Jammy growth for spreads market

By Laurence Gibbons

- Last updated on GMT

Jam and honey will fuel the growth in the spreads and syrups market
Jam and honey will fuel the growth in the spreads and syrups market

Related tags Immune system

The syrups and spreads market is expected to grow by 22.5% in the UK, fuelled by the popularity of jam and honey, according to research agency Canadean.

Jam and honey dominate the market because of their ease as a quick snack, according to the research.

As a result, the market is set to reach a whopping £613M ($960M) by 2018.

Canadean analyst Safwan Kotwal said almost half of this growth would be a result of good sales in jam and honey.

‘Health benefits’

“Consumers across all age groups use jam and honey as a quick snack,”​ he said.

“Honey not only tastes great, but also has many health benefits such as boosting the immune system and fighting bacteria.”

Honey sales will reach close to a quarter of a billion dollars by 2018 – a growth of 31.3%, he claimed.  

Despite its popularity jam is only expected to grow by 12%.

Chocolate spreads should gather the most pace, growing by 35% up to 2018.

“Chocolate spreads are growing due to an increasing number of private label brands competing alongside the likes of Nutella,”​ Kotwal said.

“This has seen prices fall, making consumption more affordable. With the introduction of private label and supermarket brands, consumers are able to switch easily, without compromising on taste or quality.” 

The syrups and spreads market is largely driven by consumers over 55, the research found.

In jams, jellies and preserves, for instance, children and early teens make up only 12% of the market compared to older consumers, who account for 37%, it claimed.

‘New-found love’

There is a “new-found love”​ of chocolate spreads among older consumers as a result of changing age structures, Kotwal said.

“Chocolate and nut-based spreads have long been associated with teenagers and young adults,”​ he added.

“However, an increasing number of older consumers are enjoying products such as Nutella, as they look to indulge in tasty treats more traditionally targeted at children.”

Meanwhile, Mintel claimed the best new product development opportunities were in the nut-based and sweet spread category.

It predicted sales within the category would rise by 65%​ from 2013–2018 to reach sales of $6.5bn in 2018.

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