Global Peanut Butter Market Overview
The Peanut Butter Market was valued at USD 7.57 billion in 2024. The Peanut Butter Market industry is projected to grow from USD 8.06 billion in 2025 to USD 15.37 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.67% during the forecast period (2025-2035).
The growing demand for plant-based and vegan food options and rising popularity of peanut butter as a protein source are driving the growth of the Peanut Butter Market.
As per the Analyst at MRFR, the growing demand for plant-based and vegan food options has been one of the key drivers for the Peanut Butter Market. This shift in consumer preferences towards plant-based diets can be attributed to multiple factors, including increasing awareness of health and environmental concerns, as well as ethical considerations related to animal welfare.
Over the past few years, there has been a significant rise in the adoption of plant-based lifestyles, especially among younger generations who are more conscious about their food choices. As a result, plant-based foods, including peanut butter, are increasingly being sought after as healthier and more sustainable alternatives to traditional animal-based products.
FIGURE 1: PEANUT BUTTER MARKET VALUE (2019-2035) USD BILLION
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Peanut Butter Market Opportunity
GROWTH IN DEMAND FOR NATURAL AND ORGANIC PEANUT BUTTER
The demand for natural and organic peanut butter has been increasing significantly in recent years, driven by a growing awareness of the health benefits associated with organic and natural food products. Consumers today are more informed and conscious about the ingredients in the food they consume, with many seeking products that are free from artificial additives, preservatives, and chemicals. This trend towards natural and organic food options is not limited to just one market but spans across various regions, driven by a combination of health concerns, environmental sustainability, and a shift towards cleaner, more transparent food sourcing practices.
One of the primary drivers of this shift is the increasing prevalence of health-conscious consumers who are looking for cleaner, more nutritious options in their diets. With the rise of diet trends such as gluten-free, paleo, and keto, consumers are prioritizing products that align with their specific health goals. In the context of peanut butter, organic and natural varieties often promise to be free from artificial sweeteners, hydrogenated oils, and high fructose corn syrup, which are common ingredients in conventional peanut butter brands. As a result, peanut butter brands that offer natural or organic options can cater to this growing segment of the market that is focused on better health and wellness outcomes.
Moreover, awareness around the environmental impact of conventional farming practices has also contributed to the growing popularity of organic food products. Organic farming practices, which avoid the use of synthetic pesticides and fertilizers, are seen as more sustainable and environmentally friendly compared to traditional farming methods. Consumers are increasingly drawn to organic food products because they perceive them to be better for the planet. In addition, organic products are often associated with higher quality, as they tend to be grown without the use of harmful chemicals that may compromise the integrity of the food. This desire for sustainability and environmental responsibility has resulted in a growing demand for organic peanut butter options, as consumers seek to reduce their environmental footprint by choosing more sustainable food alternatives.
The natural peanut butter market also benefits from the increasing availability and accessibility of these products across a wide range of distribution channels. As consumer demand for organic and natural food products continues to rise, major retailers and supermarkets have expanded their offerings to include a broader selection of organic and natural peanut butter brands. Online retail platforms have also played a key role in boosting the accessibility of these products, allowing consumers to easily compare brands, ingredients, and prices. The convenience of online shopping, along with the ability to access niche or specialty products that may not be available in traditional stores, has made it easier for consumers to find and purchase organic and natural peanut butter. This growing availability has been instrumental in meeting the needs of health-conscious consumers who are specifically seeking products that align with their values of health and sustainability.
Additionally, the increased interest in organic and natural peanut butter has spurred innovation within the industry, with brands continually introducing new product lines that cater to evolving consumer preferences. Companies are experimenting with a wide range of ingredients and flavors to make their products stand out in an increasingly crowded market. For instance, some peanut butter brands have introduced peanut butter options that incorporate additional superfoods such as chia seeds, flax seeds, or protein-rich ingredients to appeal to consumers seeking more nutrient-dense alternatives. Other brands have focused on enhancing the texture and taste of their products by offering creamy, crunchy, or even flavored varieties, such as honey, chocolate, or cinnamon-infused peanut butter. These innovations have helped to further expand the market for natural and organic peanut butter, creating a space for brands to cater to a diverse range of tastes and dietary needs.
In addition to product innovation, the growth of the natural and organic peanut butter market has also been supported by increasing awareness and education efforts surrounding the benefits of organic and natural foods. As more information becomes available about the negative health impacts of artificial additives, preservatives, and pesticides, consumers are becoming more discerning about the foods they choose to incorporate into their diets. This heightened awareness has led to a shift in consumer behavior, with more people opting for products that are perceived as healthier and more natural. Peanut butter brands that emphasize their use of high-quality, natural ingredients and their commitment to sustainability have been able to position themselves as leaders in the growing organic and natural peanut butter market.
