Global Peanut Butter Market Size (2024 – 2030)

The Global Peanut Butter Market was valued at USD 6.20 billion in 2023 and is projected to reach a market size of USD 9.76 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.7%.

Peanuts are a global crop and are used economically to make oil, butter, flour, desserts, and snacks. Peanut butter is made by crushing and dry roasting peanuts and is one of the most popular foods. Cow's milk is an energy-dense food that is often sold as a substitute for butter. It also contains fiber, protein, unsaturated fats, and many minerals such as magnesium, zinc, potassium, and vitamin E.

Peanut Butter is quickly gaining traction as its popularity among healthy millennials increases. Peanut butter is a liquid obtained from peanuts. Unlike other spreads, it is a low-calorie, high-protein alternative to milk margarine. It's often used to make sandwiches, but can also be used with other types of toppings, including dips, snacks, and smoothies. Consumers are turning to healthier breakfast and snack foods, and changing diets are helping the industry grow.

Key Market Insights:

Consumers are looking for protein-rich foods, nutritious foods, and peanuts fit the bill. This, combined with growing awareness of its beneficial effects on heart health and diabetes management, is fueling business growth.

Consumers are increasingly concerned about the ingredients in their food, leading to increased demand for peanut butter labels. Products with simple, verified ingredients and non-GMO and gluten-free labels have become popular.

Online shopping has increased exponentially and has become popular among consumers. Consumers have become more likely to purchase food online, which has increased e-commerce sales of peanut butter.

Peanut Butter Market Drivers:

Rising Disposable Income and Urbanization Accelerates Market Growth.

The growth of obesity can lead to the expansion of the business. With the increase in obesity cases, people are choosing healthier breakfast and snack options. Urban expansion and rising disposable incomes are pushing market prices.

The increasing incidence of chronic diseases such as high blood pressure and heart disease limits the growth of the peanut market. Increasing awareness about peanut butter and its health benefits is a major factor driving demand for the industry. The increasing incidence of chronic diseases such as high blood pressure and heart disease limits the growth of the peanut market. Increasing awareness about peanut butter and its health benefits is a major factor driving demand for the industry.

Growing Research and Development Activities helps in the market growth.

Research and development in the peanut industry focuses on identifying new trends in Peanut Butter, discovering their compounds, and understanding their potential uses. These conditions aim to unlock the potential of Peanut Butter and create new products for various industries.

Peanut Butter Market Restraints and Challenges:

Maintaining quality and Standardization provides a challenge to market growth.

Maintaining consistency in quality and standardization of Peanut Butter can be difficult due to differences between extraction and processing. Ensure batch-to-batch consistency and compatibility requirements, especially for companies sourcing Peanut Butter from multiple suppliers or regions.

Supply Chain Snags hinder the market growth.

The market for agricultural products is based on international products, often involving many intermediaries and international suppliers. Managing product risks, ensuring traceability, and maintaining the stability and reliability of Peanut Butter can be challenging. Issues such as crop failures, climate change, geopolitical events, and limited supplies of certain plants can disrupt the supply chain.

The volatility in Peanut Butter prices brings a challenge to market growth.

Global Peanut Butter prices fluctuate significantly due to factors like currency fluctuations, and speculation. This uncertainty can discourage investment and harm smaller players.

Sustainability and Environmental Impact restrains market growth.

The increasing demand for peanut products has led to concerns about the sustainability and environmental impact of their products. Overharvesting, deforestation, and ecosystem destruction can threaten certain plants and ecosystems. Maintaining sustainable practices, promoting biodiversity conservation, and supporting local communities are key challenges facing the Peanut Butter industry.

Peanut Butter Market Opportunities:

Capitalize on the rising demand for functional foods by offering peanut butter enriched with probiotics, vitamins, or superfoods. Cater to specific dietary needs with low-carb, sugar-free, and keto-friendly options.

Experiment with exotic spices, fruits, and even vegetables to create unique flavor profiles that cater to adventurous palates. Explore savory peanut butter varieties for dips and sauces, expanding its culinary applications.

Embrace personalization by offering subscription boxes with curated peanut butter selections based on individual preferences and dietary needs. Partner with nutritionists to develop customized blends for specific health goals.

GLOBAL PEANUT BUTTER MARKET REPORT COVERAGE:

Peanut Butter Market Segmentation: by Type:

• Crunchy

• Creamy

• Other

In 2023, the Crunchy segment dominated the global market and held the largest share, accounting for more than 42.10% of total revenue. The global peanut nutter market offers a wide range of products to suit the different tastes and needs of babies. It is generally recommended for older children as crunchy foods are used more. It can help relieve the discomfort of the teeth and also acclimate them to the tissue. This helps develop chewing skills, which are important for their overall oral development. The cream is specially designed to create consistency and is the right choice for children as it makes the transition from milk to food easier. There are also many specialized products on the market to solve nutritional or growth needs. Such a variety of options allows parents to choose the best products for their children.

