involved in commercialization, increasing its scope. In the future, with a growing population, economic growth, and varying preferences, this market is anticipated to witness considerable growth.

Key Market Insights:

By 2022, imports of peanut butter into Europe grew at an average annual rate of 9.4%. The total imports in 2022 stood at 60,000 metric tons.

The amount of prepared or preserved groundnuts and peanut butter exported by the European Union increased by 8.4% in 2022.

With a combined share of 47% of all imports, France, Germany, and Poland were the EU's top three markets for peanut butter imports in terms of value.

The two European Union subregions that produce peanuts are Bulgaria and Greece. Greece produces 22% of the world's peanuts, while Bulgaria produces 74% of them.

For every kilogram of peanut butter produced, the carbon emissions associated with its manufacture and distribution can amount to an average of two to three kilograms of CO2 equivalent. Therefore, it has become crucial for manufacturers to look for sustainable methods like transport optimization, energy efficiency, and sustainable sourcing to address this problem and reduce the environmental impact.

Europe Peanut Butter Market Drivers:

Health and wellness trends are helping the market progress.

Over the years, consumers have become more health-conscious about the food products they consume. This is because of the increasing prevalence of various chronic illnesses like diabetes, heart disease, cholesterol, etc. As a result, many of them have been trying to reduce their calorie, fat, and oil intake. Peanut butter is rich in vitamins, including B1, B3, B6, B7, and E. These compounds are responsible for enhancing our immunity, improving our vision, repairing cellular damage, and helping with the absorption of iron. Additionally, peanut butter contains some bioactive substances called isoflavones, including genistin, genistein, glycitin, daidzein, and daidzin. Few research studies conducted have found that these compounds protect against long-term conditions including cancer, osteoporosis, and ischemic heart disease. Secondly, this butter may be useful in lowering high blood cholesterol. Its phytosterol content, which includes masterol, campesterols, and beta-sitosterol, is the cause of this action. These bioactive substances may lessen the amount of cholesterol that is absorbed from our diets. Thirdly, phytosterols are present in peanut butter. According to a few research articles, the phytosterols in peanut butter may help the human system's hyperactive inflammatory response. Moreover, few studies indicate that the fats, magnesium, and fibers present in this product can reduce the risk of type-2 diabetes. Furthermore, peanut butter includes resveratrol, which may be beneficial in preventing tumors, Alzheimer's disease, and degenerative illnesses of the nerves. It may lessen the risk of brain stroke and enhance blood flow to the brain. Even though more research activities are required about the potential uses of this butter, the active and healthy ingredients present make it a popular choice, thereby making it an attractive choice.

Changing consumer preferences are fueling the expansion.

There has been a significant increase in the consumption of different and diverse culinary products. This is because of globalization, increasing disposable income, and the rising middle class. Economic growth has seen notable progress, giving more people the privilege to buy products and luxuries. Peanut butter is known for its unique taste and its ability to be used as a side dip with many food items like toast, salads, and other desserts. Besides, it is being used in many bakeries for various cakes, sweets, and other desserts. The introduction of a wide range of flavors has helped create a broader consumer base. Apart from this, more people have been preferring this because of its convenience. Due to hectic schedules, many of them might not necessarily have time for cooking. Peanut butter can be easily used for side dips and as a snack, saving a lot of time. However, it is essential to include other ingredients in meals to have a properly balanced diet. 

Europe Peanut Butter Market Restraints and Challenges:

Environmental concerns, allergies, and competition are the main issues that the market is currently experiencing.

Peanut farming is often associated with a lot of water consumption and soil degradation during cultivation activities. The carbon footprint connected to the cultivation, processing, and transportation of peanuts poses more barriers. Additionally, this can be grown as a monoculture crop, causing damage to biodiversity. Monoculture farming is the practice of growing a single crop in the field. Secondly, a greater percentage of the population is allergic to peanuts. Therefore, the sales can be reduced. It is also important for manufacturers to follow clean labeling for all ingredients to avoid any serious repercussions on human health. Due to these allergies, this type of butter can face a lot of competition from other substitutes like almond and sunflower seed butter, which has an impact on the market.

Europe Peanut Butter Market Opportunities:

E-commerce has been creating a lot of possibilities for the market. Because of this channel, people all over the world can shop for these products. Having an online presence has become extremely vital for more sales and better profits. Secondly, product diversification and innovations have been aiding the market. By providing more options concerning flavors and taste, more consumers are likely to buy the product due to the many choices.

EUROPE PEANUT BUTTER MARKET REPORT COVERAGE:

Europe Peanut Butter Market Segmentation:

Europe Peanut Butter Market Segmentation: By Product Type:

• Crunch Peanut Butter
• Smooth Peanut Butter
• Others

Based on product type, crunchy peanut butter is the largest, with a share exceeding 45% in 2023. Crunchy peanut butter is well-liked because of its distinct crunch and texture. There are tiny toasted peanut chunks in it, giving each bite a delicious crunch. Crunchy peanut butter gives a unique texture to a variety of foods, including toast, porridge, and sandwiches. It works well to provide a pleasing crunch to dishes like granola bars or peanut butter biscuits. In terms of nutrients, crunchy peanut butter is frequently the superior choice. Crunchy peanut butter is somewhat healthier than other types, according to a report by Prevention.com. Crunchy peanut butter includes two percent more fiber per serving and less saturated fat per serving than regular peanut butter, even though both varieties typically have similar amounts of calories, fat, sugar, and carbohydrates. However, the smooth peanut butter is the fastest-growing. Smooth peanut butter is well-liked due to its versatility and creamy texture. It is a great source of several minerals, healthy fats, and protein. Smooth peanut butter blends nicely into smoothies and desserts, and it spreads easily on toast. Apart from this, it is visually appealing, attracting more customers.

