Peanut Butter Production in the US - Market Research Report (2013-2028)
New York, United States
Last Updated: September 2023
NAICS OD4630Revenue
$2.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,294
Businesses
88
Wages
$XXX.Xm
Peanut Butter Production in the US industry analysis
Demand for peanut butter producers has weakened over recent years, partially driven by unfavorable economic conditions. During the early stages of the pandemic, consumer spending weakened, lowering demand for peanut butter products. Similarly, the industry was negatively impacted by rising inflation and weaker consumer confidence. During this period, healthy eating also decelerated, causing demand for peanut butter to fall. In 2021, improving economic conditions led to higher demand for peanut butter; however, these gains were insufficient to reverse the losses from the past five years. As a result, revenue has been falling at an estimated CAGR of 1.2% to $2.4 billion over the past five years, including a 1.5% drop in 2023 alone.
Trends and Insights
- Trade activity has little impact on industry performance. This is mainly because the global demand for peanut butter is significantly lower, discouraging foreign peanut butter production.
- Demand for specialty peanut butter moves alongside disposable income. Higher discretionary spending encourages consumers to try different peanut butter products, supporting the industry.
- Remaining near major downstream markets is crucial. Like this, consumers can lower transportation costs, creating room for higher profit.
- Consumers have strong brand preferences. Consumers are unlikely to switch peanut butter brands unless incentivized by price changes or nutritional value preferences.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.2 % over the past five years, to reach an estimated $2.4bn in 2023.
Trends and Insights
Changing consumer trends impact producers
- Peanut butter products are often considered a staple in kitchens across the United States, protecting producers from significant losses.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Stabilizing economic conditions supports producers
- Improving economic conditions are likely to benefit domestic producers, as higher disposable income and rising consumer confidence encourage consumers to purchase more products.
Biggest companies in the Peanut Butter Production in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
J.M. Smucker Co | 797.7 | 149.1 | 18.7 | |
Post Holdings, Inc. | 619.6 | 80.1 | 12.9 | |
Hormel Foods Corporation | 187.2 | 21.5 | 11.5 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Crunchy peanut butter, Creamy peanut butter and Specialty peanut butter. Crunchy peanut butter is the largest segment of the Peanut Butter Production in the US.
Trends and Insights
Creamy peanut butter is a fan favorite
- To produce creamy or smooth peanut butter, peanuts are ground to a paste before producers add oil, salt and sugar to create a finished product.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Canned Fruit & Vegetable Processing in the US
- Baking Mix & Prepared Food Production in the US
Complementors
- Margarine & Cooking Oil Processing in the US
- Cereal Production in the US
- Bread Production in the US
- Cookie, Cracker & Pasta Production in the US
- Snack Food Production in the US
- Supermarkets & Grocery Stores in the US
International industries
- Seasoning, Sauce and Condiment Production in Canada
- Tea, Coffee and Other Food Manufacturing in Australia
- Tea, Coffee and Other Food Manufacturing in New Zealand
- Condiments & Seasoning Manufacturing in the UK
- Soy Sauce Production in China
Table of Contents
About this industry
Industry definition
Operators in this industry primarily manufacture peanut butter. Industry products are then packaged and distributed to grocery wholesalers, supermarkets, specialty food stores and food service contractors for human consumption. The industry excludes peanut butter made by manufacturers for use in their own candy and snacks.
What's included in this industry?
Producing peanut butterProducing peanut butter mixesProducing peanut butter snacksProducing peanut butter varietiesCompanies
J.M. Smucker CoPost Holdings, Inc.Hormel Foods CorporationPurchase this report to view all 3 major companies in this industry.
Related Terms
WHOLESALE BYPASSBLANCHINGRUNNER PEANUTIndustry Code
NAICS 31191 - Peanut Butter Production in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Trade activity has little impact on industry performance. This is mainly because the global demand for peanut butter is significantly lower, discouraging foreign peanut butte...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Demand for specialty peanut butter moves alongside disposable income. Higher discretionary spending encourages consumers to try different peanut butter products, supporting t...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Remaining near major downstream markets is crucial. Like this, consumers can lower transportation costs, creating room for higher profit.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each state in 2023
- Number and share of revenue each state accounts for in 2023
- Number and share of wages each state accounts for in 2023
- Number and share of employees in each state in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Consumers have strong brand preferences. Consumers are unlikely to switch peanut butter brands unless incentivized by price changes or nutritional value preferences.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Post Holdings supports environmental causes. Through its brand Airly Foods, Post Holdings is helping remove carbon dioxide from the air, improving air quality and supporting ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of J.M. Smucker Co's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Post Holdings, Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Hormel Foods Corporation's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for J.M. Smucker Co, and factors influencing its performance in the industry
- Description and key data for Post Holdings, Inc., and factors influencing its performance in the industry
- Description and key data for Hormel Foods Corporation, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Peanut butter producers are held to high standards. Overall, food producers must comply with a broad range of regulations, including proper product labeling and the disposal ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Producers aim to implement automated solutions. This is expected to lower the industry’s reliance on manual labor and create room for higher profit.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Industry Multiples (2016-2021)
- Industry Tax Structure (2016-2021)
- Income Statement (2016-2021)
- Balance Sheet (2016-2021)
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Peanut Butter Production in the US industry in United States in 2024?
The market size of the Peanut Butter Production in the US industry in United States is $2.4bn in 2024.
How many businesses are there in the Peanut Butter Production in the US industry in 2023?
There are 88 businesses in the Peanut Butter Production in the US industry in United States, which has grown at a CAGR of 0.5 % between 2018 and 2023.
Has the Peanut Butter Production in the US industry in United States grown or declined over the past 5 years?
The market size of the Peanut Butter Production in the US industry in United States has been declining at a CAGR of 1.2 % between 2018 and 2023.
What is the forecast growth of the Peanut Butter Production in the US industry in United States over the next 5 years?
Over the next five years, the Peanut Butter Production in the US industry in United States is expected to grow.
What are the biggest companies in the Peanut Butter Production in the US market in United States?
The biggest companies operating in the Peanut Butter Production market in United States are J.M. Smucker Co, Post Holdings, Inc. and Hormel Foods Corporation
What does the Peanut Butter Production in the US in United States include?
Producing peanut butter and Producing peanut butter mixes are part of the Peanut Butter Production in the US industry.
Which companies have the highest market share in the Peanut Butter Production in the US in United States?
The company holding the most market share in United States is J.M. Smucker Co.
How competitive is the Peanut Butter Production in the US industry in United States?
The level of competition is high and increasing in the Peanut Butter Production in the US industry in United States.
