In 2021, the global peanut butter market was valued at USD 5.70 billion. Over the forecast period from 2022 to 2028, it is projected to expand to USD 9.09 billion, reflecting a compound annual growth rate (CAGR) of 6.9%. The rising global awareness of health and nutrition is a major factor fueling this growth.

Key Market Trends & Insights

Regionally, North America emerged as the leading revenue contributor in 2021. Among countries, Brazil is anticipated to register the highest CAGR between 2022 and 2028. In terms of product type, the crunchy variant accounted for over 45% of the market’s revenue share in 2021. When viewed through the lens of distribution channels, the offline channel dominated revenue in 2021.

Beyond that, shifting lifestyles and increased demand for convenience food, coupled with growing concerns about chronic health issues such as hypertension and cardiovascular disease, are creating new opportunities for peanut butter manufacturers. Rising incomes, especially in developing markets, along with heightened product launches and expanded presence of leading players, are also expected to support market growth. However, barriers remain: limited product awareness in parts of Asia-Pacific, erratic peanut crop yields, price volatility, and trade and tariff constraints (e.g., the European Union’s consideration of higher import duties on U.S. peanut butter in 2018) may slow progress.

The COVID-19 pandemic had a largely positive effect on demand. Consumers gravitated toward nutrient-dense, protein-rich foods during lockdowns, and peanut butter, being inexpensive, shelf-stable, and perceived as wholesome, saw increased consumption and stockpiling.

Market Size & Forecast

• 2021 Market Size: USD 5.70 billion
• 2028 Projected Market Size: USD 9.09 billion
• CAGR (2022–2028): 6.9%

North America retained the highest share in 2021, driven by high domestic consumption, large-scale production, and consumer familiarity. In the United States, it is estimated that 90% of households use peanut butter, which helps explain the dominance of North America. Meanwhile, the Asia-Pacific region is expected to grow strongly over the forecast period. Increased awareness in markets such as India, China, Japan, and South Korea—along with rising disposable incomes and evolving food habits—are major contributors. Key players have begun introducing peanut butter in these regions (for instance, Hormel launched a squeeze-pouch variant in Malaysia in 2019).

The offline channel held the greater share of revenue in 2021, largely because consumers often prefer in-store shopping for product verification, authenticity, and instant availability. Offline channels include supermarkets, hypermarkets, convenience stores, specialty stores, and departmental chains. On the other hand, the online segment is projected to register the highest growth rate, benefiting from rising internet penetration, widespread smartphone usage, and the convenience of digital ordering. The impetus from the pandemic further accelerated online adoption of food products, including peanut butter.

By product type, the crunchy variant dominated in 2021, supported by consumer preference, its relatively healthier profile (lower saturated fat, higher fiber), and popularity among youth. Over the forecast period, crunchy types are expected to maintain robust growth. The “other” type segment—comprising peanut butters fortified with fruits, nuts, seeds, or other ingredients—is still nascent but expected to grow faster (at over 7.3%) than traditional types. Examples include mango-flavored peanut butter launched in India and chocolate peanut butter spreads introduced in the U.S.

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Key Companies & Market Share Insight

The global peanut butter market is fairly consolidated, with major multinational players holding significant influence and numerous small to medium local players also present. The leading brands often focus on geographic expansion, product innovation, and portfolio diversification (for example by fortifying with additional nutrients). As awareness and access grow, these major firms are positioning themselves to expand share. In one such move, a U.S. farmer-owned processor announced expansion plans worth USD 85 million in 2021 to scale peanut butter production and related products.

Key Companies

Some of the prominent companies operating in the global peanut butter market include:

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

Conclusion

Overall, the peanut butter market is on a solid upward trajectory, supported by rising health consciousness, evolving consumer behaviors favoring convenience, and expanding presence in emerging geographies. While challenges such as agricultural volatility, regional awareness gaps, and trade constraints pose headwinds, growing online retail penetration and product innovation (especially fortification) offer clear pathways to further growth. The leading market players, leveraging scale and distribution strength, are well placed to capitalize on the accelerating demand and shape the competitive landscape in the years ahead.

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