Peanut Butter Market Size, Share and Forecast - 2035

Peanut Butter Market

Peanut Butter Market Outlook

According to the report by Expert Market Research (EMR), the global peanut butter market attained a value of USD 5.09 billion in 2025. Aided by the growing demand for convenient and protein-rich food products, increasing consumer inclination towards healthy snacking, and the expanding application of peanut butter across foodservice and household consumption, the market is expected to witness steady growth. The peanut butter industry is projected to grow at a CAGR of 5.10% during the forecast period of 2026–2035, reaching a valuation of USD 8.37 billion by 2035.

Peanut butter is a popular spread made from ground, dry-roasted peanuts and is widely consumed across various regions due to its rich nutritional profile, appealing taste, and versatility. It is a significant source of protein, healthy fats, dietary fibre, vitamins, and minerals, making it a staple in many diets. Peanut butter is commonly used as a bread spread, ingredient in bakery and confectionery products, smoothies, sauces, and desserts, as well as a nutritional supplement for athletes and fitness enthusiasts.

The global peanut butter market is benefiting from changing dietary habits, rising urbanisation, and increasing awareness of the health benefits associated with plant-based protein sources. Furthermore, the availability of innovative product variants, including organic, natural, sugar-free, and flavoured peanut butter, is expanding consumer reach and supporting market expansion worldwide.

Peanut Butter Market Size

The global peanut butter market has experienced consistent growth over recent years, supported by increasing consumption across both developed and developing economies. In 2025, the market reached a value of USD 5.09 billion, reflecting strong demand from households, foodservice providers, and the packaged food industry.

The market size is expected to expand steadily over the forecast period, driven by rising disposable incomes, growing penetration of western-style breakfast and snacking habits, and increasing preference for high-protein and functional food products. The expanding retail infrastructure, particularly the growth of supermarkets, hypermarkets, and e-commerce platforms, is also facilitating wider access to peanut butter products, thereby contributing to market growth.

Additionally, the increasing incorporation of peanut butter into processed foods, such as protein bars, breakfast cereals, baked goods, and ready-to-eat snacks, is expected to further augment the market size during the forecast period.

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Peanut Butter Market Share

Regionally, North America holds a dominant share of the global peanut butter market, owing to its long-established consumption patterns and widespread use of peanut butter as a staple food product, particularly in the United States. High awareness of nutritional benefits, coupled with the presence of major manufacturers and a strong distribution network, supports the region’s market leadership.

Europe accounts for a significant share of the market, driven by growing consumer interest in plant-based and high-protein foods, as well as increasing adoption of peanut butter as a healthy alternative to traditional spreads. Asia Pacific is emerging as a rapidly growing market, supported by changing dietary preferences, urbanisation, and increasing exposure to western food cultures in countries such as China, India, and Australia.

By product type, smooth peanut butter holds a considerable share due to its widespread acceptance and versatility, while crunchy peanut butter is gaining popularity among consumers seeking texture and enhanced sensory experience. In terms of distribution channels, supermarkets and hypermarkets dominate the market share, followed by online retail channels, which are witnessing rapid growth due to convenience and expanding digital adoption.

Peanut Butter Market Trends

Several notable trends are shaping the global peanut butter market. One of the key trends is the growing demand for natural and organic peanut butter products that are free from artificial additives, preservatives, and hydrogenated oils. Health-conscious consumers are increasingly opting for clean-label products with simple ingredient lists, driving manufacturers to reformulate and diversify their offerings.

Another significant trend is the rising popularity of flavoured and value-added peanut butter variants, including chocolate, honey, cinnamon, and protein-fortified options. These innovations are attracting younger consumers and expanding usage occasions beyond traditional breakfast consumption.

The increasing adoption of peanut butter in vegan and plant-based diets is also contributing to market growth. As consumers seek dairy-free and plant-based protein alternatives, peanut butter is gaining prominence as a nutritious and affordable option. Furthermore, sustainable packaging and ethically sourced peanuts are becoming increasingly important, influencing purchasing decisions and brand positioning.

Drivers of Growth

The growth of the global peanut butter market is driven by several key factors. The increasing consumer preference for protein-rich and energy-dense foods is a major driver, as peanut butter offers a balanced combination of protein, healthy fats, and essential nutrients.

Rising awareness regarding the health benefits of peanuts, including their role in supporting heart health, weight management, and muscle development, is further boosting demand. Additionally, the growing trend of fitness and active lifestyles has increased the consumption of peanut butter among athletes, gym-goers, and health-conscious individuals.

The convenience and versatility of peanut butter also contribute significantly to market growth. Its long shelf life, ease of use, and compatibility with a wide range of food products make it a preferred choice among consumers and food manufacturers alike. Moreover, expanding urban populations and busy lifestyles are increasing the demand for quick and nutritious food options, further supporting market expansion.

Peanut Butter Market Segmentation

The market can be divided based on product type, color, distribution channel.

By spread type, the market is divided into:

• Creamy 

• Crunchy/Chunky

• Old Fashioned/Natural 

• Reduced Fat

• Honey Roasted

On the basis of end use, the industry can be categorised into:

• Cooking

• Health Product

Market breakup by region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Competitive Landscape

Some of the major players explored in the report by  Expert Market Research are as follows:

• Hormel Foods Corporation

• The J.M. Smucker Co.

• Post Holdings, Inc.

• Sonya Foods Pvt. Ltd.

• H.J. Heinz Company Brands LLC (KRAFT Foods)

• Others

Industry Analysis

The global peanut butter market is moderately competitive, with the presence of multinational corporations, regional players, and private-label brands. Key market participants are focusing on product innovation, brand differentiation, and strategic marketing initiatives to strengthen their market position.

Companies are increasingly investing in research and development to introduce healthier formulations, such as low-sugar, high-protein, and fortified peanut butter products. Strategic partnerships with retailers, foodservice providers, and online platforms are also helping manufacturers expand their distribution reach.

Furthermore, mergers, acquisitions, and capacity expansions are being pursued to enhance production capabilities and cater to growing global demand. The emphasis on sustainability and responsible sourcing is also becoming a key competitive factor within the industry.

Challenges and Opportunities

Despite its positive growth outlook, the peanut butter market faces certain challenges. Fluctuations in raw material prices, particularly peanuts, due to climate variability and supply chain disruptions, can impact production costs and profitability. Additionally, concerns related to peanut allergies pose challenges in certain consumer segments and require strict labelling and safety regulations.

However, the market presents significant opportunities for growth. The rising demand for functional and fortified foods offers opportunities for manufacturers to introduce peanut butter enriched with vitamins, minerals, and plant-based proteins. The expansion of e-commerce and direct-to-consumer sales channels also provides new avenues for market penetration, particularly in emerging economies.

Peanut Butter Market Forecast

The global peanut butter market is expected to grow steadily during the forecast period of 2026–2035, registering a CAGR of 5.10% and reaching a value of USD 8.37 billion by 2035. Growth will be driven by increasing health awareness, rising consumption of plant-based protein sources, and continuous product innovation.

North America is expected to maintain its leading position, while Asia Pacific is projected to witness the fastest growth due to changing dietary habits and expanding middle-class populations. Europe is also anticipated to experience steady growth, supported by rising demand for natural and organic food products.