Big spread: Industry revenue will stabilize, though changes in weather will continue to affect input prices

The Peanut Butter Production industry has exhibited impressive growth in the five years to 2016. Peanut butter is a consumer staple and does not experience wild fluctuations in demand, even during recessions. The main reason the industry's revenue has increased over the past five years is due to a major spike in the price of peanuts, which occurred midway through the five-year period. During the latter half of the five-year period, manufacturers readjusted prices to reflect lower peanut prices, resulting in revenue declines from 2013 onward. Demand for peanut butter is expected to remain robust in the next five years as it maintains its position as an important household staple. However, because of fluctuating peanut prices, industry revenue will likely remain volatile...purchase to read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 11-16
2.8%
Forecast Growth 16-21
Profit
Employment
2,294
Businesses
60

Industry Threats & Opportunities

  • An increase in the price of peanuts primarily caused an increase in industry revenue
  • Technological advancements have helped producers automate many of the processes traditionally performed by labor
  • Producers only have a limited ability to absorb higher input prices
  • Industry Report - Industry Key Buyers Chapter

    The Peanut Butter Production industry has a high level of concentration, with the four largest operators expected to generate 78.7% of industry revenue in 2016. This high concentration level reflects a market dominated by a small number of large participants. Over the past five years, market share concentration among the three largest operators was somewhat diluted by the entrance of several smaller companies, most of which produce and market natural and artisan peanut butter products. However, most of these smaller operators have failed to gain traction because of significant marketing and branding efforts by larger operators such as The J.M. Smucker Co. and Hormel Foods, both of which have sustained strong brand loyalty during the five-year period. Fur...purchase to read more.

    Additional Insights for the Peanut Butter Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Peanut Butter Production Industry are

  • Established brand names
  • Supply contracts for key inputs
  • Access to high quality inputs
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Agricultural price index in the Peanut Butter Production industry impact industry performance..

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    What's in this report

    What is the Peanut Butter Production Industry?

    This industry primarily manufactures peanut butter. Industry products are then packaged and distributed to grocery wholesalers, supermarkets, specialty food stores and food service contractors for human consumption. The industry excludes peanut butter made by manufacturers for use in their own candy and snacks.

    Industry Products
  • Brand name, retail-size peanut butter
  • Private label, retail-size peanut butter
  • Peanut butter sold in commercial and bulk sizes
  • Industry Activities
  • Producing peanut butter
  • Producing peanut butter mixes
  • Producing peanut butter snacks
  • Producing peanut butter varieties
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Agricultural price index
  • Healthy eating index
  • Demand from supermarkets and grocery stores

  • Current Performance
  • Increased automation and shifting industry structure
  • Consumer trends
  • Imports and exports
  • Chart: Revenue Growth

  • Industry Outlook
  • Volatile prices
  • Wages and profit
  • Economic drivers of industry performance
  • Imports and exports
  • Table: Peanut Butter Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Peanut Butter Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cereal Production
  • Chocolate Production
  • Bread Production
  • Grocery Wholesaling
  • Supermarkets & Grocery Stores

  • Key Selling Industries
  • Fruit & Nut Farming
  • Glass Product Manufacturing
  • Plastic Bottle Manufacturing
  • Seasoning, Sauce and Condiment Production
  • Sugar Processing

  • Products & Services
  • Brand name, retail-size peanut butter
  • Private label, retail-size peanut butter
  • Peanut butter sold in commercial and bulk sizes
  • Chart: Peanut Butter Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Other retail channels
  • Institutional and foodservice customers
  • Exports
  • Chart: Major Market Segmentation for the Peanut Butter Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWages and depreciationMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Peanut Butter Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Peanut Butter Production Industry

  • Industry Globalization
    The JM Smucker Company, Hormel Foods Corporation, Post Holdings Inc., Conagra Brands Inc.,
  • Table: The JM Smucker Company - financial performance
  • Table: Hormel Foods Corporation - financial performance
  • Table: Post Holdings Inc. - financial performance
  • Table: Conagra Brands Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Peanut Butter Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Peanut Butter Production Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Agricultural price index (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Blanching
  • The process of removing the skin from a raw peanut prior to roasting and additional processing.
  • Runner Peanut
  • The most common variety of peanut grown in the United States and used in the production of peanut butter. The runner variety thrives in a warm climate and sandy, well-drained soil.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Peanut Butter Production provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Peanut Butter Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Peanut Butter Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Peanut Butter Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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