ID: MRFR/F-B & N/9522-CR | 110 Pages | Author: Snehal Singh | March 2023
Peanut Flavor Market Size was valued at USD 3,344.90 million in 2021. The peanut flavor market industry is projected to grow from 3,571.87 million in 2022 to USD 5,423.66 million by 2030, exhibiting a compound annual growth rate (CAGR) of 6.23% during the forecast period (2022 - 2030). The rising demand for plant-based foods along with the increasing industrial research for flavoring products across the globe are driving the market growth.
Figure 1 Peanut Flavor Market, 2021 & 2030 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Data released by the Plant-Based Foods Association in 2021, has revealed that the retail sales of plant-based food have grown three times faster than retail food sales. As peanut contains more than thirty essential vitamins and nutrients play an important source of plant-based foods for consumers who follow vegan, vegetarian, and flexitarian diets. Increasing consumer preference for healthier, clean-label diets and a sustainable lifestyle boost plant-based protein growth, pushing the market for Dairy Products. Also, the nutritional and calorific profile of Dairy Products like peanut butter, spreads, snacks, etc., meet the energy and taste preferences of meat-alternative diet consumers, amplifying the growth of the peanut flavor market. There have been several peanut flavor-based product innovations in these recent years by major brands across the globe like PhoLicious Brand's Vietnamese peanut sauce, General Mill's chocolate peanut butter wafer bar (Nature Valley Brand), Kellogg's Special K brand's chocolate peanut butter flavor protein meal bar, etc. Thus, the rising demand for plant-based foods by vegan and vegetarian diet followers and gluten-free foods across the globe is anticipated to support and drive the growth of the peanut flavor market.
Based on flavor, the Peanut Flavor Market segmentation includes chocolate, caramel, and others. The chocolate segment held the majority share in 2021 contributing to around a market value of USD 2,073.40 million of Peanut Flavor Market revenue. Some of the most popular chocolates are the two flavor partners, which may be found in everything from candy to pastries to buckeyes. Chocolate and peanut butter taste much better when combined than when consumed separately. According to Gregory Ziegler, a professor of food science at Penn State University who specializes in studying chocolate, "dynamic sensory contrast" is mainly responsible for the delicious taste of biting into a Reese's Peanut Butter Cup. According to a recent study from the American Chemical Society 2020, adding leftover peanut shells to milk chocolate increases its antioxidant capabilities and also offers anti-inflammatory health advantages that help prevent food goods from decaying. Peanut Milk chocolate comprises milk powder, peanuts, Sugar, Dextrose, Salt, TBHQ & Citric Acid (to maintain freshness), and a small percentage of cocoa solids and cocoa butter. According to STATE OF SNACKING 2021, over nine out of ten consumers eat one indulgent snack every day, and snacking and chocolate consumption have both climbed over the previous two years. The chocolate segment is expected to grow at a market CAGR of 6.57%.
May 2020 Firmenich International SA, a global leader in the Flavor & Fragrance industry, has acquired Les Dérivés Résiniques et Terpéniques ("DRT"), a well-renowned company in the naturally-derived ingredients market. The acquisition is expected to boost the growth of Firmenich International SA, in the perfumery market.
December 2020Huel Ltd. is a meal replacement company offering a wide range of products like grains, powder, bars, and liquid. The company launched new Huel powder and huel black edition products with peanut butter flavor.
Figure 2 Peanut Flavor Market, by Flavor, 2021 & 2030 (USD Billion)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
Based on Product, the Peanut Flavor Market segmentation includes snacks, bites, spreads, biscuits, tablets, and others. The snacks segment held the majority share in 2021 contributing to around ~30 to 40% of the Peanut Flavor Market revenue. An appetizer eaten in between meals is referred to as a snack. They might be simple, prepackaged products, fresh fruits or other vegetables, or more complex recipes, but they are usually regarded as less than a complete meal. According to the National Peanut Board (NPB), peanuts contain the highest amount of protein per ounce at 7 grams. In addition to providing fiber and vitamin E, peanuts and peanut butter are healthy for the body. They provide more than 30 vitamins and minerals as well. The Snacks segment is expected to grow at a market CAGR of 6.62%.
