Peanut butter market Overview
Peanut butter is a low-calorie product that is rich in protein and has high nutritional value, made of peanuts. It is a widespread preferred sandwich spread, for children and adult as it both nutritious and health. The growing awareness for health and well-being pushed the buyers to switch to a natural diet, peanut butter came through as both a tasty and nutritious choice.
The modern populace expresses a lack of cooking skills and a greater level of technology literacy which makes them go for effortlessly available healthy food products into the market. This has attributed to the latest trend of “Food-on-the-go” and is the central concern for customers while buying food products.
Market Size and Forecast
The peanut butter market is expected to observe an attainable high CAGR during the forecast period, i.e., 2020-2028. The market is segmented by type, distribution channel, and region. Among product types, the regular peanut butter segment is the dominating segment and is expected to hold the largest market share during the forecast period. The segment growth is predominantly attributed to the ease of spreading and its compatibility leading to a variety of smoothies and desserts. Among the distribution channel, supermarkets/hypermarkets segment held the prevalent share on account of greater accessibility, a wide variation in products allows the customers to compare and decide for the best, and physical display of products allows the consumers to study product details. The online segment is expected to grow at a fast pace on account of ease it provides to the customers while shopping especially in the current scenario of a global pandemic.
Growing health awareness and health benefits attached to the peanut butter
Consumers are shifting towards healthy food products owing to rising awareness about wellbeing, and increasing incidences of obesity and other lifestyle diseases. Peanut butter holds a high quantity of essential nutrients and dietary fiber and is rich in minerals such as potassium and magnesium, which help in averting diseases and improves health. Consumption of peanut butter helps in reducing extra weight and it pulls down the risk of type II diabetes and gallstones. These are some of the key contributing factors which are responsible for boosting the growth of the global peanut butter market. CLICK TO DOWNLOAD SAMPLE REPORT
Additionally, an increase in per capita consumption in evolving nations, growing influence of U.S. culture using peanut butter, and an increase of supermarkets and hypermarkets have led to the increased popularity of the peanut butter offered in the market. Further, companies are implementing novel promotional strategies such as TV campaigns to spread awareness about their healthy products.
Low awareness among people in developing nations might hamper the peanut butter market growth in the forecast period.
The overall market pause due to COVID-19 is also disturbing the movement of the peanut butter market owing to the shutting down of factories, interruption in the supply chain, and a fall in the global economy.
Our in-depth analysis of the peanut butter market includes the following segments:
By Distribution Channel
Geographically, the peanut butter market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region.
Peanut butter is considered as a staple food in the U.S., Canada, and Western European Countries for breakfast. A major quantity of the peanuts harvested in the U.S. is used for the manufacturing of peanut butter which makes North America, the most dominant market share in the global peanut butter market followed by Europe.
Peanuts are the 12th most valued cash crop grown in the United States with a farm worth of over one billion U.S. dollars, as stated by The American Peanut Council. Peanut butter accounts for around half of the U.S. eatable use of peanuts. Numerous top-selling confectionery products in the U.S. contain peanut butter as it is very popular in combination with chocolate. Additionally, they are also used in a variety of cookies and baked goods.
Peanut butter has high infiltration in western countries' markets as compared to the Asia-Pacific region as the product is relatively new to the Asian region and consumers lack awareness regarding the benefits accompanying peanut butter. This attributes to the projection of Asia-pacific witnessing the fastest growth in the forecast period. Additionally, impelling demand for convenient and healthy lifestyle products coupled with rising disposable income of consumers is expected to be the main element driving the market in this region. India is estimated to observe significant progress in this category. Social media also plays a major role in spreading awareness about western culture and lifestyle products.
Latin America and Middle East & Africa are expected to witness substantial growth in the peanut butter market, owing to the rising preference of healthy lifestyle and readiness to spend on the consumption of peanut butter.
The peanut butter market is further classified based on region as follows:
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