Nut Butters Market

Growing Demand for Plant-Based Butter Is Fueling Market Growth in General

The demand for plant-based butter alternatives such as seeds and it has surged due to the growing health concerns over the use of dairy butter due to its fat content. High-nutrient foods like nuts and seeds have long been a part of the human diet. Because they serve as convenient taste enhancers, it is typically used as spreads over various snacks and other items. Antioxidants, several essential vitamins (B7, C, and E), minerals including manganese and selenium, phenols, flavonoids, polyphenols, and magnesium, are all added to nut butter.

That guards against cancer, keep blood pressure and cholesterol levels stable, and shields against CVDs (cardiovascular diseases). In addition, the rise of dairy butter-based food allergies and concern for animal welfare has fueled the popularity of veganism. Along with veganism, the vegetarian population is a significant driver of the market expansion for nut butter.

The trend toward food-on-the-go is expected to grow, which will benefit the business. People today tend to lack culinary skills and have a greater degree of digital literacy, which makes them look for easily accessible, nutrient-dense food products on the market. This has been ascribed to the current "food-on-the-go" trend and is what shoppers value most when buying food products. Additionally, increased urbanization and rising disposable income levels will fuel market value growth.

Additionally, the market for peanut butter will have a slower pace of growth due to the rising frequency of chronic conditions, including high blood pressure and cardiac difficulties. The rising knowledge of peanut oil's health advantages is a crucial element affecting the market's growth rate.

Moreover, worldwide, the number of people who are lactose intolerant has increased. The enzyme lactase, which converts lactose into simpler sugars, is absent in the small intestines of those with lactose intolerance. An allergy to dairy products, a disaccharide deficit, and a lactase deficiency are all symptoms of lactose intolerance. Undigested or partially digested lactose causes stomach discomfort, diarrhea, fatigue, disturbed sleep, vomiting, and other health issues. The prevalence of lactose intolerance varies by ethnic group. Northern Europeans have a lower rate of lactose intolerance (18%–26%; compared to 75%–95%) among the African, American, and Asian ethnic groups.

People are choosing alternatives to dairy-based goods due to the prevalence of lactose intolerance worldwide, which has increased sales of its products.

The Global Nut Butters Market Industry is poised for substantial growth, with projections indicating a market size of 3.7 USD Billion in 2024 and an anticipated increase to 5.75 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 4.09% from 2025 to 2035. Such figures reflect the increasing consumer demand for nut butters, driven by health trends, product innovations, and the rise of plant-based diets. As the market evolves, it is essential for stakeholders to remain attuned to consumer preferences and emerging trends to capitalize on the opportunities presented by this expanding industry.

Innovation within the Global Nut Butters Market Industry plays a crucial role in attracting a broader consumer base. Manufacturers are increasingly introducing a variety of flavors and blends, catering to diverse taste preferences. For instance, the emergence of nut butter blends that combine multiple nuts or incorporate superfoods is gaining traction. This diversification not only enhances the product offerings but also appeals to health-conscious consumers seeking unique flavors. As a result, the market is likely to expand, with projections indicating a growth trajectory that could see it reach 5.75 USD Billion by 2035. Such innovations are essential for maintaining competitiveness in a rapidly evolving market.

The Global Nut Butters Market Industry experiences a surge in demand driven by increasing health consciousness among consumers. As individuals become more aware of the nutritional benefits of nut butters, such as high protein content and healthy fats, sales are projected to reach 3.7 USD Billion in 2024. This trend is particularly evident in regions where consumers prioritize natural and organic products. The shift towards healthier snacking options is likely to propel the market further, as nut butters are perceived as a wholesome alternative to traditional spreads. Consequently, this growing awareness is expected to significantly influence purchasing decisions across various demographics.

The expansion of distribution channels significantly influences the Global Nut Butters Market Industry. Retailers are increasingly recognizing the value of nut butters, leading to their enhanced presence in supermarkets, health food stores, and e-commerce platforms. This increased accessibility allows consumers to easily find and purchase their preferred nut butter products. Additionally, the growth of online shopping has further facilitated market expansion, as consumers can explore a wider range of options from the comfort of their homes. This trend is likely to bolster sales and contribute to the overall growth of the market, ensuring that nut butters remain a staple in households worldwide.

The rise of veganism and plant-based diets significantly impacts the Global Nut Butters Market Industry. As more consumers adopt these lifestyles, nut butters are increasingly recognized as a vital source of plant-based protein and essential nutrients. This trend is particularly pronounced among younger demographics, who are more inclined to explore alternative food sources. The market's expansion is further supported by the increasing availability of nut butter products in retail outlets and online platforms. Consequently, this shift towards plant-based nutrition is expected to contribute to a compound annual growth rate of 4.09% from 2025 to 2035, reflecting the growing demand for sustainable food options.

The Global Nut Butters Market Industry benefits from the rising demand for convenience foods, particularly among busy consumers seeking quick and nutritious snack options. Single-serve nut butter packets and ready-to-eat products are gaining popularity, as they cater to the fast-paced lifestyles of modern consumers. This trend is evident in the increasing presence of nut butter products in convenience stores, gyms, and health food outlets. As consumers prioritize convenience without compromising on nutrition, the market is likely to see sustained growth. This shift towards on-the-go consumption aligns with broader trends in the food industry, emphasizing the need for accessible and healthy snack alternatives.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North America Nut Butters market accounted for USD 43.90 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The surge in desire for plant-based meals, nutritious foods, and healthy diets is mostly to blame for the rising demand in North America. In North America, interest in and excitement for plant-based diets and veganism are expanding. More than 9.5 million Americans already consume nut butter, according to an MRFR study.

In the US, consumption of plant-based foods like meat substitutes, fruit juices, plant-based eggs, and dairy substitutes like nut butter has surpassed traditional animal and dairy products. According to data from the Good Food Institute and the Plant-Based Foods Association, it is increasing at a rate six times faster than animal products. This has significantly increased market growth in the North American Region.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: NUT butter MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Manufacturers of nut butter are anticipated to find the Asia-Pacific Nut Butters market area to be a lucrative regional market throughout the research period. The Region had 21.17% of the worldwide nut butter market in 2021, which is anticipated to grow at a CAGR of 5.43% from 2022 to 2030. With the biggest market share throughout the study period, the China market of nut butters is the dominant country-level market in the area.

With 4.3 billion people, or more than 60% of the world's population, and strong domination of vegetarian markets, the area is expected to present profitable prospects for producers of plant-based foods during the projection period. The Asia-Pacific nut butter market is now comparatively in its infancy. The development of the India nut butters industry has faced major obstacles over the past several years due to various socioeconomic and cultural standards.

The second-largest market share belongs to the European Nut Butters market. This is brought on by the improving standard of living and the influence of significant important actors in these areas. Further, the Germany nut butters industry held the largest market share, and the UK market for nut butters was the fastest-growing market in the European Region.

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for Nut Butters. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and remain in a market that is becoming increasingly competitive, Nut Butters' industry competitors must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics used by the Nut Butters industry to serve customers and increase the market sector. The Nut Butters industry has recently given medicine some of the most important advantages. The Nut Butters market major player such as Hormel Foods Corporation (US), Hain Celestial (US), The J. M. Smucker Co. (US), Bliss Nut Butters (US), Barney & Co.

California LLC (US), East Wind Nut Butters (US),  NuttZo Co (US), Krema Nut Company (US), Pip & Nut (UK), Once Again Nut Butter (US), and others are working on expanding the market demand by investing in research and development activities.

Santa Cruz Organic® is a pioneering organic brand that was the first to offer a wide variety of organic, 100 percent juices and blends and the first juice processor to use only organic fruit sourced from growers who had received certification from an independent, third-party certification organization. The J.M. Smucker Company's Santa Cruz Organic brand introduced creamy dark-roasted almond butter in January 2021. The new product is silky and produced with just two components, including sea salt and organic dry roasted almond.

The premium nut and seed-based snacks and butter produced by NuttZo are all-natural and organic food products. NuttZo is committed to providing health-conscious individuals with the finest quality, nutrient-rich food that tastes wonderful. Its main office is in San Diego, California, where it was created in 2008. Three new nut butter products, including five-seed tahini fusion, keto butter, and chocolate keto, were introduced by NuttZo Co. in July 2021. This introduction broadened its product line.