Peanut Butter Market Trends

Growth Drivers

• Increase in plant-based diets: Peanut butter is considered as a cost-effective source of plant-based protein, and is a primary beneficiary of the growing vegan, vegetarian, and flexitarian population globally. According to an article published by the Journal of the Academy of Nutrition and Dietetics in June 2025, vegetarian dietary practices usually vary from country to country and are projected to be of interest to an estimated 15% of the global population. In case of India, this practice caters to only 4 in 10 people who consider themselves to be vegetarian, thus suitable for uplifting and skyrocketing the market.
• Globalization in food trends: The upliftment of the market readily aligns with the worldwide demand for satiating, convenient, and nutritious food options, which is backed by dietary policies that endorse seeds and nuts as integral parts of a healthy diet. As per a data report published by the UNICEF in August 2025, the nutrition prevalence decreased by 23.2% as of 2024, resulting in a lack of nutrition from 180.4 million in 2012 to 150.2 million in 2024. Besides, the aspect of food wastage and overweight remains constant, with 5.5% in the same year. Therefore, this denotes an increase in the production and commercialization of the market in different countries.
• Product convenient and versatility: The use of peanut butter caters to be included in diet as a smoothie base, baking ingredient, dip, and a spread. This significantly ensures increased utility, hence driving repetitive purchase and development of the market in diversified customer events. As stated in the January 2025 NLM article, the U.S. effectively produces more than 2.5 million tons of peanuts, with over 500,000 tons provided for export purposes. Likewise, Brazil deliberately produces 900,000 tons, of which 420,000 tons are utilized for export. Besides, over 50% of peanuts are used in the production process, which has emerged as an essential part of the country’s food culture.

Global Peanut Butter Standards Uplifting the Market Growth (2022)

Source: NLM

Payer’s Pricing of Different Peanut Butter Types Bolstering the Market Demand (2025)

Source: Consumer Affairs Government

Challenges

• Increased competition from alternative spread options: The market currently operates in an extremely crowded field of seed and nut-based spreads. This leads to facing tough competition from soy, sunflower, cashew, and almond butter internationally. Additionally, the development of these alternatives is readily fueled by different factors, such as the severe need for allergen-free options, superior health advantages, and the desire for variety. Therefore, this competitive pressure has pressured brands to generously initiate investment to successfully defend their innovation and market share, thereby restricting the seamless development of the market.
• Major allergen liability and labeling: Peanuts are considered one of the most severe and common food allergens, which pose a persistent hindrance in the market globally. This has readily necessitated expensive and strict manufacturing protocols to combat cross-contamination and ensure dedicated facilities and production lines. Besides, the aspect of compliance with complicated and various international labeling policies has enhanced operational complexities. The continuous risk of a recall, owing to accidental or mislabeling contamination, displays an effective reputational and financial liability for the overall market.