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The global honey spread market size was valued at USD 3.59 billion in 2021 and is expected to grow from USD 3.70 billion in 2022 to USD 5.18 billion by 2029, exhibiting a CAGR of 4.93% during the forecast period. Based on the analysis, the global market share exhibited a growth of 1.91% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with the experiencing lower than expected demand across all regions compared to pre-pandemic levels.
The global market is growing due to changing dietary preferences and increased demand for Western foods. Honey butter has long been a staple of breakfast in Western markets, and its popularity is steadily growing around the world. Vitamins, natural sugars, calcium, and minerals are abundant in honey food. It has primarily replaced table sugar in daily diet due to its numerous health benefits. It is naturally fat-free, and cholesterol-free, and aids in immune system enhancement. As consumers worldwide become more health-conscious, they prefer healthy and natural alternatives to artificial sweeteners. The rising awareness of the health benefits of honey is driving the global market forward.
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Proliferating Demand for Clean Label Food Products to Augment Growth
As the health-conscious craze gains traction among consumers, clean labeling and nutritious, buzz-word ingredients are becoming increasingly important. Due to the sheer long-term negative health effects of artificial additives, most consumers in developed countries such as Germany, the U.S., and others are looking for food spreads that do not contain any artificial preservatives or additives. This has also contributed to the greater demand for honey based spreads and honey fruit spreads. The goal of clean labels is to promote food sustainability while also providing excellent taste. Major companies in the market are also concentrating on developing novel clean label products. J M Smucker, one of the leading players in food spreads, has expanded its product line with the introduction of a fruit and honey spread made with natural ingredients.
Adoption of Healthier Lifestyles to Fuel Honey Spread Market Growth
Consumers' preference for healthy and low-calorie spreads is being influenced by their proclivity toward a healthy lifestyle. Individuals who value health and wellness are increasingly using honey-based spreads as a natural product instead of sugar-based spreads. Their chemical components' nutritional value undeniably improves health and body functioning. Several studies from the National Library of Medicine have also shown that the active compounds in honey have excellent antioxidant, antimicrobial, anti-inflammatory, and anti-allergic properties. Also, honey is rich in vitamins C, B6, and thiamine and minerals like iron, calcium, copper, and iron. It has a lower glycemic index than table sugar, making it an excellent sweetening ingredient, especially when organic. Organic honey is becoming more popular due to its benefits and consumers' preference for organic ingredients, further fueling the demand for organic honey spread.
Technological Advancements and Innovations to Increase Honey Production to Support Market Growth
Over the last decade, studies on natural bee products, including honey, have accelerated due to increased demand for a more healthy, balanced, and safe diet. Advanced food processing techniques, such as ultra-sonication, microwave, and infrared (IR) irradiation, have gained popularity as alternatives to or in combination with traditional processing techniques for various apiculture products at the laboratory and industrial scale. Improved honey production technologies, rather than the traditional method of using old tree trunks, have additional benefits, such as contributing to forest recovery and sustainable use. Thus, the technological advancements and innovations to increase honey production have also contributed to the market growth. For instance, in 2018, Bee Inventive Pty Ltd. announced the launch of a beehive where honey can be harvested instantly, with enhanced features.
Increased Retail Sales of Spreads during COVID-19 to Favor Growth
The outbreak of the COVID-19 pandemic and the subsequent measures imposed by several governments has resulted in the market's strict closure, resulting in social distancing among consumers. Consumers prefer to stock up on essential foods in bulk at home, particularly breakfast staples like these food spreads. The companies operating in the market also saw growth in their revenue during the lockdown period. For instance, Dr. Oetker India Pvt Ltd., one of the leading players in spreads and sauces, saw an increase of 25.8% in their revenue for FY 2020-21 compared to the previous fiscal year. The company's sale of peanut/choco spreads amounted to USD 10.61 million.
Furthermore, the tendency to eat healthier and all-natural products increased during the pandemic. To cater to this trend and minimize the impact of COVID-19 on revenue, the key players launched new products to provide indulging and healthy experiences to their customers. For instance, in 2020, Hive + Wellness, an Australian-based honey producer, launched Choc Honey. The product is an all-natural nut-free spread and is free from preservatives and artificial additives.
Counterfeiting of Honey to Impede Market Growth of Honey Spread
Counterfeiting of honey is a growing problem; with low-cost production and global distribution opening the door to unscrupulous manufacturers, the honey spread market share is also being negatively impacted. Food fraud has a catastrophic impact on consumers and the processors involved. In India, the Centre for Science and Environment (CSE) revealed food fraud in December 2020. According to the findings, 77% of honey samples tested by the CSE in Indian and German laboratories failed purity tests and were adulterated with sugar syrups. The falsification of honey brings great harm to public health. In some countries, the percentage of falsified honey is already between 40 and 80%. This makes it difficult to sell honey produced by ethical beekeepers and processors, and it harms the manufacturer's interests significantly.
The mixed Honey Spread Segment Holds a Major Share Due to the Wide Consumption of Healthy Food Spreads
The mixed honey spread segment is expected to hold a major share of the market due to increasing consumers' demand for products with different flavor profiles. The recent trend in the market is a shift from normal honey butter to other variants, including tangy, chocolaty, and nutty, among other flavors. Manufacturers are increasingly introducing product innovations in terms of ingredients and flavors, which contribute to this segment's growth.
