Author: Mintel Group Ltd.
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Nut-based Spreads and Sweet Spreads - US - March 2014
Scope and Themes
 
What you need to know 
The $3.9 billion nut-based and sweet spread category grew 34% from 2008-13. While many nut-based and sweet spreads already have very high household penetration rates and have become pantry staples, there is still room for growth, especially related to ingredient, flavor, and packaging innovation. Consumers indicate a preference for spreads made with natural ingredients and without the use of additives or unnecessary sugar or salt. Though interest in better-for-you spreads is certainly high, consumers still make room to indulge. The success of sweet spreads such as Nutella has attracted brands both within and outside of the segment to join the chocolate-hazelnut spread craze. Future growth of the category will rely on product innovation, expanded usage occasions, and a focus on new audiences, including ethnic consumers.

Mintel here provides a comprehensive analysis of the following factors that have the greatest potential to impact the category’s performance:

●	Types of spreads purchased and how purchase preferences differ by demographics
●	Occasions in which nut-based and sweet spreads are consumed, including use as snacks, ingredients, and meal components
●	Interest in gourmet and premium offerings for both nut-based and sweet spreads
●	Preferences of Asians and Hispanics who over index in use
●	Impact of fewer households with children and nut allergies 
●	How health concerns, interest in gourmet options, brand preferences and allergy concerns impact consumer attitudes toward nut-based and sweet spreads
●	The types of nut-based and sweet spreads consumers are most interested in seeing more of
●	The factors that have the most influence on purchases of nut-based and sweet spreads
●	Which nutritional attributes are top of mind for consumers when purchasing nut-based and sweet spreads
●	Current product positioning and what marketing strategies make the most sense given the various target audiences that manufacturers are trying to connect with to maximize sales opportunities
●	Which brands are gaining, which are losing, and why, within the market
●	How factors such as increased snacking occasions and shifting US demographics are impacting the market as a whole

Definition 
This report builds on the analysis presented in Mintel's Nut-based Spreads and Sweet Spreads – US, March 2013, as well as Dips and Spreads – US, September 2011, Savory and Sweet Spreads – US, September 2010, Sweet Spreads and Nut Butters – US, September 2008, Sweet Spreads – US, October 2006 and Sweet Spreads – US, September 2005. 

For the purposes of this report, nut-based spreads and fruit spreads include the following products:

●	nut and seed butters including peanut, almond, sunflower, and others
●	shelf-stable and frozen jam, jelly, and fruit spreads, and preserves

Butter and margarine spreads are excluded from the scope of this report (please see Mintel’s Butter, Margarine, and Spreads – US, August 2011 report).

Value figures throughout this report are at (rsp) retail selling prices excluding sales tax unless otherwise stated. 

Data sources
Sales data
●	Market Size and Forecast: Total retail sales based on Information Resources, Inc. InfoScan Reviews; US Census Bureau, Economic Census
●	Segment Performance: Total retail sales based on Information Resources, Inc. InfoScan Reviews; US Census Bureau, Economic Census
●	Retail Channels: based on Information Resources, Inc. InfoScan Reviews; US Census Bureau, Economic Census; except supermarket and drugstore sales, which are based on Information Resources, Inc. InfoScan Reviews.
●	Leading Companies and Brand Share: based on MULO sales data from Information Resources, Inc. InfoScan Reviews. MULO is defined as Multi Outlet, representative of the following channels: total US Grocery, Mass, Total US Drug, Total Walmart, Dollar, Military, and Club. Note that the values shown in this section differ from the Market Size/Forecast and Segment Performance sections of this report. Companies and brands sales data encompasses only sales through MULO channels, while Market Size/Forecast and Segment sales cover the entire retail market.

Consumer survey data
For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer consumption of/attitudes and behaviors toward nut-based spreads and sweet spreads. Mintel was responsible for the survey design, data analysis and reporting. Fieldwork was conducted December 2013-January 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents who are Hispanic or Black to ensure an adequate representation of these groups in the survey results. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Simmons NHCS (National Hispanic Consumer Study).

The Experian Marketing Services, Simmons NHCS was carried out during July 2012-September 2013 and the results are based on the sample of 24,219 adults aged 18+, with results weighted to represent the US adult population. 

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms
Abbreviations
The following is a list of abbreviations used in this report. 

BFY | Better-for-you
CPI | Consumer Price Index
GNPD | Global New Products Database
MULO | Multi Outlet, representative of the following channels: total US Grocery, Mass, total US Drug, total Walmart, Dollar, Military, and Club
NIH | National Institutes of Health
NCS/NHCS | National Consumer Study/National Hispanic Consumer Study (Experian Marketing Services)
rsp | Retail selling price

Generations are discussed within this report, and they are defined as: 

World War II/Swing Generations | Members of the WWII generation were born in 1932 or before and are aged 82 or older in 2014. Members of the Swing Generation were born from 1933 to 45 and are aged 69-81 in 2014.
Baby Boomers | The generation born between 1946 and 1964. In 2014, Baby Boomers are between the ages of 50 and 68.
Generation X | The generation born between 1965 and 1976. In 2014, Gen Xers are between the ages of 38 and 49.
Millennials * | Born between 1977 and 1994, Millennials are aged 20 to 37 in 2014.
iGeneration | Born between 1995 and 2007, members of iGen are aged 7 to 19 in 2014.
Emerging generation | The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2014, members of this as-yet-unnamed generation are younger than 7.

* also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows: 

CPI

The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer's dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates. 

The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.

Based on Bureau of Labor Statistics definition.

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