The natural and organic peanut butter trend also aligns with the broader movement towards more plant-based and sustainable diets. As more individuals choose to adopt plant-based diets for health or ethical reasons, the demand for plant-based food products, including peanut butter, continues to rise. Natural and organic peanut butter, often free from animal-based additives or preservatives, fits well into these dietary patterns, further driving its appeal. This makes organic and natural peanut butter an attractive choice for consumers following plant-based diets, as it provides a nutrient-dense, sustainable, and delicious alternative to traditional spreads.
Peanut Butter Market Segment Insights
Peanut Butter by Texture Insights
Based on Texture, this segment includes Creamy, Crunchy, Powdered. The Crunchy segment dominated the global market in 2024, while the Powdered segment is projected to be the fastest–growing segment during the forecast period. Crunchy peanut butter offers a coarser texture with visible peanut chunks, appealing to consumers who prefer a more textured mouthfeel and nutty bite.
It is often perceived as a less processed option compared to creamy peanut butter and is favored by individuals looking for a richer, more intense peanut flavor. The chunkier composition also adds a sensory element that is often sought after in snacks and sandwiches. While it is less common in regions like Asia-Pacific and Latin America, it maintains a strong foothold in North America and some parts of Europe.
FIGURE 2: PEANUT BUTTER MARKET SHARE BY TEXTURE 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Peanut Butter by Claim Insights
Based on Claim, this segment includes Low Sodium, No Sugar, Reduced Fat. The No Sugar segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. No sugar peanut butter, also referred to as sugar-free or unsweetened peanut butter, is developed for consumers looking to limit or eliminate added sugars from their diet.
This segment is particularly appealing to people managing diabetes, obesity, or those following low-carb or ketogenic diets. In these variants, manufacturers avoid adding sweeteners like cane sugar, high fructose corn syrup, or molasses, and instead emphasize the natural sweetness derived from the peanuts themselves. Some brands might use natural sugar substitutes like stevia or erythritol, though purists prefer completely unsweetened versions.
Peanut Butter by Nature Insights
Based on Nature, this segment includes Organic and Regular. The Regular segment dominated the global market in 2024, while the Organic segment is projected to be the fastest–growing segment during the forecast period. Regular peanut butter dominates the Peanut Butter Market in terms of volume and value. It is made using conventionally grown peanuts and may contain additional ingredients such as salt, sugar, hydrogenated oils, and stabilizers to enhance shelf life, texture, and taste.
This type of peanut butter is widely available across mainstream retail outlets and is particularly favored for its affordability and consistent flavor profile. It includes both creamy and crunchy varieties, and in many regions, it serves as a staple pantry item.
Peanut Butter by End-Use Insights
Based on End-Use, this segment includes Direct Consumption & Culinary Purpose, Bakery & Confectionery, Dips & Spreads, Sweet & Savory Snacks, Others. The Direct Consumption & Culinary Purpose segment dominated the global market in 2024, while the Sweet & Savory Snacks segment is projected to be the fastest–growing segment during the forecast period. Peanut butter's use in direct consumption remains one of the most dominant segments in the global market.
Consumers across North America, Europe, and emerging Asian economies often consume it as a standalone spread on bread, toast, or crackers. The high protein content and satiety offered by peanut butter have made it a preferred option for health-conscious consumers, athletes, and children. Its use as a convenient breakfast or snack item aligns well with the growing trend toward high-protein, plant-based foods.
Peanut Butter by Distribution Channel Insights
Based on Distribution Channel, this segment includes Supermarkets/Hypermarkets, Convenience Stores, Specialty Stores, Online. The Supermarkets/Hypermarkets segment dominated the global market in 2024, while the Online segment is projected to be the fastest–growing segment during the forecast period. Supermarkets and hypermarkets are the most dominant distribution channels for peanut butter globally, primarily due to their widespread reach and the convenience of a one-stop shopping experience.
These large-format retail outlets provide a broad assortment of food and grocery products, including multiple brands and variants of peanut butter under one roof. Their wide shelf space allows both global and regional manufacturers to showcase a variety of peanut butter options, ranging from conventional and natural to flavored, low-sodium, or sugar-free types. Consumers also benefit from competitive pricing, promotional discounts, and product bundling, making this channel highly attractive for regular grocery shoppers.
Peanut Butter Regional Insights
Based on the Region, the global Peanut Butter are segmented into North America, Europe, Asia-Pacific, South America and Middle East & Africa. The Asia Pacific dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Major demand factors driving the Asia Pacific market are the growing demand for plant-based and vegan food options and rising popularity of peanut butter as a protein source.
The Asia Pacific peanut butter market has undergone significant transformation in recent years, primarily driven by rising health consciousness, urbanization, and increasing acceptance of Western eating habits across diverse consumer demographics. Traditionally, peanut butter was not a staple in many Asian diets. However, evolving lifestyles and dietary shifts, especially in urban areas of countries like China, India, Japan, South Korea, Indonesia, and Australia, have created a fertile ground for peanut butter to become more mainstream.
This change is closely tied to the rising demand for convenient, protein-rich food options, particularly among middle-class and millennial consumers who seek nutritious yet tasty alternatives to traditional breakfast and snack foods. With rising disposable incomes, there is growing adoption of spreads that are perceived as healthy and premium, such as peanut butter with low sugar, added nutrients, and natural or organic ingredients.
