Food Bars in the U.S.: Trends in Cereal/Granola Bars and Energy/Nutrition Bars

Published: March 2012
No. of Pages: 208
  

This report examines the $5.7 billion U.S. retail market for food bars, classified into two categories: cereal/granola bars and energy/nutrition bars.

Food bars have been making noise in the marketplace recently, posting double-digit growth rates for successful product types. Reasons for this surge include a wave of new product launches, increased sophistication in marketing bars to different consumer sets, and continued innovation in delivery formats. Eating trends such as the blurring of meals and snacks, an emphasis on portion control, and increasingly informal, spur-of-the-moment, and customized eating all favor the food bar market.

A main trend in the food bar market overall is the blurring of distinctions between cereal/granola bars and energy/nutrition bars. Broadly speaking, cereal/granola bars are focusing more on nutrition and incorporating functional ingredients (such as added protein or fiber), while energy/nutrition bars are incorporating ever more creative and decadent formulations to make them more appetizing.

Although overall the cereal bar segment has seen little growth beyond that achieved through price increases, new products continue to be introduced to meet more targeted consumer needs. Cereal bar manufacturers are targeting consumers who wish to move away from treats and are looking for a workout energy boost, a nutritious snack or even a fast meal replacement option. Over the past few years, cereal bars with reduced calories, fat or sugar have performed quite well, although the number of product introductions with these claims has fallen sharply in the last five years. Manufacturers are addressing more sophisticated concerns, such as creating products to supplement perceived nutritional deficits that might be incurred in a weight-loss program. High-protein, low-carbohydrate or balanced-gastrointestinal formulations have seen good growth.

In the energy/nutrition bar category, new flavor and ingredient introductions along with improvements in taste and mouthfeel have made the future of these products look a lot more interesting. Among the functional ingredients that manufacturers are using to vary the nutrition bar formula are CoQ10, L-carnitine, omega-3, resveratrol, and vitamin K2.

This report is based on information gathered from primary, secondary, and syndicated sources. Primary research involved consultation with industry sources and a Packaged Facts online consumer survey conducted in February-March 2012. Secondary research involved the evaluation and comparison of data and information found in financial, trade, and government sources, as well as company media. Analysis also draws on mass-market sales-tracking data from SymphonyIRI and national consumer survey data from Experian Simmons.

Food Bars in the U.S.: Trends in Cereal/Granola Bars and Energy/Nutrition Bars

Chapter 1: Executive Summary

    Scope and Methodology

    Food Bar Market Overview

    Cereal Bars
    Granola Bars
    Energy/Nutrition Bars
    A Boom in Food Bars
    Food Bar Market Approaches $5.7 Billion in 2011

    Table 1-1: U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2007-2011 (in millions of dollars)

    Market Projected to Near $8.3 Billion in 2016

    Table 1-2: Projected U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2011-2016 (in millions of dollars)

    Long-Term Food Trends Framing Market Growth

    The Cereal/Granola Bar Category

    Insights and Opportunities
    The Market for Cereal/Granola Bars

    Different Trajectories for Cereal Bars and Granola Bars
    2012 U.S. Retail Sales Projected at $3.2 Billion
    Table 1-3: U.S. Retail Sales of Cereal Bars and Granola Bars, 2010 vs. 2011 (in millions of dollars)
    Table 1-4: U.S. Retail Sales of Cereal Bars and Granola Bars, 2012 (in millions of dollars)
    Table 1-5: Projected U.S. Retail Sales of Cereal Bars and Granola Bars, 2012-2016 (in millions of dollars)

    Trends and New Products
    Retail Dynamics
    Demographics for Consumers

    The Energy/Nutrition Bar Category

    Insights and Opportunities
    The Market

    U.S. Retail Sales of Energy/Nutrition Bars Reach $2.5 Billion
    Table 1-6: U.S. Retail Sales of Energy/nutrition Bars, 2008-2011 (in millions of dollars)
    Double-Digit Growth for Lifestyle/Wellness & Diet Bars in Natural Channel
    Retail Sales Projected to Approach $4.5 Billion in 2016
    Table 1-7: Projected U.S. Retail Sales of Energy/nutrition Bars, 20011-2016 (in millions of dollars)

    Trends and New Products

    Milk Proteins Improve the Palatability of Energy/nutrition Bars
    Gelatin as a Protein Source and Texturizing Agent in Energy/nutrition Bars
    New Functional Ingredients Jazz Up the Market

    Retail Dynamics

    Mass Merchandisers at 30% Category Share

    Demographics of Energy/Diet Bar Consumers

Chapter 2: Food Bar Market Overview

    Key Points

    Varieties of Food Bars

    Cereal Bars
    Granola Bars
    Energy/Nutrition Bars

    High-Carbohydrate Bars (Clif Bar, PowerBar, etc.)
    High-Protein Bars (Myoplex, PowerBar Protein Plus, etc.)
    Ingredients in Protein Bars
    Leading Brands of Protein Bars
    Lower-Calorie Bars (Luna, etc.)
    Meal-Replacement Bars (Balance Bar, PR Bar, etc.)

    Labeling and Quality/Content of Ingredients
    Calorie Content Ranges
    Too Much of a Good Thing
    Advice for Energy Bar Use for People Engaged in Aerobic Sports

    Market Size and Growth

    Food Bar Market Approaches $5.7 Billion in 2011

    Table 2-1: U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2007-2011 (in millions of dollars)

    Market Projected to Near $8.3 Billion in 2016

    Table 2-2: Projected U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2011-2016 (in millions of dollars)

    Average Mass-Market Price Per Unit and Price Per Volume for Food Bars

    Table 2-3: Average Price Per Unit For Food Bars in Food, Drug and Mass-Merchandiser Stores, 2010-2011
    Table 2-4: Average Price Per Volume For Food Bars in Food, Drug and Mass-Merchandiser Stores, 2010-2011

    Private-Label Products in the Food Bar Market

    Table 2-5: U.S. Retail Sales of Private Label Food Bars, by Category, in Food, Drug and Mass-Merchandiser Stores, 2010-2011 (in thousands of dollars)

    Opportunities for Private-Label Manufacturers

    Trends Affecting the Food Bar Market

    2012 Trends

    What’s In and What’s Out in Foods and Food Ingredients for 2012

    2011 Trends

    Consumer Awareness of Functional Foods Increases
    Allergen-Free
    The Food Allergen Labeling and Consumer Protection Act of 2004
    Exemptions, Petition, and Notification to the FALCPA
    Protein Enhanced/High-protein
    Omega-3-enhanced
    Probiotic-enhanced
    Prebiotic-enhanced
    The Use of Inulin and Oligofructose in Cereal Bars and Energy/nutrition Bars
    Women’s Health
    Weight Loss

    Food and Beverage Manufacturers Pledge to Cut 1.5 Trillion Calories From the U.S. Food Supply
    New Strategies in Weight Management Products

    Weight-loss Ingredients Trends
    Ingredients that Enhance Satiety
    Fiber
    Manufacturers Must Substantiate Claims for Weight-loss Products

    Ingredients Trends

    Konjac—A Novel, Multitasking Ingredient
    Cereal Bars and Nutritional/Energy Bars Appeal to All Demographics

    Formulation and Ingredient Trends

    Long-Term Food Trends Framing Market Growth
    Allergen-Free

    The Food Allergen Labeling and Consumer Protection Act of 2004
    Exemptions, Petition, and Notification to the FALCPA

    Protein Enhanced/High-Protein
    Omega-3-Enhanced
    Probiotic-Enhanced

    Prebiotic-Enhanced

    Inulin and Oligofructose
    Women’s Health
    Weight Loss

    New Strategies in Weight Management Products
    Ingredients that Enhance Satiety
    Fiber
    Manufacturers Must Substantiate Claims for Weight-Loss Products

Chapter 3: The Cereal/Granola Bar Category

    Key Points

    Insights and Opportunities
    The Products

    Cereal Bars
    Granola Bars

    The Market

    2012 U.S. Retail Sales Projected at $3.2 Billion

    Table 3-1: U.S. Retail Sales of Cereal Bars and Granola Bars, 2010 vs. 2011 (in millions of dollars)
    Table 3-2: U.S. Retail Sales of Cereal Bars and Granola Bars, 2012 (in millions of dollars)
    Table 3-3: Historical and Projected U.S. Retail Sales of Cereal Bars and Granola Bars, 2007-2016 (in millions of dollars)

