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Sweet spreads, comprising jelly/jam/preserves, honey, and peanut and other nut butters, saw sales increase 11% between 2000 and 2005. These sales, which include FDM channels, natural food stores and specialty/gift/department stores, have grown slightly but steadily in current terms every year since 2000, except from 2004 to 2005. From 2004 to 2005, sales in these channels remained stable at approximately $1.8 billion.
The slight growth each year in the sweet spreads category has not outpaced inflation, resulting in a general 2% decline in sales since 2000. A number of factors have influenced the sweet spreads market in the six years studied here. Firstly, the products do not usually stand on their own as food products. Rather, they are ingredients used in making sandwiches or snacks, garnishing ice cream or yogurt, or in baking, cooking, marinating, and other recipe preparations. As such, part of their success relies on the relative popularity of other ingredients or of cooking and baking techniques. Low-carb diets have not supported sales over time.
The products also lack an image of convenience. Many consumers eat breakfast and lunch on-the-go and manufacturers have invented a host of "grab and go" food items that provide instant gratification. While making a sandwich or a snack with peanut butter and honey or jelly is not a complex operation, it still takes longer than taking a ready-made snack bar or pastry to eat on the run. Understanding this difference, J.W. Smucker successfully launched "Uncrustables," pre-made peanut butter and jelly sandwiches for grab-and-go eating, in 2004. Their success came at the expense of sweet spread sales, however, as consumers are trading the products for the ready-made items.
But, peanut butter, honey, jam and jelly remain household staples, working in combination for many lunches. Still, as more products are unveiled with these items as the main flavor, manufacturers must ask themselves how much peanut butter or fruit jam consumers will eat in a typical day before being "maxed out." The situation calls for innovations in the category from new, distinctive tastes to more convenient packaging.
This report defines sweet spreads as the following products:
- Peanut and other nut butter, including almond butter and cashew butter. Flavored nut butters (e.g. Nutella) are also included, as are peanut butters that are mixed with jelly in the packaging.
- Jam, defined as a thick mixture of fruit, sugar that is cooked until the pieces of fruit are very soft and almost formless.
- Jelly, defined as a soft, semisolid food substance with a resilient consistency, made by the setting of a liquid containing pectin or gelatin or by the addition of gelatin to a liquid, especially such a substance made of fruit juice containing pectin boiled with sugar. Jelly does not contain pieces of fruit, but is smooth and clear in appearance.
- Fruit butter, which is defined as a sweet spread for bread made by stewing fresh fruit with sugar and spices until it becomes thick and smooth. Fruit butters do not contain dairy products.
- Preserves, defined as fruit cooked with sugar and usually pectin, used as a spread or filling. Preserves differ from jam in that the chunks of fruit are medium to large rather than the texture of thick puree.
- Honey, in comb, liquid, or solid form. Flavored and unflavored honeys are included.
Contents
Introduction and Abbreviations
- Introduction
- Other relevant reports
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
- Hurt by the low-carb trend, sweet spreads must rebuild usage occasions
- Low- and no-sugar variations supporting sales growth
- Use of peanut butter, jam, jelly and honey as flavor notes suggest need for innovation
- Convenience trends hurt sweet spread sales
- Polarization in sweet spreads: a market for high-end and low-end
- Nut butters have half of all sweet spread sales in FDM and natural channels
- Honey is fastest-growing segment
- Smucker s and Unilever lead sweet spreads
- Mainstream supermarkets lead, but losing share to other channels
- Household penetration higher but amount of consumption relatively low
- Teen girls are brand influencers when it comes to sweet spreads
- Gourmet shows great opportunity for growth
- "Fresh focus" at grocers could mean jam and jellies will be made on site
- Market forecast to grow to $2 billion by 2010; but growth will not outpace inflation
Market Drivers
- Diet plans and low-carb fallout
- Peanut butter, honey, and jam flavor notes
- Figure 1: Launches of confectionery, desserts/ice cream, snacks, bakery, and breakfast cereal products with peanut butter, honey, or jam/jelly flavor notes, 2000-05
- Convenience and on-the-go eating
- Figure 2: Types of breakfast food eaten in the household, 2000/01-2004
- Upscale, gourmet, and specialty purchases
- Store brands vs. national brands
- Figure 3: Private-label and total sales of peanut butter, jam/jelly, and honey in the U.S., 2002 and 2004
Market Size and Trends
- Market Size
- Figure 4: U.S. retail sales of sweet spreads, at current and constant prices, 2000-05
- Market Trends
- New product launch trends (GNPD)
- Figure 5: Graph: Sweet spreads new product introductions in U.S., 2002-05
- Figure 6: Top five positioning claims among the new sweet spreads released since 2000
Market Segmentation
- Figure 7: Sales of sweet spread market, segmented by type, 2003 and 2005
- Peanut and other nut butters
- Figure 8: Sales of peanut and other nut butters, at current and constant prices, 2000-05
- Jam, jelly, preserves, and fruit butter
- Figure 9: Sales of jam, jelly, preserves, and fruit butter, at current and constant prices, 2000-05
- Honey
- Figure 10: Sales of honey, at current and constant prices, 2000-05
Supply Structure
- Foreign trade
- Figure 11: Imports and exports of honey, 2000-04
- Figure 12: Imports and exports ofjam and jelly, 2000-04
- Companies and brands
- Figure 13: Manufacturer sales of sweet spreads in the U.S., 2002 and 2004
- Peanut and other nut butters
- Figure 14: Manufacturer brand sales of peanut and other nut butters in the U.S., 2002 and 2004
- Jam, jelly, preserves, and fruit butter
- Figure 15: Manufacturer brand sales of jam, jelly, preserves, and fruit butter in the U.S., 2002 and 2004
- Honey
- Figure 16: Manufacturer brand sales of jam, jelly, preserves, and fruit butter in the U.S., 2002 and 2004
- Major Manufacturers
- J.M. Smucker Company
- Unilever
- ConAgra
- Welch Foods
- B&G Foods
- Sioux Honey Association Coop
- John Paxton, Inc.
