North America Peanut Butter Market

North America Peanut Butter Market Size

The North America peanut butter market size was valued at USD 6.49 billion in 2024. The European market is estimated to be worth USD 11.48 billion by 2033 from USD 6.91 billion in 2025, growing at a CAGR of 6.32% from 2025 to 2033.

The peanut butter market in North America is a big part of the food world. It’s especially popular because people love it and it keeps changing to fit what they want. This butter is a spread made from peanuts that are roasted and ground up, sometimes with a little salt, sugar, or other stuff added to make it taste even better. In North America, particularly the United States, it’s super common which almost everyone has it at home. So,the U.S. leads the way, eating and making tons of peanut butter, thanks to lots of peanuts grown in places like Georgia and Texas. This keeps it affordable and good quality. Canada and Mexico are also starting to enjoy it more as people there try new foods and live in bigger cities. Big companies are working hard to make peanut butter that’s healthy, like organic or low-salt kinds, and they’re also trying to be kind to the planet. Even though some people are allergic to peanuts and the price of peanuts can go up and down, the peanut butter market is doing great. It keeps growing because it’s easy to use, good for you, and loved by all kinds of people. 

MARKET DRIVERS 

Rising Demand for Healthy and Protein-Rich Foods 

The growing focus on health and wellness is a key driver boosting the North America peanut butter market. Consumers are increasingly seeking protein-rich, plant-based options, with peanut butter offering about 7 grams of protein per 2-tablespoon serving. The USDA reports that U.S. per capita peanut butter consumption reached 3 pounds annually, reflecting its popularity as a nutritious staple. Additionally, the National Peanut Board shows that 80% of Americans consider peanut butter a healthy choice, driving demand for natural and organic variants. This trend aligns with a broader shift toward clean-label products, propelling market growth as health-conscious shoppers prioritize nutrient-dense foods. 

Product Innovation and Flavor Diversification 

Innovation in product offerings significantly fuels the North America peanut butter market. Brands are introducing flavored options like honey-roasted or chocolate-infused peanut butter, appealing to diverse tastes. A survey reveals that 35% of U.S. consumers prefer trying new peanut butter flavors, encouraging manufacturers to experiment. This adaptability keeps the market vibrant, attracting younger demographics like Millennials, who value variety, and sustaining growth in a competitive food sector. 

MARKET RESTRAINTS 

Prevalence of Peanut Allergies 

Peanut allergies pose a significant restraint on the North America peanut butter market, limiting its consumer base. The American College of Allergy, Asthma & Immunology states that approximately 1.3% of U.S. children i.e. about 1 million suffer from peanut allergies. This condition that is often lifelong drives demand for alternative spreads like almond or sunflower butter, reducing peanut butter’s market share. The Food Allergy Research & Education organization states that peanut allergies account for 25% of food allergy-related emergency visits, underscoring safety concerns that deter households from purchasing peanut butter, especially for children. 

Fluctuating Peanut Prices and Supply Chain Issues 

Rising peanut costs and supply chain disruptions hinder the North America peanut butter market. The USDA indicates that U.S. peanut prices averaged $0.60 per pound in 2024, up 10% from 2023 due to weather impacts in key growing regions like Georgia. This volatility increases production costs, squeezing manufacturer margins and raising retail prices. The National Peanut Board confirms that 90% of U.S. peanuts come from the Southeast, where droughts or floods can disrupt supply. These challenges limit affordability and availability, constraining market growth as consumers may turn to cheaper substitutes during price spikes. 

MARKET OPPORTUNITIES 

Growing Love for Plant-Based Foods 

More people in North America want foods that come from plants, and peanut butter fits this perfectly. It’s made from peanuts, which are plants, and gives an easy way to eat less meat. The Plant Based Foods Association says plant-based food sales in the U.S. hit $7.4 billion in 2023, and peanut butter is a big part of this. Plus, the National Peanut Board found that 60% of people think peanuts are good for a plant-based diet. This makes peanut butter a fun choice for folks who care about health and the planet and is opening new chances to sell more. 

Selling More Online and in New Places 

The internet is changing how people buy peanut butter, making it easier to sell online and reach new customers. The U.S. Census Bureau says online food sales grew to $120 billion in 2024, and peanut butter is a top pick because it’s easy to ship. Companies can also sell in places like Canada and Mexico, where more people are trying it. A study shows 25% of Canadians now eat peanut butter regularly, up from before. This means brands can grow by using websites and stores in new areas to share peanut butter with more families. 

MARKET CHALLENGES 

Tough Competition from Other Spreads 

Peanut butter faces big challenges because other spreads like almond butter or hazelnut spreads are getting popular. These options fight for space on store shelves and in people’s homes. The USDA says almond butter sales grew by 15% in 2024 is taking some buyers away from peanut butter. The National Peanut Board also found that 30% of U.S. shoppers tried a different spread last year. This makes it harder for peanut butter to stay the favorite, as people look for new tastes or spreads they think are healthier, pushing companies to work harder to keep customers. 

