Food Spreads Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Food Spreads Market Trends and Insights

Busy lifestyles increase the preference for convenient and versatile food options

Households spend an average of USD 165 weekly on groceries, according to the Food Industry Association's 2024 data ^{[1]Source: Food Industry Association, "Consumers' weekly grocery expenditure in the United States", fmi.org}. Modern lifestyles have increased the use of spreads, expanding their role from just breakfast to lunch boxes, office snacks, and quick meals because of their convenience. In households with dual incomes, where time is limited, spreads play an essential role in meal preparation. Manufacturers are introducing creative packaging, with single-serve formats growing at twice the rate of family-size options. New spread varieties are being developed to suit different meal occasions and dietary needs. Companies are promoting spreads as flexible meal options, supported by the growing popularity of all-day breakfast foods. This trend has driven more investments in product innovation and marketing to showcase the versatile use of spreads in today’s meals.

Rising demand for exotic and regionally sourced fruit flavors drives product innovation

Consumer tastes are shifting toward spreads with unique flavors and regional ingredients, transforming meals into distinctive experiences. The 2025 flavor forecast highlights brown sugar as the "Flavor of the Year," reflecting a trend toward complex taste profiles blending sweetness with complementary notes ^{[2]Source: T. Hasegawa Co. Ltd., "Flavor Trends 2025", thasegawa.com}. Limited-edition and seasonal varieties featuring local and exotic fruits are opening up opportunities for premium pricing. These unique flavors are also seen as healthier, as consumers connect exotic fruits with added nutrition and health benefits. It is important to combine new and familiar elements, creating products that are interesting yet easy to try. Hot honey varieties are a good example, blending the familiar sweetness of honey with an unexpected spicy twist.

Growing popularity of plant-based diets fuels demand for vegan spreads

The plant-based movement is driving innovation in spreads, with manufacturers removing animal-derived ingredients while maintaining taste and texture. USDA data shows German plant-based food consumption reached 1.58 billion in 2023^{[3]Source: The United States Department of Agriculture, "Germany: Plant-Based Food Goes Mainstream in Germany", fas.usda.gov}. Brands are not just removing ingredients; they're emphasizing sustainability, ethical sourcing, and health benefits. Plant-based spreads, marketed as premium products, come with a higher price tag, reflecting consumers' preference for eco-friendly and health-centric choices. The market is on the rise, with nut-based spreads, including cashew and almond, along with seed-based varieties, emerging as popular protein-rich alternatives to dairy. In May 2024, Ferrero introduced a plant-based version of Nutella, crafted from chickpea and rice syrup.

Aggressive marketing and branding influences market growth

In the highly competitive food spreads market, brand positioning and marketing strategies play a crucial role in standing out. Companies use digital platforms to build stronger connections with consumers, focusing on more than just product features. These brands aim to engage meaningfully by showcasing their unique strengths. They connect with consumers by promoting sustainability, ensuring transparent supply chains, and sharing interesting stories about their products' origins. Zespri, a New Zealand brand known for its kiwifruit products, launched a campaign featuring “furry fruits” with the tagline “Feel Alive.” This campaign used television, digital platforms, and out-of-home (OOH) advertising to grab attention and engage audiences. Its humor and energy appealed especially to younger consumers, helping Zespri strengthen its market position. At the same time, social commerce platforms have changed how brands interact with consumers, making these interactions more direct, genuine, and aligned with changing expectations.

Health concerns over high sugar and fat content in certain spread restricts growth

Consumers are becoming more aware of the nutritional content in their food, putting pressure on traditional spreads that are high in sugar and fat. Manufacturers now face the challenge of improving these products without losing the flavors that encourage repeat purchases. In 2024, the George Institute for Global Health analyzed 53,315 packaged foods and found that only 34% met the Health Star Rating for 'healthier' products. This highlights significant nutritional issues in categories like spreads. The market is dividing into two segments: indulgent spreads promoted as occasional treats and healthier spreads for everyday use, with the latter growing 1.5 times faster. Regulatory measures, such as front-of-pack nutritional labeling, are adding to the challenge by making sugar and fat content more visible to consumers. To address these issues, manufacturers are focusing on using alternative sweeteners, healthier fats, and functional ingredients to improve nutrition and position spreads as a healthier part of the diet.

Intense competition from private labels and regional players impacts profitability

Retailers are changing the food spreads market by using consumer insights and efficient supply chains to create private label products that compete with national brands, often at lower prices. Regional players add to the competition by sourcing ingredients locally and producing nearby, which helps them offer authentic and affordable options. In response, national brands are focusing on innovation, better quality, and their brand reputation to justify higher prices. However, this strategy is challenging in price-sensitive segments. To adapt, established brands might need to simplify their product ranges to highlight high-margin, unique items and consider collaborating with retailers for co-manufacturing. This could help them maintain production levels while adjusting to the shifting market trends.

