India Peanut Butter Market By Product (Crunchy, Creamy, Others), By Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, Online Stores, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

The India Peanut Butter Market was valued at USD 152.38 Million in 2024 and is expected to reach USD 228.12 Million by 2030 with a CAGR of 6.96% during the forecast period. The India peanut butter market is experiencing significant growth, driven by increasing health consciousness, changing dietary habits, and rising disposable incomes. Urbanization and the influence of Western diets have fueled demand, with consumers opting for protein-rich, low-fat spreads. The expanding e-commerce sector and wider retail distribution have further boosted accessibility. Additionally, the rise of fitness culture and growing veganism trends have contributed to market expansion.

Key Market Drivers

Growing Health Consciousness and Changing Dietary Habits

The increasing awareness of health and nutrition among Indian consumers has significantly driven the demand for peanut butter. In 2024, fueled by growing health consciousness and shifting consumer preferences, India's wellness market is anticipated to expand steadily at a rate of 5%. With a rising focus on protein-rich diets, peanut butter has gained popularity as a nutritious and convenient alternative to traditional Indian spreads. The growing prevalence of lifestyle diseases like obesity and diabetes has encouraged consumers to opt for healthier food choices, including peanut butter, which is high in protein and healthy fats. Fitness enthusiasts and gym-goers are particularly driving demand, as peanut butter is widely used as a post-workout supplement. Additionally, the increasing adoption of Western food habits, influenced by social media, fitness influencers, and global dietary trends, has led to greater acceptance of peanut butter as a staple in Indian households.

Expansion of Retail and E-Commerce Channels

The rapid expansion of modern retail infrastructure and e-commerce platforms has significantly boosted the accessibility and sales of peanut butter in India. India's ecommerce market, currently valued at USD 70 billion, accounts for about 7% of the country's total retail market. This presents a significant growth opportunity, as the online retail sector is expected to expand rapidly in the coming years. Supermarkets, hypermarkets, and convenience stores have improved product visibility, while online grocery platforms such as Amazon, Flipkart, and BigBasket have made it easier for consumers to purchase peanut butter with a single click. The rise of direct-to-consumer (D2C) brands leveraging digital marketing strategies has further strengthened market penetration. The convenience of home delivery, attractive discounts, and a wide variety of product offerings have encouraged more consumers to include peanut butter in their daily diets. Moreover, subscription-based models and personalized recommendations from online platforms have contributed to the product’s growing popularity among urban and semi-urban populations.

Diversification of Product Offerings and Premiumization

The Indian peanut butter market has witnessed significant product innovation, with brands introducing a variety of flavors, organic variants, and healthier formulations to cater to diverse consumer preferences. From classic creamy and crunchy peanut butter to flavored options such as chocolate, honey, and almond-infused variants, brands are appealing to both traditional and modern consumers. The demand for organic, sugar-free, and high-protein peanut butter has also surged, especially among health-conscious consumers and diabetics. Premiumization has led to the emergence of gourmet peanut butter products, targeting niche markets willing to pay a premium for high-quality ingredients and unique flavors. This trend has been further fueled by international brands entering the market, setting new benchmarks in taste, texture, and nutritional benefits.

Government Initiatives and Rising Domestic Peanut Production

The Indian government’s initiatives to promote domestic agriculture and food processing industries have positively impacted the peanut butter market. With India being one of the largest producers of peanuts globally, the abundant availability of raw materials at competitive prices has enabled local manufacturers to scale up production and offer cost-effective products. Government support in the form of subsidies, agricultural policies, and the promotion of plant-based protein consumption has further encouraged the growth of peanut butter manufacturing. Additionally, the Make in India initiative has attracted investments in food processing and packaging technology, enhancing product quality and shelf life. The increasing focus on exports has also led Indian peanut butter brands to expand their reach beyond domestic markets, creating new growth opportunities.                                                                        

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Key Market Challenges

Limited Consumer Awareness and Cultural Preferences

Despite the growing popularity of peanut butter in urban areas, a significant portion of the Indian population remains unfamiliar with the product or its benefits. Traditional Indian diets primarily rely on homemade spreads such as ghee, butter, and chutneys, making it challenging for peanut butter to replace or supplement these staples. Many consumers still perceive peanut butter as an expensive, Westernized product rather than an essential part of a balanced diet. Furthermore, peanut allergies, though less prevalent in India compared to Western countries, pose a barrier for some potential consumers. The lack of widespread awareness about its nutritional benefits, especially in rural and semi-urban areas, limits market penetration. Additionally, while brands invest in digital marketing and influencer promotions, sustained efforts in consumer education, in-store sampling, and awareness campaigns are needed to drive long-term adoption.

