PB&J is no longer just a sandwich. it's a growth strategy

from uncrustables to protein bites to powdered PB

I get to talk about one of my favorite flavors EVER. PB&J, a flavor that took me until high school to appreciate, because the concept of mixing salty and sweet was revolting to me as a child. Today, however, I stand as a long-time peanut butter fan and am super excited to chat about all things in the PB&J space for my other PB fans out there.

Peanut butter & jelly has revived, not only in sandwich form but as a standalone flavor that cuts across formats, textures, and snacks.

Understandably, everyone wants a share of the PB&J craze we all grew up with. Smucker’s Uncrustables is growing at 20% CAGR, on track to hit $1B in net sales by the end of FY 2026. The company just opened a 900,000 sq. ft. manufacturing plant in Alabama to meet consumer demand. The success of the brand is clearly evident to competitors, as private-label dupes have appeared to capture a share of this.

Jams, a better-for-you PB&J uncrustable brand, just launched last year and is apparently beating Uncrustables in retail sales, as CPG Wire posted that Jams’ Strawberry 4-pack surpassed Uncrustables in same-item sales at Target.

Aside from the sandwich, the PB&J flavor also falls in line with structural tailwinds, with consumers now focusing on whole foods and balanced macros. Brands like Realsy, a brand that sells nut-butter-filled dates, have quickly added this flavor to their lineup as well.

The nostalgic flavor, paired with functional benefits, is bound to see success. Smuckers is now trying to break into the high-protein space with its latest launches of Up & Apple and Bright-Eyed Berry.

Have you also noticed that Smuckers has been pumping out new flavors recently? I still remember the 2024 launch of the raspberry jam sandwiches, which was the first flavor launch in a decade. Since then, they have continued to expand the Uncrustables flavor portfolio to maintain relevance amidst competitive pressures.

PB&J appears in other forms too, for example, in bars where Mid-Day Squares PB&J SKUs broke the internet (because they were just that good!!!!)

Smash Foods, a brand that originally started with better-for-you jams, recently launched PB&J protein bites as well. This flavor has always been closely tied to convenience, so brands use the PB&J flavor as a vehicle for expansion into “on-the-go” formats. IQ Bar & RX Bar followed suit with PB&J protein bites, too.

We can’t forget, though, that peanut butter walked so that PB&J could run. Peanut butter is the leading snack bar flavor in the US, according to Inova Market Insights. Though snack bars feel less relevant as consumers turn to protein or functional bars instead, Mondelez validates that peanut butter is still a top flavor for protein bars as well.

According to a 2023 report from the National Peanut Board (yes, apparently this is a thing), 94% of American homes have at least one jar of peanut butter in the pantry, and Americans eat an average of 4.25 pounds per capita. The peanut butter market is worth ~$2B in the US, so structurally embedded in American culture that any brand using it as a base flavor can build instant consumer trust. But the jar aisle is under pressure from both ends. Jif and Skippy still dominate shelf space, but they're losing volume to private label below them and ceding cultural relevance to emerging brands above them. This also reinforces why format is increasingly important.

Take Perfect Bar, for example: a 300-calorie bar built on a peanut butter base that people eat like a treat, not a tradeoff. That’s not a protein bar winning on macros. That’s peanut butter doing what it’s always done: making the calorie count feel beside the point.

Incumbents have also stayed close to building off a strong peanut butter-driven market, as Hershey’s debuted the Reese’s PB&J Big Cups last year and dropped another Strawberry variant this past April. Reese’s peanut butter cups are the top-selling candy brand in the US, so I’m shocked it took them this long to extend into a PB&J flavor as well.

Where whitespace exists is the peanut butter powder market, singlehandedly led by PB2. In December 2024, PB2 Foods secured full ownership of its production and manufacturing operations after investing in its vertical integration capabilities. I was on this brand five years ago, before PB2 had a spotlight. I go through SO much of this, it is almost scary to see. But to be fair, I think PB2 is sitting on a bigger opportunity than the market gives it credit for. In a GLP-1 world where consumers are recalibrating around satiety and nutrient density, powdered peanut butter is almost too perfect: all the flavor and protein signaling of regular PB but at a fraction of the fat and calories. This feels like a category that could be disrupted by a cleaner-label brand (if that’s even possible) or a well-priced private-label dupe.

no like i’m ADDICTED