Europe Peanut Butter Market Segmentation: By Distribution Channels:

• Supermarkets and Hypermarkets
• Specialty Stores
• Online Retail
• Others

Supermarkets and hypermarkets are the largest in terms of distribution channels, accounting for a share of almost 37% in 2023. Their items are accessible and easily obtained. They often exist in every neighborhood, which facilitates easy access to the goods they require. This makes it possible for the consumer and the business owner to communicate directly and visually check the goods to confirm their contents, expiration dates, and other crucial information. Furthermore, not many people choose this channel since they may not be aware of technology or may already have internet access. The distribution channel in this industry, which is expanding at the fastest pace, is online retail. This is primarily due to convenience. The necessary goods are brought to the residences of the customers at their doorstep. Additionally, people may select from a wide range of possibilities, both local and foreign. Online shopping is also a cost-effective choice because it occasionally offers free delivery and discounts. This helps a wider audience by making it an inexpensive option.

Europe Peanut Butter Market Segmentation: Regional Analysis:

• UK
• Germany
• France
• Italy
• Spain
• Rest of Europe

In 2023, with an approximate share of 21%, the United Kingdom holds the biggest market share by region.  This is primarily due to customer demand. Growing numbers of consumers are demonstrating a higher interest in living a healthy lifestyle as a result of population growth. To align with this trend, the area has a lot of supermarkets, convenience stores, and e-commerce platforms. Availability is therefore easier and more abundant. Additionally, this area contributes significantly to import and export trade activity, which increases earnings. This nation upholds strict quality standards as a result of several laws and certifications. As a result, a wider range of customers often buy the product from this region. Moreover, this business has a large number of key enterprises that have a notable presence. A few of them include Whole Earth, Meridian Foods, Pip & Nut, and Sun-Pat. Germany is the fastest-growing area, with a rough share of 18%. The population is becoming more and more health-conscious, leading them to select products that encourage a healthy way of living. In addition, the usage of these ingredients in a variety of sweets, drinks, and food products has been growing in the culinary business. Aside from this, the region’s success has been largely attributed to its import-export presence. The economy of the region has greatly benefited from this.

COVID-19 Impact Analysis on the European Peanut Butter Market:

The pandemic had a positive impact on the market. The outbreak of the virus instilled a lot of health awareness in the majority. Therefore, people started to lean towards the consumption of healthy food products. Peanut butter has been associated with important minerals, vitamins, and other compounds, which have increased its growth rate. Work from home became the new normal due to lockdowns, movement restrictions, and social isolation. Hence, people were relying on various snacks to satisfy their hunger. Besides, online retail has helped the market grow by targeting more customers. A lot of people use e-commerce to stack products due to various guidelines and rules. Furthermore, many of them were working virtually, which increased the workload. As such, they started to rely on convenient food options, among which peanut butter was a popular choice. According to a recent J.M. Smucker Company analysis of consumer behavior, the pandemic sped up peanut butter's growth by 7.1%.

Latest Trends/ Developments:

Businesses in this sector are driven to grow their market share using a variety of tactics, including investments, joint ventures, and acquisitions. To maintain competitive pricing, businesses are also investing a significant amount of money in enhancing their current formulations. This has led to even greater growth.

Sustainable packaging is one such recent trend that helps in the reduction of the waste generated, thereby decreasing landfills. For the packaging of these products, sustainable and recycled materials are slowly being used. This move has inspired a lot of other brands to follow these practices with a motive to reduce their environmental impact. Apart from this, local sourcing is being prioritized to reduce transportation and carbon footprints. The economy of the nation is strengthened by this as well.

Key Players:

1. Mondelēz International (Kraft Heinz)
2. Unilever (Skippy)
3. Hain Celestial Group (Meridian Foods)
4. Nestlé (Boka Food)
5. Conagra Brands (Peter Pan)
6. Natural World
7. Algood Food Company
8. Peanut Butter & Co.
9. Calve Peanut Butter
10. Barney Butter

• In July 2023, the Vegan Awareness Foundation verified that Skippy® peanut butter variations were vegan. Squeeze packs, spreads without added sugar, and normal and natural types of the brand's creamy and Super Chunk® peanut butter were among its vegan-certified offerings.
• In October 2022, as a part of Co-op's Apiary Scheme, plant-based snack company Superfoodio introduced its first-ever peanut butter buttons across the United Kingdom, claiming that the invention offers an expansion for the £101 million peanut butter sector.
• In August 2022, GOOD GOOD announced the launch of their new peanut butter. The peanut butter spread from GOOD GOOD Brand has no added sugar and is 99% sugar-free. Made with 90% roasted peanuts, the spread has 84% healthy fats. In addition, it utilizes a sustainable vegetable oil rather than palm oil and has additional dietary fiber.