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 North America peanut butter market covers a broad array of products made from ground, roasted peanuts, often blended with oils, sweeteners, and stabilizers to create a creamy or crunchy spread. Widely consumed across households, foodservice establishments, and institutional sectors, peanut butter is a staple in American diets due to its versatility, nutritional profile, and affordability. It plays a prominent role in school lunches, baking, snack formulations, and as an ingredient in various prepared foods. 

Peanut butter is classified into different types based on texture, ingredients, and nutritional content—ranging from traditional full-fat versions to reduced-sugar, organic, and natural variants that cater to evolving consumer preferences. According to the U.S. Department of Agriculture (USDA), peanuts are among the most widely cultivated oilseeds in the United States, with over 1.5 million acres harvested annually for food production. As per data from Statistics Canada, peanut-based products have seen growing acceptance in Canadian households, particularly in urban centers where demand for protein-rich and plant-based snacks is rising. Moreover, the National Peanut Board highlights that peanut butter remains one of the most exported peanut-derived products from the U.S., contributing to both domestic consumption and international trade.  

MARKET DRIVERS 

Rising Demand for Plant-Based and Protein-Rich Foods 

One of the primary drivers of the North America peanut butter market is the growing consumer preference for plant-based and protein-rich foods. As more individuals adopt vegetarian, vegan, or flexitarian diets, peanut butter has emerged as a favored source of plant-based protein, especially among health-conscious consumers and athletes. The popularity of peanut butter in fitness and wellness communities is further reinforced by its high protein content—approximately 8 grams per two-tablespoon serving—as well as its healthy fats, fiber, and essential vitamins like niacin and vitamin E. The American College of Nutrition reports that regular nut and seed consumption, including peanut butter, is associated with improved cardiovascular health and better weight management outcomes. Moreover, schools, meal kit services, and food manufacturers increasingly incorporate peanut butter into breakfast items, energy bars, and protein shakes to meet dietary guidelines promoting plant-based nutrition. This sustained interest in nutrient-dense, plant-based foods continues to fuel strong demand for peanut butter across North America. 

Expansion of Natural and Organic Product Categories 

Another significant driver of the North America peanut butter market is the expansion of natural and organic product categories, reflecting shifting consumer priorities toward clean-label ingredients and minimally processed foods. Natural peanut butter, which typically contains only peanuts and sometimes salt, appeals to consumers seeking transparency in food labeling and avoidance of artificial additives, preservatives, and hydrogenated oils. The Organic Trade Association notes that organic peanut butter now accounts for a notable share of total peanut butter sales in premium retail channels such as Whole Foods Market, Sprouts Farmers Market, and specialty grocery stores. Moreover, the rise of e-commerce and direct-to-consumer platforms has enabled niche brands to reach wider audiences, offering small-batch, artisanal, and allergen-free peanut butter options. This growing emphasis on ingredient integrity and sustainability is encouraging major manufacturers like J.M. Smucker Company and Hormel Foods to reformulate conventional products and launch certified organic lines.  

MARKET RESTRAINTS 

Allergies and Health Concerns Associated with Peanuts 

A major restraint affecting the North America peanut butter market is the prevalence of peanut allergies, which remain one of the most common and potentially severe food sensitivities. According to the Centers for Disease Control and Prevention (CDC), food allergies affect approximately 4–6% of children and 4% of adults in the U.S., with peanuts ranking among the top allergens responsible for anaphylactic reactions. School districts, airlines, and public institutions have implemented restrictions on peanut-containing products to accommodate allergic individuals, limiting peanut butter’s presence in certain environments. Studies show that emergency room visits related to peanut allergies have increased by over 20% in the past decade, prompting heightened scrutiny around product labeling and cross-contamination risks. In response, many consumers are turning to alternative nut and seed butters such as almond, sunflower, and cashew varieties, which offer similar taste and texture without the risk of peanut-induced allergic reactions.  

