Global Nut Based Spreads Market - 2023-2030

Global Nut Based Spreads Market - 2023-2030

Global Nut Based Spreads Market reached US$ 5.5 billion in 2022 and is expected to reach US$ 7.7 billion by 2030, growing with a CAGR of 4.3% during the forecast period 2023-2030.

A fundamental driver of the nut-based spreads market is the escalating emphasis on health and wellness. Consumers are increasingly seeking nutritious and wholesome food choices, and nut-based spreads perfectly align with these preferences. Nuts inherently possess a treasure trove of essential nutrients, including protein, healthy fats, vitamins, and minerals, rendering them a favored option for those in search of well-rounded and natural nutrition.

Furthermore, the adaptability of nut-based spreads is a compelling force propelling market growth. These spreads find applications in a wide spectrum of culinary uses, ranging from traditional sandwiches and breakfast options to innovative creations like smoothie bowls, baking, and savory dishes. This versatility amplifies their attractiveness and broadens their utility beyond traditional spreads.

Similarly, North America dominates the nut based spreads market, capturing the largest market share of over 1/3rd. As North American consumers increasingly seek healthier, more natural, and plant-based alternatives, the nut-based spreads market is expected to remain dynamic, presenting opportunities for innovation and diversification in the foreseeable future.

Dynamics

Increasing Adoption of Plant-Based Diets

The surging adoption of plant-based diets stands as a compelling catalyst propelling the growth of the nut-based spreads market. These spreads provide a flexible and accessible source of vital nutrients. The expanding populations of vegans and vegetarians considerably broaden the consumer base for nut-based spreads. Nut-based spreads, as constituents of plant-based eating, are perceived as a more eco-conscious and sustainable dietary option.

According to data from the World Animal Foundation's 2023 research, 88 million individuals worldwide identify as vegans. In spite of more than 8 billion individuals on earth, which corresponds to about 1.1 percent of the global population. The typical annual rate of growth in the number of plant-based and natural products produced around the world climbed by 21% to 58%, respectively, between 2018 and 2021.

The vegan spreads often come in diverse flavor profiles and may feature additional ingredients, appealing to an array of consumer tastes. This diversification in products has significantly contributed to the rising popularity of nut-based spreads. Plant-based diets and products, including nut-based spreads, have witnessed widespread recognition, leading to their incorporation into both retail and foodservice establishments.

Demand for Clean-Label and Natural Products

Modern consumers have become more discerning and health-conscious, demanding greater transparency regarding the contents of their food. Clean-label nut-based spreads provide a high level of transparency, fostering consumer trust. When individuals encounter a concise list of ingredients, often consisting of just nuts, and perhaps a hint of salt or natural sweetener, they are more likely to trust the product as a genuinely natural and wholesome option.

Clean-label products, including nut-based spreads, cater to individuals who prioritize their health and well-being. Many clean-label nut-based spreads are crafted exclusively from nuts, which are inherently nutritious, delivering protein, healthy fats, essential vitamins, and minerals. This alignment with health-conscious dietary choices has been a driving force behind their popularity.

Clean-label nut-based spreads are typically free from common allergens such as artificial additives, preservatives, and gluten. This makes them an appealing choice for people with food allergies or sensitivities. Clean-label products, with their straightforward and minimal ingredient lists, are naturally more allergen-friendly, serving the needs of a broader consumer base.

The clean-label trend also intersects with environmental consciousness. Many clean-label products, including nut-based spreads, are sourced from suppliers committed to sustainable farming practices, reducing the environmental impact. Consumers who prioritize both health and environmental responsibility appreciate the eco-friendly aspect of such products.

Allergen Concerns and Nut Allergies

Allergen concerns and nut allergies exert a substantial restraint on the nut-based spreads market, impacting both consumers and manufacturers. As the prevalence of allergies to nuts, including peanuts and tree nuts, continues to rise, heightened awareness has prompted shifts in consumer behavior and preferences, introducing considerable challenges for the industry. A key challenge arising from allergen concerns is the demand for stringent allergen labeling and rigorous measures to prevent cross-contamination within nut-based spread production facilities.

Manufacturers are tasked with ensuring that their products carry clear labels indicating the presence of allergens and any potential risk of cross-contact during the production process. This adds intricacy to manufacturing procedures and can elevate overall production costs, as it necessitates the implementation of rigorous quality control measures to meet regulatory requirements.

Furthermore, allergen concerns can profoundly affect consumer trust in nut-based spread products. Individuals with allergies or parents of allergic children may opt to avoid these products entirely, resulting in a limited potential customer base. This can significantly impact product sales, particularly as consumers with allergies are unable to incorporate nut-based spreads into their diets due to safety concerns.

Fluctuating Prices of Nuts

The nut-based spreads market faces a notable challenge in the form of fluctuating nut prices, which affect both producers and consumers alike. Nuts, like almonds, peanuts, cashews, and hazelnuts, are fundamental ingredients in nut-based spreads, and their prices can experience significant variability due to a multitude of factors.

Global demand for nuts, propelled by their reputation as wholesome snacks and valuable recipe components, constitutes another crucial determinant of price fluctuations. As awareness of the health benefits of nuts continues to grow among consumers, demand surges, often placing upward pressure on nut prices. Economic factors further contribute to these fluctuations, as economic upturns tend to raise disposable income levels, encouraging greater demand for pricier nuts utilized in nut-based spreads.

The implications of price fluctuations in the nut-based spread market are manifold. Firstly, they significantly impact production costs for manufacturers. When nut prices soar, production expenses also rise, potentially squeezing profit margins. Manufacturers are then faced with the decision to either absorb these added costs or pass them on to consumers in the form of increased prices for nut-based spreads.

