Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising clips
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Overview
- Factors affecting usage include household size and race/ethnicity
- Obesity, peanut allergies, and recalls create challenges
- Market leaders and segment trends
- Butter
- Margarine and table spreads
- Peanut butter and other nut butters
- Jams, jellies, preserves, and fruit butters
- Honey
- Retail channel performance
- Innovations ramp up even as risk is greater
- Household and consumer use of savory and sweet spreads
- Kids’ and teens’ usage of sweet spreads
- Race/ethnicity distinguishes differences in usage
Insights and Opportunities
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- Focus on simplicity
- Less is more
- Value-added
- New ways to use old foods – jelly for dessert and dinner
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- Figure 1: Usage occasions for sweet spreads, July 2010
- Expanding usage of peanut butter among Hispanics and Asians
- Better utilize multi-media to send marketing messages
- Find the sweet (or savory) spot for ingredient listings
- Supermarket retailers can regain control with unique connections
Inspire Insights
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- Trend: Fit or fat
Market Size and Forecast
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- Key points
- Market ebbing after 2008 sales jump
- Sales and forecast of savory and sweet spreads
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- Figure 2: Total U.S. retail sales of savory and sweet spreads, at current prices, 2005-15
- Figure 3: Total U.S. retail sales of savory and sweet spreads, at inflation-adjusted prices, 2005-15
- Walmart sales
Market Drivers
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- Unemployment and household budgets
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- Figure 4: Unemployment rate, 16 years and over, January 2000-July 2010
- Household size affects usage
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- Figure 5: Household usage of sweet and savory spreads, by size of household, February 2009-March 2010
- Race/Hispanic origin and food preferences
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- Figure 6: Hispanic and Asian households, by size, 2009
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- Figure 7: Population, by race and Hispanic origin, 2005-15
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- Figure 8: Household type, by race and Hispanic origin of householder, 2009
- Obesity and health
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- Figure 9: Age-adjusted prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2008
- Peanut allergies and peanut butter recalls deter usage
Competitive Context
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- Key points
- Global food demand affects U.S. pricing for foods made with grain or milk
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- Figure 10: Consumer Price Index, food at home, U.S. city average, 2000-10
- Closer to natural movement improves butter’s image
- Value-added in everything from honey to peanut butter creates competition
- Organic, natural, hormone-free create multiple price points
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- Figure 11: Impact of sustainable product claims on purchase decision, May/June 2010
Segment Performance
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- Key points
- Sales of savory and sweet spreads in FDMx
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- Figure 12: FDMx sales of savory and sweet spreads, by segment, 2008-10
Segment Performance—Butter
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- Key points
- Growing private label presence and butter as a commodity
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- Figure 13: FDMx sales in dollars/volume, 2005-2009
- Making butter healthier and more natural
- Sales and forecast of butter
- FDMx sales and forecast of butter, 2005-15
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- Figure 14: FDMx sales and forecast of butter, 2005-15
Segment Performance—Margarine and Table Spreads
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- Key points
- Private label has little effect on sales of margarine/table spreads
- Making margarine more natural
- Sales and forecast of margarine and table spreads
- FDMx sales and forecast of margarine and table spreads, 2005-15
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- Figure 15: FDMx sales and forecast of margarine and table spreads, 2005-15
Segment Performance—Peanut Butter and Other Nut Butters
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- Key points
- Peanut butter volume sales decline through FDMx
- Private label offering organics and brands offering alternatives to tree nuts
- Sales and forecast of peanut butter and other nut butters
- FDMx sales and forecast of peanut butter and other nut butters, 2005-15
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- Figure 16: FDMx sales and forecast of peanut butter and other nut butters, 2005-15
Segment Performance—Jams, Jellies, Preserves, and Fruit Butters
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- Key points
- FDMx volume sales decline, dollar sales grow slightly
- Hot and spicy pepper jelly/jam aim to take sweet spreads beyond breakfast and sandwiches
- Sales and forecast of jams, jellies, preserves, and fruit butters
- FDMx sales and forecast of jams, jellies, preserves, and fruit butters, 2005-15
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- Figure 17: FDMx sales and forecast of jams, jellies, preserves, and fruit butters, 2005-15
Segment Performance—Honey
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- Key points
- Fits the demand for simple, natural products
- Sales and forecast of honey
- FDMx sales and forecast of honey, 2005-15
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- Figure 18: FDMx sales and forecast of honey, 2005-15
Retail Channels
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- Key points
- Supermarkets’ grip loosens, but the segment can regain its grasp
- Sales of savory and sweet spreads, by channel
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- Figure 19: Total U.S. sales of savory and sweet spreads, by channel, 2008 and 2010
Retail Channels—Supermarkets
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- Key points
- Sales growth and decline the story in recent years
- Supermarket/food stores’ sales of savory and sweet spreads
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- Figure 20: Total U.S. supermarket/food stores’ sales of savory and sweet spreads, 2005-10
Retail Channels—Other Retailers
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- Key points
- Other retail outlets sweep up
- Other retailers’ sales of savory and sweet spreads
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- Figure 21: Total U.S. other retailers’ sales of savory and sweet spreads, 2005-10
Retail Channels—Natural Foods Supermarkets
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- Key points