Peanut Butter Market Segmentation: by Nature

• Organic

• Conventional

The Conventional segment dominated the market in 2023 and will take the largest share of total revenue with 64.18%. Organic peanut butter is made from peanuts without the use of synthetic fertilizers, pesticides, or genetically modified organisms (GMOs). With the increase of healthy and clean food labels, the demand for organic food is also increasing. Conventional peanut butter, on the other hand, is made using peanuts and may contain added preservatives or additives. As consumers become more health conscious, the distinction between the two groups is shifting and organic food is growing in popularity.

Peanut Butter Market Segmentation: by Category:

• Plain

• Flavored

In 2023, the Plain segment dominated the global market, capturing more than 60.45% of the total revenue. Plain peanut butter has the traditional, unaltered taste of peanut butter and has become a staple food in many families due to its versatility. Meanwhile, Flavored ones took things to the next level; Varieties such as chocolate and honey led the way, followed by other new flavors. Flavored peanut butter, especially chocolate and honey peanut butter, is growing in popularity as consumers seek happiness and a variety of flavors, delicious flavors for that classic occasion.

Peanut Butter Market Segmentation: by Distribution Channel:

• Offline

• Online

In 2023, the Offline segment dominated the global market, capturing more than 65% of the total revenue. The offline market, including supermarkets and supermarkets, remains dominated and provides consumers with the knowledge to choose their favorite peanut butter. Specialty stores are the go-to place for people looking for groceries or niche products; Convenience stores, on the other hand, serve customers on the go, allowing them to buy their favorite products quickly. On the other hand, online stores are gaining momentum, giving rise to a tech-savvy, easy-to-find generation that prefers home delivery and access to a wider selection in just a click.

Peanut Butter Market Segmentation: Regional Analysis:

• North America

• Asia-Pacific

• Europe

• South America

• Middle East and Africa

In terms of revenue, North America has the largest market share (about 50%) in 2023. Increasing peanut consumption in the USA is the main reason for market expansion in the region. Peanuts are one of the most popular foods in the United States, and according to the National Peanut Board, 90 percent of American households consume them regularly. The higher market share in North America can be attributed to more peanut producers and consumers being aware of the product. In addition, the region's easy transportation, high disposable income, and developing retail markets have led to an increase in the demand and consumption of peanuts in the region.

The Asia-Pacific region is expected to experience significant growth in the coming years. Increasing product awareness in countries such as India, China, Japan, and South Korea is expected to be a significant reason for growth in the region. Rising disposable income and changing lifestyles have increased the demand for processed products in the region. To understand the potential of the market in the region, major players have started peanut products and are operating on a large scale. The launch of new products and the emergence of new players in the region, coupled with progress in the retail market, is expected to lead to market expansion during the forecast period.

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

Since its emergence in December 2019, the COVID-19 virus has spread to almost every country in the world, leading the World Health Organization (WHO) to declare a public health emergency. The COVID-19 pandemic has had a major impact on the peanut industry. The number of cases has increased worldwide, leading to global shutdowns and chain disruptions. The company's offices and production are closed. Commercial activity stopped and with it, production also stopped. The epidemic had a huge impact on the peanut industry. It had a great impact on the sales of the market all over the world. Due to lockdown restrictions, deliveries to delivery centers such as supermarkets, supermarkets, and specialty stores have been stopped. These places have been closed for a long time. As a result, the income from the business suffers significantly. These changes mainly affect the Peanut Butter market size.

Latest Trends/ Developments:

The use of technology in the extraction and processing process increases the quality, efficiency, and diversity of Peanut Butter. Advanced techniques such as supercritical fluid extraction, nanotechnology, and biotechnology can remove certain elements, preserve biological functions, and create new structures. This technology opens up new possibilities for using Peanuts in various applications and expands their functions.

Nowadays, most people do not have cooking skills but have a high level of digital knowledge, which pushes them to search for healthy food in the market. This is due to the current “ready-to-eat” product, which is what consumers value most when purchasing food.

Health awareness among youth and millennials and increasing demand for high-protein foods are driving the global peanut market. On the other hand, as chronic diseases such as high blood pressure and heart disease increase and consumers become concerned about their health, new opportunities will emerge in the peanut business. The popularity of fast food and lifestyle changes have also contributed to the success of the global economy.

Key Players:

1. Unilever

2. Procter & Gamble

3. The J.M. Smucker Company 

4. Hormel Foods Corporation

5. Boulder Brands

6. The Kraft Heinz Company

7. Algood Food Co.

8. Conagra Brands, Inc.

9. Britannia Dairy Private Limited

10. Justin's, LLC

• In December 2022, J.M. Smucker Company. (NYSE: SJM) will share progress on top milestones and updates on ongoing changes at the company's 2022 Investor Day.

• In January 2022, Ewa and Jeromy Ko of Nom Life, creators of the SPAM brand, launched a limited-edition product. Available exclusively on SPAM.com while supplies last, the new SPAM Brand x Nom Life collection features five unique clothing and accessory pieces, all specially selected and crafted in collaboration with Nom Life.