Groundnuts can be combined with a stabilising agent, a sweetening ingredient, salt, and sometimes an emulsifying agent to create groundnut paste. In such recipes, groundnut paste makes up anywhere from 75% to 99% of the ingredients in peanut butter.

While peanut paste is frequently offered for use as an ingredient in cookies, cakes, and other retail food products, groundnut paste is most known for being sold as a spread.