Rising demand for nutritious products, tied with increasing disposable income especially in developing countries has fueled the growth of the peanut butter market. Changing lifestyles coupled with a shift towards the intake of ‘convenient’ food are factors that are expected to drive the peanut butter industry in the next five years of the adult population and almost one third of children are overweight or obese. Thus, no wonder that in recent years an unexpected shift in consumer preference has been recorded towards healthy products. This increasing demographic of health-conscious people is a great sign for the peanut butter market’s growth.
From nuts to dollars: The peanut butter invasion
The preference for this snack-time classic varies with age, region, and other factors. For instance, children prefer the creamy or smooth variety, whereas adults prefer the crunchy kind Peanut butter is actively used as an ingredient in snacks, cereals, chocolates, and pet food. Popular delights such as chocolate peanut butter cups, chocolates like Snickers, and Kit-Kat, make use of peanut butter.
Additionally, use of peanut butter in the cosmetic industry is an emerging trend, where it is used in making eye shades, along with other natural product-based flavors, such as banana and honey. It is also widely used in South Africa (second largest global consumer of peanut butter after the U.S) in the form of cooking oil. In Australia, the global spread market is gaining popularity – the millennial population prefers peanut butter as more and more people are turning vegan and are increasingly consuming it as a source of protein.
Opportunity to create a global presence
The peanut butter market is segmented based on distribution channel into supermarkets, hypermarkets, retailers and others. Among all the segments of the peanut butter market, the supermarket segment is expected to contribute the maximum revenue, followed by hypermarkets and retailers.
Technavio’s market research report with regards to ‘the global peanut butter market’ states that there are very few manufacturers who have a strong global presence, and thus, offer very less competition on the international stage. Also, many retail chains have their own brands of peanut butter, and hence there is a moderate level of competition in this market. Technavio’s analysts predict that opportunities galore for existing and new players to create a global presence through their peanut butter offerings. The need is to understand the market, and deploy strategic initiatives to ensure the same. Technavio’s comprehensive market research reports can help in this regard.
