Joanna Cosgrove, Online Editor05.03.12
No time for breakfast? There are nutritional bars for that. Need a healthy afternoon pick me up? There are bars for that too. Spurred by the blurred snack and meal eating occasions and the sophisticated marketing of a flurry of exciting new product launches, the U.S. breakfast/cereal/snack/granola and energy/nutrition bar market has continued to evolve out of the standard granola bar format, having amassed a worth of $5.7 billion, according to a market study by Packaged Facts.
Pointing to research from The Hartman Group, Packaged Facts said there have been several long-term trends in consumer eating habits and the food market that have been favorable for food bars. Among them, “48% of all eating by adults occurs between meals, 44% of adult eating happens alone, and 11% of adult eating includes foods or beverages consumed within an hour of purchase,” the firm said. “Niche foods also, paradoxically, continue to gain in importance. Other food trends that apply to the food bar market include portion control, local/seasonal super fruits, cage-free whole eggs, real butter and healthy fats, coconut oil (contains beneficial lauric acid), sea salt, stevia, and palm sugar (no fructose).”
Energy Bars
In the realm of energy/nutrition bars, protein is the primary focus. “The market focus recently has been on packing protein and fiber into food bars; the time now seems ripe for manufacturers to focus on less sugar and creative combinations of sweeteners other than sugar,” the firm said. “Artificial sweeteners are also sliding from favor, but very few food bars contain these ingredients. Indeed, most food bars are very high in sugars—most energy/nutrition bars average 15 to 20 grams of sugar per 2.0 ounces—which is a drawback for many consumers.”
Packaged Facts estimated the total U.S. retail sales in the nutrition/energy bar category to be $2.5 billion in 2011, with the category growing 16% from 2010 to 2011, approaching $4.5 billion by 2016.
From a formulation standpoint, ingredients like soy protein crisps, rice flour, and oats have long been cornerstone bar components. Flavor diversity and distinction between protein and carb amounts have not been a primary leveraging point energy and nutrition bars, however this has started to change. Citing developments in new flavor and ingredient introductions, and improvements in taste and mouthfeel, Packaged Facts researchers said the future of energy/nutrition bars, looks a lot more interesting, especially as manufacturers begin to introduce functional and flavorful ingredients like CoQ10, L-carnitine, omega-3, resveratrol, and vitamin K2 into their formulations.
While nutrition bar consumption has increased and the market will remain robust, the report asserted that the growth rate will taper off as the recent market boom plays out and as increasingly healthy products are introduced in the cereal/granola bar category, which will cannibalize sales from higher-priced nutrition/energy bars both because of more economical, multi-pack pricing and because of the increasing benefit of a “real food” positioning. Healthier and appealing cereal/granola bar products will also put price pressure on energy/nutrition bar products targeted to casual users in this category.
Cereal & Granola Bars
Just as the blurring of meal occasions has encouraged bar growth, so too has the blurring of bar category distinctions. “Broadly speaking, cereal/granola bars are focusing more on nutrition and incorporating functional ingredients (such as superfruits, added protein, fiber), while energy/nutrition bars are incorporating ever more creative and decadent formulations to make them more tasty,” the report stated. “In 2012, consumers are interested in healthful ingredients, in particular ingredients that are currently hot in the media, such as coconut oil and superfruits. Even though these ingredients are trendy, they are also valid nutritionally. It is projected that coconut oil will not soon fall out of favor because of the amassing research that this is an extremely healthy food.”
A point of difference, however, has been the marketing emphasis. Packaged Facts found that cereal and granola bars have been competing with a rapidly expanding and diverse array of bars and other snacks that are perceived as healthier, including energy/nutrition bars, cheese, yogurt and trail mix. “Since 2007, the cereal bar segment has become more narrowly focused on health and weight management,” the firm wrote. “Granola bars, however, are benefitting from renewed interest, reflecting in part a consumer enthusiasm for ‘real foods’ with simpler, recognizable, and wholesome ingredients. Products introduced in the past few years have emphasized functional health benefits, all-natural and organic ingredients, taste, flavor and form variety. An especially popular attribute is added fiber.”
Packaged Facts estimated that total U.S. retail sales of the combined cereal bar and granola bar segments reached $3.15 billion in 2011. Cereal bar sales declined 1.8% from 2010 to $1.18 billion in 2011, while sales in the granola bar segment increased 3.6% to $1.96 billion. Granola bars accounted for over three-fifths (62%) of this category in 2011. The combined market for cereal /granola bars and energy/nutrition bars was projected to approach $8.3 billion in 2016, for a compound annual growth rate (CAGR) of 7.5% over the five-year 2012 to 2016 period.
Packaged Facts also projected that retail sales of cereal and granola bars will increase 2% from 2011 to 2012, to $3.2 billion. Growth in this category, the firm said, was expected to improve as more products are introduced that have energy/nutrition bar type positioning, such as Nature Valley Protein Bars and Protein Squared P2 Granola Bars. The featuring of wholesome and functional ingredients is a major trend in this category, as manufacturers incorporate aspects of energy/nutrition bars into the less expensive cereal and granola bar formats. Packaged Facts further projects that the U.S. combined breakfast/cereal/snack bar and granola bar retail category will reach $3.6 billion in 2016, with the growth and the composition of the category continuing to favor of granola bars.
Trends driving bar growth include nutrient fortification, portion control (individually wrapped or calorie controlled portions), packaging tags such as “low calorie,” and an ingredient listing free of additives, preservatives, artificial sweeteners, lactose or gluten, low in sugar and carbohydrates.
For more information about Packaged Facts’ report on food bars click this link.
Pointing to research from The Hartman Group, Packaged Facts said there have been several long-term trends in consumer eating habits and the food market that have been favorable for food bars. Among them, “48% of all eating by adults occurs between meals, 44% of adult eating happens alone, and 11% of adult eating includes foods or beverages consumed within an hour of purchase,” the firm said. “Niche foods also, paradoxically, continue to gain in importance. Other food trends that apply to the food bar market include portion control, local/seasonal super fruits, cage-free whole eggs, real butter and healthy fats, coconut oil (contains beneficial lauric acid), sea salt, stevia, and palm sugar (no fructose).”
Energy Bars
In the realm of energy/nutrition bars, protein is the primary focus. “The market focus recently has been on packing protein and fiber into food bars; the time now seems ripe for manufacturers to focus on less sugar and creative combinations of sweeteners other than sugar,” the firm said. “Artificial sweeteners are also sliding from favor, but very few food bars contain these ingredients. Indeed, most food bars are very high in sugars—most energy/nutrition bars average 15 to 20 grams of sugar per 2.0 ounces—which is a drawback for many consumers.”
Packaged Facts estimated the total U.S. retail sales in the nutrition/energy bar category to be $2.5 billion in 2011, with the category growing 16% from 2010 to 2011, approaching $4.5 billion by 2016.
From a formulation standpoint, ingredients like soy protein crisps, rice flour, and oats have long been cornerstone bar components. Flavor diversity and distinction between protein and carb amounts have not been a primary leveraging point energy and nutrition bars, however this has started to change. Citing developments in new flavor and ingredient introductions, and improvements in taste and mouthfeel, Packaged Facts researchers said the future of energy/nutrition bars, looks a lot more interesting, especially as manufacturers begin to introduce functional and flavorful ingredients like CoQ10, L-carnitine, omega-3, resveratrol, and vitamin K2 into their formulations.
While nutrition bar consumption has increased and the market will remain robust, the report asserted that the growth rate will taper off as the recent market boom plays out and as increasingly healthy products are introduced in the cereal/granola bar category, which will cannibalize sales from higher-priced nutrition/energy bars both because of more economical, multi-pack pricing and because of the increasing benefit of a “real food” positioning. Healthier and appealing cereal/granola bar products will also put price pressure on energy/nutrition bar products targeted to casual users in this category.
Cereal & Granola Bars
Just as the blurring of meal occasions has encouraged bar growth, so too has the blurring of bar category distinctions. “Broadly speaking, cereal/granola bars are focusing more on nutrition and incorporating functional ingredients (such as superfruits, added protein, fiber), while energy/nutrition bars are incorporating ever more creative and decadent formulations to make them more tasty,” the report stated. “In 2012, consumers are interested in healthful ingredients, in particular ingredients that are currently hot in the media, such as coconut oil and superfruits. Even though these ingredients are trendy, they are also valid nutritionally. It is projected that coconut oil will not soon fall out of favor because of the amassing research that this is an extremely healthy food.”
A point of difference, however, has been the marketing emphasis. Packaged Facts found that cereal and granola bars have been competing with a rapidly expanding and diverse array of bars and other snacks that are perceived as healthier, including energy/nutrition bars, cheese, yogurt and trail mix. “Since 2007, the cereal bar segment has become more narrowly focused on health and weight management,” the firm wrote. “Granola bars, however, are benefitting from renewed interest, reflecting in part a consumer enthusiasm for ‘real foods’ with simpler, recognizable, and wholesome ingredients. Products introduced in the past few years have emphasized functional health benefits, all-natural and organic ingredients, taste, flavor and form variety. An especially popular attribute is added fiber.”
Packaged Facts estimated that total U.S. retail sales of the combined cereal bar and granola bar segments reached $3.15 billion in 2011. Cereal bar sales declined 1.8% from 2010 to $1.18 billion in 2011, while sales in the granola bar segment increased 3.6% to $1.96 billion. Granola bars accounted for over three-fifths (62%) of this category in 2011. The combined market for cereal /granola bars and energy/nutrition bars was projected to approach $8.3 billion in 2016, for a compound annual growth rate (CAGR) of 7.5% over the five-year 2012 to 2016 period.
Packaged Facts also projected that retail sales of cereal and granola bars will increase 2% from 2011 to 2012, to $3.2 billion. Growth in this category, the firm said, was expected to improve as more products are introduced that have energy/nutrition bar type positioning, such as Nature Valley Protein Bars and Protein Squared P2 Granola Bars. The featuring of wholesome and functional ingredients is a major trend in this category, as manufacturers incorporate aspects of energy/nutrition bars into the less expensive cereal and granola bar formats. Packaged Facts further projects that the U.S. combined breakfast/cereal/snack bar and granola bar retail category will reach $3.6 billion in 2016, with the growth and the composition of the category continuing to favor of granola bars.
Trends driving bar growth include nutrient fortification, portion control (individually wrapped or calorie controlled portions), packaging tags such as “low calorie,” and an ingredient listing free of additives, preservatives, artificial sweeteners, lactose or gluten, low in sugar and carbohydrates.
For more information about Packaged Facts’ report on food bars click this link.
