Market Trends of Sweet Spread Industry
Rising Consumer Inclination Toward Natural/Organic and Sugar Reduced Spreads
The majority of consumers in developed countries are looking for food spreads without any inclusion of artificial additives owing to the associated long-term adverse health effects. Manufacturers are inclined toward the usage of natural flavoring agents, preservatives, and sweeteners as they are the key ingredients used in sweet spreads to extend the shelf-life of the product. Global manufacturers have introduced product lines with natural claims across spreads/buttery spreads with no artificial preservatives and artificial flavor. Additionally, millennials currently account for a large share of direct consumer spending. This generation of individuals insists on consuming better-for-you products than natural or organic ingredients. Thus, the vendors are creating strategies for this demand and are developing organic offerings. For instance, Trailblazer offers several product lines, such as Organic Preserves, which contain more fruit and less added sugar than regular preserves.
Natural/organic sweet spreads have grown in popularity as a result of health concerns, and they benefit from the overall growth of the American organic market. Even when economic conditions are unfavorable, the majority of consumers who prefer organic products will not change their shopping habits or refrain from purchasing organic goods. For instance, in October 2022, Dabur India Ltd introduced the Réal Health Peanut Butter range. As per the company's claims, the product is 100% natural and is made with a single ingredient, a bold variety of peanuts. The product is a source of antioxidants, gluten-free, and has no trans fats. Additionally, the product has no added sugar, salt & oil and can be purchased from e-commerce and modern trade.
North America to Hold a Significant Market Share
The sweet spread market in the North American region is dominated by increased consumption of spreads in countries, particularly, the United States and Canada. The sweet spread market is highly competitive with private-label products competing with global prominent brands, in terms of pricing and product innovation. Chocolate-based spread segment of the market is witnessing a growth in demand, specifically among parents who are concerned about their children getting regular breakfast as per their tastes and preferences.
The increasing trend for sanctification is fueling the growth of the chocolate-based spreads market during the forecast period. The availability of regional products at a convenient price is creating competition in the market. For instance, in July 2022, SunButter a brand of SunGold Foods, Inc. announced a national-roll out of its chocolate SunButter on Amazon and 450 outlets of Whole Food Market across the United States market. Additionally, according to USDA statistics, 1.48 million pounds of raw honey were produced by 2.71 million bee colonies in 2020. The National Honey Board estimates that the average American consumes about 1.51 pounds of honey annually.