Based on Application, the global Peanut Flavor industry market data has been segmented into bakery, confectionery, butter & spreads, dairy products, and others. The butter & spreads segment held the largest segment share in 2021. One of the most consumed spreads worldwide is peanut butter and for good reason. Globally, people are starting to choose healthier breakfast and snack alternatives due to growing obesity rates. For instance, in the UK, peanut butter sales are predicted to surpass those of sweet spreads like jam since Public Health England (PHE) is focusing on them as part of the sugar reduction strategy. With this program, the PHE hopes to lower the total level of sugar in the meals that kids eat. Consuming nuts like peanuts can help protect against conditions including diabetes, metabolic syndrome, and coronary heart disease (CHD). Additionally, the National Institute of Health (NIH) notes that nut-based spreads are a rich source of phytochemicals that protect against breast, prostate, colon, and other cancers. The NIH also predicts that people who consume nuts five or more times per week have a relative risk of acquiring diabetes that is approximately 27.0% lower than that of people who eat nuts infrequently or never. The butter & spreads segment is anticipated to grow at a CAGR of 6.46% during the forecasted period.
October 2022 Superfoodie, a plant-based snack brand has launched its novel peanut butter buttons in the UK. #nomorebutterfingers was the marketing campaign used for the product launched as part of its Co-op’s Apiary Scheme. The buttons are designed to overcome the problem of getting the fingers sticky and have gained significant reception among customers.
April 2021 Pic’s and Whittaker’s two peanut butter brands in New Zealand have collaborated to launch Pic's peanut & chocolate butter in Australia. The products are made available throughout the country via independent stores.
Based on Distribution Channels, the global peanut flavor industry market data has been segmented into Store-based and non-store-based. The Store-based segment accounts for the largest market share of 64.31% in 2021.
The store-based distribution channel is defined as the brick-and-mortar retail stores like Supermarket & Hypermarket, Convenience stores, and Specialty stores. Supermarket & Hypermarket accounts for a market share of 60.41% in the store-based peanut flavor market. The increasing interest in consuming different flavors and different brands contributes to increasing footfall in the supermarket & hypermarket segment which provides a wide assortment of peanut flavors. Though, the local-supermarket brands, spurious and counterfeit products are relatively available at lesser prices hinders the sales of branded peanut flavor market. Convenience stores are those small-size retail shops with day-to-day groceries. The store also sells peanut flavors of various brands and flavors in all SKUs. A specialty retailer concentrates on a small number of product categories as opposed to those that sell a wide range of consumer products with respect to varied regions across the globe
By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The North America peanut flavor market accounts for the largest market share of USD 1,595.39 million in 2021. The increasing awareness about healthy food products and rising consumption of convenience food products are expected to drive the growth of the market in North America. Growing health consciousness among consumers in the US peanut flavor market has influenced food manufacturers to incline toward the adoption of natural and healthy food ingredients. Thus, the manufacturers of peanut flavors are shifting their preferences toward natural ingredients and flavors. The escalating demand for nutritious products along with the rising health awareness in the Canada peanut flavor market has always been a key factor in the growth of the product. The increasing awareness about healthy food products and rising consumption of convenience food & beverage products are expected to drive the growth of the market in North America
The major countries studied are the U.S., Canada, Mexico, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia and New Zealand, and Brazil.
Figure 3 PEANUT FLAVOR MARKET SHARE BY REGION 2021 (%)
Source Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Asia-Pacific peanut flavor market comprises China, Japan, India, Australia & New Zealand, and the rest of Asia-Pacific and held the second-largest market share in 2021. The growth of the peanut flavors market in Asia-Pacific is driven by the increasing consumption of ready-to-eat food products. The changing consumer preferences, growing population in developing economies, and rising per capita disposable incomes are impacting the sales of ready-to-eat products, wherein peanut flavors are being widely used. The key contribution to peanut flavor consumption is from the China peanut flavor market and Indian peanut flavor market. However, many Southeast Asian countries have paid a substantial contribution to peanut flavor utilization through various applications. The growth of the food flavors market in the Asia-Pacific region is anticipated to be driven by various factors with countries such as China, Japan, and India majorly driving the growth owing to several factors such as consumers’ shift in taste and preference for international food cuisines are on the verge of globalization
The Europe peanut flavor market is one of the prominent regions across the globe that includes most of the developing countries such as Germany, Italy, Spain, the UK, and France. The European peanut flavor market has been growing for years and it is driven by changes in the consumption patterns of European consumers, including rising demand for healthier snacking options. The already established market of peanuts in Europe has been supporting Dairy Products. European countries are recognized for their consumption of bakery and confectionery products especially the UK peanut flavor market and Germany peanut flavor market. Moreover, the extensive use of flavors and spreads in the production of bakery & confectionery products is anticipated to act as one of the significant factors for the rising growth of the peanut flavors market.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Peanut Flavor market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, partnerships with local manufacturers in key markets, increased investments, and marketing initiatives to strengthen their presence. Competitors in the Peanut Flavor industry must offer innovative products that are trending to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global peanut flavor industry to benefit clients and expand the peanut flavor market sector is a strategic acquisition that gives a competitive advantage over the other players in the market.
