Spreads Market Analysis Report By Product Type, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global spreads market size was accounted for USD 27.5 billion in 2018. It is estimated to grow significantly, at a CAGR of 3.1% over the forecast period, 2019 to 2025. In western countries, there is high demand for spreads because they are used as a vital breakfast ingredient. Nowadays, most consumers prefer artisan bakery products. Moreover, there is high demand for healthy and natural spreads. These factors are expected to boost the global market during the forecast period.

In western countries such as U.S., U.K., and Germany there has always been a high demand for jams, cheese, honey, chocolate spreads, and peanut butter owing to their excessive usage in preparing breakfast. For example, in North America, waffles and pancakes are the most loved and popular breakfast food. They come in different flavors and toppings. Strawberry & blueberry jams, butter, honey, and chocolate are some of the popular toppings used to complement the flavor.

Nowadays, people gift gourmet jams and preserves to friends, colleagues, and relatives as these products form a premium segment of spreads and are considered to be superior or luxury products. This factor is expected to drive the growth of the spreads market over the forecast period. Further, a rapid increase in the buying power of consumers is anticipated to contribute to the growth of the market from 2019 to 2025.

Consumers highly prefer low-calorie spreads owing to their health benefits and the inclination of consumers towards a healthy and active lifestyle. Leading manufacturers are trying to reduce the amount of sweetener and artificial flavors used in sweet spreads that cause health hazards. Further, there is a growing trend of using natural ingredients that make the products healthier compared to conventional spreads. For example, Unilever substituted its butter product range by incorporating natural ingredients such as plant oils, salt, water, and no other artificial flavor & color.

The tastes and preferences of consumers change from region to region. For example, consumers in Germany prefer jam and cheese spreads, whereas Italian people prefer Nutella. Consumers in India top their toasts with butter and consumers in Spain prefer tomato spreads. Therefore, manufacturers across different regions are constantly launching a variety of spreads to cater to changing consumer preferences. 

Product Type Insights

In 2018, the fruit spreads segment held the largest market accounting for more than 30.0% of the total market share. Availability of fruit spreads with a variety of flavors and different textures such as fruit pastes, fruit pulps & syrups, and jams are expected to drive the segment’s growth. Fruit spreads are used as a vital ingredient in a variety of dishes across different regions. For example, fruit syrups and fruit jams are used as essential ingredients in most of the popular desserts of Japan such as Anmitsu, Harajuku, and Kakigori. Furthermore, a company named Smucker’s provides a variety of fruit spreads like jams, preserves, jelly, fruit butter, squeeze, fruit & honey, orchid’s finest, natural food spreads, sugar-free, and many other variants.

The other segment is expected to be the fastest-growing segment at a CAGR of 3.4% from 2019 to 2025 due to the increasing utilization of honey. Consumers are highly concerned about their health and fitness, thereby, prefer honey-based spreads over sugar-based spreads. Honey helps in boosting the immune system and its anti-microbial properties help in fighting against various infections. These properties are anticipated to boost the consumption of honey-based spreads. Moreover, consumers prefer organic food products, thus, accelerating the demand for organic honey. For instance, organic honey is offered by some of the Indian companies such as 24 Mantra, Honey Basket, Dabur Honey, Organica, and True Elements. 

Distribution Channel Insights

The hypermarket & supermarket segment accounted for the largest market share of 34.5%, in 2018. Consumers prefer shopping through this segment because they can try and taste the products that impact their purchase decision. This factor is projected to boost the growth of this segment. Manufacturers can capture the attention of consumers while launching new products through this distribution channel as they can compel customers to try out the newly launched flavors. This factor made the hypermarket & supermarket segment the most preferred distribution channel for launching new products.

The online distribution channel segment is projected to grow at the fastest CAGR of 3.6% from, 2019 to 2025. E-commerce platforms are providing ease of accessibility, attractive discounts, ease of payment, easy exchange & replacement policies, and cashback that enforce the consumers to shop online. Furthermore, the evolution of e-tailing food delivery companies and the development of click & brick companies that offer products through their own websites are the factors expected to further propel the growth of online channels. For example, in India, Big Basket is one of the emerging websites for online grocery shopping that offers over 1800 grocery items.

Regional Insights

In 2018, Europe dominated the spread market with a revenue share of 45.2%. In countries such as U.K. and Germany, people consume spreads in large numbers. Europe is one of the potential markets for desserts & bakery products, and spreads are excessively used as a prime ingredient in these products. This factor is projected to contribute to the regional market growth over the forecast period. The second most potential market for spread is North America because people in this region highly prefer fast foods like sandwiches & burgers, which use a wide variety of spreads like avocado spread, mayonnaise, cheese, and garlic butter. People in this region also prefer fruit-based desserts which thereby boost the demand for fruit spreads.

In 2018, the Asia Pacific is anticipated to grow at the fastest CAGR of 4.3%. People in this region highly consume chocolate spreads due to their delicious taste. This is one of the prime factors expected to propel regional market growth. In countries like Japan, India, and China, western culture is being adopted at a faster pace. Moreover, people in this region highly prefer spreads that contain natural ingredients. Therefore, these factors are expected to accelerate the regional demand for spreads over the forecast period. Furthermore, international brands are launched in emerging nations such as China and India, which is expected to uplift the market growth. For example, the number of outlets of fast food brands like Burger King, Chicago Pizza, Dunkin Doughnuts, Chili’s, and Carl’s Jr is rapidly increasing in India. These fast-food chains use a variety of spreads in almost every product.

Spreads Market Share Insights

Key players in this industry include The Hershey Company, Andros Group, Hero, Ferrero, Hormel Foods, B&G Foods, JM Smucker, Centura Foods, Capilano Honey, and Bernard Michaud. The leading companies are focusing on product innovations, mergers & acquisitions, and product line expansion to differentiate their product from competitors’ products. For example, one of the leading brands JM Smucker introduced a spread known as honey & fruit spread that contains natural ingredients for expanding their product line.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global spreads market report based on product type, distribution channel, and region:

• Product Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Butter/Cheese
    • Fruit Spreads
    • Chocolate & Nuts
    • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
    • Hypermarket & Supermarket
    • Convenience Store
    • Specialty Store
    • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
    • The Asia Pacific
        • India
        • China
    • Central & South America
        • Brazil
    • Middle East & Africa
        • Africa