    Symphony-IRI FMDx Sales of Granola Bars at $1 Billion

    Table 3-4: SymphonyIRI-Tracked Sales of Breakfast/Cereal/Snack Bars and Granola Bars Through Food Stores, Drugstores, and Mass Merchandisers Other Than Walmart, 2011 (in thousands of dollars)

    The Marketers

    Kellogg Corners Three-Fifths of Mass-Market Cereal Bar Sales

    Figure 3-1: Symphony-IRI Tracked Marketer Shares of Breakfast/Cereal/Snack Bar Sales, 2011
    Table 3-5: SymphonyIRI-Tracked FDMx Sales and Segment Shares for Selected Brand Lines of Breakfast/Cereal/Snack Bars, 2010-2011 (in thousands of dollars and percent)

    General Mills Leads in Granola Bars

    Figure 3-2: Symphony-IRI Tracked Marketer Shares of Granola Bar Sales, 2011
    Table 3-6: SymphonyIRI-Tracked FMDx Sales and Segment Shares for Selected Brands Lines of Granola Bars, 2010-2011 (in thousands of dollars and percent)
    Competitive Profile: Clif Bar & Co., Emeryville, CA

    Company Profile

    Financial Information
    Products
    Corporate Strategy

    Competitive Profile: General Mills, Inc., Minneapolis. MN

    Company Overview
    Financial Information
    Cereal Bar and Granola Bar Products
    Corporate Strategy

    Competitive Profile: Hain Celestial Group, Inc., Melville, NY

    Company Overview
    Financial Information
    Cereal Bar and Granola Bar Products

    Competitive Profile: Kellogg Co., Battle Creek, MI

    Company Overview
    Financial Information
    Cereal Bar and Granola Bar Products

    Competitive Profile: KIND LLC, New York, NY

    Company Overview
    Financial Information
    Snack Bar Products
    Corporate Strategy

    Competitive Profile: Kraft Foods Inc., Northfield, IL

    Financial Information
    Cereal Bar and Granola Bar Products
    Corporate Strategy

    Competitive Profile: McKee Foods Corporation, Collegedale, TN

    Company Overview
    Cereal Bar and Granola Bar Products

    Competitive Profile: Odwalla Inc., Half Moon Bay, CA (a division of The Coca Cola Company)

    Company Overview
    Cereal Bar and Snack Bar Products
    Company Strategy

    Competitive Profile: Quaker Oats Co. (a division of PepsiCo)

    Company Overview
    Cereal Bar and Granola Bar Products

    Competitive Profile: Shandiz Natural Foods, Markham, Ontario, Canada

    Company Overview
    Business Strategy

    Competitive Profile: Slim-Fast Food Co. (a Unilever Company)

    Company Overview
    Financial Information
    Energy/nutrition Bars
    Business Strategy

    Trends and New Products

    Snacking, Early and Late
    Cargill Introduces Prototype Granola and Snack Bars Containing High Oleic Canola Oil
    Blurring the Lines—A Growing Number of Cereal and Granola Bars Feature Nutritional Benefits
    Selected Products Introduced in 2012

    General Mills Introduces Nature Valley Protein Bars
    Kashi Company Combines Fruit and Vegetables in New Tasty Soft n' Chewy Bar
    Kraft Launches Refrigerated MilkBite Milk & Granola Bars

    Selected Products Introduced in 2011

    Gluten-Free Granola Bars Introduced by Bakery On Main
    Clif Kid’s Zbar Crispy Organic Snack
    Kashi TLC Peanutty Dark Chocolate Layered Granola Bars Join the Company’s TLC Line
    Mars Expands Kudos Line
    Odwalla Introduces White Chocolate Macadamia Nut Mix Bars and Dark Chocolate Chip Walnut Bars
    PR•Bar Launches Five New Granola Bars in August 2011

