Peanut Butter Market By Product (Crunchy, Creamy, Others), By Distribution Channel (Offline, Online), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.39 Billion
CAGR (2026-2031)	6.95%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 11.06 Billion

Market Overview

The Global Peanut Butter Market will grow from USD 7.39 Billion in 2025 to USD 11.06 Billion by 2031 at a 6.95% CAGR. Peanut butter is a nutrient-dense food paste produced primarily from ground, dry-roasted peanuts, serving globally as a versatile spread and functional ingredient. The market expansion is fundamentally driven by the rising consumer demand for affordable plant-based protein sources and the convenience of shelf-stable ready-to-eat products. This growth trajectory is further supported by sustained consumption habits among younger demographics who prioritize nutritious and versatile food options. According to the National Peanut Board, in 2025, 65 percent of millennials reported consuming peanut butter at least once per week, underscoring the enduring generational preference that stabilizes market demand.

However, the industry faces a significant impediment regarding stringent food safety regulations concerning aflatoxin contamination. Aflatoxins are fungal toxins that can affect raw peanut crops, prompting major international markets to enforce rigorous maximum residue limits that often vary by region. These strict compliance standards necessitate costly testing protocols and quality assurance measures for manufacturers, creating a substantial trade barrier that complicates cross-border supply chains and restricts market access for exporters in developing nations.

Key Market Drivers

Escalating consumer demand for plant-based and high-protein diets is a primary catalyst propelling the global peanut butter market, as individuals increasingly seek sustainable, nutrient-rich alternatives to animal-derived proteins. This shift is deeply rooted in environmental consciousness and health awareness, positioning peanut butter as a preferred clean-label protein source. According to the National Peanut Board, May 2025, in the 'Brand Tracking Study', 64 percent of millennials and 57 percent of Gen Z consumers believe peanuts are more sustainable compared to other protein sources such as meat and dairy, reinforcing the product's market appeal. This positive perception is translating into consistent consumption habits among younger cohorts; the same report highlights that 49 percent of Gen Z consumers now eat peanut butter at least once per week, ensuring a stable future customer base driven by nutritional priorities.

Rapid urbanization and changing dietary habits in emerging economies further amplify market growth, as time-constrained urban populations adopt convenient Westernized breakfast and snacking routines. As disposable incomes rise in developing regions, the demand for shelf-stable, protein-packed spreads has surged, stimulating robust international trade and export activities. According to the American Peanut Council, October 2025, peanut exports to Mexico, a key emerging market for U.S. producers, increased by 9.72 percent compared to the previous year, highlighting the expanding global footprint of peanut-based commodities. This trend underscores how evolving lifestyles in international markets are creating lucrative opportunities for manufacturers to expand their distribution networks beyond traditional territories.

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Key Market Challenges

Stringent food safety regulations concerning aflatoxin contamination act as a substantial non-tariff trade barrier that hampers the efficiency and expansion of the Global Peanut Butter Market. Since aflatoxin levels in raw peanuts fluctuate based on climate conditions, international markets enforce rigorous Maximum Residue Limits that vary significantly by region. This lack of regulatory harmonization compels manufacturers to adopt expensive, multi-layered testing protocols and segregated inventory systems to ensure compliance for each specific destination. These added operational layers directly increase the cost of goods sold and introduce severe logistical complexities that slow down supply chain velocity and discourage cross-border transactions.

This regulatory fragmentation poses a direct threat to growth because the industry is intrinsically tied to high-volume international trade to satisfy global processing demands. According to the Argentine Peanut Chamber, in 2024, the sector exported approximately 95 percent of its total peanut production. This statistic highlights the industry's acute vulnerability to border rejections and compliance shifts. When major supplying nations face such high exposure to regulatory risks, the potential financial liability of rejected shipments due to stringent testing standards restricts the reliable global flow of raw materials essential for peanut butter production.

Key Market Trends

The integration of peanut butter into savory foodservice and fusion cuisine applications is reshaping global consumption patterns as culinary professionals increasingly utilize the ingredient for sauces, marinades, and dressings beyond traditional sweet spreads. This trend is particularly evident in the growing export demand from Asian markets, where peanuts are a staple in savory dishes such as satays and curries, prompting manufacturers to tailor formulations for versatility in professional kitchens. According to the American Peanut Council, May 2025, in the article 'APC Advances US Peanut Exports With Trade Mission to Japan', the U.S. peanut industry exported more than 16,000 metric tons to Japan in 2024, reflecting the robust demand for peanut products in markets dominated by savory culinary traditions.