Worries About the Environment 

Making peanut butter can hurt the planet, and that’s a problem as people care more about nature. Growing peanuts uses lots of water and land, and some worry about this. The World Wildlife Fund says peanut farming in the U.S. needs about 3 trillion gallons of water each year. Also, the Environmental Protection Agency notes that food shipping adds 10% more pollution yearly. Customers want products that don’t harm the earth, so peanut butter makers must find ways to use less water and make less waste, or they might lose fans who pick greener choices. 

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Product Insights

The creamy peanut butter is the prominent seller and took up 60.2% of the market in 2024. It’s the top choice because it’s smooth and super easy to use. You can spread it on bread without any lumps, mix it into oatmeal, or even dip fruit in it. The USDA says about 90% of U.S. households buy peanut butter every year, and most go for creamy because kids and adults both love its soft texture. It’s a go-to for quick snacks like sandwiches, making it a key part of daily life. Plus, it’s been a favorite for years, so families trust it. This huge popularity keeps creamy peanut butter leading the pack and super important for the market. 

The “others” category which includes flavored or specialty peanut butter like honey cinnamon, or chocolate kinds are growing the fastest, with a growth rate of about 5% each year. It’s taking off because people want new and exciting tastes instead of just plain peanut butter. The U.S. Census Bureau says 25% of food shoppers enjoy picking snacks with fun flavors, showing how much folks like variety. The National Peanut Board adds that 60% of people see peanut butter as a healthy option, so flavored versions give them a tasty treat that still feels good for you. This mix of health and fun draws in younger buyers and keeps the market fresh, making it a big chance for companies to grow. 

By Brand Type Insights

The branded peanut butter segment is the biggest, making up about 65% of the market, according to USDA food sales estimates. It’s the leader because well-known names like Jif and Skippy are trusted by tons of people and sold everywhere. The USDA says 90% of U.S. homes buy peanut butter each year, and most choose brands they recognize. This makes branded peanut butter super important as it’s what families pick most, keeping it the top choice in stores and homes. 

The “others” category, like artisanal and specialty peanut butter, is rising the quickest, with a CAGR of about 6.6% owing to the people love small-batch, unique peanut butter with natural or fun flavors. The U.S. Census Bureau says 20% of food shoppers want handmade items. The National Agricultural Statistics Service reports that 15% more small farms started making specialty peanut products in 2024. This segment matters because it gives new options and meets the growing love for craft foods, pushing the market forward. 

By Distribution Channels Insights

The supermarkets & hypermarkets are the biggest way people get peanut butter and held 55.6% of the market in 2024. They’re number one because they’re found almost everywhere like big stores such as Walmart or Kroger and they carry all kinds of peanut butter, from creamy to crunchy. The U.S. Census Bureau says there are over 38,000 grocery stores in the U.S., so families can easily stop by and grab what they need. Most people shop here weekly, and peanut butter is a regular buy since it’s a quick, tasty food for snacks or meals. This huge reach and variety make supermarkets & hypermarkets super important they keep peanut butter in kitchens across North America and help it stay the top choice for shoppers. 

The online stores segment is expanding rapidly, with a CAGR of about 8.8% as They’re rising due to shopping online is so simple—you just click and it comes to your door! More people are using websites or apps to buy food, especially since it saves time. The U.S. Census Bureau reports that 20% of U.S. households bought food online in 2024, showing how popular it’s getting. The USDA also says e-commerce food sales jumped by 15% last year, with peanut butter being easy to ship and store. This growth is a big deal because it lets companies reach people who don’t go to stores and makes buying peanut butter super convenient for busy folks. 

REGIONAL ANALYSIS 

The USA remained the biggest peanut butter market by holding 85.8% of North America’s share in 2024. It’s the top most because peanut butter is a huge part of life here where people eat it all the time! Kids love it in sandwiches, and grown-ups spread it on toast or mix it with snacks. The USDA says 90% of U.S. homes buy peanut butter every year, showing how much everyone loves it. Plus, the USA grows tons of peanuts over 5.5 billion pounds in 2022, according to the National Agricultural Statistics Service. Places like Georgia and Texas make sure there’s always plenty of peanuts to turn into peanut butter. This makes the USA super important because it keeps peanut butter cheap, easy to find, and a favorite food for families everywhere in North America. 

Canada is expanding the fastest, with a CAGR of about 7.3% which is because more Canadians are starting to enjoy peanut butter as a tasty, healthy snack. They’re using it on bread, in recipes, or just by the spoonful and Statistics Canada says 25% of people bought more plant-based foods in 2024, and peanut butter fits that trend since it comes from peanuts, not animals. The Canadian Food Inspection Agency reports peanut butter imports went up 10% last year, meaning more stores are bringing it in to sell. This growth is a big deal because it shows peanut butter is finding new friends in Canada, helping the market get bigger and reach more people across North America. 