- Performance is strong despite trading down from organics
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- Figure 22: Natural supermarket sales of savory and sweet spreads, at current prices, 2008-10
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- Figure 23: Natural supermarket sales of savory and sweet spreads, at inflation-adjusted prices, 2008-10
- Natural channel sales by segment
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- Figure 24: Natural supermarket sales of savory and sweet spreads, by segment, 2008-10
- Leading brands dominate with many small brands growing too
- Imports thrive in jams and preserves sector
- Natural channel sales of savory and sweet spreads by organic content
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- Figure 25: Natural supermarket sales of savory and sweet spreads, by organic, 2008-10
- Segment performance by organic content
Leading Companies
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- Key points
- Big brands contend with private label
- Unilever’s sweet spot
- J.M. Smucker ups the ante
- FDMx sales of savory and sweet spreads by manufacturer
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- Figure 26: Select manufacturer FDMx sales of savory and sweet spreads, 2009-10
Brand Share—Butter
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- Key points
- Brands play second fiddle to private label
- Land O’Lakes dominates
- Manufacturer and brand sales of butter
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- Figure 27: Leading FDMx brand sales and market share of butter, 2009-10
Brand Share—Margarine and Table Spreads
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- Key points
- Unilever controls more than half the segment, but slips
- Smart Balance strengthened with omega-3s
- Land O’Lakes gains
- Manufacturer and brand sales of margarine and table spreads
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- Figure 28: Leading FDMx brand sales and market share of margarine and table spreads, 2009-10
Brand Share—Peanut Butter and Other Nut Butters
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- Key points
- Can Peter Pan fully recover?
- Convenience in packaging and usage
- Skip(py) to natural
- Manufacturer and brand sales of peanut butter and other nut butters
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- Figure 29: Leading FDMx brand sales and market share of peanut butter and other nut butters, 2009-10
Brand Share—Jams, Jellies, Preserves and Fruit Butters
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- Key points
- Growing interest in specialty items
- Private label contributes to segment growth
- Manufacturer and brand sales of jams, jellies, preserves, and fruit butters
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- Figure 30: Leading FDMx brand sales and market share of jam, jelly, preserves, and fruit butter, 2009-10
Brand Share—Honey
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- Key points
- Sweet opportunity for many players
- Manufacturer and brand sales of honey
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- Figure 31: Leading FDMx brand sales and market share of honey, 2009-10
Innovations and Innovators
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- Key points
- New product innovation trends in savory/sweet spreads sector
- Total new innovations by category and subcategory
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- Figure 32: Total new innovations, by category and subcategory, 2005-10
- A time for healthier options
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- Figure 33: Product and packaging claims, by category, 2005-10
- Retailers pressing with innovation
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- Figure 34: Private label and name brand launches in savory and sweet spreads, 2005-10
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- Figure 35: Product launches across the top 20 companies in savory and sweet spreads, 2005-10
- Innovations
- Private label
- Natural/organic
- Convenience
Brand and Marketing Strategies
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- Opportunities for innovation and development
- Manufacturer developments
- A natural fit for Skippy
- A Smart Balancing Act
- Sales supported with consistent web messaging
- Three-tier spreads strategy
- Television advertising
- Savory spreads tap lifestyle choices
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- Figure 36: Smart Balance Buttery Spreads Women running, man at refrigerator television ad, 2009
- Dancing with the groceries
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- Figure 37: I Can’t Believe It’s Not Butter Megan Mullally and male employee dance and sing television ad, 2009
- Smucker’s sweet spreads market with heart
- Motherly love
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- Figure 38: Jif Mom sends college girl package with love. television ad, 2009
- When I was a kid…
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- Figure 39: Smucker’s Tim practices his name. Richard does, too. television ad, 2009
- The influence of social media
Household Consumption of Savory and Sweet Spreads
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- Key points
- Usage of savory and sweet spreads
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- Figure 40: Household usage of sweet and savory spreads, by key demographics, February 2009-March 2010
- Trends in spreads usage
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- Figure 41: Spreads usage, by type of spread, 2004-09
- Personal usage of savory spreads
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- Figure 42: Usage of savory spreads, by household income, July 2010
- Personal usage of sweet spreads
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- Figure 43: Personal usage of sweet spreads, by household income, July 2010
Kids’ and Teens’ Usage of Peanut Butter and jelly
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- Key points
- Peanut butter and jam usage among kids and teens
- Kids aged 6-11
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- Figure 44: Peanut butter usage, among kids 6-11, by gender, November 2008-December 2009
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- Figure 45: Jam usage, among kids 6-11, by gender, November 2008-December 2009
- Teens aged 12-17
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- Figure 46: Peanut butter usage, among teens 12-17, by gender, November 2008-December 2009
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- Figure 47: Jam usage, among teens 12-17, by gender, November 2008-December 2009
How and When Consumers Use Spreads
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- Key points
- Usage of spreads for baking and cooking
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- Figure 48: Usage of various spreads for baking, by age, July 2010
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- Figure 49: Usage of various spreads for cooking, by age, July 2010
- Usage of savory spreads with bread/toast/sandwiches