Segment Analysis

The global nut based spreads market is segmented based on product, distribution channel and region.

Peanut Fuel Surge in Nut based Spreads Market

The peanut segment held 34.5% in the global market share. Peanut-based spreads, most notably peanut butter, maintain a strong and enduring presence in the nut-based spread market, and their demand remains robust for various compelling reasons. Foremost among these is the versatile and readily accessible nature of peanut butter.

From children who relish peanut butter and jelly sandwiches to fitness enthusiasts and individuals adhering to plant-based or vegetarian diets, peanut butter stands out as a beloved choice that caters to a wide array of dietary preferences. This broad demographic appeal has sustained the demand for peanut-based spreads, establishing them as a household favorite in North America and other regions. As per the U.S. Department of Agriculture, a cup of peanuts contains approximately 828 calories. Therefore, the increasing use of peanuts in spreads is increasing by the manufacturers.

In January 2023, WOW Life Science introduced its new line of peanut butter products. As to the corporate statement, the internal innovation team conducted extensive customer research and sought guidance from experts before creating the first peanut butter with superfoods in India. Packed with these superfoods, magnesium, vitamin E, and omega 3 as well as WOW Life Science's peanut butter protein. They are completely natural and free of sugar, emulsifiers, palm oil, and preservatives.

Geographical Penetration

Demand for Organic Products in North America

The North America nut based spreads market held the largest market share of 40.3% in 2022 in the nut based spreads market analysis. A variety of influencing factors that have influenced the surroundings led to the substantial expansion witnessed in the North American market for nut-based spreads. Rising focus on healthy products among U.S. customers is a major factor contributing to the market growth in the region.

The spreads that contain nuts are well known for being rich in nutrients. Consumers are turning to nut-based spreads as a nourishing and organic option as they become more health-conscious and want to make better dietary choices. Additionally, the trend toward clean-label and transparent ingredient lists has significantly influenced the demand for nut-based spreads.

Many consumers are concerned about the quality and origin of ingredients in their food products. Nut-based spreads, typically comprising just nuts and minimal natural additives, align perfectly with the desire for clean, simple, and easily recognizable ingredients. This transparency and clean-label appeal have bolstered the trust that consumers place in nut-based spreads.

In March 2023, The Wricley Nut Products Company has announced the debut of a new direct-to-consumer brand of nut butters made entirely of natural ingredients. The consumer brand, known as Philadelphia Nut Butter Company, will market its cashew, almond, and peanut butters directly to consumers through its new website.

Competitive Landscape

The major global players in the market include Nestlé SA, The J.M. Smucker Company, Hormel Foods Corporation, Ferrero Group, The Hershey Company, B&G Foods, Conagra Brands, The Hain Celestial Group, KRAFT Heinz Company and Happy Jars.

COVID-19 Impact Analysis

The nut-based spread market witnessed a multifaceted impact during the COVID-19 pandemic. In the initial phases, the market experienced a surge in demand as consumers stockpiled pantry-stable products, including nut-based spreads. The pandemic's disruption to supply chains created challenges in sourcing raw materials and efficiently distributing finished products. As the pandemic unfolded, the market adapted to shifting consumer preferences.

With a growing focus on health and wellness, nut-based spreads gained popularity due to their nutritional content, rich in protein and healthy fats. This preference for healthier options has remained, reflecting the enduring impact of the pandemic. While logistics hurdles were encountered, the market showcased resilience by emphasizing sustainability, innovation, and online distribution to cater to evolving consumer demands.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict carries the potential to affect the nut-based spread market in diverse ways. An immediate concern centers on disruptions within supply chains, given Ukraine's significant role as a sunflower seed producer, a vital ingredient in numerous nut-based spreads. Any disturbances in the availability of sunflower seeds may result in price fluctuations and supply constraints for manufacturers.

The situation underscores the importance of diversifying supply chains and preparing for contingencies within the industry. Geopolitical tensions can introduce fluctuations in global markets. Export restrictions, tariffs, or trade disruptions may influence the international distribution of nut-based spread products, potentially influencing pricing and market accessibility.

Furthermore, global economic uncertainties stemming from geopolitical conflicts have the potential to shape consumer spending habits. Economic instability can lead to changes in consumer choices, which, in turn, might impact the demand for premium nut-based spread products. Manufacturers may need to tailor their strategies to navigate evolving market dynamics and respond to geopolitical challenges anticipated in the foreseeable future.

By Product
• Peanut
• Almond
• Walnut
• Cashew
• Hazelnut
• Others

By Distribution channel
• Supermarkets/Hypermarkets
• Specialty Stores
• Convenience Stores
• E-Commerce
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In August 2023, Chocolate Fudge Peanut Butter and Cinnamon Donut Peanut Butter are two delectable new items released by Forty Thieves, a Newzealand based food manufacturer. The recently introduced nut butter has the same degree of sweetness, deep taste, and incredibly smooth texture as popular chocolate and biscuit spreads from Europe.
• In August 2022, The GOOD GOOD Brand announced about the release of a new peanut butter spread. The peanut butter is 99% sugar-free and contains no added sugar. It is currently available in the U.S., Canada, the U.K., and Europe.
• In March 2022, Hershey India introduced two new varieties of nut-based spreads to the nation, broadening its product line. Almond and cocoa are among the flavors. Supermarkets and convenience stores all throughout the nation sell the products.

Why Purchase the Report?
• To visualize the global nut based spreads market segmentation based on product, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of nut based spreads market-level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global nut-based spreads Market Report would provide approximately 52 tables, 53 figures and 202 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies