Market Research Report
Energy Bar Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)
|Energy Bar Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)|
Published: May 13, 2021
Mordor Intelligence Pvt Ltd
Content info: 130 Pages
Delivery time: 2-3 business days
The global energy bar market was valued at USD 2,968.67 million in 2020, registering a CAGR of 3.32% during the forecast period (2021-2026).
The COVID-19 pandemic resulted in the generation of opportunities for many private players to emerge in the markets to cater to the inflated demand for snack products, which in turn benefited the manufacturers of energy bars. The need for innovative snacks is consistently high in developed countries, due to the associated convenience of storing, quick usage, and easy provision for nutrition and energy requirements.
The staggeringly increased sales of products like snacks, bars, and other convenience foods were observed through online stores during the lockdown, which sustained the demand for energy bars in the market studied. Most people preferred to buy larger quantities at a time, fearing running out of products. Thus, large basket sizes remained a significant reason for the sustenance of snacks and bars across all regions.
Consumer demand for convenient and healthy on-the-go snack options has by far been the primary attribute for the sales of energy bars globally. Also, due to their small packaging and high energy content, it is an ideal solution for adults who need instant results. It also contains proteins and other nutrients, and micronutrients required daily, thus, packing a balanced diet in a small quantity.
Further, the increasing demand for energy bars for different consumers' needs has led to various product innovations and increased use of healthy ingredients. Labeling these bars with properties, such as gluten-free, vegan, low fat, low calories, no added sugars, and sweeteners, is propelling the market growth.
Companies like The Kellogg Company, PepsiCo Inc., Quest Nutrition LLC, and ClifBar & Company are some of the established players in the market. The market players are following various strategies like product innovation, expansion, and other strategies to increase their market penetration.
Demand for Convenient and Healthy On-the-Go Snacking
Globally, the demand for convenience foods is growing at a faster pace due to changes in social and economic patterns, as well as increased expenditure of food and beverage, awareness about healthy foods, changes in meal patterns and existing food habits, and the desire to taste new products. On-the-go snacking is becoming extremely popular, especially among the working-class people, teenage children, people living in hostels, and bachelors due to their hectic lifestyles. Moreover, the on-the-go snacking concept is closely associated with easy consumption and handling of products, which energy bars offer. Energy bars, which are packed into small quantities containing high amounts of instant energy and all the daily essential nutrients and micronutrients, have been widely adopted, thus, propelling the market growth. In 2019, 75% of American bar consumers ate them as a snack while 60% replaced a traditional breakfast with the more portable option. Moreover, 30% of Americans admit it's hard to prepare meals, given their busy schedules.
Thus, the demand for energy bars is increasing due to the linked convenience of consumption, to boost energy, aided by disposable packaging that prevents the bars from coming in contact with hands, keeping them clean to work, simultaneously.
North America to Dominate the Global Energy Bar Market
In North America, the United States, being one of the most developed nations, demands highly convenient food, owing to their rapid lifestyle. According to the United States Department of Agriculture (USDA), consumers in the United States spend more than half of their food budget on convenient foods, including energy bar, thereby, driving the consumption of energy bars in the country. Moreover, manufacturers are focusing on the health and wellness trend in the region, targeting the young consumers and the working population. The changing lifestyle of consumers involving the consumption of smaller meals is further leading to the increased consumption of healthy snacks, which is expected to propel the demand for energy bars. As per government sources, the employment rate in the United States is at around 61% in 2019, which amounts to over 157 million people having a busy daily life and smaller breaks in between. With consumer spending increasing on packaged foods and there being no time to prepare meals, people are turning toward convenience foods, like energy bars, for their energy requirements on the go.
Moroever, product launch with various label claims, such as "no artificial additive", "high or added fibre" and "reduced sugar" achieved strong growth in the past few years. Expensive brands offering product composed of natural and organic ingredient is expected to increase sales of energy bars in the North American region.
The global energy bar market is highly fragmented and competitive, with various global and regional players. The major market share of energy bars is dominated by a domestic group of companies. Thus, the global market share is shared among companies, like Kellogg's, General Mills Inc., Clif Bar & Company, and Lotus Bakeries, among other domestic and global players. Product innovation was the most preferred strategy adopted by a majority of key players in the market studied. Moreover, players operating in the market also consider various factors to make their product more appealing to the customers. Hence, they offer products with vegan, clean-label claims and innovative packaging designs. For instance, in July 2019, General Mills launched Nature Valley Wafer Bars, LARABAR plant-based energy bars, and EPIC Provisions Rise & Grind morning-inspired bars.