Simultaneously, the market is witnessing a distinct rise in premium artisanal and small-batch brands that emphasize superior ingredient quality and single-origin sourcing to cater to sophisticated palates. This segment is bolstered by exceptional crop quality, which allows niche manufacturers to produce clean-label, high-grade spreads without relying on additives or stabilizers to mask flavor imperfections. According to Peanut Grower, March 2025, in the 'Expanded Market Update', the Georgia Federal-State Inspection Service classified 99.5 percent of the crop as Segregation 1, the highest grade used for the edible market, ensuring an abundant supply of premium raw materials essential for high-end artisanal production.

Segmental Insights

The Online segment is currently recognized as the fastest-growing distribution channel within the Global Peanut Butter Market, primarily driven by the rapid shift in consumer preference toward digital shopping platforms. This robust expansion is fueled by the substantial convenience of home delivery and the extensive availability of specialized product variants, such as clean-label, organic, or high-protein options, which are often limited in traditional brick-and-mortar stores. Furthermore, major e-commerce retailers facilitate this growth by offering competitive pricing, subscription models, and transparent customer reviews, which significantly enhance consumer confidence and encourage the recurring purchase of shelf-stable food products through online marketplaces.

Regional Insights

North America maintains a leading position in the global peanut butter market, driven by widespread product consumption as a household staple and convenient food source. The United States serves as a primary production hub, ensuring a steady supply of raw materials to meet regional demand. Market expansion is further supported by increasing consumer preference for high-protein, plant-based diets and diverse flavor variations. Additionally, adherence to rigorous quality standards established by the United States Department of Agriculture reinforces consumer trust and ensures product consistency, thereby solidifying the region's dominance.

Recent Developments

• In November 2024, the peanut butter brand ManiLife announced a major investment to establish its own dedicated production facility in Derbyshire, United Kingdom. The company revealed plans to open a £1 million factory, scheduled to begin operations in early 2025. This strategic transition from contract manufacturing to in-house production was designed to increase annual capacity to fifteen million jars, supporting rapid growth in retail and foodservice sectors. The new site was specifically engineered to maintain the brand’s signature small-batch roasting process at a larger scale, ensuring product quality while improving distribution efficiency across the region.
• In August 2024, the nut butter brand Pip & Nut finalized a significant collaboration with the ethical chocolate company Tony’s Chocolonely. Through this partnership, the company became the first snack brand in the United Kingdom to join the Open Chain initiative as a "Mission Ally." Consequently, the brand committed to sourcing cocoa for its peanut butter cups exclusively through this ethical supply chain. This agreement required adherence to rigorous sourcing standards, including paying a living income reference price to farmers. The move reinforced the company's dedication to supply chain transparency and aimed to combat inequality within the cocoa industry while delivering premium products.
• In May 2024, The J.M. Smucker Co. expanded its Jif product portfolio by launching a new peanut butter and chocolate flavored spread. This release represented the brand's most significant flavor innovation in nearly ten years, designed to blend the classic salty taste of peanut butter with chocolate sweetness. The company formulated the product with fifty percent less sugar than the leading hazelnut spread, targeting consumers seeking permissible indulgence options. The spread was introduced in both jars and portable cups, positioning it as a versatile addition for breakfast dishes or as a dip for snacking, thereby broadening the brand's market reach.
• In May 2024, Hormel Foods Corporation announced the strategic return of the Skippy brand to the Canadian market following a seven-year hiatus. Instead of immediately reintroducing traditional jarred spreads, the company launched a line of five peanut butter-inspired snack products, including crispy potato cookies. This approach aimed to capitalize on the growing consumer demand for convenient, ready-to-eat snacking options. Company executives described this initiative as the initial phase of a broader re-launch plan designed to re-engage Canadian consumers with the brand through innovative formats. This development marked a significant effort by the company to regain its footprint in the competitive North American market.

Key Market Players

• J.M. Smucker Company
• Kellogg Company
• Kraft Foods
• Mars, Inc.
• Conagra Brands, Inc.
• Hormel Foods Corporation
• Oetker Group
• The Hershey Company
• Unilever Plc
• Associated British Foods plc

By Product	By Distribution Channel	By Region
Crunchy Creamy Others	Offline Online	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Peanut Butter Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Peanut Butter Market, By Product:

• Crunchy
• Creamy
• Others

• Peanut Butter Market, By Distribution Channel:

• Offline
• Online

• Peanut Butter Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE