Sweet Spreads Market by Type, Distribution Channel, and Geography - Forecast and Analysis 2023-2027

Sweet Spreads Market Forecast 2023-2027

The Global Sweet Spreads Market size is projected to increase by USD 4.18 billion and the market size is estimated to grow at a CAGR of 4.42% between 2022 and 2027. The surge in on-the-go consumption and the expansion of the organized retail sector are notable drivers propelling market growth, while the burgeoning popularity of cereals and fluctuating prices of raw materials pose challenges. Additionally, concerns regarding the health impacts of sweet spreads further complicate the market landscape.

The market is experiencing robust growth driven by the surge in on-the-go consumption and evolving consumer lifestyles. Consumers are increasingly seeking convenience, time-saving options, and consistent taste experiences, leading to the rising popularity of products such as Jams, Chocolate spreads, and Honey. Health-conscious individuals are opting for spreads enriched with nuts and seeds, aligning with sustainable diets and seeking health benefits. The demand for quick and easy-to-prepare meals is particularly high among working individuals, contributing further to market growth. Packaging options including glass and plastic, along with distribution channels like supermarkets, hypermarkets, and convenience stores, play significant roles in meeting consumer preferences and driving market expansion.

Sweet Spreads Market: Overview

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Segmentation

Market Segmentation by Type

The market share growth by the nuts and seed-based spreads segment will be significant during the forecast period. Nut-based spreads include almond, cashew, coconut, walnut, peanut, and related products. Peanut butter is the most popular nut-based spread. Common seed-based products include tahini, pumpkin, sunflower, and watermelon.

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The nuts and seed-based segment showed a gradual increase in the market share of USD 8.36 billion in 2017 and continued to grow until 2021. Good quantities of protein, fiber, healthy fats, vitamins, and minerals can be found in nuts and seeds. As their fats are not completely absorbed, nuts and seeds control body weight and food intake and help burn energy. Unsaturated fats and other nutrients found in nuts and seeds have anti-heart disease preventive properties. According to the Australian Dietary Guidelines, an adult's balanced diet should include 30 grams of nuts on most days of the week. In addition, companies are launching new products in this segment. Such factors increase the adoption of nuts and seed-based spreads leading to the growth of the global market during the forecast period. Due to concerns about the fat content of nut-based spreads, the demand is increasing, leading to market growth during the forecast period.

Market Segmentation by Distribution Channel

The offline distribution segment includes various types of retail stores, such as departmental stores, supermarkets, hypermarkets, convenience stores, and restaurants. Some of the largest retail chains that have separate retailing sections for sweet spreads are Tesco Plc (Tesco), Walmart, and Target Corp. (Target). These companies use branding through signages and offer discounts on product packages to promote and market their sweet spreads in their stores. For a long time, retailers like Walmart have been selling sweet spreads on their shelves. Organized retail companies operate based on factors such as geographical presence, ease of production and inventory management, and goods transportation. Hypermarkets and supermarkets are the main distribution channels in the offline segment, and sales are expanding as organized retail grows more common. Consumers are increasingly gravitating towards supermarkets and hypermarkets due to rising disposable incomes and urbanization. This trend is benefiting other local sweet spread manufacturers, thus boosting the growth of the global market during the forecast period. 

Key Regions for the Market 

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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

In Europe, consumer demand for affordable, healthy, and high-quality products is driving the market, particularly for breakfast. While spreads that emphasize origin and authenticity are popular among higher-income groups, they are facing increasing competition from on-the-go meal options such as cereal bars. Sweet spreads are commonly used for breakfast and in cooking and baking. There is also a demand for niche, premium, and private-label foods.

The adoption of a vegan lifestyle in Europe has led to an increase in the consumption of nuts and seed-based spreads in the region. Furthermore, rising awareness about the ethical, environmental, and health effects of diet is expected to fuel the expansion of nuts and seed-based spreads during the forecast period. Compared to other countries, the consumption is relatively high in the UK. The market in Europe is driven by the broad range of applications in bread and desserts, which are two of the largest consumed foods in Europe. The expansion of bread manufacturers in Europe could further influence bread consumption in the region, leading to an increase in the adoption during the forecast period.

Market Dynamics and Customer Landscape

The market encompasses a diverse array of products including jams, marmalades, jellies, chocolate spreads, honey, and nut-based spreads, catering to the evolving tastes and preferences of consumers. With the rise in demand for healthy convenience food products, consumers are increasingly seeking portable options that offer both indulgence and health benefits. This trend has led to the emergence of premium, exotic, and high-quality sweet spreads, targeting Millennials who value taste experiences and sustainable diets.

However, the market faces challenges due to concerns surrounding unhealthy products containing preservatives and artificial sweeteners. To address these concerns, manufacturers are focusing on offering nut and seed-based spreads with healthier ingredients and packaging options such as glass or sustainable plastic. Distribution channels including supermarkets, hypermarkets, grocery stores, and convenience stores play a crucial role in reaching consumers seeking snackification options with varying protein and fat content.

Our researchers analyzed the data with 2022 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Significant Market Trends 

The market is experiencing a notable trend of increasing new product launches, driving global market growth. Successful launches will enhance revenue flow and market shares for sweet spread companies. Some recent launches include Andros' Bonne Maman introducing fruit products with more fruit and reduced sugar options, J.M Smucker expanding its Santa Cruz Organic range with Creamy Dark Roasted Almond Butter, and Ferrero's Nutella launching Nutella + Cocoa, a chocolate spread with double cocoa content for a richer flavor. These launches have enabled companies to broaden their product offerings and attract a substantial consumer base, with continued growth anticipated in the forecast period.

Major Market Challenge 

The market growth is hindered by the increasing popularity of cereals. Emerging nations in the MEA and APAC regions are adopting the consumption of breakfast cereals, influenced by Western countries. Cereals are marketed as a healthy and convenient alternative to traditional meals, and their popularity is expanding due to marketing efforts and social media exposure. The APAC region, especially India, shows strong growth potential for breakfast cereal consumption. Manufacturers in the cereal industry are targeting health-conscious consumers who prefer minimally processed and healthier ingredients. They develop products tailored to specific markets, such as gluten-free, keto-friendly, ready-to-eat, and organic options. Adding ancient grains, superfoods, probiotics, seeds, and nuts enhances the nutritional value and improves the health perception of these cereals. These factors may limit the growth of the global market in the forecast period.

Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Sweet Spreads Market Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• PepsiCo Inc.- The company offers sweet spreads such as Pioneer Valley Gourmet Apricot Pineapple Jam, and Pioneer Valley Gourmet Apricot Honey Almond Jam.
• Dabur India Ltd.- The company offers sweet spreads such as Dabur Honey Fruit Spreads.
• Nestle SA- The company offers sweet spreads such as KITKAT Spread.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Algood Food Co.
• Andros SNC
• B and G Foods Inc.
• Chocoladefabriken Lindt and Sprungli AG
• Conagra Brands Inc.
• Dr. August Oetker KG
• F. Duerr and Sons Ltd.
• Ferrero International S.A.
• Hormel Foods Corp.
• Mondelez International Inc.
• Murphy Orchard
• Rochak Agro Food Products Pvt. Ltd.
• The Hain Celestial Group Inc.
• The Hershey Co.
• The J.M Smucker Co.
• The Kraft Heinz Co.
• Wilkin and Sons Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Nuts and seed-based spreads
  • Jams jellies and preserves
  • Honey
  • Chocolate spreads
• Distribution Channel Outlook 
  • Online
  • Offline
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is witnessing a dynamic evolution driven by various factors. Consumers, particularly millennials, are gravitating towards healthy convenience food options, leading to a surge in demand for portable and premium sweet spreads. With a growing emphasis on taste experience and health benefits, there's a notable shift towards nut and seed-based spreads and products with high protein content. However, challenges persist with concerns surrounding unhealthy products containing preservatives and artificial sweeteners. The market landscape also reflects trends like snackification and sustainable diets, influencing packaging choices towards eco-friendly options. From traditional jams to exotic blends like Youngberries and Manuka, the market caters to diverse taste preferences, offering a range of indulgent and healthy options across various distribution channels, including grocery stores, online retail, and health food stores.

The market is experiencing dynamic growth driven by various factors such as the increasing demand for healthy convenience food products, evolving taste preferences, and the popularity of portable and indulgent products. Consumers are gravitating towards premium, high-quality sweet spreads that offer both health benefits and indulgence. Moreover, the market is witnessing a surge in demand for exotic and organic preserves, reflecting a growing interest in sustainable agriculture and eco-friendly packaging options. However, challenges such as concerns over artificial additives and trans fats impact consumer choices, prompting a shift towards products with natural flavoring agents and antioxidants. With the rise of e-commerce and modern trade, brands are leveraging online platforms and private-label products to cater to diverse client preferences across North America.

The landscape of food consumption is evolving rapidly, with a notable shift towards portable, premium, and exotic products. Consumers are increasingly seeking high-quality options that not only satisfy their taste buds but also cater to their health-conscious preferences. This trend has led to a surge in demand for healthy food products across various categories. When it comes to packaging, both glass and plastic options are prevalent, offering different benefits to consumers. Brand websites serve as crucial platforms for showcasing product offerings and engaging with consumers directly. Moreover, the emphasis on fair-trade lines underscores the growing importance of ethical sourcing and production practices in the food industry.

While mainstream supermarkets continue to dominate the retail scene, there is a rising interest in breakfast habits, with consumers exploring diverse options to kickstart their day. Amidst these trends, trailblazers in the food industry are constantly innovating, introducing novel concepts and flavors to captivate consumers' palates and meet their changing preferences. As the food landscape continues to evolve, the focus on convenience, quality, and sustainability remains paramount.

Sweet Spreads Market Scope
Report Coverage	Details
Page number	176
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.42%
Market growth 2023-2027	USD 4.18 billion
Market structure	USD Fragmented
YoY growth 2022-2023(%)	4.05
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	APAC at 46%
Key countries	US, China, Japan, Germany, and France
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	Algood Food Co., Andros SNC, B and G Foods Inc., Chocoladefabriken Lindt and Sprungli AG, Conagra Brands Inc., Dabur India Ltd., Dr. August Oetker KG, F. Duerr and Sons Ltd., Ferrero International S.A., Hormel Foods Corp., Mondelez International Inc., Murphy Orchard, Nestle SA, PepsiCo Inc., Rochak Agro Food Products Pvt. Ltd., The Hain Celestial Group Inc., The Hershey Co., The J.M Smucker Co., The Kraft Heinz Co., and Wilkin and Sons Ltd.
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our market growth and trends report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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