Price Sensitivity and Competition from Alternative Spreads

The Indian market is highly price-sensitive, with consumers often prioritizing affordability over premium or niche health products. While peanut butter offers nutritional benefits, its higher price compared to traditional alternatives such as butter, jam, or homemade spreads makes it less accessible to a broader consumer base. Mass-market brands struggle to strike a balance between maintaining quality and keeping prices competitive. Additionally, the market faces competition from a variety of other protein-based spreads, including almond butter, chocolate spreads, and dairy-based products like cheese spreads. International brands entering the Indian market further intensify competition, making it difficult for smaller domestic players to sustain profitability. Moreover, raw material costs, particularly peanut prices, fluctuate due to seasonal variations and supply chain disruptions, impacting overall production costs and retail pricing.

Distribution Challenges and Perishability Issues

Although modern retail and e-commerce platforms have improved accessibility, distribution remains a challenge, particularly in rural and remote areas where demand is still emerging. Traditional grocery stores, which dominate India’s retail sector, often hesitate to stock peanut butter due to lower demand and limited shelf space. The requirement for proper storage conditions to prevent oil separation and spoilage further complicates distribution, particularly in regions with high temperatures and humidity. While larger manufacturers invest in advanced packaging techniques to extend shelf life, smaller brands struggle with maintaining product stability. Supply chain inefficiencies, logistical costs, and inadequate cold storage infrastructure add to the challenge of ensuring consistent product availability. Addressing these distribution barriers requires strategic partnerships, investment in supply chain optimization, and targeted regional marketing efforts to expand peanut butter’s reach across India.  

Key Market Trends

Rising Popularity of High-Protein and Functional Peanut Butter Variants

One of the most significant trends in the Indian peanut butter market is the increasing demand for high-protein and functional peanut butter variants. As more consumers become health-conscious and seek protein-rich foods, brands are innovating by introducing peanut butter enriched with whey protein, collagen, and plant-based proteins. These fortified variants cater to fitness enthusiasts, bodybuilders, and individuals following specialized diets such as keto or high-protein regimens. Additionally, the inclusion of functional ingredients like flaxseeds, chia seeds, and omega-3 fatty acids is gaining traction, as consumers look for products that offer additional health benefits beyond just protein intake. This trend aligns with the broader movement toward functional foods, where consumers prefer products that provide nutritional value while maintaining taste and convenience.

Growth of Clean Label and Natural Peanut Butter Products

Indian consumers are becoming more ingredient-conscious and are actively seeking clean-label peanut butter options free from artificial preservatives, hydrogenated oils, and added sugars. This shift has led to the rise of natural and organic peanut butter, made with minimal ingredients, often just peanuts and a pinch of salt. Consumers are increasingly checking ingredient lists, favoring transparency, and opting for brands that use non-GMO and chemical-free processing methods. The trend is particularly strong among millennials and Gen Z consumers who prefer healthier alternatives and associate "natural" with better overall well-being. As a result, brands are highlighting "100% natural," "organic-certified," and "no added sugar" claims in their marketing strategies. Premium and artisanal peanut butter brands are also gaining momentum by emphasizing purity, sustainability, and small-batch production, appealing to the health-conscious demographic.

Expansion of Flavored and Indulgent Peanut Butter Options

While traditional creamy and crunchy peanut butter variants continue to dominate, the market is witnessing an explosion of flavored and indulgent options. Brands are experimenting with flavors such as chocolate, honey, cinnamon, and even fusion varieties like coffee and caramel to attract a broader audience. This trend is driven by consumer demand for novelty and variety, especially among younger buyers who prefer exciting taste profiles. The introduction of dessert-inspired peanut butter, such as cookies-and-cream or brownie-flavored spreads, is also gaining popularity, positioning peanut butter as not just a health food but also a treat. Additionally, brands are developing nut butter blends, combining peanuts with almonds, cashews, or hazelnuts to create unique taste experiences. This diversification helps peanut butter compete with other spreads like Nutella, making it more appealing to children, families, and those looking for a balance between indulgence and nutrition.

