Honey Spread Market Size, Share & Industry Analysis, By Type [Pure Honey Spread and Mixed Honey Spread (Honey Fruit Spread, Honey Nut/Butter Spread, and Others)], By Distribution Channel (Hypermarket/Supermarket, Specialty Stores, Online Retail Stores, and Others), and Regional Forecast, 2024-2032

The global honey spread market size was valued at USD 3.82 billion in 2023 and is expected to grow from USD 3.97 billion in 2024 to USD 6.33 billion by 2032, exhibiting a CAGR of 6.00% during the forecast period. North America dominated the honey spread market with a market share of 40.05% in 2023. Moreover, the honey spread market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 1.67 billion by 2032, driven by growing demand for ‘better-for-you’, healthy and premium quality natural spreads in the region.

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, 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.

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. 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 the 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.

Honey Spread Market Trends

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 more 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. Consumers prefer to purchase food products which are made of natural and healthy ingredients. Honey spreads are suitable as they are prepared using naturally obtained honey as the principal ingredient. Product reformulation strategies in which some honey spreads are infused with fruits such as apples and oranges, among others, help to increase the nutritional content of these products further.

Honey Spread Market Growth Factors

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.

RESTRAINING FACTORS

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.

Honey Spread Market Segmentation Analysis

By Type Analysis

Mixed Honey Spread Segment Holds Major Share Due to Wide Consumption of Healthy Food Spreads

The mixed honey spread segment is expected to hold a major share in the market due to increasing consumers' demand for products with different flavor profiles. The recent trend in the market is a shift from the 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.

By Distribution Channel Analysis

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 programme.

REGIONAL INSIGHTS

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 1.53 billion in 2023. 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.

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.

With the growing consumption of products, such as sandwiches and breads and increasing adoption of Western diets in other regions, such as Asia Pacific, South America and the Middle East, the demand for such spreads is expected to increase in the future.

List of Key Companies in Honey Spread Market

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. Manufacturers' development of novel food ingredients also acts as a major factor that can create an opportunity for the market players to differentiate their products from other competitors. For instance, new research on the use of Himalayan honey to make apple-favored spreads can be a suitable substitute for other sweeteners such as processed white sugar. 

LIST OF KEY COMPANIES PROFILED:

• Hive & Wellness Australia Pty Ltd. (Australia)


• J.M. Smucker (U.S.)


• Land O' Lakes (U.S.)


• Mellona (Cyprus)


• Dabur Ltd. (India)


• Honey-Butter Products Co., Inc. (U.S.)


• The Kraft Heinz Company (U.S.)


• Alpalair Wellness Private Limited (India)


• Alberta Honey Producers Cooperative Limited (Canada)


• Comvita Limited (New Zealand)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: Capilano launched hot chilli honey, which can be spread over pizzas, wings, chicken ribs and burgers. It is mainly aimed at consumer who prefer to add a spicy taste to their food.


• March 2023: SULCA, an Indian company, launched hot honey for consumers in the country. The new product is used as a spread and can be applied to pancakes, biscuits, pizzas, and other products. It is manufactured using 100% multi-floral honey derived from the Himalayas and without artificial ingredients.


• April 2022:  Bee-Free Honey Company MeliBio, involved in producing vegan honey spreads, acquired USD 5.7 million in funding from private investors. This new infusion of funds helped the company to improve its production process and adopt advanced technology to improve the taste and texture of the honey used in making products such as spreads.


• April 2022 - Dr. Oetker, India's one of the fastest-growing mayo, spreads, and condiments manufacturers, launched all-Natural Peanut Butter sweetened with organic honey. The product has high nutritional value with a goodness of 91% roasted peanuts.


• August 2020 - The Nutty Gourmet, a family-owned walnut farm and processing facility, launched honey walnut butter along with five other variants of walnut butter. The honey butter is a keto-friendly spread that is certified kosher and is gluten- and preservative-free.

REPORT COVERAGE

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, 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.

Report Scope & Market Segmentation