Advertising and Promotion
- J.M. Smucker Inc.
- Unilever
- Welch s
Retail Distribution
- Introduction
- Figure 17: U.S. retail sales of sweet spreads, by channel, 2003 and 2005
- Supermarkets
- Figure 18: Supermarket sales of sweet spreads, at current and constant prices, 2000-05
- Specialty/department/gift stores
- Figure 19: Specialty/department/gift store sales of sweet spreads, at current and constant prices, 2000-05
- Natural supermarkets
- Figure 20: Natural supermarket sales of sweet spreads, at current and constant prices, 2000-05
The Consumer
- Introduction
- Household usage of jams, jellies, and preserves
- Figure 21: Household usage of jams, jellies, and preserves, January-September 2004
- Types of jam, jelly, and preserves used in households
- Figure 22: Types of jams, jellies, and preserves used by households, January-September 2004
- Flavors of jam, jelly, and preserves used in households
- Figure 23: Flavors of jams, jellies, and preserves used by households, January-September 2004
- Figure 24: Flavors of jams, jellies, and preserves used by households, by race/ethnicity, January-September 2004
- Figure 25: Flavors of jams, jellies, and preserves used by households, by cross-analysis, January-September 2004
- Brands of jam, jelly, and preserves used in households
- Figure 26: Brands of jams, jellies, and preserves used by households, January-September 2004
- Figure 27: Brands of jams, jellies, and preserves used by households, by race/ethnicity, January-September 2004
- Amount of jam, jelly, and preserves used in households
- Figure 28: Number of jars of jams, jellies, and preserves used by households in the past 30 days, January-September 2004
- Household usage of peanut butter
- Figure 29: Household usage of peanut butter, January-September 2004
- eClip
- Figure: eClip1: Couple describes their usage of peanut butter for lunch
- Types of peanut butter used in households
- Figure 30: Types of peanut butter used by households, January-September 2004
- Brands of peanut butter used in households
- Figure 31: Brands of peanut butter used by households, January-September 2004
- eClip
- Figure: eClip2: Young mother describes her kids experience with cheaper peanut butter brand
- Figure 32: Brands of peanut butter used by households, by race/ethnicity, January-September 2004
- Amount of peanut butter used in households
- Figure 33: Number of jars of peanut butter used by households in the past 30 days, January-September 2004
- Usage of honey, fruit jam, fruit jelly, and fruit butter
- Figure 34: Household usage of honey, fruit jam, fruit jelly, and fruit butter, June 2005
- Figure 35: Household usage of honey, fruit jam, fruit jelly, and fruit butter, by age, June 2005
- Uses for sweet spreads
- Figure 36: Ways of using jam, jelly, or fruit butter, June 2005
- Using sweet spreads as gifts
- Figure 37: Use of specialty jams, jellies, or honeys as gifts, June 2005
- Figure 38: Use of specialty jams, jellies, or honeys as gifts, by age, June 2005
- Attitudes/opinions concerning jam and jelly
- Figure 39: Opinions regarding jam and jelly, June 2005
- Figure 40: Opinions regarding jam and jelly, by age, June 2005
- Figure 41: Opinions regarding jam and jelly, by income, June 2005
- eClip
- Figure: eClip3: Married mother describes how she chooses which jam or jelly to buy
- Usage of sweet spreads by teenagers
- Figure 42: Usage of jams, jellies, and preserves by teenagers, January-September 2004
- Brands of jams, jellies, and preserves used by teenagers
- Figure 43: Brands of jams, jellies, and preserves used by teenagers, January-September 2004
- Figure 44: Brands of jams, jellies, and preserves used by teenagers, by race/ethnicity, January-September 2004
- Frequency of eating jam and jelly?teenagers
- Figure 45: Times per 30 days jam or jelly is eaten by teenagers, January-September 2004
- Teenagers and product choice: jam, jelly, and preserves
- Figure 46: Teenagers choice of jam, jelly, and preserves, January-September 2004
- Figure 47: Teenagers choice of jam, jelly, and preserves, by gender and age, January-September 2004
- Usage of peanut butter by teenagers
- Figure 48: Usage of peanut butter by teenagers, January-September 2004
- Brands of peanut butter used by teenagers