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- Figure 50: Usage of various savory spreads with bread/toast/sandwiches, by age, July 2010
- Usage occasions for sweet spreads
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- Figure 51: Usage occasions for various sweet spreads, July 2010
Consumer Attitudes Toward Spreads
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- Key points
- Attitudes towards butter and margarine
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- Figure 52: Attitudes toward butter and margarine, by age, July 2010
- Health and positioning attributes that matter most to spreads consumers
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- Figure 53: Important health claims and product attributes, by age, July 2010
Impact of Race and Hispanic Origin
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- Key points
- Race/ethnicity offer challenges and opportunities to the market
- Peanut butter
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- Figure 54: Peanut butter usage, by race/Hispanic origin, February 2009-March 2010
- Jams, jellies, and preserves
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- Figure 55: Jams, jellies, and preserves usage, by race/Hispanic origin, February 2009-March 2010
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- Figure 56: Jams, jellies, and preserves usage, by brands/frequency, and by race/Hispanic origin, February 2009-March 2010
- Butter
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- Figure 57: Butter usage, by race/Hispanic origin, February 2009-March 2010
- Margarine
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- Figure 58: Margarine usage, by race/Hispanic origin, February 2009-March 2010
- Use of spreads for cooking
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- Figure 59: Usage of spreads for cooking, by race/Hispanic origin, July 2010
- Attitudes towards butter and margarine
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- Figure 60: Attitudes towards butter and margarine, by race/Hispanic origin, July 2010
Cluster Analysis
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- Stickers
- Demographics
- Characteristics
- Opportunity
- Tubbers
- Demographics
- Characteristics
- Opportunity
- Spreaders
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 61: Spreads clusters, July 2010
- Figure 62: Usage of savory spreads, by spreads clusters, July 2010
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- Figure 63: Attitudes towards butter and margarine, by spreads clusters, July 2010
- Figure 64: Personal usage of sweet spreads, by spreads clusters, July 2010
- Cluster demographics
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- Figure 65: Spreads clusters, by gender, July 2010
- Figure 66: Spreads clusters, by age group, July 2010
- Figure 67: Spreads clusters, by household income, July 2010
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- Figure 68: Spreads clusters, by race, July 2010
- Figure 69: Spreads clusters, by Hispanic origin, July 2010
- Cluster methodology
Custom Consumer Groups
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- Key points
- Personal usage of savory spreads
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- Figure 70: Usage of various savory spreads, by gender and age, July 2010
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- Figure 71: Usage of various savory spreads, by gender and household income, July 2010
- Attitudes towards butter and margarine
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- Figure 72: Attitudes toward butter and margarine, by gender and age, July 2010
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- Figure 73: Attitudes towards butter and margarine, by gender and household income, July 2010
- Personal usage of sweet spreads
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- Figure 74: Personal usage of various sweet spreads, by gender and age, July 2010
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- Figure 75: Personal usage of various sweet spreads, by gender and household income, July 2010
- Health and positioning attributes that matter most to spreads consumers
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- Figure 76: Important health claims and product attributes, by gender and age, July 2010
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- Figure 77: Important health claims and product attributes, by gender and household income, July 2010
IRI/Builders—Key Household Purchase Measures
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- Refrigerated butter
- Consumer insights on key purchase measures – refrigerated butter
- Brand map
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- Figure 78: Brand map, selected brands of refrigerated butter, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 79: Key purchase measures for the top brands of refrigerated butter, by household penetration, 2009*
- Margarine/spreads/butter blends
- Consumer insights on key purchase measures – margarine/spreads/butter blends
- Brand map
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- Figure 80: Brand map, selected brands of margarines/spreads/butter blends, buying rate, by household penetration, 2009*
- Brand leader characteristics
- Key purchase measures
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- Figure 81: Key purchase measures for the top brands of margarines/spreads/butter blends, by household penetration, 2009*
- Peanut butter
- Consumer insights on key purchase measures – peanut butter
- Brand map
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- Figure 82: Brand map, selected brands of peanut butter, buying rate, by household penetration, 2009*
- Brand leader characteristics
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- Figure 83: Key purchase measures for the top brands of peanut butter, by household penetration, 2009*
Appendix: Other Useful Consumer Tables
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- Usage of savory spreads
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- Figure 84: Usage of various savory spreads, by age, July 2010
- Usage of spreads for baking
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- Figure 85: Usage of various spreads for baking, by household income, July 2010
- Usage of savory spreads with bread/toast/sandwiches
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- Figure 86: Usage of various savory spreads with bread/toast/sandwiches, by household income, July 2010
- Attitudes towards butter and margarine
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- Figure 87: Attitudes towards butter and margarine, by household income, July 2010
- Health and positioning attributes that matter most to spreads consumers
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- Figure 88: Important health claims and product attributes, by household income, July 2010
- Important health claims and product attributes
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- Figure 89: Important health claims and product attributes, by race/Hispanic origin, July 2010
Appendix: Trade Associations
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