    Cereal and Snack Bar Manufacturers Address the Obesity Epidemic
    Cereal Bars by Any Other Name
    Superfruit and Resveratol Enter the Cereal Bar Sector

    Retail Dynamics

    Mass Merchandisers at 30% Category Share

    Table 3-7: Retail Channel Shares for Energy/nutrition Bars, 2012 (percent)

    63% of Category Customers Buy Cereal/Granola Bars at Supermarkets/ Grocery Stores

    Table 3-8: Consumer Purchasing of Cereal/Granola Bars by Retailer Type, 2012 (percent of energy/nutrition bar purchasers)

    Consumer Trends

    14% of Adults Use Energy/Diet Bars

    Table 3-9: Consumer Purchasing Rates for Energy/Nutrition Bars vs. Cereal/Granola Bars, 2004-2011 (percent of U.S. adults)

    Demographics for Cereal/Granola Bar Consumers

    Table 3-10: Demographics for Cereal/Granola Bar Consumers, 2011 (percent and index for U.S. adults)

    Nature Valley and Quaker Chewy Lead in Consumer Base

    Table 3-11: Usage Rates and Consumer Base for Selected Brands Lines of Cereal/Granola Bars, 2009-2011 (percentage and number in thousands)

    Nature Valley, Nutri-Grain, and General Mills Milk and Cereal Bars Lead in Frequent Users

    Table 3-12: Frequency of Consumption for Selected Brands of Cereal/Granola Bars, 2011 (number of U.S. adults)

    Granola Bars Ready for an Image Makeover?

    Table 3-10: Selected Traits of Consumers Who Use Cereal/Granola Bars as Nutritional Snacks, 2011

Chapter 4: The Energy/Nutrition Bar Category

    Key Points

    Insights and Opportunities

    The Products

    Energy Bars

    Carbohydrate Energy Bars
    Protein Energy Bars

    Maximizing the Benefits of Energy Bars
    Diet/Weight Management Bars
    Condition-Specific Bars
    Bars With Less
    Bars with More

    The Market

    U.S. Retail Sales of Energy/Nutrition Bars Reach $2.5 Billion

    Table 4-1: U.S. Retail Sales of Energy/nutrition Bars, 2008-2011 (in millions of dollars)

    Double-Digit Growth for Lifestyle/Wellness & Diet Bars in Natural Channel
    Retail Sales Projected to Approach $4.5 Billion in 2016

    Table 4-2: Projected U.S. Retail Sales of Energy/nutrition Bars, 20011-2016 (in millions of dollars)

    SymphonyIRI-Tracked FMDx Sales at $1 Billion

    Table 4-3: SymphonyIRI-Tracked FMDx Sales of Nutritional/Intrinsic Health Value Bars, 2010-2011 (in thousands of dollars)

    The Sports Nutrition Context
    Sports Nutrition Products Target a Broader Consumer Base
    The Global Market for Sports Nutrition Products
    What’s Next in the Sports Nutrition Sector

    The Marketers

    Clif Bar Claims 23% of Mass-Market Sales

    Figure 4-1: SymphonyIRI-Tracked FMDx Marketer Shares of Nutritional/Intrinsic Health Value Bar Sales, 2011 (percent)
    Table 4-4: SymphonyIRI-Tracked FDMx Sales and Segment Shares for Selected Brand Lines of Nutritional/ Intrinsic Health Value Bars, 2010-2011 (in thousands of dollars and percent)

    Competitive Profile: Abbott Nutrition (a division of Abbott Laboratories)

    Company Overview
    Energy/nutrition Bar Products

    Competitive Profile: Active Health Foods, Inc., Riverside, CA

    Company Overview
    Products
    Business Strategy

    Competitive Profile: Brynwood Partners VI L.P.

