Europe Food Spread Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The European food spread market is expected to witness a CAGR of 2.1% during the forecast period (2022 - 2027).

Food Spread companies in Europe faced significantly reduced consumption as well as disrupted supply chains due to COVID-19. At-home consumption has increased, but out-of-home consumption, which historically generates the highest margin, has come to nearly a standstill. The consumption of nutritious and healthy spreads, which are free from additives and preservatives, gluten, and trans-fat, increased as consumers were becoming health conscious and were preferring natural or low-sugar and sugar-free spreads. There may be long-term changes in customer behavior and demand.

The European food spread market is closely tied to the ethnic flavors, raw material perceptions, and the consumption patterns of bread. The major factor driving the market is the demand for 100% fruit-based consumables. Changing consumer preferences and cautious spending are influencing the types of sweet spreads bought by British consumers.

The jams and jellies segment currently holds the largest share, and is expected to remain a major segment during the forecast period, due to the already existing high market penetration and the reinvigoration of products by the manufacturers.

Key Market Trends

High Demand for Fruit-based Spreads

Fruit-based spreads include jellies, marmalades, conserves, and preserves, all of which differ in terms of consistency. The majority of consumers who use fruit jams, jellies, and marmalades, consume them during breakfast. The number of private-label fruit spread brands has been increasing due to the surge in organized retailing. Much of this growth can be attributed to the consolidation and expansion of the retail food industry. Fruit spreads are more appealing to older European consumers than to younger consumers. In 2020, The Skinny Food Co. expanded the portfolio of its #NotGuilty Jam range with the launch of two new flavors: Orange Marmalade and Black Cherry. The two new flavors contain 85% fewer calories and 93% less sugar than other jam products available on the market. The highest consumer of jams, jellies, and marmalades in Europe is France, which accounts for 36% of the total European consumption. The other major countries that consume fruit spreads are Germany, the United Kingdom, Italy, and Spain.

United Kingdom is the Fastest Growing Market Segment

To augment the consumers' interest, new sweet spread products are being launched in the British market, with an emphasis on premium qualities and eco-awareness attributes, such as 'vegetarian' and 'environment-friendly packaging. Another important factor affecting the growth of the food spread market is the revived interest in baking at home; one-fifth of British consumers have been estimated to use spreads in various baking operations, other than during breakfast. In terms of health and wellness, sweet spreads face a challenge as they are not inherently healthy products due to the high amounts of sugar they contain. One exception is honey, which is still favored due to health-oriented claims, including anti-bacterial properties.

Competitive Landscape

Product innovations, mergers, and acquisitions are the major strategies followed by leading companies. Orkla Foods Lithuania, Hero Group, Andros Group, Ferrero Group, and Unilever PLC are the key players in the European food spread market. Most companies follow the strategy of launching new products. Over the past five years, each of these players launched numerous new products, under the 'spreads' category, in the European market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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