Segment Analysis

By Product Type: Honey Leads Through Functional Versatility

In 2025, honey makes up 31.56% of the food spreads market, driven by its versatility and image as a healthy choice. From 2026 to 2031, it is projected to grow at the fastest rate among spreads, with a CAGR of 7.23%, as more consumers shift away from refined sugars. Premium types like Manuka and Kanuka are priced higher because of their health benefits and limited availability. The market is also growing due to new product launches, such as Apis India's organic honey, introduced in January 2024. This honey, sourced from certified organic farms in Kashmir, is priced at INR 240 for a 450g glass bottle.

Nut and seed-based spreads are gaining popularity due to the increasing focus on protein-rich diets and plant-based eating trends. Innovations in texture and flavor are further boosting their appeal. Dairy and cheese spreads remain steady in the market, offering convenience despite rising competition from plant-based alternatives. Fish, meat-based, and vegan spreads are carving out niche markets by catering to specific dietary preferences. Across all categories, premium products are becoming more popular, with factors like origin, high-quality ingredients, and production methods driving higher prices and adding value.

By Nature: Organic Growth Outpaces Conventional

By 2025, the conventional segment will account for a significant 71.02% market share, supported by its wide availability, strong brand loyalty, and affordable pricing. On the other hand, the organic segment is expected to grow at a CAGR of 9.84% from 2026 to 2031, driven by increasing consumer preference for clean labels and eco-friendly production methods. The UK organic food and drink market demonstrates this trend, reaching GBP 3.7 billion in 2025, with a 7.3% increase in sales marking its thirteenth consecutive year of growth ^{[4]Source: Soil Association, "Organic Market Report 2025", soilassociation.org}.

The price difference between organic and conventional spreads is shrinking as organic supply chains become more efficient. Online sales of organic spreads are significantly higher, with digital purchases being twice as much as those of conventional spreads. Major retailers are making organic products more accessible by increasing shelf space and launching private-label organic options. Successful organic brands focus on highlighting the specific benefits of organic certification in their marketing, rather than relying only on the certification itself to attract consumers.

By Packaging Type: Sachets Challenge Jar Dominance

In 2025, jars hold a dominant 47.37% market share due to their ease of scooping, resealing ability, and clear visibility on store shelves. Sachets and pouches are gaining popularity for their portability, portion control, and lower environmental impact, with a strong CAGR of 6.94% expected from 2026 to 2031. Additionally, global regulations introduced in 2025 to reduce waste and support sustainability are driving changes in food spread packaging.

Tubs provide a good balance of convenience and product protection, while formats like cups, cans, and tetra packs serve specific regional and niche markets with a smaller but stable share. Packaging innovations now focus on using recyclable materials, lightweight designs, and improved barriers to extend shelf life without adding preservatives. In October 2024, Crofter's Organic, North America’s largest organic fruit spread producer, launched recyclable squeeze pouches. Modern packaging also includes QR codes that give consumers information about product origins, usage, and sustainability, improving engagement.

By Distribution Channel: Online Retail Disrupts Traditional Models

By 2025, supermarkets and hypermarkets are expected to hold 55.81% of the market share. This dominance comes from their wide availability, large variety of products, and in-store promotions that encourage impulse buying. Their success is further supported by their extensive geographic reach, a mix of branded and private-label products, and strategic shelf placements that attract customers. Additionally, these stores are popular for one-stop shopping, especially for regular household food purchases.

In contrast, online retail is predicted to grow the fastest, with a CAGR of 11.72% projected for 2026-2031. This growth is driven by consumers seeking convenience, easy product comparisons, and access to unique items not commonly found in physical stores. The increasing use of e-grocery platforms, time-saving home delivery options, and the ability to compare prices, ingredients, and nutritional details are key factors behind this trend. Online platforms also offer premium, imported, and niche food spreads that are often unavailable in physical stores, contributing to their faster growth despite a smaller current market share.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Europe holds the largest regional market share at 34.01% in 2026, supported by established consumption patterns and advanced retail infrastructure that enables product discovery and premiumization. To attract consumers' attention, new premium quality sweet spread products with eco-friendly packaging are being introduced in the European market. The trend of baking at home has also contributed to the growth of the food spread market, as spreads are used in various baking operations throughout the day. However, sweet spreads face a challenge in terms of health and wellness, as they are often high in sugar, except for honey, which is still popular due to its anti-bacterial properties. European regulatory requirements for nutritional labeling and sustainable packaging continue to influence product formulation and packaging decisions.

Asia-Pacific leads market growth with a projected CAGR of 9.01% from 2026-2031, influenced by urbanization, increased disposable incomes, and western dietary adoption in major markets. China and India drive this growth as their expanding middle classes incorporate spreads into breakfast routines. Japan's market offers opportunities through its distinct distribution system and high food import dependence. E-commerce expansion enables brands to reach consumers in smaller cities without extensive physical retail networks.

North America maintains a mature market focused on innovation, with the United States emphasizing premium and specialty spreads that meet convenience and health requirements. The market features a distinct split between value-focused private label products and premium branded offerings with specialized ingredients or functional properties. South America, and Middle East and Africa show growth potential through increasing urbanization and Western dietary influence. Brazil dominates South American production in honey and fruit-based spreads, while the United Arab Emirates and Saudi Arabia lead Middle Eastern growth, supported by expatriate communities and tourism-driven international food demand.