Price Volatility and Supply Chain Disruptions 

Another key restraint impacting the North America peanut butter market is the ongoing volatility in raw material prices and supply chain disruptions that affect production costs and product availability. Peanuts, the primary ingredient in peanut butter, are subject to fluctuating yields influenced by weather conditions, pests, and agricultural policies. According to the study, peanut crop output declined by nearly 10% in 2023 due to prolonged droughts in Georgia, Alabama, and Texas—three of the largest peanut-producing states. These supply constraints have led to higher procurement costs for processors and manufacturers. Additionally, transportation bottlenecks and labor shortages at ports and processing facilities have delayed product deliveries and contributed to inventory shortages. Furthermore, global geopolitical tensions and trade tariffs have added uncertainty to peanut imports used in blending and specialty formulations. As per the U.S. International Trade Commission (USITC), import duties on certain agricultural commodities have increased operational costs for smaller peanut butter producers, limiting their ability to compete with larger brands. 

MARKET OPPORTUNITIES 

Innovation in Functional and Fortified Peanut Butter Products 

A compelling opportunity for the North America peanut butter market lies in the development of functional and fortified peanut butter products designed to address specific health and wellness needs. Consumers are increasingly seeking nutrient-enhanced foods that provide additional benefits beyond basic nutrition, such as improved immunity, digestive health, and cognitive function. According to the Council for Responsible Nutrition (CRN), the demand for fortified foods has surged in recent years, with over 75% of U.S. adults taking dietary supplements regularly. In response, manufacturers are introducing peanut butter variants enriched with protein isolates, probiotics, omega-3 fatty acids, and adaptogenic herbs to appeal to health-focused demographics. For instance, several emerging brands have launched peanut butter blends infused with collagen peptides, MCT oil, and plant-based fibers aimed at supporting gut health, muscle recovery, and metabolic balance. Moreover, partnerships between food scientists and peanut butter producers are driving innovation in low-glycemic-index formulations suitable for diabetic consumers. The American Diabetes Association emphasizes the importance of healthy fats and proteins in managing blood sugar levels, reinforcing the relevance of peanut butter in specialized diets. 

Growth in Private Label and Direct-to-Consumer Channels 

The expanding presence of private label and direct-to-consumer (DTC) distribution channels presents a significant growth opportunity for the North America peanut butter market. Retailers and e-commerce platforms are increasingly launching exclusive peanut butter brands that offer competitive pricing, unique formulations, and sustainable packaging to attract budget-conscious and eco-aware consumers. These products often match or exceed national brand quality while providing cost savings, making them attractive to value-driven shoppers. Simultaneously, DTC models have gained traction, allowing artisanal and small-scale peanut butter producers to bypass traditional retail intermediaries and engage directly with consumers. Apart from these, these channels enable greater customization and rapid product iteration based on customer feedback. Companies can experiment with flavors, textures, and packaging size

MARKET CHALLENGES 

Competition from Alternative Nut and Seed Butters 

One of the principal challenges facing the North America peanut butter market is the growing competition from alternative nut and seed butters, which are gaining popularity due to perceived health benefits, novelty appeal, and allergen-free attributes. Almond, cashew, sunflower, and tahini-based spreads have captured a significant portion of the market, particularly among health-conscious consumers and those avoiding peanuts due to allergies. This surge is attributed to almond butter’s lower glycemic index, higher calcium content, and association with Mediterranean-style diets, which are widely promoted for heart health and longevity. Moreover, seed-based alternatives such as sunflower and pumpkin seed butter are being marketed as safe, hypoallergenic options for school lunches and childcare settings where peanut restrictions are enforced. The Asthma and Allergy Foundation of America (AAFA) notes that these substitutes are increasingly featured in educational programs advocating for inclusive food environments. Apart from these, plant-based and vegan consumers prefer non-nut alternatives like soy and pea protein-based spreads, which align with dairy-free and animal-product-free diets.  

Regulatory Scrutiny and Ingredient Transparency Demands 

The North America peanut butter market faces increasing regulatory scrutiny and consumer demands for ingredient transparency, posing a challenge for traditional manufacturers accustomed to using preservatives, emulsifiers, and added sugars. Food safety agencies such as the U.S. Food and Drug Administration (FDA) and Health Canada are enforcing stricter labeling requirements and purity standards, compelling companies to reformulate products to comply with evolving regulations. According to the FDA’s Food Code, peanut butter must contain at least 90% peanuts, excluding other fillers or extenders. However, recent inspections have led to recalls of products found to contain undeclared allergens, excessive moisture levels, or microbial contamination, raising concerns about manufacturing practices and quality control measures. Furthermore, the push for clean-label products has prompted consumers to scrutinize ingredient lists more closely, favoring products with minimal processing and recognizable components. As reported by the Consumer Brands Association (CBA), a notable share of U.S. shoppers actively seek out products labeled as “natural,” “organic,” or “non-GMO,” influencing purchasing decisions and brand loyalt

REPORT COVERAGE

SEGMENTAL ANALYSIS

By Product Insights

Creamy peanut butter held the largest share of the North America peanut butter market by accounting for 52.3% in 2024. This dominance is primarily attributed to its widespread consumer preference across age groups, particularly among children and young adults who favor its smooth texture and ease of use in sandwiches, baking, and snacks. Like, creamy formulations are widely used in school lunch programs due to their consistency and ability to blend well with jelly, honey, and alternative bread products. Additionally, manufacturers have invested heavily in product innovation within this category, introducing reduced-fat, organic, and low-sugar versions to cater to health-conscious consumers. Moreover, creamy peanut butter is a key ingredient in popular foodservice items such as smoothies, energy bars, and protein shakes.   

The "Others" segment, which includes flavored, specialty, and functional peanut butters, is the fastest-growing in the North America peanut butter market, projected to expand at a CAGR of 9.3% through 2033. This rapid growth is driven by increasing consumer interest in gourmet flavors, enhanced nutrition, and unique taste experiences beyond traditional crunchy or creamy varieties. These products are often marketed toward adventurous eaters and those seeking indulgent yet nutritious snack options. Apart from these, functional peanut butters fortified with protein isolates, MCT oil, probiotics, and adaptogens have attracted attention from fitness enthusiasts and health-focused consumers.  Manufacturers like Justin’s and Once Again Nut Butter have capitalized on this trend by launching small-batch, organic, and allergen-free specialty blends.  

By Brand Type Insights

Branded peanut butter commanded the North America peanut butter market by holding 68.4% of total market share in 2023. This leadership stems from the strong presence of established players such as J.M. Smucker Company (Jif), Hormel Foods (Skippy), and Conagra Brands (Peter Pan), which have built extensive brand recognition and consumer trust over decades. The U.S. Department of Agriculture (USDA) notes that national brands dominate shelf space in supermarkets, convenience stores, and institutional procurement programs, reinforcing their market dominance. Moreover, branded manufacturers invest significantly in marketing, product innovation, and supply chain efficiency. In addition, these companies leverage economies of scale to maintain competitive pricing while offering a wide range of formulations including reduced-fat, organic, and single-ingredient peanut butter lines. The National Peanut Board indicates that branded products account for over 80% of peanut butter exports from the U.S., further strengthening their influence both domestically and internationally.  

Private-label peanut butter is coming up as the booming segment in the North America peanut butter market, anticipated to grow at a CAGR of 7.9%. This expansion is fueled by rising consumer acceptance of store brands, especially among value-conscious shoppers seeking cost-effective alternatives without compromising quality. The Consumer Brands Association (CBA) notes that nearly 60% of U.S. shoppers now consider private label products as good as or better than national brands, reflecting shifting perceptions. Furthermore, private-label peanut butter offers price advantages, typically costing less than branded counterparts. Retailers are also investing in clean-label and organic private-label variants to align with evolving consumer preferences.  

By Distribution Channels Insights

Supermarkets and hypermarkets represented the dominant distribution channel in the North America peanut butter market by capturing 65.9% of total sales in 2024. This is attributed to the widespread availability of peanut butter across major grocery chains, coupled with strategic shelf placement and promotional activities that drive consumer engagement. These outlets offer a diverse selection of branded, private-label, and specialty peanut butter products, catering to varying consumer preferences and budgets. Moreover, supermarkets remain a primary source for bulk and family-sized peanut butter packaging, which is particularly favored by households and institutional buyers. In Canada, major chains like Loblaw Companies Limited and Sobeys have expanded their peanut butter offerings to include organic, non-GMO, and allergen-free variants, aligning with local consumer trends.  

Online stores are the fastest-growing distribution channel in the North America peanut butter market, projected to expand at a CAGR of 11.2% through 2030. This surge is driven by the rise of e-commerce platforms, direct-to-consumer (DTC) branding strategies, and shifting consumer shopping behaviors toward digital convenience. Platforms like Amazon, Instacart, and Thrive Market have enabled consumers to access a broader range of peanut butter options—including artisanal, organic, and functional variants—that may not be readily available in local stores. In addition, DTC brands are leveraging social media, influencer partnerships, and subscription models to build brand loyalty and drive repeat purchases. This trend is further supported by retailers enhancing their digital commerce capabilities, including personalized recommendations and bundled meal kits featuring peanut butter.  

REGIONAL ANALYSIS 

The United States accounted for 84.5% of the North America peanut butter market, maintaining its status as the largest consumer and producer in the region. Its popularity is reinforced by its inclusion in school lunch programs, military rations, and emergency food supplies, ensuring consistent demand across socioeconomic groups. The U.S. also leads in product innovation, with major brands launching organic, reduced-sugar, and functional peanut butter variants tailored to evolving dietary trends. Beyond household consumption, the foodservice sector—including cafes, bakeries, and protein shake providers—relies heavily on peanut butter as an ingredient.  

Canada is experiencing steady growth supported by rising health consciousness, urbanization, and expanding retail networks. Health Canada emphasizes the importance of plant-based proteins in balanced diets, encouraging consumers to choose peanut butter as a source of healthy fats, fiber, and essential vitamins. Major retailers such as Loblaws, Metro, and Sobeys have expanded their peanut butter assortments to include private-label and specialty variants, catering to diverse consumer preferences. The Canadian Federation of Independent Grocers (CFIG) reports that independent stores are also capitalizing on this trend by stocking locally sourced and artisanal peanut butter brands. Moreover, the rise of online grocery shopping has facilitated easier access to niche peanut butter products.  

The Rest of North America constitutes notably to the regional peanut butter market but exhibits considerable potential for future expansion. While currently smaller in scale, this sub-region is witnessing growing adoption of peanut butter due to changing dietary habits, increasing exposure to Western food culture, and rising disposable incomes. In Central America, countries like Costa Rica and Panama are developing niche markets for peanut butter through modern retail formats and school feeding programs.  

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.

The North America peanut butter market is highly competitive, characterized by the coexistence of well-established national brands, growing private-label alternatives, and emerging artisanal producers. Dominant players such as Jif, Skippy, and Peter Pan continue to leverage their brand equity, extensive distribution networks, and long-standing consumer trust to maintain market leadership. However, increasing consumer demand for clean-label, organic, and allergen-free products has opened the door for niche and regional brands to capture attention through differentiated offerings and targeted marketing strategies. 

Retailers are strengthening their own private-label peanut butter lines, offering cost-effective yet high-quality alternatives that challenge the dominance of traditional brands. Meanwhile, direct-to-consumer startups are capitalizing on digital engagement, eco-friendly packaging, and functional ingredients to build loyal customer bases outside conventional retail frameworks. 

Competition is further intensified by the rising popularity of alternative nut and seed butters, which are drawing away certain consumer segments. In response, peanut butter manufacturers are investing in reformulation, sustainability initiatives, and strategic acquisitions to stay relevant. As consumer preferences evolve toward wellness-oriented and ethically sourced products, differentiation through ingredient transparency, innovation, and brand storytelling has become essential for maintaining a strong market position. 