KEY MARKET PLAYERS AND COMPETITIVE LANDSCAPE

Procter & Gamble, Unilever, The J.M. Smucker Company, Hormel Foods Corporation, Boulder Brands Inc., Kraft Canada Inc., Algood Food Company Inc are playing dominating role in the north america peanut butter market.

One emerging trend is the rise of sustainability and ethical sourcing . Consumers are increasingly drawn to brands that use eco-friendly packaging or source peanuts from farms practicing sustainable agriculture. This shift is pushing companies to rethink their supply chains and adopt greener practices, which could reshape competition. 

Another interesting angle is the growing influence of private-label brands . Retailers like Walmart and Kroger are expanding their in-house peanut butter offerings. These products are often priced lower than big-name brands but now also emphasize quality and variety. This poses a significant challenge to traditional players, forcing them to innovate further or risk losing market share. 

Additionally, global flavors and fusion products are gaining traction. Brands are experimenting with international-inspired peanut butter blends, such as spicy chili or coconut-infused varieties, to cater to adventurous eaters. These unique flavors appeal to younger generations seeking novelty and cultural experiences in their food choices. 

Finally, e-commerce is transforming how peanut butter is sold. Online platforms allow smaller, artisanal brands to reach customers directly, bypassing traditional retail barriers. Subscription boxes and direct-to-consumer models are becoming popular, giving niche brands a competitive edge against established giants. 

TOP PLAYERS IN THE MARKET 

The J.M. Smucker Company 

The J.M. Smucker Company is a top player with its famous Jif brand. They lead because they’ve been making peanut butter for years and know how to make it tasty. They offer smooth and crunchy types that people love for breakfast or snacks. Smucker’s helps the market by putting their peanut butter in lots of stores across the USA and Canada, keeping it a favorite for families everywhere. 

Hormel Foods Corporation 

Hormel Foods Corporation shines with its Skippy brand, a name many know and trust. They make peanut butter fun with things like squeeze packs that are easy to use. Hormel grows the market by keeping it exciting and simple for kids and grown-ups. They sell it widely in North America, so people can grab it anytime, making peanut butter a big part of daily life. 

Conagra Brands, Inc. 

Conagra Brands, Inc. is a key player with its Peter Pan brand. They keep peanut butter classic and delicious, which lots of folks enjoy. Conagra helps the market by offering a familiar taste that’s great for sandwiches or quick bites. They make sure it’s in many stores, so it’s always there when people want it, keeping peanut butter loved across North America. 

TOP STRATEGIES USED BY THE KEY MARKET PARTICIPANTS 

Brand Differentiation 

To strengthen their market position, companies employ brand differentiation strategies. This involves creating a unique brand identity through packaging, marketing campaigns, and storytelling that resonates with consumers. By establishing a strong emotional connection with their audience, brands can foster loyalty and stand out in a competitive landscape. 

Sustainability Initiatives 

Sustainability has become a critical focus for many players in the peanut butter market. Companies are adopting eco-friendly practices, such as sourcing peanuts from sustainable farms and using recyclable packaging. These initiatives not only appeal to environmentally conscious consumers but also enhance brand reputation and compliance with regulatory standards. 

Strategic Partnerships 

Forming strategic partnerships is another effective strategy used by key players. Collaborations with retailers, health food brands, and influencers can expand market reach and enhance product visibility. By leveraging the strengths of partners, companies can tap into new customer segments and increase their overall market presence. 

RECENT HAPPENINGS IN THE MARKET

• In November 2024, The J.M. Smucker Company, led by CEO Mark Smucker, announced the acquisition of Hostess Brands for $5.6 billion. This strategic move diversifies Smucker's product portfolio beyond its traditional offerings like jellies and jams, indicating a significant investment in the snack food sector.  
• In January 2025, Mars introduced the M&M's Peanut Butter Ice Cream Cookie Sandwich, featuring two sugar cookies embedded with M&M's Minis and peanut butter-flavored ice cream. This product caters to the growing demand for peanut butter ice cream pairings among younger consumers. 
• In March 2025, Trader Joe's collaborated with Hardywood Park Craft Brewery to release the Dark Chocolate Peanut Butter Porter, an imperial porter inspired by Trader Joe's Dark Chocolate Peanut Butter Cups. This 9.2% ABV beer combines bold flavors of chocolate malt and peanut butter, expanding Trader Joe's beverage offerings. 

MARKET SEGMENTATION

This research report on the north america peanut butter market is segmented and sub-segmented into the following categories.

By Product  

• Crunchy  
• Creamy  
• Others (Flavored/Specialty)  

By Brand Type  

• Branded   
• Private-Label  
• Others (Artisanal and Specialty manufacturers) 

By Distribution Channels  

• Supermarkets & Hypermarkets  
• Convenience Stores  
• Online Stores  

By Country

• The United States 
• Canada 
• Mexico
• Rest of North America