South America Nut-based Spread market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South America Nut-based Spread market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South America Nut-based Spread market is projected to register a CAGR of 6.9% during the forecast period, 2022-2027.

The South America nut-based spread market is driven by the rising consumer preference to replace jams with healthier versions of spreads such as peanut butter and almond spreads. Additionally, peanut butter due to its cost-effectiveness has become the most popular product and is being widely purchased in the region. The key reason peanut butter is cheaper than almond and other types of nut butter is that peanut butter is made from a cheaper raw material. Even though jams and jellies may provide some benefits, they're high-sugar products, and consuming too much sugar may lead to weight gain, cavities, heart disease, and type 2 diabetes. The rising health consciousness among consumers has been driving the market for a few years. As nut-based spreads are low-calorie foods health-conscious consumers are preferring them over jams and dairy-based spreads.

Further, consumers are focused on low-sugar diets due to the increasing rates of obesity and Type-2 diabetes. The governments have introduced measures to restrict sugar intakes, such as front-of-pack warning labels in Chile, Peru, and Uruguay which is expected to increase the consumption of low-calorie foods like nut spreads. For instance, in March 2020, the Colombian government and the Colombian food industry agreed on visual warning nutrition labels that will become mandatory on unhealthy food and drink products sold in the country. Therefore, this factor is expected to increase the consumption of low-calorie foods like nut-based spreads.

Key Market TrendsIncreasing Inclination towards Healthy Breakfast

Although nut spreads have several applications, making sandwiches is the most popular one. Other applications include serving as vegetable dips or toppings for edible crackers. In addition, there are several uses of nut spreads in both baking and cooking. Due to its flavor, good nutritional qualities, and suitability for eating either alone or in conjunction with a range of other foods, nut spread is widely accepted by South American consumers. Additionally, the nutrient content and health-promoting ingredients in nut spreads are influencing consumers to incorporate them into a regular breakfast. For instance, tree nuts are rich in macro and micronutrients, phytochemicals, tocopherols, and phenolic compounds. Product features like softness, spreadability, and attractive flavors increase its appeal to wider consumers. Moreover, major players in the region are launching products with the local essence to attract potential consumers. For instance, in July 2022, Power1One, one of the leading peanut products brands in Brazil, launched peanut butter, inspired by the classic American peanut butter recipe.

Brazil is The Leading Market

The demand for plant-based food has grown significantly in recent years as Brazilians are becoming more aware of the benefits of a vegetarian diet. According to World Bank data, in 2020, Brazil accounted for an 8% share of vegetarians worldwide and most vegetarians include middle or upper-class urban dwellers, from the central and southern parts of the country. A vegetarian diet can positively affect the environment, which is one of the major reasons boosting the per capita spending on nut-based spreads in the region. Additionally, increased health consciousness among consumers has led to the demand for functional foods like nut-based spreads. Nut spreads include healthy components and provide many health benefits. For instance, nut butter is loaded with heart-healthy monounsaturated fats which help in increasing HDL cholesterol, the good kind while keeping LDL cholesterol, the bad kind in check. Brazil accounted for the largest market share in the South America nut-based spreads market as the rising millennials and the middle-class population is mostly preferring such products owing to their health benefits. The three major trends affecting the Brazilian market are sugar reduction, healthy food, and the rise of protein and fiber content in food.

Competitive Landscape

The South America nut-based spread market is highly fragmented and competitive with various players. The companies are making themselves more competitive by strengthening their distribution systems, entering partnerships, acquisitions, expanding product range, etc. Advanced distribution networks and manufacturing expertise give an upper edge to the manufacturers to expand their range of products. Some of the major players operating in the market are JM Smucker’s, Kraft Foods Group, Post Holdings, Ferrero International, and Hormel Foods Corporation dominate the market.

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