Market Trends of Nut Based Spread Industry
Increasing Consumer's Inclination Toward Vegan Culture and Vegan Diets
Consumers following a plant-based and vegan diet use nut-based spreads. Additionally, an increasing vegan population worldwide encourages the adoption of hazelnut spreads and other nut-based spreads available in the market. Hazelnut spreads are the second-largest segment, with only almond spreads ahead of it. Consumers seeking various healthy options of spreads are also boosting the hazelnut market. The significant players are using this opportunity to produce protein-rich spreads from plant sources.
The high sugar content of nut-based spreads with chocolate combinations has negatively impacted the market as consumers are becoming more health-conscious and looking for low-sugar substitutes, encouraging manufacturers to offer low-calorie and sugar-free products. Consumers with heart diseases majorly drive the demand for hazelnut-based products as hazelnut, an antioxidant-rich product, is linked to a reduced risk of developing heart disease. Besides, the rich hazelnut flavor of the nut spread is another factor for its high demand.
Apart from health concerns, consumers are concerned with the animal cruelty involved in manufacturing certain nut-based products. Owing to this factor, they are predominantly looking for vegan claimed, cruelty-free claimed products in the market to support the anti-cruelty against animals., thus, boosting the demand for vegan-based processed food products, such as hazelnut spreads, in the market.
North America is the Largest Market Share
The North American spreads market is well-established, and the production of nut-based spreads in the region is self-sufficient. Nut-based spreads were established in the North American market at the initial stages of the product introduction and are a part of the American breakfast. The United States contributes the majority of the region's share with extensive product availability and many consumers shifting to vegan and plant-based diets. Major brands such as Nutella dominate the market, with innovations such as spreads made with natural ingredients, i.e., free from additives like artificial sugars and gelling agents.
With increasing health concerns such as the prevalence of chronic diseases among consumers, they are primarily opting for low-calorie and low fat claimed-based spreads to maintain a healthy lifestyle. Increasing demand for low-fat spreads is a significant factor driving nut-based spreads in North America. For instance, according to the Diabetes Research Institute, as of 2022, 11.3% of the total US population suffers from diabetes, i.e., 37.3 million people. Hence, they intend to consume health-based products that claim to be low-sugar. Additionally, products that do not contain gluten ingredients are gaining importance in the market with the increasing prevalence of gluten intolerance among consumers.
