Global Food Spread Market - 2022-2029

Global Food Spread Market - 2022-2029

Market Overview

The Global Food Spreads Market is expected to grow at a high CAGR of 4.0% during the forecasting period (2022-2029).

A food spread is generally consumed with food items such as bread and crackers. Spreads are added to food to enhance the flavor or texture of the food, which may be considered bland without it. Common spreads include dairy spreads, margarine, honey, plant-derived spreads, yeast spread and meat based spread. The increasing demand for food spread can be attributed to the changes in dietary conditions of people due to the rising health consciousness and busy lifestyle.

Market Dynamics:

Increase demand for ready to eat and healthy breakfast

Due to the busy lifestyle and lack of time, the increasing demand for food spread can be attributed to the need for quick and healthy morning meal replacements to fit into the busy schedule. Food spreads are easy-to-make food items that require no cooking. Due to the availability of a variety of flavors, consumers can enjoy a different spread every morning. The latest trend in the food spread market is low calorie, organic, and natural spread. Companies are substituting artificial ingredients with organic and healthy ingredients to cater to this demand. Also rise the disposable income of consumers, and increasing spending of money on breakfast and healthy food is expected to drive the market growth. Consumers become more health consciousness which drives the demand for low-calorie alternatives, especially organic and natural food. Natural and organic ingredients extend the shelf-life of the products. There has been an increasing demand for vegan spreads as well. For instance, In September 2020, Violife launched vegan chocolate spread in the UK.

Catering to the changing demand of consumers, many manufacturers are introducing food spreads with no artificial preservatives and flavor addition. Unilever introduced product ranges with natural ingredients, no artificial flavors and 70% less saturated fats than butter. Clean labels aim to drive the product's sustainability and provide great taste. For instance, in 2021, Jif, an iconic brand under J M Smucker Company, launched Natural Squeeze Peanut Butter Spread, made with five ingredients, including 90% peanuts. The product is GMO-free and preservative-free, owing to the rise in demand for clean label solutions.

Market Segmentation:

Honey segment held largest market revenue share in the year 2021

Honey is one of the popular food spreads. However, food manufacturers are now using it as an ingredient to formulate dynamic spreads, sauces, and dressings that add extra zest to meals. Due to the antibacterial, antioxidant and anti-inflammatory properties and healing potential for ailments such as sore throats, digestive disorders and burns, honey is popular spread. It is available in different flavors like chocolate, strawberry etc. Honey can promote relaxation of body and help easily to sleep at night.

The online retail store held the largest revenue. Online store provide more options as compare to supermarket and hypermarket. Online retail shopping is more convenient and easy. Availability of different brands and variety of different prices products available on online stores. Home delivery is available, so no need to go outside for the shopping.

Geographical Penetration:

Asia Pacific is expected to dominate the global food spread market in the year 2021

The Asia Pacific dominates the food spread market due to the high demand from consumers due to the preference for ready-to-eat food culture. In the Asia Pacific, people have their traditional breakfast culture; food spread is a popular commodity in this region. Food brands are taking a more organic approach to show their commitment to ecological issues and avoid any consumer backlash against their products. Developing nations like as China and India rising their disposable income which increase the demand for food spread and promoting the growth of the global food spread market. In India, raw and organic honey is becoming popular due to the rising awareness about the health benefits of organic honey, as it is immunity-boosting and has antimicrobial properties. Some major key players are focusing on new organic product launches. For instance, in Feb 2021, Dabur launched organic honey in India. It is available on Amazon for sale. In the Asia Pacific, most consumers choose the savory spread, which acts as the best compliment to the sweet dishes. Major manufacturers have shifted their focus from mature segments such as jams and jellies to emerging segments like nut butter and sweet & savory combinations. Peanut butter and chocolate spreads are also popular in the Asia Pacific region.

Competitive Landscape:

The food spread market is fragmented. Some of the major key players in the food spread market are J.M. Smucker Company, The Kraft Heinz Company, Unilever, Conagra Brands, and Nestle. Some of the major key players follow merger and acquisition strategies for the company's growth. For Instance, in April 2021, The Kraft Heinz Company completed its acquisition of a majority stake in Companhia Hemmer Indústria e Comércio, a Brazilian food company focused on condiments and sauces. This acquisition aims to accelerate the growth of both companies, whose brands and portfolios are complementary. This acquisition is focused on the taste elevation of the products. In October 2021, Kraft Heinz completed the purchase of Assan Foods. This acquisition is aligned with Kraft Heinz's International Growth Strategy Focused on Taste Elevation and Foodservice. Assan food is a rapidly growing sauce-focused business with local manufacturing facilities in Balikesir and Izmir, Turkey. Some major key players are launching new products to enhance their portfolios. For instance, In July 2021, Kraft Heinz will launch new gluten-free and vegan products. The new Kraft Vegan Mac & Cheese was developed as a contemporary take on the classic boxed meal and is both gluten-free and vegan-certified with pasta made from rice flour and a dairy-free sauce. The new product has been spotted only in Australia at Woolworth's grocery stores and online. In July 2021, Dabur launched flavored honey available in two flavors chocolate and strawberry. The product is available in colorful squeezy packs in select stores and e-commerce platforms.

COVID-19 Impact: Negative impact on the global food spread market

The COVID-19 pandemic is negatively affected the food spread market due to the nationwide lockdown restrictions, posing challenges for the manufacturer. During the lockdown, countries closed their borders for transporting goods and material. As a result, producers and exporters faced high competition to export their goods. Government strict regulation on the transportation restricted the supply chain of raw materials. Although grocery stores and online stores were allowed to operate, with stocked up pantries and restricted movement, consumers were unlikely to go out to buy frequently. Food spreads are not considered essential foods. There was also a limitation to only selling essential commodities, which negatively affected the revenue.