WORLD - The global peanuts market is expected to grow at a compound annual growth rate (CAGR) of 5.79% during the forecast period from 2023 to 2028, driven by rising consumer demand for nutrient-dense foods and snacks. 

According to a recent report by HTF Market Intelligence, the market, currently valued at approximately USD 1.2 billion, is poised to witness an increase of USD XX billion by the end of the forecast period.

Market segmentation and key players

Peanuts, widely consumed as snacks and used in various processed foods, are categorized based on their types, including Runners, Spanish, Virginia, and Valencia. 

The Runners segment is anticipated to lead market growth during the forecast period, fueled by the perceived health benefits of peanuts, such as being rich in essential vitamins, minerals, and antioxidants.

Major players in the global peanuts market include Olam International, Hampton Farms, Golden Peanut and Tree Nuts, Aunt Ruby’s, Hardy Farms Peanuts, and Hines Nut Company, among others. 

These companies are focusing on expanding their geographic presence and production capabilities through mergers and acquisitions.

Application and sales channels

Peanuts have diverse applications, including direct consumption, bakery and confectionery products, breakfast cereals and snacks, butter and spreads, and dairy products. 

The growing popularity of peanuts as a healthy snack is reflected in their increasing demand across retail channels, both online and offline. 

Rising health consciousness among consumers, particularly in North America and Europe, is contributing to the sustained growth of peanut-based products in these regions.

The market also sees opportunities for product innovation, with manufacturers exploring new flavors, textures, and uses for peanuts in various food categories. 

The growing trend of plant-based diets has further opened up avenues for developing peanut-based alternatives, including dairy and protein bars.

Peanut butter market growth

Parallel to the overall peanuts market, the peanut butter segment is also witnessing robust growth. 

Valued at USD 4.5 billion in 2023, the peanut butter market is estimated to reach USD 6 billion by 2030. 

From 2019 to 2023, the segment saw a steady CAGR of 9%, driven by rising consumer preference for high-protein snacks and the growing popularity of natural and organic products.

Peanut butter's versatility as a spread, snack, and baking ingredient has made it a staple in many households. 

Brands like J.M. Smucker Company, Kraft Heinz, and Skippy are leading the market, alongside emerging players like Justin’s and PBfit, which focus on offering organic and flavored varieties. 

The competition from alternative nut butters, such as almond and cashew butter, presents a challenge for the segment, but peanut butter remains resilient due to its affordability and high protein content.

Regional insights

Geographically, North America continues to dominate the peanut and peanut butter markets, with Europe showing robust growth. 

The Asia-Pacific region, however, is emerging as the fastest-growing market for peanuts, driven by increasing health awareness and changing dietary patterns in countries such as China and India.

In terms of distribution, online sales channels are gaining traction as consumers increasingly seek convenient purchasing options. Offline channels, including supermarkets and grocery stores, continue to account for a large share of peanut and peanut butter sales, particularly in established markets.

Future outlook and challenges

The peanuts market is expected to continue its steady growth, supported by rising health consciousness and the ongoing trend towards high-protein, nutrient-dense foods. 

However, the market faces challenges from fluctuating raw material costs and competition from alternative snacks. In response, manufacturers are focusing on product innovation, sustainability in farming practices, and expanding their geographic footprint.

The growth of organic and natural food trends is expected to further fuel demand for peanut-based products, while the global focus on healthy eating is likely to sustain the momentum in the coming years.

Key market developments

Recent developments in the peanuts and peanut butter markets include joint ventures, product launches, and collaborative efforts among leading players. These initiatives are aimed at improving production capacity and meeting the evolving demands of health-conscious consumers.