Increasing Adoption in Packaged and Ready-to-Eat Foods

Peanut butter is no longer just a standalone spread; it is increasingly being incorporated into packaged and ready-to-eat (RTE) foods. Food manufacturers are leveraging its growing popularity by including peanut butter in protein bars, breakfast cereals, granola, cookies, and snack bars. The demand for on-the-go nutrition has led to the rise of peanut butter sachets, single-serving pouches, and squeeze packs, making it convenient for busy consumers, travelers, and fitness enthusiasts. Additionally, the growing popularity of peanut butter-flavored protein shakes and smoothies in cafes and juice bars reflects its expanding culinary applications. As peanut butter becomes more mainstream, it is also being used in bakery products, confectionery, and even savory dishes like peanut butter-based sauces and dressings. This trend is expected to drive further growth, positioning peanut butter as a versatile ingredient beyond traditional breakfast spreads.  

Segmental Insights

Product Insights

The crunchy peanut butter segment is the fastest-growing in India, driven by evolving consumer preferences and a rising demand for texture-rich, natural food products. Health-conscious individuals and fitness enthusiasts favor crunchy peanut butter for its perception of being less processed and more wholesome compared to creamy variants. Additionally, the growing trend of clean-label foods has made consumers seek products with minimal processing, further boosting crunchy peanut butter sales. Its versatility in recipes, including smoothies, desserts, and baked goods, has also contributed to its increasing popularity. While creamy peanut butter continues to dominate due to its smooth texture and ease of spreading, the crunchy variant is witnessing faster growth, particularly among urban and premium-segment consumers looking for enhanced taste and texture.

Distribution Channel Insights

The online segment is the fastest-growing distribution channel in India’s peanut butter market, driven by increasing internet penetration, convenience, and the rise of e-commerce platforms like Amazon, Flipkart, and BigBasket. Consumers prefer online shopping for its ease of access, wider product variety, competitive pricing, and doorstep delivery. The growth of direct-to-consumer (D2C) brands has further accelerated online sales, with companies leveraging social media and digital marketing to engage health-conscious buyers. Subscription models, flash sales, and personalized recommendations enhance consumer retention. Additionally, the demand for specialty and organic peanut butter is higher online, as niche brands find it easier to reach their target audience. As digital adoption continues to rise, the online segment is expected to maintain its rapid expansion.

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Regional Insights

The West region of India dominated the peanut butter market, primarily due to Gujarat and Maharashtra being major peanut-producing and consuming states. Gujarat, in particular, is India’s largest peanut producer, ensuring an abundant raw material supply for peanut butter manufacturing. The region also has a strong presence of food processing industries, making it a hub for peanut butter production. Additionally, urban centers like Mumbai and Pune in Maharashtra have a high concentration of health-conscious consumers, fitness enthusiasts, and premium product buyers, driving demand. The widespread availability of peanut butter across supermarkets, modern retail stores, and online platforms further strengthens its dominance. While other regions are growing, the West continues to lead in both production and consumption of peanut butter.

Recent Developments

• In 2024, Gujarat-based direct-to-consumer (D2C) health food brand Alpino secured USD 1.2 million in its initial funding round. Offering diverse range of peanut-based products, the company plans to utilize the funds to expand its offline retail presence and drive product innovation.
• In 2025, Boyo expanded its retail footprint by launching 20 new outlets. The company, known for manufacturing peanut butter and trail mix products, plans to establish a total of 100 retail stores across the city within the next 180 days. This aggressive expansion strategy aligns with Boyo’s growing market presence, fueled by the increasing consumer demand for healthy snack options.
• In 2025, Mensa Brands, through its FMCG brand MyFitness, expanded its peanut butter offerings, with the business on track to reach an annual recurring revenue (ARR) of USD 116.64 million within three years.
• ​In 2023, Modi Naturals launched Oleev Kitchen Junior Peanut Butter, specifically formulated for children aged 4 to 12 years. Fortified with the GrowX formula containing essential vitamins and minerals, this product aims to support children's growth and development.

Key Market Players

• DAS FoodTech Pvt. Ltd.
• Houz Of Nature Pvt. Ltd
• Universal Corporation Ltd.
• Alpino Health Foods Private Limited
• Sundrop Foods India Private Limited
• Dr Oetker India Private Limited
• Melting Pot Concepts Private Limited
• The Butternut Co.
• Tanvi Fitness Private Limited
• Ferrero India Pvt Ltd

Report Scope:

In this report, the India Peanut Butter Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• India Peanut Butter Market, By Product:

o   Crunchy

o   Creamy

o   Others

• India Peanut Butter Market, By Distribution Channel:

o   Supermarkets/Hypermarkets

o   Convenience Stores

o   Online Stores

o   Others

• India Peanut Butter Market, By Region:

o   North

o   West

o   South

o   East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Peanut Butter Market.

Available Customizations:

India Peanut Butter Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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