Peanut Butter Market

Peanut Butter Market

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  • |Published Month : November, 2022
  • |No. of Pages : 135

Peanut Butter Market Report Highlights-

  • The global Peanut Butter Market Size stood at $3692 Million in 2020 and is poised to register 7.33% growth over the forecast period to 2028
  • The COVID-19 resulted in year-on-year increase of 7.6% in peanut butter market value
  • Creamy Peanut Butter is the most consumed type with 48.9% market share
  • Supermarkets continue to be the largest distribution mode of Peanut Butter, with 36.3% share
  • Europe dominates the global Peanut Butter market with 50.9% market share
  • Increasing demand for nutritional products, increasing disposable income, rise in demand for healthier dairy alternatives, rising purchasing power of consumers are main driving factors
  • On the other hand, lack of awareness, unavailability of product and intense competition are main market challenges
  • Market is relatively fragmented in nature and is characterized by presence of both small and large scale players.


Peanut Butter Market Size Outlook

Peanut Butter Market Analysis, 2021

Market Size of the Peanut Butter industry saw modest gains during the period as the disposable income of consumers rose and the popularity of peanut butter increased as higher quality products from small producers attracted high-income consumers. Conversely, the industry has contended with decreasing peanut prices, forcing operators to lower the price of peanut butter to remain competitive, dampening profit. Despite some of the industry's challenges, peanut butter remains a consumer staple and does not experience wild fluctuations in demand, even during periods of economic downturn. In fact, in 2020, amid the outbreak of COVID-19 (coronavirus), the industry has grown as widespread lockdowns have forced consumers to eat at home regularly as restaurants have temporarily closed across the country.


The industry is projected to continue to experience modest gains over 2021 to 2028 as it maintains its position as a household staple. However, due to fluctuating peanut prices, the industry revenue will likely continue to see challenges from price pressure. In addition, major producers are forecast to continue to seek opportunities abroad, especially in Asia, to increase profit as the domestic market reaches maturity. Domestically, operators will likely continue to market their respective brands while introducing new products to compete more effectively with manufacturers of other snack products.


A typical peanut butter plant uses a conveyer-belt system that takes shelled peanuts through a process of roasting, cooling, blanching, splitting, grinding and mixing, before the end product is jarred and shipped. Technological advancements over the past few decades have helped producers automate many of the processes traditionally performed by labor, further increasing the industry's reliance on capital. This shift toward automation has intensified over the past five years.


Additionally, rising per capita income levels and shifting consumer tastes have increased demand for the industry's higher-margin, premium offerings, such as organic peanut butter varieties and spreads made from other nuts. While increased sales of almond and cashew kinds of butter have presented some degree of external competition to industry operators, several peanut butter companies have introduced their line of similar products. Product innovation to satisfy changing consumer preferences is therefore essential to remain competitive, and many brand-name peanut butter producers have responded by introducing all-natural, reduced fat, low sodium peanut butter, among other varieties. This trend has encouraged small companies to break into the industry by offering niche products sold at specialty food stores, such as organic peanut butter. Simultaneously, industry operators have engaged in a significant amount of acquisition activity, resulting in the industry becoming more heavily concentrated.


Peanut Butter Market Trends and Drivers- Rising Purchasing Power of Consumers


The increase in global income levels and a subsequent rise in purchasing power parity has enabled consumers to opt for better products to suit their health and enhance their nutritional intake. The average purchasing power in 2000 was recorded at $110.61, as compared to $127.18 recorded in 2019, a rise of 14.97%. This rise has also witnessed an increase in middle class income individuals. The benefit of an increased purchasing power has led to the ability of consumers to consumer high end products and replace traditional products with branded peanut butter products. The improved lifestyle of individuals has also driven due to the fact that consumers want to consider a more expensive, yet useful product rather than not consume butter products at all.


Peanut Butter Market Trends and Drivers- Increasing Demand for Nutritional Products


Peanut Butter contains high amount of essential nutrients and dietary rich minerals like magnesium and potassium. These nutrients play a crucial role in improving consumer’s health and in prevention of diseases. Consumption of the product helps in weight loss and lowers the risk of diseases like Type II Diabetes and gallstones. The increasing consciousness among the current generation about shifting to plant based products which do not contain any unnatural fats could result in an improvement in the demand for the Peanut Butter market.


Peanut Butter Market Restraints- Lack of Awareness


The lack of awareness about the major health benefits of peanut butter in emerging economies restrict the consumption of the product. Unstable production in major countries like China, India and South Africa raises the prices of the goods. This adversely impacts the production of the goods within the country.


Impact of COVID-19 and post pandemic outlook of Peanut Butter Market

With the advent of a global pandemic, Covid-19, the dairy industry has faced disruptions in different ways across countries. To contain the spread of the virus, many countries imposed a lockdown on the daily activities and businesses, which led to a disruption in the supply chain. With dairy products being an essential commodity for daily consumption, the dairy market players globally have reacted to the rules and regulations by ramping up their milk collection and processing facilities in order to keep dairy processing going. Most companies have also claimed that there has been no disruption, and further selling it. This is done after following crucial guidelines and necessary steps throughout the supply chain.


The assessment of the impact across regions has been done based on the extent of national lockdown in those regions. For instance, the lockdown in China was only restricted to one province, Wuhan, while the rest of the region was operational. This had a moderate impact on both the commercial and residential sectors for peanut butter market in the region. Similarly, due to a less stringent lockdown in North America, with moderate impact of the pandemic in Canada, the impact on the peanut butter products was moderate in the commercial sector, but low in the residential sector. The most impacted in the European market, with Italy being the hotspot in the region. Most of the commercial spaces were shut for a period of 2-3 months. This increased the residential demand for peanut butter products due to the increased number of meals per day. Subsequently, the demand for products such as cheese has fallen since the product was mainly used in the food services sector.


The supply chain for peanut butter products did not witness negative effects due the pandemic in the residential sector, instead has witnessed a growth over the period of home quarantine and lockdown across countries. This is due the fact that consumers have increased their number of meals consumed daily. This is not true in case of commercial consumption. With commercial establishments, such as offices and many exclusive food outlets, being shut due to government orders across countries, the need for peanut butter products has gone down.


Italy Peanut Butter Market Outlook

The sale of Margarine is expected to decline in terms of retail volume sales in 2020. This gap is expected to be filled up by the sales of functional products. The sales of peanut butter and other spreads may receive a boost from more price sensitive customers which offer a cheaper alternative to traditional spreads. Packaging choices are also likely to support the demand for the latest products. There has been a reduction in the purchase of products being sold in plastic containers. These suggest that the consumers in Italy are upgrading and the niche market is expected to move more towards bottled liquid products in spreads. The new range of packaging is undertaken in diversified formats and packaging. The larger offerings will hold appeal for people looking to buy in bulk and seeking a lower EUR/kg price. The reduction in the cost of peanut butter in 2020 will continue to be essential as the uncertainty caused by the pandemic combined with the increased prices can result in discontinuing the production of the spreads. Prealpi Industria Cesaria will continue to remain the leading producer of peanut butter in Italy. The company is renowned for its high-quality products among the local consumers and is expected to modify its products according to the needs of well-being. Latteria Sorensia, another key player in spreads market has invested in a new manufacturing plant with triple production capacity from the previous one. The downsizing trend is informed by a decline in consumption and desire for portion control caused by health concern and the on-the-go trends.


Companies Profiled in the Peanut Butter Market Study-

Hormel Foods Corp

Unilever Plc

The J.M. Smucker Company

Utz Brands, Inc.

Post Holdings, Inc.


