United States Food Spread Market - Growth, Trends and Forecasts (2018 - 2023)
The US food spread market is expected to register a CAGR of 1.8% during the forecast period of 2018-2023. It accounted for 83% share of the North American food spread market in 2017. Food spreads comprise of a variety of products, including jams, jellies, fruit- and nut-based spreads, honey, syrup, and chocolate-based spreads. The United States is a significant consumer of sweet-based spreads. The consumption of food spreads largely relies on the consumption of bread. An increasing number of individuals are turning health conscious, thus reducing the consumption of sweet spreads. Consumers have been looking for low sugar/low fat alternatives, in the form of natural/organic spreads with functional attributes. A decline in the consumption and the market for traditional forms of spreads has paved the way for increased developments in nut-based/chocolate- or fruit-based spreads. To address this growing consumer trend toward healthy spreads, the US food spread manufacturers are introducing new product lines with healthy attributes in the economic segment.
Prosperity Organic Foods Inc. introduced a new probiotic MELT organic buttery spread, a truly innovative product. MELT Organic teamed with Ganeden, the makers of patented probiotic GanedenBC30, to launch probiotic MELT buttery spread. The product is luscious butter with an improvement that is truly good for digestive health.
Florida-based small brand Kitchen Crafted recently launched a line of two savory spreads, called SPRD, flavored Marinara Mia and Creole Mayo Spread. The company struck a deal with its first bigger chain grocer Lucky’s Market in Florida. Founder of the brand Kitchen Crafted, Niroo Kamdar, says that product positioning is a key factor that attracts distributors and buyers.
Chocolate- and Nut-Based Spreads Recording Robust Growth
Chocolate- and nut-based spreads, which are the fastest growing segments and the most popular among the younger population, are recording an increased number of takers from the older population. Nutella, a market leader in the chocolate spread segment in the United States, is facing competition in terms of pricing from the private label brands. Private label players are occupying the retail share of branded products, by introducing competitively priced products in the organic/natural category and product lines aimed at children.
Jams and jellies witnessed a growth rate of around 3.5%. Over 40% of the US market is dominated by J M Smucker and Unilever Group. Nut-based spreads in the United States are the most popular choice, with sales amounting for around 41% of the overall sales of the US spread market. Chocolate spread is the second most popular choice and growing preference for natural fruits is driving market for fruit-based spreads in the United States.
Modern grocery retailers account for the maximum market, with a share of 81% of the total spreads market of the United States. In 2016, sales worth USD 7199.58 million was registered from modern grocery retailers. Traditional grocery and non-grocery account for 2% and 1% respectively of the total spread market by sales channel in the United States. Major PLAYERS: J M SMUCKER, KRAFT FOODS, UNILEVER GROUP, CONAGRA FOODS INC., SIOUX HONEY ASSOC., NATIONAL GRAPE CO-OPERATIVE INC., B & G FOODS INC., FERRERO GROUP, HERSHEY CO., FREEDOM FOODS, NATUREFOOD CHOCOLATIER, NESTLE, WELLNESS FOODS and PREMIER FOODS, amongst others.
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