Reflecting a healthy growth in revenues over an eight-year assessment period, 2019-2028, the global market for spreads is set for a 5% CAGR. A recent market forecast report published by XploreMR has envisaged the global spreads market revenues to reach ~US$ 23 Bn by the end of 2019.
Increasing Consumption of Spreads on Breakfast Bread and Beyond
Spreads are becoming saturated as a companion product for bread during breakfast time. Besides, spreads are no longer considered to just be a breakfast option to be had with bread. Spreads are increasingly being used to facilitate convenience in preparing other dishes. Spreads are widely being used at dining events, office lunches, and leisure snacking times, apart from the conventional breakfast. For instance, peanut butter can be used as a cake filling and with cold dishes for lunch or dinner, chocolate spreads can be used in smoothies and puddings, savory spreads can be used in pizza and pasta, and honey can be taken as a tonic mixed with warm water throughout the day. The versatility of spreads is thus, expected to drive the growth of spreads market over the forecast period.
The current dietary pattern of consumers showcases their growing health consciousness and increasing health awareness. Consumers are getting more attracted to food products that are healthier, thereby improving prospects of healthier spread variants. Nut- and seed-based spreads are thus increasingly finding the shelves of consumers rapidly.
Consumers are increasingly getting attracted to lip-smacking food products available in the global food and beverages market. Flavor inspiration is influencing the food and beverages market, as consumers explore more of the world through the lusciousness of various cuisines. In the spreads market, flavor inspiration is one of the major factors resulting in the flourishing demand for spreads among customers. Spreads are made with a variety of ingredients, which impart their taste, texture, and aroma to them. Due to the full availability of a different range of flavors, spreads are popping up in grocery store aisles and slowly becoming the most preferred go-to convenience food option.
Significant income growth in emerging markets of Latin America, Eastern Europe, and Asian regions is fostering disposable incomes of consumers in these regions, especially of the middle-class population. This, in turn, is intensifying consumer spending on premium products such as spreads. The increasing purchasing power of consumers is anticipated to uplift the market for spreads over the upcoming years.
- According to the World Bank, South Asia is anticipated to showcase robust economic growth in the coming years. The growth in the region is projected to incline from 7% in 2015 to 7.6% by 2019.
The demand for organic food products has shown considerable growth globally in the past few years. Growing consumer awareness regarding health benefits of organic products and strong support from local companies for the development of such products, are key factors driving the demand for organic food products.
Stringent Labelling Regulations May Restrain Market Growth
Increasing food adulteration and improper labelling of prepackaged foods have misguided consumers in the past, and hence, strong measures are taken by regulatory bodies of respective regions and countries to implement strong actions on the manufactures who do not provide proper product labeling or details of their products. With the new labelling laws, manufactures who provide foods with high content of calories, fat, sugar, or any allergen, must mention it on the front. Proper labelling has made consumers conscious about opting for spreads, which have high calories, sugar, and allergens. This might negatively affect the sales of spreads such as jam in its regular variety, regular chocolate spreads, and others, over the forecast period.
Key players operating in the spreads market, as profiled in the study, include Nestlé S.A., The Kraft Heinz Company, Conagra Brands, Inc., Pioneer Food Group Ltd, The Hershey Company, Strauss Group Ltd., The J. M. Smucker Company, Hormel Foods Corporation, General Mills Inc., Atlantic Grupa d.d., Dr. Oetker GmbH, and Ferrero S.p.A.