TOP PLAYERS IN THE MARKET 

The J.M. Smucker Company (Jif) 

The J.M. Smucker Company is a dominant force in the North America peanut butter market, with its flagship brand Jif being one of the most recognized and trusted names in the industry. The company has consistently led in product innovation, offering a wide range of formulations including creamy, crunchy, reduced-fat, and natural variants. 

Jif’s strong presence in retail chains, school nutrition programs, and foodservice channels reinforces its leadership position. Its commitment to sustainability and responsible sourcing further enhances brand loyalty. Through continuous marketing efforts and strategic partnerships, the company maintains a strong foothold in both mainstream and premium peanut butter segments. 

Hormel Foods Corporation (Skippy) 

Hormel Foods, through its Skippy brand, plays a pivotal role in shaping consumer preferences and driving growth in the North America peanut butter market. Skippy is known for its high-quality consistency, diverse product portfolio, and widespread availability across grocery and mass retail outlets. 

The brand has successfully expanded beyond traditional peanut butter by introducing single-serve packs, organic options, and protein-enhanced spreads tailored to modern dietary trends. Skippy also benefits from Hormel’s robust distribution network and supply chain efficiency, ensuring product availability even during peak demand periods. 

Additionally, the company invests heavily in research and development to align with evolving health-conscious consumer expectations, making Skippy a preferred choice among families, fitness enthusiasts, and institutional buyers. 

Conagra Brands (Peter Pan) 

Conagra Brands, with its Peter Pan peanut butter line, holds a significant share of the North America peanut butter market. Known as one of the earliest commercial peanut butter brands in the U.S., Peter Pan has built a legacy based on quality, affordability, and consumer trust. 

The brand continues to maintain relevance through reformulations that cater to clean-label demands and nutritional enhancements. It remains a staple in value-driven retail channels and institutional procurement programs, ensuring consistent consumption across diverse demographic groups. 

Beyond household use, Peter Pan is widely used in food banks and school feeding initiatives, reinforcing its social impact. With a focus on accessibility and functional nutrition, Conagra leverages Peter Pan’s heritage to sustain its influence in the competitive peanut butter landscape. 

TOP STRATEGIES USED BY THE KEY MARKET PARTICIPANTS 

One of the primary strategies employed by leading players in the North America peanut butter market is product diversification and innovation , where companies introduce new textures, flavors, and functional formulations such as organic, low-sugar, and protein-enriched variants to meet evolving consumer preferences. 

Another key approach is strategic branding and marketing , which includes leveraging digital platforms, influencer collaborations, and nostalgic advertising to reinforce brand identity and connect with younger, health-conscious consumers while maintaining appeal among traditional buyers. 

Lastly, companies are increasingly focusing on expanding private label partnerships and direct-to-consumer channels , allowing them to reach budget-conscious shoppers and specialty markets through e-commerce, subscription models, and exclusive retail offerings that enhance accessibility and brand visibility across multiple consumer segments. 

RECENT HAPPENINGS IN THE MARKET

• In February 2024, The J.M. Smucker Company launched a new line of plant-based, protein-fortified peanut butter blends designed specifically for athletes and active lifestyle consumers, aiming to expand its footprint in the health and wellness segment. 
• In May 2024, Hormel Foods introduced an updated packaging design for Skippy peanut butter featuring recyclable materials and portion-controlled squeeze packs to align with sustainability goals and convenience-driven eating habits. 
• In July 2024, Conagra Brands expanded its partnership with major grocery delivery services to ensure broader availability of Peter Pan peanut butter through online retail platforms, enhancing accessibility for urban and digitally engaged consumers. 
• In September 2024, a leading private-label peanut butter manufacturer secured exclusive shelf space in Walmart and Kroger stores across North America, signaling a strategic push to strengthen its presence in the value-driven market segment. 
• In November 2024, a group of independent artisanal peanut butter producers formed a collaborative distribution alliance to improve logistics efficiency and gain better access to national retailers and foodservice providers, boosting their collective market influence. 

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