Food Spreads Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The food spread market is projected to register a CAGR of 3.5% during the forecast period (2022-2027).

The market was positively impacted by COVID-19 in 2020. Though in the first half of the pandemic, the market showed a decline, the overall impact catered to the proper functioning of the food spread industry in various regions. The consumption of nutritious and healthy spreads, which are free from additives and preservatives, gluten, and trans-fat, increased as consumers were becoming health conscious and were preferring natural or low-sugar and sugar-free spreads.

Sweet spreads are an integral part of every breakfast, and this has led to their steady growth. The rising health consciousness among consumers has given way to new low-calorie spreads. Food spreads comprise a variety of products, such as jams, jellies, fruit and nut-based spreads, honey, syrups, and chocolate-based spreads.

A consumer shift has been observed in the past few years of the traditional meal-to-snack food, which is negatively affecting the food spread market, thereby restraining its growth. But, the key players in the market have catered to product innovation and keep on creating products to suit market demand. The creation of a plant-based spread has opened the market for more consumers seeking vegan alternatives.

Key Market Trends

Rise in Demand for Clean Label Spreads

A majority of consumers in developed nations like the United States and Germany are looking for food spreads without any artificial preservatives or additives, owing to the long-term adverse health effects associated with artificial additives. A variety of flavoring agents, preservatives, and sweeteners are added to different products to extend their shelf-life. Catering to the changing demand of consumers, many manufacturers are introducing food spreads with no artificial preservatives and flavor addition. Unilever introduced product ranges with natural ingredients, no artificial flavors, and 70% less saturated fats than butter. The aim of clean labels is to drive the sustainability of the product and provide great taste. For instance, in 2021, Jif, an iconic brand under J M Smucker Company, launched Natural Squeeze Peanut Butter Spread, made with five ingredients, including 90% peanuts. The product is GMO-free and preservative-free, owing to the rise in demand for clean label solutions.

North America Holds the Major Share

The popularity of food spreads can be attributed to their prevalence in traditional breakfast in North America. In recent years, the spread market has developed further, with the launch of new innovative flavors, such as nuts and exotic fruits. According to the current trend, North American consumers prefer premium-quality products that do not contain artificial ingredients and are with nutritional claims. They are demanding better-for-you products that are easy to prepare and appetizing at the same time. Vendors are strategizing by this requirement and rolling out healthier and indulgent offerings in the region. The government policies also lead to the creation of healthy food spreads in the region. For instance, in Mexico, IEPS tax, a Special Tax on Product and Services, is applied to high-sugar content products, which leads to the companies investing in manufacturing healthier versions of their products. The consumption levels of food spreads are affected by increased consumer awareness due to extensive marketing and the consumer engagement strategies adopted by most manufacturers.

Competitive Landscape

The JM Smucker Co., The Kraft Heinz Co., Ferrero SA, Sioux Honey Association, Unilever PLC, and Conagra Brands Inc. are some of the major players in the global market. These companies provide a range of food spreads, including natural and conventional choices for consumers. The key players are focused on innovating new products according to the changing demands of consumers.

Companies also play a vital role in the growth of raw materials and help small farmers. Unilever, one of the leading companies in the food spreads market in India, was the first to implement a World Economic Forum (WEF)-led Public-Private Partnership (PPP) in Maharashtra (India) for farm gate sourcing of sustainable raw material from smallholder farmers, for the reputed fruit-based food spreads brand Kissan. This helped them gain a competitive advantage with increased market penetration.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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