FIGURE 3: PEANUT BUTTER MARKET VALUE BY REGION 2024 AND 2035 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the countries considered in the scope of the Application Tracking System Market are the US, Canada, Mexico, Germany, UK, France, Spain, Italy, China, India, Japan, South Korea, Australia & New Zealand, Brazil, Argentina, GCC Countries, Turkey, Northern Africa, Southern Africa and others.
Global Peanut Butter Key Market Players & Competitive Insights
Many global, regional, and local vendors characterize the Peanut Butter Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major competitors in the market are Hormel Foods Corporation, J.M. Smucker Company, Dr Oetker, The Hershey Company, Kraft Heinz, Kellogg Company, Mars, Inc., Unilever Plc, Associated British Foods plc, Conagra Brands, Inc. are among others. The Peanut Butter Market is a consolidated market due to increasing competition, acquisitions, mergers and other strategic market developments and decisions to improve operational effectiveness.
Key Companies in the Peanut Butter Market include
- Hormel Foods Corporation
- M. Smucker Company
- Dr Oetker
- The Hershey Company
- Kraft Heinz
- Kellogg Company
- Mars, Inc.
- Unilever Plc
- Associated British Foods plc
- Conagra Brands, Inc.
Peanut Butter Market Industry Developments
January 2025: Mars introduced the M&M'S Peanut Butter Ice Cream Cookie Sandwich, combining M&M'S Milk Chocolate Minis, sugar cookies, and real peanut butter ice cream. This launch was timed to celebrate National Peanut Butter Day and targets Gen Z and millennial consumers who favor peanut butter flavors in ice cream products.
April 2025: Hershey launched a new product called Reese's Filled Pretzels, which combines crunchy pretzels with peanut butter, expanding their peanut butter snack offerings.
May 2024: Jif announced its biggest flavor innovation in nearly 10 years with the launch of a new Peanut Butter & Chocolate Flavored Spread, expanding its product offerings in the peanut butter category.
August 2024: Hormel Foods finalized the acquisition of the SKIPPY peanut butter business from Unilever United States Inc. This acquisition included 11 varieties of shelf-stable peanut butter products and expanded Hormel's branded presence in the protein snack market.
Peanut Butter Market Segmentation
Peanut Butter by Texture Outlook
Peanut Butter by Claim Outlook
- Low Sodium
- No Sugar
- Reduced Fat
Peanut Butter by Nature Outlook
Peanut Butter by End-Use Outlook
- Direct Consumption & Culinary Purpose
- Bakery & Confectionery
- Dips & Spreads
- Sweet & Savory Snacks
- Others
Peanut Butter by Distribution Channel Outlook
- Supermarkets/Hypermarkets
- Convenience Stores
- Specialty Stores
- Online
Peanut Butter Regional Outlook
- North America
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- GCC Countries
- Turkey
- Northern Africa
- Southern Africa
- Rest of Middle East & Africa
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Report Attribute/Metric
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Details
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Market Size 2024
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USD 7.57 Billion
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Market Size 2025
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USD 8.06 Billion
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Market Size 2035
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USD 15.37 Billion
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Compound Annual Growth Rate (CAGR)
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6.67% (2025-2035)
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Base Year
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2024
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Forecast Period
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2025-2035
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Historical Data
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2019-2023
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Forecast Units
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Value, Volume (USD Billion, Thousand Tons)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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By Texture, By Claim, By Nature, By End-Use, By Distribution Channel
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Geographies Covered
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North America, Europe, Asia Pacific, South America, Middle East & Africa
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Countries Covered
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The US, Canada, Mexico, Germany, UK, France, Spain, Italy, China, India, Japan, South Korea, Australia & New Zealand, Brazil, Argentina, GCC Countries, Turkey, Northern Africa, Southern Africa
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Key Companies Profiled
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Hormel Foods Corporation, J.M. Smucker Company, Dr Oetker, The Hershey Company, Kraft Heinz, Kellogg Company, Mars, Inc., Unilever Plc, Associated British Foods plc, Conagra Brands, Inc.
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Key Market Opportunities
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· Growth in demand for natural and organic peanut butter
· Innovative peanut butter flavors attracting diverse consumer tastes
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Key Market Dynamics
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· Growing demand for plant-based and vegan food options
· Rising Popularity of Peanut Butter as a Protein Source
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Frequently Asked Questions (FAQ) :
USD 7.57 Billion is the Peanut Butter Market in 2024
The Crunchy segment by Material holds the largest market share and grows at a CAGR of 6.27 % during the forecast period.
Asia-Pacific holds the largest market share in the Peanut Butter Market.
Hormel Foods Corporation, J.M. Smucker Company, Dr Oetker, The Hershey Company, Kraft Heinz, Kellogg Company, Mars, Inc., Unilever Plc, Associated British Foods plc, Conagra Brands, Inc. are prominent players in the Peanut Butter Market.
The No Sugar segment dominated the market in 2024.
