Peanut Butter Market Size, Share, Analysis, Trends, Growth, Forecasts 2032

Peanut Butter Industry Prospective:

The global peanut butter market size was worth around USD 4,256 million in 2023 and is predicted to grow to around USD 6,325 million by 2032 with a compound annual growth rate (CAGR) of roughly 4.5% between 2024 and 2032.

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Peanut Butter Market: Overview

Peanut butter is a popular culinary paste in North America, the Netherlands, the United Kingdom, Australia, and some parts of Asia, especially Indonesia and the Philippines. It is mostly created from ground, dry-roasted peanuts. Its primary use is as a sandwich spread, occasionally combined with other spreads such as cheese, veggies, jam, or chocolate in different forms. One of the top exporters of peanut butter is the United States. Nut butters are prepared similarly to nuts. A lot of recipes call for peanut butter, particularly ones that involve cookies and candies. Chocolate, oats, cheese, cured meats, savory sauces, and different kinds of bread and crackers all go well with its flavor.

Key Insights

• As per the analysis shared by our research analyst, the global Peanut Butter market is estimated to grow annually at a CAGR of around 4.5% over the forecast period (2024-2032).
• In terms of revenue, the global Peanut Butter market size was valued at around USD 4,256 million in 2023 and is projected to reach USD 6,325 million by 2032.
• The increasing disposable income is expected to drive the global peanut butter market growth over the forecast period.
• Based on the product type, the smooth peanut butter segment is expected to dominate the market during the forecast period.
• Based on the distribution channel, the supermarkets and hypermarkets segment are expected to hold a prominent market share over the projected period.
• Based on region, North America is expected to dominate the market during the forecast period.

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Peanut Butter Market: Growth Drivers

Rising disposable income drives market growth

Growing global awareness and increased disposable income in developing countries are expected to drive the peanut butter market expansion over the forecast period. Industry participants should also anticipate new business opportunities to broaden their product offerings as a result of the growing number of product releases and the ongoing expansion of the top rivals. Trends for food-on-the-go are predicted to increase, which will be good for the industry. Because they are less skilled in the kitchen and more technologically literate, people nowadays are more likely to buy easily accessible, healthful food items from the market. This is a result of the current "food-on-the-go" trend and the primary worry that consumers have while purchasing food items.

Peanut Butter Market: Restraints

The expanding selection of vegan butter combined with some health issues hinders market growth

There is a variety of vegan butter on the market. To create a buttery offering, Miladamia butter, for instance, combines creamer with macadamia nut milk. Furthermore, whole cashews, coconut oil, and sunflower lecithin are now widely used to make butter. Furthermore, almond butter has entered the market, giving peanut butter fierce competition and enabling a greater hold. Additionally, almond varieties might compete directly with peanut butter because they are offered in crunchy varieties. In addition, sugars are increasingly being added to peanut butter to increase its addictiveness, which has detrimental consequences on health including obesity and chronic illnesses, among other things. For instance, peanuts are thought to be a frequent allergy that affects about 3 million people in the United States. All these factors are likely to hamper the peanut butter industry growth in coming years.

Peanut Butter Market: Opportunities

Growing product launch offers a lucrative opportunity for market growth

The growing product launch is expected to offer a lucrative opportunity for peanut butter market growth during the forecast period. For instance, in March 2023, based in New Delhi one of the major participants in India's organized honey trade sector, Apis India, recently announced the introduction of its new Peanut Butter line to expand its line of nutritious products. The company is attempting to broaden its product offerings and satisfy the increasing demand for health items with the launch of this new product line. Trans fats are not included in Apis peanut butter, which is created with natural components. It also contains a lot of antioxidants and is free of gluten. The Creamy and Crunchy varieties of the Apis Peanut Butter range are readily available and provide a rich amount of vitamins E, B3, and B6. Because of its high protein, fiber content, and vitamin content, the Creamy variety is an excellent snack option for people looking to maintain their daily nutrient consumption and enhance their health. Conversely, the Crunchy kind is a gratifying and substantial supper that offers sustained health advantages because of its high protein and dietary fiber content.

Peanut Butter Market: Challenges

Competition from alternatives poses a major challenge to market expansion

Spreads are highly competitive in the market; nut and seed butter substitutes such as almond butter, sunflower seed butter, and others are becoming more and more well-liked and may draw people away from peanut butter. Thus, posing a major challenge for the market growth during the forecast period.

Peanut Butter Market: Segmentation

The global peanut butter industry is segmented based on product type, distribution channel, and region.

Based on the product type, the global peanut butter market is bifurcated into smooth peanut butter, crunchy peanut butter, and others. The smooth peanut butter segment is expected to dominate the market during the forecast period. The segment expansion is attributed to its delicious consistency and creamy mouthfeel. For its superior spreadability, it is favored in homes, especially for sandwiches and as a foundation for many recipes. Furthermore, with its consistent texture, it works well in sauces, salads, and sweets, making it a flexible component in baking and cooking. In addition, producers are concentrating on creating unique flavors and health-conscious formulations, such as high-protein, low-sugar, and low-sodium versions, to differentiate their products from the competition. The smooth peanut butter market is also growing as a result of the launch of organic and natural versions, which address the growing need for healthy and sustainable food options.

Based on its distribution channel, the global peanut butter industry is bifurcated into convenience stores, supermarkets & hypermarkets, online stores, and others. The supermarkets and hypermarkets segment is expected to hold a prominent market share over the projected period as they satisfy a wide range of client tastes by providing a vast array of brands, varieties, and flavors of peanut butter under one roof. They are also conveniently positioned in easily accessible places, which makes them a great choice for most shoppers. Supermarkets and hypermarkets also offer cheap pricing because of their extensive operations and solid supplier connections. Additionally, they constantly add new goods to their inventory to keep up with changing customer preferences, such as gourmet and health-conscious peanut butter types.

Peanut Butter Market: Report Scope

Peanut Butter Market: Regional Analysis

North America is expected to dominate the market during the forecast period

North America is expected to dominate the peanut butter market during the forecast period. The extensive use of peanut butter and its long-standing cultural appeal are credited with the region's growth. North American consumers consider peanut butter to be a basic food item and have a strong rooted relationship with the food. The region's rising need for conventional and novel peanut butter products—such as sugar-free, flavored, and organic options—is also propelling the market's expansion. Supermarkets, hypermarkets, and internet retail channels are just a few of the vast distribution networks and significant industry players that are fostering the market's expansion.

Besides, the Asia Pacific is expected to grow in the peanut butter industry at the highest CAGR during the forecast period. The regional growth is driven by shifting food preferences and the growing impact of Western eating patterns. Additionally, the market is expanding as a result of growing disposable incomes and increased knowledge of the health advantages of peanut butter.

Peanut Butter Market: Competitive Analysis

The global peanut butter market is dominated by players like:

• Justin's LLC
• Hormel Foods Corporation
• Unilever
• Procter & Gamble
• The J.M. Smucker Company
• Boulder Brands
• The Kraft Heinz Company
• Algood Food Co.
• Conagra Brands Inc.
• Britannia Dairy Private Limited
• The Leavitt Corporation
• DiSano
• Alpino
• Pintola

The global peanut butter market is segmented as follows:

By Product Type

• Smooth Peanut Butter
• Crunchy Peanut Butter
• Others

By Distribution Channel

• Convenience Stores
• Supermarkets and Hypermarkets
• Online Stores
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa