Snack Bars Market

Snack Bars Market Size, Share, Growth (2023-2028)

Snack Bars Market size was valued at USD 25.93 billion in 2022 to reach USD 38.09 billion by 2028 with a CAGR of 6.62%

Snack Bars Market Overview

Snack bars are a favoured snack food known for their nutritional value and high-calorie content. They are lightweight and convenient, making them a popular choice for packed lunches, hiking trips, and various outdoor activities. These bars are typically created by combining ingredients like corn or honey syrup and condensing them into a bar form for easy portability.Plant-based snack bars come in a variety of flavors, with prominent options including beet, spirulina, orange, peanut butter, brownie, and red berries. These versatile products are often crafted using ingredients like cereals, fruits, and nuts. They serve as an ideal food format for delivering essential nutrients, bioactive compounds, and dietary fiber to consumers, promoting a healthy snacking option. For instance, a company called Wild Zora produces meat and vegetable bars available in flavors such as apple pork, curry turkey, and Mediterranean lamb. These bars adhere to a paleo diet, are free from gluten and dairy, and do not contain added sugars.

Drivers

The growth of the snack bars market is driven by rising demand for snacks rich in protein, and consumers are becoming more aware of the benefits offered by snack bars. Changing lifestyles, the influence of Western culture, increased demand for value-added products, and a growing preference for healthy snacks in developing regions are also significant drivers of market growth. Additionally, the continuously increasing global population further supports the expansion of the snack bars market. Improvements in distribution channels, a strong focus on product innovation by manufacturers, the availability of food products that boost immune health, a growing awareness of healthier lifestyles, and evolving consumer preferences and tastes will contribute to the growth of the snack bars market.Moreover, there is a global surge in demand for natural and organic products, prompting manufacturers to introduce new products with claims like "no artificial additives," "non-GMO," and "reduced sugar." These factors are fueling the growth of the snack bar market. The primary driver of snack bar sales worldwide is consumer demand for convenient and healthy on-the-go snack options. Changing lifestyles in both the United States and Europe, characterized by the consumption of smaller meals, are leading to increased snack consumption. Consequently, snack bars, being a healthier choice, are experiencing growing demand.

Restraints

The growth of the snack bars market may face hindrances due to stringent government regulations concerning the quality and labeling of these products. Compliance with these regulations can present a significant challenge to market expansion. Additionally, the high costs associated with marketing snack bars can limit their growth prospects.Furthermore, the increasing popularity of alternative healthy snacks poses a potential obstacle to the growth of the snack bars market. The market is saturated with various alternative products that provide additional protein, such as protein powders, shakes, and beverages enriched with protein. Additionally, the market offers a range of other products like multivitamin bars and nutrition-focused snack bars, which could pose a challenge to the expansion of the protein bar market.The snack bars market may face limitations due to growing public awareness regarding the potentially harmful health effects associated with artificial sweeteners and hydrogenated fats found in these products. Also, the comparatively higher price of these bars when compared to alternative snacks is hindering the market growth rate. Consumer demand for products with clean-label ingredients, although favorable, can drive up costs, making these products less affordable, especially in economically disadvantaged regions.

Snack Bars Market Opportunities

The increasing demand for healthy and nutritious snacks offers unexplored opportunities in the snack bars market. Within this market, there are several avenues for growth, including the incorporation of functional ingredients, reduced sugar formulations, savory variations, and plant-based proteins, all of which are essential factors. Furthermore, ongoing innovations in this market encompass packaging enhancements and the introduction of products specifically tailored to meet the needs of target consumers, which also opens new opportunities.

COVID-19 Impact on the Snack Bars Market:

The lockdown measures during the pandemic have prompted a heightened focus on maintaining a healthy lifestyle, with significant concerns centered around health issues like obesity and food sensitivities. Consequently, there has been a substantial increase in demand for healthier food options as health and wellness awareness spreads among the population. The lockdowns, which led to prolonged storage of food and beverage products on store shelves, including salty snacks, have inadvertently resulted in increased consumption of such snacks. As consumers spent more time at home during the lockdowns and turned to online food purchases, companies in the food, beverage, and logistics sectors adapted their operations accordingly.

Moreover, the pandemic has placed financial strain on global transportation and logistics companies, leading to challenges like cash flow issues, labor shortages, reduced contract volumes, and other difficulties. This has, in turn, resulted in reduced purchases of snack bars.

Key developments in the market:

➢ In October 2022, Kellogg Co. launched a trio of innovative flavor combinations under its Nutri-Grain brand. These introductions include two fresh breakfast bars incorporating fruit and vegetable flavors and a new product line called "Bites." The soft-baked breakfast bars feature a blend of fruit and vegetable flavors, with options like strawberry, squash, apple, and carrot varieties.

➢ In March 2022, CLIF unveiled its expansion into the snack category with the nationwide introduction of CLIF Thins. These snacks offer a crispy and crunchy twist on the original CLIF BAR, catering to everyday snacking needs and ideal for individuals with busy lifestyles, including families, commuters, and those constantly on the move.

Snack Bars Market Segmentation

By Product

• Cereal Bars

  • Granola/Muesli Bars

  • Other cereal Bars

• Energy Bars

• Other Snack bars

Based on product, the Cereal bars segment dominated the Snack bars market in 2022. These snack bars are highly regarded as a healthier alternative to chocolates, cakes, cookies, and similar treats. The appeal of these bars is further enhanced by their high fruit content and the use of gluten-free ingredients, making them increasingly popular worldwide.

On the other hand, energy bars are projected to experience moderate growth in the coming years, primarily driven by the rising participation in physical activities and sports. Given the growing demand for these bars, manufacturers are actively diversifying their product offerings in this category. For instance, Yoga Bar has a wide range of energy and protein bars with various ingredients, including multigrain, oats, and chocolate with nuts.

By Distribution Channel

• Convenience Store

• Online 

• Super/Hypermarket

• Specialty Stores

• Others

Based on the distribution channel, Supermarkets and hypermarkets are expected to dominate the Snack bars market during the forecast period. This is due to the growth of the organized retail sector, which has resulted in increased shelf space, offering greater visibility and accessibility to consumer products. This trend is expected to drive the overall growth of the global market. Additionally, attractive box packaging and discounts provided by these retail outlets are also poised to contribute to the expansion of this segment.

On the other hand, the online channel is expected to experience the highest growth rate. Modern consumers increasingly prioritize the convenience of online shopping over traditional in-store visits. The developmental status of regional countries and the popularity of online platforms further support the growth of this segment. Furthermore, these online platforms facilitate comparisons between different brands and their product prices, serving as an additional driver for this segment's growth.

Snack Bars Market Regional Analysis:

• Asia Pacific

• Europe

• Middle East and Africa

• North America

• Latin America

Based on region, in terms of market share, North America holds a dominant position in the snack bars market, with Europe following closely behind. In North America, intense competition has prompted manufacturers to introduce various snack bar variants to set their products apart. Repositioning products plays a pivotal role in catering to a diverse consumer base and expanding market share. Notably, millennials and baby boomers are the primary consumers of snack bars in the United States. For example, in August 2021, India-based Fitsport Nutrition Foods entered the United States market with its THOP energy and protein bars, made available on Amazon. The company aims to expand its presence in the North American snack bar market by offering vegan snack bars.

In Europe, the market benefits from the availability of a wide range of flavors and the trend of consuming smaller, frequent meals, which aligns with hectic lifestyles. A growing number of health-conscious individuals and their evolving lifestyles are key factors driving the demand for snack bars in the region.

The Asia-Pacific region is experiencing the fastest growth, with India making a substantial contribution to the market. Increasing disposable incomes, health concerns, and improvements in living standards are expected to bolster market growth in this region.

Snack Bars Market Key Players

• The Kellogg Company

• Associated British Foods

• Halo Foods

• Post Holdings, Inc.

• Nestle SA

• Mars Inc.

• KIND Snacks

• General Mills

• Cliff Bar & Company

• PepsiCo