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Saturday July 27, 2024

Delicious mystery around $2b peanut butter industry craze in America

Extraordinary rise of peanut butter in US is attributed to advancements in technology, such as hydrogenation which made its transportation easier

By Web Desk
January 17, 2024
Representational image of peanut butter from Unsplash.
Representational image of peanut butter from Unsplash. 

Ever wondered why Americans can't get enough of peanut butter? 

The creamy or crunchy debate only scratches the surface of a delicious mystery fueling a $2 billion industry in the United States. 

Let's dig into the spreadable sensation that has become a favourite snack across the nation.

Do you know that your choice between creamy or crunchy is the result of centuries of technological advancements, innovation, and savvy marketing? 

This humble product, celebrated for its unique taste, affordability, and versatility, can be savoured on its own, slathered on a sandwich, or indulged in a dessert.

The roots of peanut butter's popularity trace back to the early 1900s, marked by technological breakthroughs like hydrogenation that made its widespread distribution possible, according to CNBC. While farmers in the southern US were grinding peanuts into a paste as far back as the 1800s, it was the 1920 introduction of commercially developed peanut butter by Peter Pan (formerly E.K. Pond) that revolutionised the industry. 

This innovation, employing hydrogenation with a patent from Skippy creator Joseph Rosefield, paved the way for peanut butter's dominance.

Fast forward to today, and the top three brands—Jif, Skippy, and Peter Pan—account for two-thirds of the market share. Jif leads with 39.4%, followed by Skippy at 17%. Private-label brands, such as Costco's Kirkland and Target's Good & Gather, contribute 18%.

While Jif's Uncrustables brand, featuring frozen pre-made PB&J sandwiches, has experienced phenomenal growth, peanut allergies and a 2022 salmonella outbreak briefly rocked the industry. However, these setbacks did little to hinder the enduring love for peanut butter, with nostalgic ties and comfort food associations.

Smucker's and Hormel Foods, the giants in this arena, are not resting on their laurels. They're focusing on innovation, exploring new product formats, and eyeing international markets like Mexico, Canada, and China, where peanut butter is utilized differently.

Amid challenges, peanut butter consumption in the US reached new heights during the COVID-19 pandemic, highlighting its role as a comfort food. With each bite of that PB&J sandwich, you're not just tasting a snack; you're savouring a piece of American nostalgia that has stood the test of time and is poised to delight taste buds for generations to come.