Peanut Butter Market Segmentation

  • Types
    • Crunchy Peanut Butter
    • Creamy Peanut Butter
    • Specialty Peanut Butter
  • Distribution Channels
    • Super Markets
    • Hypermarkets
    • Convinence Stores
    • Online
    • Others
  • Regions
    • North America
    • Europe
    • Asia Pacific
    • Middle East Africa
    • Latin America

1.1 List of Tables    6
1.2 List of Figures    8
2.1 Summary    10
2.2 The global food and beverage industry in 2021    11
2.3 Peanut Butter Industry Outlook, 2020 – 2028    12
2.4 Abbreviations    13
3.1 Market Segments - Types, Applications, and Countries    14
3.2 Research Methodology    15
4.1 GDP Outlook, 2010 – 2030    16
4.2 Population Outlook of Select Countries, 2010 – 2030    17
5.1 Industry Panorama    18
5.2 Companies Profiles in the Report    19
5.3 Market Drivers    19
5.3.1 Increasing Demand for Nutritional Products    19
5.3.2 Increasing Disposable Income    19
5.3.3 Rise in Demand for Healthier Dairy Alternatives    19
5.3.4 Rising Purchasing Power of Consumers    20
5.4 Market Challenges    20
5.4.1 Lack of Awareness    20
5.4.2 Unavailability of Products    20
5.5 Regional Analysis    21
6.1 Largest Types    22
6.1.1 Crunchy Peanut Butter    23
6.1.2 Creamy Peanut Butter    24
6.1.3 Specialty Peanut Butter    25
7.1 Post COVID Scenario    28
7.2 Pre COVID Scenario    28
8.1 Supermarkets    30
8.2 Hypermarkets    31
8.3 Convenience Stores    32
8.4 Online    33
8.5 Others    34
9.1 Outlook    35
9.2 Trends and Opportunities    36
9.2.1 Creamy Peanut Butter dominates the North American Peanut Butter Market    36
9.2.2 Supermarkets dominate the North American Peanut Butter slices Market    37
9.2.3 The US dominates the North American Peanut Butter slices Market    38
9.3 Market Outlook by Country    39
9.3.1 United States    39
9.3.2 Canada    41
9.3.3 Mexico    43
10.1 Outlook    45
10.2 Trends and Opportunities    46
10.2.1 Creamy Peanut Butter dominate the European Peanut Butter slices Market    46
10.2.2 Supermarkets dominate the European Peanut Butter slices Market    47
10.2.3 Germany dominates the European Peanut Butter slices Market    48
10.3 Market Outlook by Country    49
10.3.1 Germany    49
10.3.2 United Kingdom    50
10.3.3 France    51
10.3.4 Spain    52
10.3.5 Italy    53
10.3.6 Rest of Europe    54
11.1 Outlook    55
11.2 Trends and Opportunities    56
11.2.1 Creamy Peanut Butter dominate the Asia Pacific Peanut Butter slices Market    56
11.2.2 Supermarkets dominate the Asia Pacific Peanut Butter slices Market    57
11.2.3 India dominates the Asia Pacific Peanut Butter slices Market    58
11.3 Market Outlook by Country    59
11.3.1 China    59
11.3.2 India    60
11.3.3 Japan    61
11.3.4 Rest of Asia Pacific    62
12.1 Outlook    63
12.2 Trends and Opportunities    64
12.2.1 Creamy Peanut Butter dominate the Latin American Peanut Butter slices Market    64
12.2.2 Supermarkets dominate the Latin American Peanut Butter slices Market    65
12.2.3 Brazil dominates the Latin America Peanut Butter Market    66
12.3 Market Outlook by Country    67
12.3.1 Brazil    67
12.3.2 Argentina    68
12.3.3 Rest of Latin America    69
13.1 Outlook    70
13.2 Trends and Opportunities    71
13.2.1 Creamy Peanut Butter dominate the Middle East and Africa Peanut Butter slices Market    71
13.2.2 Supermarkets dominate the Middle East and Africa Peanut Butter slices Market    72
13.2.3 Africa dominates the MEA Peanut Butter slices Market    73
13.3 Market Outlook by Country    74
13.3.1 Middle East    74
13.3.2Africa    75
14.1 Hormel Foods Corporation    76
14.2 Unilever PLC    83
14.3 The J.M. Smucker Company    91
14.4 Utz Brands, Inc.    96
14.5 Post Holdings, Inc.    103
15.    APPENDIX    113
15.1 About USD Analytics    113
15.2 Sources and Research Methodology    113
15.3 Copyright and Disclaimer    114

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