The high nutritional value and immense health benefits have primarily contributed to the higher sales performance of the pure honey spread segment. Pure honey is a concentrated source of natural goodness that promotes good bacteria growth in the intestine and reduces homocysteine levels to maintain a healthy heart. The pure spreads contain beneficial phytonutrients, including pollen and enzyme-rich propolis. Thus, with such extensive benefits, the pure spread type is widely used as an alternative to jams by health-conscious consumers, which is anticipated to boost the segment's growth in the upcoming years.
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Hypermarkets/Supermarkets are expected to be the leading distribution channels due to consumers' growing preference and reliance on these mass merchandisers for grocery purchases. The accessibility of a wide range of options under one roof has boosted the market growth. The growing number of supermarkets in developing economies has aided honey based spread sales performance. Furthermore, hypermarkets/supermarkets are expected to grow significantly due to the presentation, availability of a wide variety on the shelves, and ease of access to consumers in these stores.
The online retailers' segment is anticipated to expand at the highest CAGR over the forecast period. Consumers are influenced to buy products from e-commerce by the availability of various platforms, lucrative discounts, cash-backs, and simple return and exchange options. Furthermore, the growth of this segment is being fueled by the establishment of companies dedicated to offering products through their websites. For instance, in April 2022, Tayima Foods, an Indian-based company announced the release of their newest product, I'M HONEY, which is made entirely of raw and virgin honey. The product was made accessible through no-contact retail kiosks and on Amazon as part of the Digital India program.
North America Honey Spread Market Size, 2021 (USD billion)
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The market is categorized into North America, Europe, Asia Pacific, South America, and the Middle East & Africa in terms of geography.
North America dominated the world market and stood at USD 1.46 billion in 2021. The prevalence of food spreads in traditional breakfast in North America can be attributed to their popularity. The spread market has grown in recent years, and according to current trends, North American consumers prefer premium-quality products with nutritional claims. They want ‘better for you’ products that are also simple to prepare and tasty, which is driving the demand for honey based spreads in the regional market. Additionally, in 2019, the U.S. Department of Agriculture (USDA) reported 2,812,000 honey-producing colonies in the country. On average, each colony produced 55.8 pounds of honey, totaling 156.9 million pounds. Thus, the growing honey production in the U.S. gives manufacturers more opportunities to introduce honey-based spreads with several variants, which is expected to boost the regional market in the upcoming years.
Asia Pacific market has seen significant growth owing to the region's diversity. This growth can also be attributed to the rapid changes in terms of economic development. China, Japan, and India are the major countries adopting western culture and natural food spreads, resulting in increased market growth. Increased foreign brand launches in developing countries such as India and China are positively impacting the market growth. In addition, millennial mothers are increasingly looking for delicious and healthy products for their children. They're also devising new ways to provide their children with the benefits of honey, which is further paving new growth opportunities for the product in the region.
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The European market is expected to grow in the forecast period owing to the increasing trend toward healthier living, changes in the food processing industry, and rising income in Central and Eastern European countries. In many European countries, where breakfast is regarded as the most important meal of the day, the demand for honey based spread is likely to increase to replace sugar-based jams and marmalades. The increasingly positive image of healthy vegetarian breakfast alternatives is one of the main drivers of increased consumption of honey nut/butter spreads. Furthermore, the current fast-paced lifestyle and growing preference for convenience food positively impact consumption.
Increasing Focus on Development of Novel Products to Fuel Market Growth
Major players focus heavily on product innovation as a primary strategy to increase their prominence in the market. Additionally, these companies are increasing their research and development (R&D) investments to develop products that meet consumer needs, expand their presence, and maintain their market position. In 2018, Nature Nate's Honey Co., the number one-branded honey company in the U.S. and producer of 100 percent Pure, Raw & Unfiltered Honey, introduced Honey Peanut Butter, Honey Almond Butter, Honey Fruit Spreads, and Honey Maple Syrup, all naturally sweetened with Nature Nate's 100 percent Pure Honey.
An Infographic Representation of Honey Spread Market
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The global honey spread market analysis report provides detailed data on the spreading industry and focuses on key aspects such as product types, distribution channels, and leading companies for the product. Along with this, the report offers insights into the market trends, competitive landscape, company profiles, and supply chain analysis, and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years
Value (USD Billion)
By Distribution Channel
Fortune Business Insights says that the global market was USD 3.59 billion in 2021 and is projected to reach USD 5.18 billion by 2029.
The market will grow at a CAGR of 4.93% during the forecast period (2022-2029).
The mix honey spread segment is expected to hold a prominent share during the forecast period.
The inclination of consumers towards a healthy lifestyle is the key factor driving the market.
Land O Lakes, J.M. Smucker, Dabur Ltd., and Hive & Wellness Australia Pty Ltd. are some of the prominent players in the market.
North America is expected to hold the highest market share in the global market.
Hypermarket/supermarkets segment is likely to dominate the global market
Proliferating demand for clean label food products is one of the emerging market trends globally.
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