Peanut butter ‘the rising star’ in UK sweet spreads market – Mintel

UK peanut butter sales climbed from £47m (€55m) in 2010 to £56m (€66m) in 2012 driven by innovation and marketing campaigns, leading Mintel to call the segment “a rising star”.​

It is slowly catching up with jam, the UK’s bestselling spread, which posted stagnant sales over the same two-year period at £118m (€139m).

Mintel said that 7% of British consumers say they have switched from jam or marmalade to peanut butter or chocolate spread, a segment that 24% over two years to £46m (€54m).

Own-brands vs Branded​

Kiti Soininen, head of UK Food, Drink and Foodservice Research at Mintel, told FoodNavigator: “The challenge at the moment is that own-brands are quite active in the market, making it harder for new players to establish a foothold in the segment.”​

Leading UK supermarkets have launched a string of new products such as Sainsbury's Choc Chip Peanut Butter and Tesco Orange Chocolate Spread that has helped the category grow.

Branded players include Whole Earth Foods and Sun-Pat, which US firm Hain Celestial acquired from Premier Foods in August last year. Ferrero’s Nutella is also strong in the chocolate spreads segment.

A few recent Innovations from branded players have included jam such as Smucker's Goober Peanut Butter & Strawberry Jelly Stripes and Choco Jam Strawberry Chocolate. “Whether these can gain traction remains to be seen,” said Soininen.

Marmalade, honey and other spreads​

Marmalade, a spread favored by the over 55s, is one of the few sweet spreads that has experienced UK sales declines in an otherwise growing market.

Marmalade accounts for 14% of the UK sweets spreads market, but sales have fallen 7% over the last two years to £56m (€66m) in 2012.

In contrast, honey is benefitting from a healthy and natural positioning that has helped the segment grow 8% in two years to £107m (€126m) in 2012.

“Philadelphia with Cadbury - though falling outside our market definition - is another entrant affecting the competitive landscape,”​ said Soininen.

She added that there was a niche demand for premium/adults varieties of sweets spreads, and for sweet spreads with added benefits. “These could offer a point of difference for certain operators,”​ she said.