Things like whole grain breakfast or peanut butter and jelly sandwiches are among the most beloved ingredients for Americans from an early age. That’s why it is no wonder that this niche is growing. There are other types of nut butters that are becoming popular as well. The spread market includes not only wholesale nut butters but also jams, and jellies. In this article, we’ll look at different aspects of the wholesale peanut butter niche, what this business is all about, and what other nut butters can be found on the wholesale distribution market. Additionally, we’ll share some pros and cons of buying wholesale products when it comes to wholesale preserves like peanut and nut butters.
What Businesses Buy Wholesale Peanut Butter
Grocery Stores and Retailers
Supermarkets and grocery stores usually buy wholesale peanut butter. Additionally, as consumers have different preferences, stores need to stock different brands and types of the tasty spread.
Bulk retailers such as Costco also buy wholesale peanut butter from suppliers or producers.
Venues in the Food and Beverage Industry
Restaurants, cafes, bakeries, and other businesses in the food industry may use different types of nut butter in large quantities. Buying wholesale peanut butter makes sense for these companies as they use it in large quantities and save money by buying bulk. It’s used not only for desserts but also for some dishes and pastries.
You will probably find different types of nut butters in health food stores and natural food stores. There, people buy different products for their pantry. Therefore, it makes sense for these stores to stock wholesale jams and jellies as well.
After the pandemic, the eCommerce trade has increased significantly. A lot of people are buying food products online too. That’s especially true for items with a longer shelf life that won’t get spoiled during transportation.
Schools and Other Institutions
Educational and healthcare institutions such as schools and hospitals stock wholesale peanut butter as well. Since it’s a nutritious food that is rich in proteins, it can be used as part of many diets.
Peanut butter is often an ingredient in snacks. That’s why companies producing desserts and different types of sweet snacks usually buy wholesale peanut butter.
Key takeaway: Peanut butter is used by a variety of businesses. It’s an ingredient that is suitable to buy wholesale as it has a long shelf life. Alternatives to peanut butter such as almond, cashew, and hazelnut butter are becoming increasingly popular.
Pros and Cons of Buying Wholesale Peanut Butter
Even though many businesses choose to work with wholesale food distributors for peanut butter, jams, jellies, and many other ingredients, there are also cons to that approach. Let’s dive a little deeper into the reasons why you might opt out of the option to buy large quantities.
Cons of Buying Peanut Butter Wholesale
- Storage and shelf life. Buying in bulk means your restaurant or other venue needs to have a lot of storage space. Accommodating large quantities of peanut butter or other ingredients is not optimal if a business has limited storage facilities. Additionally, even though nut butter has a fairly long shelf life, a restaurant manager still needs to be careful as it might expire. That’s why buying peanut butter in bulk is recommended only for businesses that use this ingredient in high amounts.
- Cash flow considerations. It is well-known that buying large quantities of anything means the price per pound is lower. However, this upfront investment might not be optimal, especially for a small business. Stocking on ingredients is an investment that requires larger capital. Alternatively, you can find suppliers that still have good pricing but don’t require you to order peanut butter in large quantities.
- Limited flexibility. Buying wholesale peanut butter in large quantities means you don’t have good flexibility for the foreseeable future. If your menu changes or there’s a new peanut butter brand with lower prices, you might not be able to benefit from their offers.
Pros of Buying Peanut Butter in Bulk
- Better pricing. Naturally, the biggest benefit of buying in bulk is the significant cost savings. That’s especially true for buying wholesale peanut butter compared to stocking individual jars. The wholesale price is going to be lower than the retail one.
- Opportunity for customization. When you buy in bulk, peanut butter producers might be eager to customize things for you like create a creamier or sweeter peanut butter. That is especially true for candy and snack producers as their wholesale ordering of peanut butter is in very large quantities.
Peanut, Cashew, Almond: What Other Nut Butters Are There?
Peanut butter is deeply rooted in the American culture. However, there are other types of nut butter that have gained momentum in the past decades.
- Almond butter. Probably the most popular alternative to peanut butter. It’s a source of healthy fats, vitamins, and minerals. The nutritional value of almond butter is high and its taste is nutty and slightly sweet.
- Cashew butter. Its taste is smoother and its texture is creamier compared to peanut butter. Cashew butter is more expensive than almond or peanut butter.
- Walnut butter. The distinctive flavor of walnuts makes walnut butter a rich-in-taste option. It’s slightly bitter and earthy in flavor.
- Hazelnut butter. It can often be bought from wholesale chocolate suppliers as well. The reason for this is that the combination of chocolate and hazelnut butter is called nutella. It has a sweeter flavor compared to other alternatives. Since hazelnut taste is a popular choice for desserts and pastries, this butter is often used by bakeries and other venues.
- Pistachio butter. The vibrant green color and unique flavor of pistachios make this butter an interesting choice for culinary enthusiasts. It has less of a nutty flavor compared to other alternatives. It has applications not only in desserts and snacks but also in toppings and sauces.
Frequently Asked Questions about Wholesale Peanut Butter
Do you still have questions about buying peanut butter in large quantities? We hope to answer some of the most commonly asked questions on the topic below.
How to Start a Peanut Butter Business?
Making peanut butter can be not only fun but also a profitable business. It can be launched on a small scale too. Additionally, there are different types of peanut butter businesses you can explore.
The main steps when starting a peanut butter business are:
- Do proper market research and craft a business plan;
- Handle all documentation and regulations. Obtain the needed licenses and permits;
- Set up logistics and storage.
- Find the right suppliers,
- Consider the right type of business for you, how scalable it is, and how you can develop it in the future.
Overall, starting a nut butter business requires less capital compared to other businesses and can be scaled from a small homemade business to a bigger one. An example of scaling this business will be to offer jams and jellies too. Make sure to search for tips on how to start a jam business in order to find the differences compared to selling peanut butter and additional tips on how to sell homemade jelly.
Can You Make and Sell Homemade Peanut Butter in the US?
Generally speaking, yes, you can. However, different states have different regulations regarding individuals producing food products for sale. If you’re planning to start a food business, the main thing you need to familiarize yourself with are the cottage food laws in the states you plan to sell your homemade peanut butter. Most of them allow individuals to produce and sell low-risk foods. However, there are some additional regulations that prohibit selling wholesale peanut butter or other food products by individuals.
How Large Is the Peanut Butter Market in the US?
In 2019, the peanut butter market’s size was $4.2 billion. Estimates show that it’ll be growing with an annual rate of more than 6% until 2027. Currently, the usage of peanut butter as a food product makes up the majority of the market. However, it has additional applications. Peanut oil can be used in medicine and in the skincare industry.