Food Spread Market - Forecasts from 2024 to 2029

Food Spread Market - Forecasts from 2024 to 2029

The food spread market is anticipated to grow at a compound annual growth rate (CAGR) of 5.75% over the forecast period to reach US$48.320 billion by 2029, increasing from estimated value of US$36.532 billion in 2024.

The food spread market was driven by multiple factors influencing consumer preferences and industry trends. Changing lifestyles led to a demand for quick and convenient breakfast. The rising level of health consciousness among people will promote the demand for spreads that are equipped with nuts, natural sweeteners, seeds, and whole grains among others. The rise of vegan and plant-based diets is anticipated to lead to innovative product offerings in upcoming years. Additionally, rising disposable income in developing regions allowed consumers to explore a wider variety of spreads.

Furthermore, there was an increase in U.S. Processed Food Products Exports to Canada from USD 11.65 billion in 2022 to USD 12.11 billion in 2023, and to the EU from $2.09 billion to $2.21 billion. Showing growing demand for the market.

Moreover, the expansion of distribution channels by major companies will result in wider availability of food spread products worldwide, contributing to sales as well. For instance- in October 2023, Voyage Foods, launched their Peanut-Free and Hazelnut-Free Spreads in over 1,200 Walmart stores nationwide. The retail distribution of the company increased by over 400%, with reach up to 1600 stores and effectively targeting millions of consumers across the United States.
These factors, with other region-specific influences, have been shaping the food spread market and influencing its future growth.

The food spread industry is being surged by changing consumer tastes and dietary patterns, as well as a growing focus on health and wellbeing. This translates into a higher demand for spreads with less sugar, fat, and chemical ingredients. Furthermore, the popularity of plant-based diets and veganism has driven the creation of non-dairy alternatives, which appeal to ecologically aware customers. Economic factors such as disposable income levels impact purchase decisions and market dynamics.
The rising demand for healthy food choices is anticipated to propel market growth.

The growing obesity among adults has been a serious challenge. As obesity brews it has an overall health impact with the increase in cases of cardio-diseases, diabetes, thyroid, etc. In the USA, 41.9 percent of adults are affected by obesity. Black and Latino adults exhibit the highest obesity rates, with percentages reaching 49.9 percent and 45.6 percent respectively. Furthermore, the prevalence of obesity rates is registered on a higher side among individuals from rural communities compared to those in urban and suburban areas.

So, consumers are increasingly becoming health-conscious, driving the demand for spreads with ingredients like natural sweeteners, nuts, seeds, and whole grains. Additionally, sugar-reduced, organic, and vegan options are gaining traction.

Keeping with this demand, Philadelphia®, the brand, announced the nationwide rollout in July, 2023 of its first-ever plant-based spread offering. With more than half of people looking to add more plant-based products to their diets, Philadelphia brought a spreadable plant-based category of cream cheese.
The market is projected to grow in the North America region.

In the US, the food spread business is hugely influenced by the customer's need for better healthy foods and nutritious trends. Rising awareness and consciousness for health and well-being have created more preferences for relatively low sugar content, less fatty spreads and fewer artificial products. Moreover, an extensive rise in the consumption of plant-based diets and growing veganism has constituted one of the major milestones in the industry which has led to the dynamic and speedy development of non-dairy alternatives.

Owing to this, over the last two decades, authorized federal expenditures to assist organic research through USDA initiatives have risen. The mandatory funding allocation for the Organic Agriculture Research and Extension Initiative has increased from $3 million in 2002 to $50 million in 2023.

Furthermore, economic factors such as disposable income and consumer purchasing power can have a substantial impact on market dynamics. For instance, personal income in the United States climbed by $66.5 billion (0.3 per cent each month) in February 2024. Disposable personal income (DPI), which is personal income less personal current taxes, grew by $50.3 billion (0.2%). Also, consumer expenditure climbed by $145.5 billion (0.8%). Individuals were able to save a total of $745.7 billion, of which the personal saving rate was 3.6 per cent of disposable personal income. Personal outlays that consist of personal consumption expenditure (PCE), interest payments and current transfer payments showed an increase of $149.9 billion.

Overall, the US food spread market is positively impacted by various factors including health consciousness, dietary choices, and economic concerns, which drive sector innovation and diversity.

Various products launched by key market players in the United States have an influence on the food-spread market by fuelling innovation, increasing customer interest, and extending product offerings. These product launches provide new flavours, formulas, and package designs, encouraging competitiveness in the sector.

For instance, incorporating more than one-half of consumers wanting to have more plant-based products in their diets, on June 2023, Philadelphia offered a novel creamy, spread in the plant-based category that consumers can enjoy.

Furthermore, in June 2023, Oatly Group AB, the biggest oat milk company in the world, announced the launch of its newest product in the United States: a product having delectable plant-based cream cheese. Oatly's latest food invention, available in two flavours, Chive & Onion and the Plain category, breaks the deliciousness code to all customers.

Key Market Developments:

In March 2022, B&G Foods introduced Cinnamon Toast Crunch™ Creamy Cinnamon Spread, the first product that allows people to enjoy the taste of traditional Cinnamon Toast Crunch™ cereal as a spread. The new Cinnamon Toast Crunch™ Cinnadust™, which was introduced successfully in 2021, was also made available nationally in addition to Cinnamon Toast Crunch™ Cinnadust™ Seasoning Blend, a spread which had also been introduced successfully in March 2020.

Key Players:

Nestle is one of the leading markets when it comes to nourishing health solutions, food, and beverages. The company plans to improve people's quality of life and help ensure a healthy future. Nestlé offers a variety of food spreads, including the MAGGI Dip & Spread, which comprises yoghurt and less than 3% fat.
The J.M. Smucker Company operates three key business units: consumer goods, pet food, and coffee. Its flagship brand, Smucker's, manufactures fruit preserves, peanut butter, syrups, frozen crustless sandwiches, and ice cream toppings. In addition, the J.M. Smucker Company sells a range of food spreads, such as Smucker's fruit spreads, Jif peanut butter, and Sahale Snack mixes.
Kraft Heinz Company is North America's third-largest food and beverage company and the world's fifth-largest, with eight $1 billion-plus brands. The Kraft Heinz Company, an internationally trusted maker of delectable foods, offers excellent quality, great flavour, and nutrition for all meal requirements, whether at home, in restaurants, or on the road.

Segmentation:

By Product Type
Jams
Jellies
Butter
Honey
Chocolate spread
By Distribution Channel
Online
Offline
Supermarkets
Hypermarkets
Others
By Geography

North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
UK
Germany
France
Italy
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
India
South Korea
Thailand
Indonesia
Others