Archer-Daniels-Midland Company (ADM) specializes in the manufacturing of food and beverage ingredients along with other varieties of agricultural products. The company’s product portfolios include natural flavors and colors, health and nutrition products, vegetable oil, corn sweeteners, flour, animal feed, and biofuels. It primarily operates in three business segments, namely, Ag services and oilseeds, carbohydrate solutions, and nutrition. The Ag services and oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials. The carbohydrate solutions segment is engaged in corn and wheat wet and dry milling and other activities. The nutrition segment serves customer needs for food, beverages, health and wellness, and many more.
Lone Tree Nut Company got over 70 years of experience in nut sourcing and processing and works closely with manufacturers, retailers, and consumers. The company makes sure that from production to packaging everything should be sustainable and environmentally friendly. The company invests in training to ensure that every staff must have the most up-to-date knowledge and that our processes continue to meet the latest standards for quality and safety. Sun Valley Nut sticks to the mantra of reducing, reusing, and recycling when it comes to packaging
Peanut Flavor Industry Developments
January 2023 WOW Life Science launched a novel peanut butter that is infused with superfoods with two variants namely super seeds and sattu in India. The super seeds variant is made using seeds of pumpkin, sunflower, chia, and watermelon and also the Sattu is made using roasted channa powder.
August 2022 Good Good Brand is planning to launch its no added sugar peanut butter product in Canada, the UK, and Europe. To reduce the carb count the company is sourcing its peanuts from the US owing to its growing conditions.
August 2022 Lenny & Larry’s expanded its product portfolio with the addition of a plant-based protein bar named The Complete Cookie-fied Bar in two flavors including peanut butter chocolate chip and chocolate almond sea salt. The bar is launched in the US through omnichannel including stores-based and online retailers.
Rest of the World
|Market Size 2021||USD 3,344.90 million|
|Market Size 2022||USD 3,571.87 million|
|Market Size 2030||USD 5,423.66 million|
|Compound Annual Growth Rate (CAGR)||6.23 % (2022-2030)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Flavor, Product, Application, Distribution Channel, and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and the Rest of the World|
|Countries Covered||The U.S, Canada, Mexico, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia and New Zealand, and Brazil|
|Key Companies Profiled||Firmenich (Canada), Nature’s Flavours (Germany), Abelei (Germany), S-World Flavor & Fragrance (Italy), Weber (Germany), Stringer Flavoured (Germany), Flavour so good Company (China), Lionel Hitchens (United Kingdom), Fuxiong Flavours & Fragrances (China) and Northwestern Extract (US)|
|Key Market Opportunities||Product launches and Innovation Demand for organic Dairy Products|
|Key Market Dynamics||Rising demand for plant-based foods Increasing institutional research for flavoring products across the globe Emerging use of chemical-free ingredients in the food industry|
The peanut flavor market is valued at USD 3,344.90 million in 2021
The US Peanut Flavor market is valued at 939.89 million in 2021
The peanut flavor market is expected to grow at a CAGR of 6.23% during the forecast period
North America held the largest share market in the peanut flavor market
The key players include Nature’s Flavours, Stringer Flavoured, Flavour So Good Company, and Lionel Hitchens.
Chocolate is the leading segment in the peanut flavor market
The butter & spreads segment has accounted for the largest market share in the peanut flavor market
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