- Figure 49: Brands of peanut butter used by teenagers, January-September 2004
- Figure 50: Brands of peanut butter used by teenagers, by race/ethnicity, January-September 2004
- Frequency of eating peanut butter?teenagers
- Figure 51: Times per 30 days peanut butter is eaten by teenagers, January-September 2004
- Figure 52: Times per 30 days peanut butter is eaten by teenagers, by race/ethnicity, January-September 2004
- Teenagers and product choice: peanut butter
- Figure 53: Teenagers choice of peanut butter, January-September 2004
- Figure 54: Teenagers choice of peanut butter, by race/ethnicity, January-September 2004
- Usage of sweet spreads by children
- Figure 55: Usage of jams, jellies, and preserves by children, January-September 2004
- Brands of jams, jellies, and preserves used by children
- Figure 56: Brands of jams, jellies, and preserves used by children, January-September 2004
- Figure 57: Brands of jams, jellies, and preserves used by children, by race/ethnicity, January-September 2004
- Frequency of eating jam and jelly?children
- Figure 58: Times per 30 days jam or jelly is eaten by children, January-September 2004
- Figure 59: Times per 30 days jam or jelly is eaten by children, by race/ethnicity, January-September 2004
- Usage of peanut butter by children
- Figure 60: Usage of peanut butter by children, January-September 2004
- Brands of peanut butter used by children
- Figure 61: Brands of peanut butter used by children, January-September 2004
- Figure 62: Brands of peanut butter used by children, by race/ethnicity, January-September 2004
- Frequency of eating peanut butter?children
- Figure 63: Times per 30 days peanut butter is eaten by children, January-September 2004
- eClip
- Figure: eClip4: Mom describes benefit of having healthy food her kids can fix themselves
- Figure 64: Times per 30 days peanut butter is eaten by children, by race/ethnicity, January-September 2004
- Summary
Future and Forecast
- Future trends
- Eating habits and diets affect consumption of sweet spreads
- Continued appeal of flavor notes
- Jams and jellies made on-premise
- More pre-made PB&J
Market Forecast
- Sweet spreads
- Figure 65: Forecast of total U.S. sales of sweet spreads, at current and constant prices, 2005-2010
- Peanut and other nut butters
- Figure 66: Forecast of U.S. sales of peanut and other nut butters, at current and constant prices, 2005-2010
- Jam, jelly, preserves, and fruit butter
- Figure 67: Forecast of U.S. sales of jam, jelly, preserves, and fruit butter, at current and constant prices, 2005-2010
- Honey
- Figure 68: Forecast of U.S. sales of honey, at current and constant prices, 2005-2010
- Forecast Factors
Appendix: Trade Associations
Appendix: New Product Developments
- Category review ? Sweet spreads
- Global new product trends
- New products that offer "low carb" and "low in" formulae
- Flavor experimentation
- Packaging focused on portion control and/or mess-free spreading
- New product briefs
- Robert Rothschild Farm: Chai Apple Preserves
- Price Chopper: Concord Grape Preserves
- Mel-O Honey: Fruit N Honey Spread
- Madhava: Mountain Gold Clover Honey
- Target: Peanut Butter with Jelly
- Crabtree & Evelyn: Traditional English Country Lemon Curd
- Price Chopper: Blueberry Premium Flavored Honey
- La Cucina Rustica: Peach Honey
- Honeytree: Sugar-free Imitation Honey
- Chambord: Royal Fig Deluxe Preserves
- Kozlowski Farms: Sonoma County Classics Pumpkin Butter
- Houston Harvest Gift Products: Grandma s Country Strawberry Jam
- Fruits & Passion: Orange, Cranberry & Cardamom Spread
- Lamb s Farm: Spiced Peach Preserves
Appendix: Research Methodology
- Consumer Research
- Sampling & Weighting
- Technometrica TechnoExpresssm
- ICR Surveys EXCEL
- Simmons National Consumer Surveys
- Greenfield Online
- Presentation & Definition
- Further Analysis
- Trade Research
- Informal trade research
- Formal trade research
- Desk & Internet Research
- Sources
- Definitions
- Forecasts
Appendix: What is Mintel?
- Mintel Group
- Mintel Reports
- Mintel Premier
- Mintel ECLIPS
- GNPD
- Menu Insights
- Comperemedia
- Brokertrack
- Mintel Services
- Applied Research
- Mintel Consulting
- POS+
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