    Company Overview
    Energy/nutrition Bar Products
    Business Strategy

    Competitive Profile: Fullbar LLC, Greenwood Village, CO

    Company Overview
    Energy/nutrition Bar Products
    Business Strategy

    Competitive Proflle: Nestlé, Vevey, Switzerland

    Company Overview
    Financial Information
    Energy/nutrition Bar Products

    Competitor Profile: YouBar, Los Angeles, CA

    Company Overview
    Products
    Corporate Strategy

    Trends and New Products

    Milk Proteins Improve the Palatability of Energy/nutrition Bars
    Gelatin as a Protein Source and Texturizing Agent in Energy/nutrition Bars
    Benefits of Soy Proteins Combined With Dairy Ingredients
    New Functional Ingredients Jazz Up the Market

    CoQ10
    L-Carnitine
    Omega-3
    Resveratrol
    Vitamin K2

    Trends in Selected Ingredients
    Energy/nutrition Bar Category Offers Something for Everyone, from Women Bodybuilders to Vampire-Wannabe Teens
    Support Your Local Energy/nutrition Bar
    Selected Products Introduced in 2012

    Balance Bar’s Balance-tine’s Day Chocolate Gift Assortment

    Selected Products Introduced in 2011

    Baked Chocolate Raspberry Nutrition Bar Introduced by Archer Daniels Midland
    Iron Girl Energy Bar Targets Women Athletes
    Brynwood Partners Launches Balance nimble and Café Bars
    Abbott Nutrition Introduces Sweet & Salty Nutrition Bars
    Joulebody Introduces a Detox Meal Replacement Bar
    ResVez Debuts a Second Resveratrol-Containing Nutrition Bar
    Mostly Raw Ingredient Probar HALO Bars Enter the Market
    ThinkProducts Introduces thinkThin Natural, Low-Sugar Nut Bar
    Quaker Oats Launches Bakery-Inspired, Reduced-calorie Nutrition Bars
    F-Factor Bars from Health Valley Offer 12 Grams of Fiber
    Vega Sport Protein Bars With All Natural, Plant-Based Ingredients Target Athletes
    Live Smart Original Flax Bars Offer Allergen-Free Snacking
    Mars Launches Marathon Smart Stuff Bars

    Selected Innovative Products Introduced in 2010

    Pure NRG Launches Chia Breakfast Bar
    FullBar Addresses the Weight Management Trend in Snacking
    POM Wonderful Introduces PomX Antioxidant Superbar Line
    Slim Secrets Introduces Snack Bars to Control Appetite
    Gatorade G Series Pro 01 Prime Pre-Game Fuel Nutrition Bars Enter the Market
    Nature’s Plus Source of Life Targets Teen Vampire Wannabes
    AllerEnergy Addresses Consumers Seeking Allergen-free Nutrition Bars

    Retail Dynamics

    Mass Merchandisers at 30% Category Share

    Table 4-5: Retail Channel Shares for Energy/nutrition Bars, 2012 (percent)

    55% Buy Energy/Nutrition Bars at Walmart and Other Supercenters

    Table 4-6: Consumer Purchasing of Energy/nutrition Bars by Retailer Type, 2012 (percent of energy/nutrition bar purchasers)

    Consumer Trends

    14% of Adults Use Energy/Diet Bars

    Table 4-7: Consumer Purchasing Rates for Energy/Nutrition Bars vs. Cereal/Granola Bars, 2004-2011 (percent of U.S. adults)

    Frequent Users Are More Likely To Also Use Cereal/Granola Bars

    Table 4-8: Number of Energy/Nutrition Bars Consumed in the Previous 30 Days, 2004 vs. 2011 (percent of U.S. adults)

    Demographics of Energy/Diet Bar Consumers

    Table 4-9: Demographics for Energy/Nutrition Bar Consumers, 2011 (percent and index for U.S. adults)

    Kashi Brand Edges Out Clif Bars in Consumer Base

    Table 4-10 Overall Consumer Base for Selected Brands of Energy/Nutrition Bars, 2007-2011 (number in thousands of U.S. adults)

    2.4 Million Dieting Adults Use Slim-Fast Bars

    Table 4-11: Selected Brands of Energy/Diet Bars Most Often Purchased by Consumers Who Are Dieting to Lose Weight (number of U.S. adults and index)

    Clif Bar Leads with 1.6 Million Frequent Users

    Table 4-12: Frequency of Consumption for Selected Brands of Energy/Nutrition Bars, 2011 (number of U.S. adults)

Published By: Packaged Facts
Product Code: Packaged Facts162


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