By Sean Moloughney, Editor01.20.23
The U.S. market for snack, nutrition, and performance bars is about $7 billion, according to Mintel estimates. Sales had declined due to the COVID-19 pandemic as more people stayed home. While that trend began to reverse course in 2021, sales haven’t yet climbed back to 2019 levels.
With hybrid work schedules, brands are tasked with redefining their value beyond convenience and portability. Appealing to consumer health goals will remain a major market driver, particularly mental/emotional wellness, cognitive health, and physical/exercise performance, Mintel noted in its report “Snack, Nutrition and Performance Bars US, 2022.”
Meanwhile, a bar’s taste experience is a top priority. Flavor isn’t the only factor; texture, sensory attributes, ingredient panels, and health benefits must all be balanced.
Many brands have launched dessert-inspired bar flavors and textures, encouraging customization through toppings and pairings, Mintel noted. For example, the popular Quest Nutrition protein bar brand offers a wide variety of flavor options, including its Dipped Chocolate Chip Cookie Dough variety launched in 2021.
The broader healthy snacks market has been performing well compared to the bar market, with an average annual growth of +4% globally from 2018 to 2022, according to Innova Market Insights.
Around 20% of U.S. consumers cite health-related and nutritional content factors as influencing their snack purchasing, according to a 2022 survey from Innova. Weight management and overall healthy lifestyle are top motivators for healthy snacking.
Clean labeling, such as organic or free from preservatives or additives, will continue to be featured prominently, with a market share of 15% and 38%, respectively, according to global Innova data from 2022. A smaller consumer segment may also be influenced by non-GMO/GMO-free, which holds a market share of 13%.
Use of plant-based claims is likely to increase in the category, with an average annual growth rate of 35% (from 2018 to 2022), Innova noted. Use of vegetarian and vegan claims are also expected to grow, with focus varying by region.
Healthy snacks that experiment with new texture and flavors can attract consumer interest. However, there is a large portion of indulgent snacking that is driven by familiar or nostalgic flavors, which brands may be able to leverage.
While fewer than 10% of consumers globally cite claims related to environmental, social, and ethical concerns as product attributes that most influence their purchasing decision, claims related to sustainable packaging are of growing interest, Innova surveys showed.
Perhaps exemplifying the move away from bars, and meeting consumers where they are, Kellogg’s brand RXBar launched its first line of granola this January, featuring “distinctive, simple ingredients” and 10 grams of protein per serving. The line is available in original, peanut butter, and chocolate varieties.
“Fans of RXBar trust us for our no B.S. approach to snacking and new RXBar Granola delivers on just that,” said Eileen Flaherty, senior brand manager for RXBar. “Thanks to simple, protein-packed ingredients, RXBar Granola has an unbeatable crunch, flavor, and texture that will fuel fans’ active lifestyles and upgrade their breakfast, lunch, or snack game from here on out.”
The company also revealed its first bar flavor from a new “Craft Batch” line: Strawberry RXBar. Craft Batch is a yearly initiative to debut new “elevated” flavors created with consumer trends and RXBar fan feedback in mind. RXBar Craft Batch will introduce one new flavor per year. Strawberry is the first launch for the new line.
Focusing on brain health has helped propel IQBars into the mainstream since its 2017 debut. IQBars feature plant protein, prebiotic fiber, and healthy fats; they are formulated around six nutrients shown to support sustained cognitive energy, performance, and health: omega-3s, MCTs, Lion’s mane mushroom, flavonoids, vitamin E, and choline.
According to founder Will Nitze: “I created IQBar to empower the doers, the creators, the get-stuff-doners. Sustaining superior mental and physical sharpness throughout the day requires superior nutrition.”
The company’s product lines are keto, paleo-friendly, vegan, and gluten/dairy/soy-free. IQBar got a boost in 2021 with a $2.8 million investment from CircleUp Growth Partners, an early-stage consumer investment fund with a data-driven approach. According to the company’s insights tool on emerging brands and trends (called Helio), which claims to track over 1.5 million brands across 200+ data sources, IQBar is the 7th ranked brand in the 1,500 nutrition bar set.
While focused primarily online, IQBar has taken an omni-channel approach and the company is seeing strong performance in retail and online. Last year, the company also entered the hydration stick pack market with a line that combines electrolytes and brain-supporting nutrients.
The Snickers brand, part of Mars Wrigley, has debuted a new performance nutrition bar that contains 20 grams of protein and 4 grams of total sugar per 2-oz. bar.
The single-serving, 220-calorie Snickers Hi Protein bar features the same iconic chocolate, caramel, and peanut ingredients as traditional Snickers bars, according to the company, but with whey and milk protein added to the nutritional profile.
With 4 grams of sugar per bar, Mars said it uses “all-natural sweeteners like monk fruit and/or stevia.”
The company also offers Snickers Hi Protein in a powder form. A 30-serving bag (39.5 oz. total) can be purchased online for about $30.
“Mars is consumer obsessed, and after talking with many consumers through the product development process, it was clear that the performance nutrition category was missing one key ingredient—delicious tasting products,” said Michelle Deignan, senior brand director for Mars Wrigley. “With the demand for delicious tasting protein bars increasing, Snickers Hi Protein bars are guaranteed to be a hit whether you work out avidly, casually, or are looking for a delicious snack with more protein.”
Snickers Hi Protein bars will be available at select retailers beginning in January, with the product set to be available nationwide later in the year, the company said.
With hybrid work schedules, brands are tasked with redefining their value beyond convenience and portability. Appealing to consumer health goals will remain a major market driver, particularly mental/emotional wellness, cognitive health, and physical/exercise performance, Mintel noted in its report “Snack, Nutrition and Performance Bars US, 2022.”
Meanwhile, a bar’s taste experience is a top priority. Flavor isn’t the only factor; texture, sensory attributes, ingredient panels, and health benefits must all be balanced.
Many brands have launched dessert-inspired bar flavors and textures, encouraging customization through toppings and pairings, Mintel noted. For example, the popular Quest Nutrition protein bar brand offers a wide variety of flavor options, including its Dipped Chocolate Chip Cookie Dough variety launched in 2021.
Motivators and Market Shifts
Nearly everyone snacks in the U.S., where 55% of adults are snacking 2-3 times a day. That hasn’t changed much since 2019, but the pandemic has shifted consumer motivations. “Satisfying a craving and filling a break are among the top three reasons consumers snack, and both motivators became more prominent during the pandemic,” Mintel said.The broader healthy snacks market has been performing well compared to the bar market, with an average annual growth of +4% globally from 2018 to 2022, according to Innova Market Insights.
Around 20% of U.S. consumers cite health-related and nutritional content factors as influencing their snack purchasing, according to a 2022 survey from Innova. Weight management and overall healthy lifestyle are top motivators for healthy snacking.
Clean labeling, such as organic or free from preservatives or additives, will continue to be featured prominently, with a market share of 15% and 38%, respectively, according to global Innova data from 2022. A smaller consumer segment may also be influenced by non-GMO/GMO-free, which holds a market share of 13%.
Use of plant-based claims is likely to increase in the category, with an average annual growth rate of 35% (from 2018 to 2022), Innova noted. Use of vegetarian and vegan claims are also expected to grow, with focus varying by region.
Healthy snacks that experiment with new texture and flavors can attract consumer interest. However, there is a large portion of indulgent snacking that is driven by familiar or nostalgic flavors, which brands may be able to leverage.
While fewer than 10% of consumers globally cite claims related to environmental, social, and ethical concerns as product attributes that most influence their purchasing decision, claims related to sustainable packaging are of growing interest, Innova surveys showed.
New Products and Trend Examples
RXBar Granola
Perhaps exemplifying the move away from bars, and meeting consumers where they are, Kellogg’s brand RXBar launched its first line of granola this January, featuring “distinctive, simple ingredients” and 10 grams of protein per serving. The line is available in original, peanut butter, and chocolate varieties.“Fans of RXBar trust us for our no B.S. approach to snacking and new RXBar Granola delivers on just that,” said Eileen Flaherty, senior brand manager for RXBar. “Thanks to simple, protein-packed ingredients, RXBar Granola has an unbeatable crunch, flavor, and texture that will fuel fans’ active lifestyles and upgrade their breakfast, lunch, or snack game from here on out.”
The company also revealed its first bar flavor from a new “Craft Batch” line: Strawberry RXBar. Craft Batch is a yearly initiative to debut new “elevated” flavors created with consumer trends and RXBar fan feedback in mind. RXBar Craft Batch will introduce one new flavor per year. Strawberry is the first launch for the new line.
IQBars
Focusing on brain health has helped propel IQBars into the mainstream since its 2017 debut. IQBars feature plant protein, prebiotic fiber, and healthy fats; they are formulated around six nutrients shown to support sustained cognitive energy, performance, and health: omega-3s, MCTs, Lion’s mane mushroom, flavonoids, vitamin E, and choline.According to founder Will Nitze: “I created IQBar to empower the doers, the creators, the get-stuff-doners. Sustaining superior mental and physical sharpness throughout the day requires superior nutrition.”
The company’s product lines are keto, paleo-friendly, vegan, and gluten/dairy/soy-free. IQBar got a boost in 2021 with a $2.8 million investment from CircleUp Growth Partners, an early-stage consumer investment fund with a data-driven approach. According to the company’s insights tool on emerging brands and trends (called Helio), which claims to track over 1.5 million brands across 200+ data sources, IQBar is the 7th ranked brand in the 1,500 nutrition bar set.
While focused primarily online, IQBar has taken an omni-channel approach and the company is seeing strong performance in retail and online. Last year, the company also entered the hydration stick pack market with a line that combines electrolytes and brain-supporting nutrients.
Snickers Hi Protein
The Snickers brand, part of Mars Wrigley, has debuted a new performance nutrition bar that contains 20 grams of protein and 4 grams of total sugar per 2-oz. bar.The single-serving, 220-calorie Snickers Hi Protein bar features the same iconic chocolate, caramel, and peanut ingredients as traditional Snickers bars, according to the company, but with whey and milk protein added to the nutritional profile.
With 4 grams of sugar per bar, Mars said it uses “all-natural sweeteners like monk fruit and/or stevia.”
The company also offers Snickers Hi Protein in a powder form. A 30-serving bag (39.5 oz. total) can be purchased online for about $30.
“Mars is consumer obsessed, and after talking with many consumers through the product development process, it was clear that the performance nutrition category was missing one key ingredient—delicious tasting products,” said Michelle Deignan, senior brand director for Mars Wrigley. “With the demand for delicious tasting protein bars increasing, Snickers Hi Protein bars are guaranteed to be a hit whether you work out avidly, casually, or are looking for a delicious snack with more protein.”
Snickers Hi Protein bars will be available at select retailers beginning in January, with the product set to be available nationwide later in the year, the company said.
