Dollar sales of nut butters have slipped 1% in the past year, according to Spins data, but the market research company predicts that the category is ready to rebound thanks to creative companies that are pushing category boundaries with new flavors, formats and formulations that ditch the undesirable ingredients, boost the nutrients consumers want and add convenience.
Nut and seed butters are primed for growth and innovation because they are inherently nutrient dense sources of plant protein and fiber, allowing them to seamlessly fit into popular “maxxing” diet trends, and they fit the “real whole food requirement that people are looking for these days,” Spins Senior Manager for Growth Consulting Katie Eilert said during the company’s recent trendspotting webinar.
In addition, they can be a “flavor vehicle” and have room to expand within their bases, including rising interest in pistachio, walnut and “some of those more unique nuts that consumers are currently focused on,” Eilert said.
She added they also can easily cut across – and even blend – savory and sweet (swicy), which opens new usage occasions and expands the boundaries of what a nut or seed butter can be.
Startups and emerging brands at the Specialty Food Association’s Winter Fancy Faire in San Diego this month showcased how they are rising to meet expanding consumer demand and acting as a catalyst for category growth.
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Beyond the jar
While a classic peanut butter and jelly sandwich is a go-to for on-the-go consumers eating lunch at school, in the office or on a mountain top, the jars in which the spreads are sold are far from travel-friendly.
Newcomer OMW! Foods (short for On My Way) is making it easier to take – and eat – peanut butter anywhere by putting it in a convenient pouch with a screw top.
“If you think about how most consumers eat a peanut butter and jelly sandwich, they’re usually doing something. They are camping, backpacking or being active. So, the pouch is a great option for them because they can make it while they’re on the go, while they are camping, while they are backpacking. They don’t have to pre-make it,” OMW! Founder Patrick Sedarous said.
He added the pouches are a more sustainable option as well because they are lighter to ship than a jar and they take up less space – which is appealing to retailers because they can fit more units per facing, including in nontraditional placements like peg-and-hook displays at checkout.
OMW! Foods also offers jams, honey and sunflower seed butter in pouches.
Beyond peanuts
Peanut may be the most well-known and stocked butter base, but new nuts are moving from niche or novelty to mainstream, including the bright green pistachio of Dubai chocolate-fame.
The Italian-based brand BB’s Foods, produced by M.I.N.E. (More Is Never Enough) launched three years ago in part to bring pistachios to Americans from Italy, where founder Sabrina Regolo says, “pistachios are not a trend – everyone eats them.”
Calling pistachios a “super food,” she says she designed her butters and creams to be used every day – just like peanut butter or as a replacement for Nutella and other sweet nut spreads. They also help consumers elevate a would-be common eating experience with a bright color and new flavor profile.
Like BB’s Foods, startup Amza Superfoods also is tapping into macro consumer trends – including fiber-maxxing, nutrient-density and swicy – while also stretching the butters category beyond nuts with its Flaxseed Butter line.
The line includes Flaxseed Butter with Dates, Flaxseed Butter with Oregon Hazelnuts and Flaxseed Butter with Chili & Turmeric, which founder Jolma Ren says stands out as a savory option that expands the usage occasions associated with the category.
“Our Flaxseed Butters are all organic and made with US grown flax seeds, which are superbly high in fiber, protein and are known for being a clean alternative source of omega-3 fatty acids versus fish, which nowadays has microplastics, mercury and other stuff people don’t want to eat,” she said.
Ren said the brand also appeals to environmentally-conscious consumers and younger generations who want to eat more climate resilient foods.
Beyond classic flavors
Octonuts is modernizing nut butters by leaning into fun, indulgent flavors without sacrificing clean labels, and positioning the spreads as better-for-you snacks and mini-meals, especially for Gen Z, explains company CEO Greg Nielsen.
The company offers basic go-tos, including single-ingredient almond and cashew spreads that are versatile, but also more indulgent options that check the snack box for younger consumers, including cashew butter in sea salt caramel, strawberry, churro and cocoa, and almond in roasted vanilla and maple.
“Nut butters fit into a lot of the big diet trends right now, including wanting more fiber, more protein, nutrient-density, plant-based and support for a healthier life. Plus, they are a very versatile product format” that can be used by themselves or as an ingredient in a meal, Nielsen said.
But just because nut butters are functional doesn’t mean they can’t also be fun – especially as younger shoppers turn to them as a snacking ritual, he added.
“That is where the fun flavors come in,” Nielsen said. He explained that there is a lot of “parity” in the pantry when it comes to nut butters and seed spreads, but Octonuts’ bold flavors ensure that something healthy can also feel like a treat.
