NEW FMI DATA REVEALS GLOBAL SALES OF ORGANIC SPREADS TO TOP $27.1BN IN 2021
A recent analysis by Future Market Insights (FMI), has found that the global organic spreads market size is expected to top $ 27.1 billion (€24.01bn) in 2021, driven by a growing preference for natural and organic spreads.
This preference is also anticipated to boost the sales at 6.3% CAGR, pushing the market size to $49.82bn (€44.13bn) in 2031, FMI said.
According to the report, the organic spreads market, which includes seed and nut butters, organic butter and butter and margarine alternatives, has keen home bakers to thank for the growth in the market. With little else to do during the Covid-19 pandemic, home-bound individuals indulged in cooking experimentations and baking projects, which propelled the sales of spreads through online channels.
This trend is expected to continue over the assessment period, FMI said.
Growth in the market has also been fuelled by a desire to eat more healthily and stay away from heavily processed foods. As a consequence, the demand for organic spreads has been much higher and in response, manufacturers are launching innovative products such as honey and nut and seed-based options as a healthy alternative to conventional spreads.
In addition, the versatility of spreads enables their applications in various commercial end-uses, FMI said. Chocolate and nut-based spreads are used in bakeries, confectionery, and other dishes to offer an enhanced flavour profile to consumers. Hence, growing applications of spreads in restaurants, office lunches, and cafeterias are expected to continue pushing sales in forthcoming years.
As per FMI’s regional analysis, demand for spreads in the U.S. is expected to rise at a robust pace, placing the country as a lucrative pocket in North America. Presence of leading players such as Nestle, The Hershey Company, and The Kraft Heinz Company is expected to create a conducive environment for spreads players over the forecast period.
“Growing demand for premiumisation in packaged food products will push sales of organic and nut-based spreads in the forthcoming years. Apart from this, innovative variants of spreads such as gluten-free and keto spreads launched by players will continue augmenting growth in the market through 2031,” said an FMI analyst.
- Demand for organic spreads is expected to surge at 6.8% CAGR, accounting for 9.4% of the total spreads market share in 2021.
- Based on product type, sales of honey spreads are anticipated to gain traction at a 7.1% CAGR through 2031.
- In terms of end-use, the commercial end-use segment is expected to command 40.4% of the total spreads market share in 2021.
- Sales of spreads through online channels are expected to grow at 7.6% CAGR over the assessment period.
- The U.S. is anticipated to lead the North America spreads market, with sales increasing at 5.7% CAGR through 2031.
- The French spreads market is expected to total US$ 550 million in 2021, owing to growing demand for premiumisation and high-quality confectionery products.
- India is expected to emerge as an attractive market, holding 31% of the Asia Pacific region excluding Japan (APEJ) spreads market share in 2021.
- Sales of spreads in Japan are forecast to increase at 4.9% CAGR as preference for vegetable-based and fruit-based spreads continue to rise.
- The UK spreads market is expected to hold 16% of the Europe spreads market share in 2021.
- Easy availability of a wide range of spreads through online sales channels will continue to drive the sales. Increasing adoption of antioxidant-rich ingredients such as berries, honey, and nuts in spreads is expected to spur the demand for organic spreads over the assessment period.
Leading players operating in the global spreads market are aiming to expand their product portfolios by launching innovative products. Besides this, players are investing in mergers, acquisitions, and collaborations to improve their distribution network and increase production. For example:
In September 2021, Nestle Professional launched KitKat chocolate spread in Europe, Middle East & Africa, and AOA countries, after its successful launch in Brazil. The versatility of the KitKat delivers its signature flavor in both hot and cold applications.
In June 2021, Kraft Heinz Co. announced its plans to acquire Assan Foods from Kibar Holding, a privately held Turkish conglomerate, for US$ 100 Mn. Assan Foods specializes in sauces, spreads, and ketchup, and has been a certified production partner of Kraft Heinz since 2019.
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