Cereal Bar Market size was estimated at $11.9 billion in 2020, projected to grow at a CAGR of 8.9% during the forecast period 2021-2026. The cereal Bar industry has witnessed huge demand owing to its ability to fulfill a variety of dietary needs, including low salt, low cholesterol, and low or no sugar. A cereal bar is simply known as a flapjack, a bar-shaped food product prepared by pressing cereals and, in most cases, dried fruit or berries together. These bars are also called as energy bars, nutrition bars as these bars are high in components that offer instant energy. Oats, nuts, and seeds, which are high in complex carbohydrates, are also important components of an excellent cereal bar. These are high in fiber, which the body break down more slowly than refined carbohydrate, allowing sugars to be released more slowly into the bloodstream. Cereal bar manufacturers provide a variety of custom-made goods that are not only nutritional and healthy, but also tasty. Owing to their flavor, dietary value, cereal bars consisting of granola and muesli have seen rapid expansion over the years. During the projected period, demand for cereal bars enriched with organic components such as dried fruits is likely to rise. Another major trend expected to boost market expansion is the growing popularity of energy bars among athletes and young adults. Athletes require healthy snacking in order to function, as well as eating a meal at regular intervals throughout the day. Cereal bars are high in fiber and can assist with hunger control, digestive health, and weight loss. As a result, the demand for these items is increasing among athletes. Moreover, the wide availability of these bars makes it a simple grab-and-go choice and is much suited for snacking, hence these cereal bars are also termed as snack bars. Cereal bars have become a mainstay in fast-paced modern life, with many people substituting a bite-sized bar for a low-calorie breakfast or healthy snack. However, not all snack bars are healthy, some well-known brands contain sugar and processed carbohydrates, both of which are caloric and lead to a "sugar rush” which is likely to hamper the market growth.
Cereal Bar Market Report Coverage
The report: “Cereal Bar Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Cereal Bar Market.
By Product Type: Snack Bars, Energy Bars & Nutrition Bars, and Others
By Flavor: Caramel, Chocolate, Peanut Butter, Honey and Others
By Distribution Channel: Supermarkets/Hypermarkets, Convenience Stores, E-Commerce, Speciality Stores and Others
By Geography: North America (U.S., Canada, Mexico), Europe (Germany, U.K., France, Italy, Spain, Russia and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina and Rest of South America), and Rest of the World (Middle East and Africa)
Key Takeaways
Owing to the rising awareness of healthy meals, changes in eating patterns and current dietary habits, and a desire to try new goods, the demand for convenience foods is increasing at a quicker rate.
Cereal Bar Market expansion is expected to be aided by increasingly growing new product launches with various flavours, high fiber contend, added extra dried fruits is accelerating the market growth.
For instance, In April, 2021 Kellogg India, planned to extend its range with additional Indianized items tailored to local tastes. Kellogg India is now focusing on the 'in-between meal' market, in addition to breakfast. To join this sector, it just released the K Energy bars.
However, the high manufacturing costs resulting from variable raw material prices and high sugar content are predicted to hamper the market growth.
Cereal Bar Market: Market Share (%) by Region, 2020
Cereal Bar Market
Cereal Bar Market Segment Analysis – By Product Type:
Based on Product Type, Cereal Bar market is segmented into Snack Bars, Energy Bars & Nutrition Bars, and Others. Snack Bars segment is accounted for the largest revenue market share in 2020 as they are typically marketed as a quick and easy nutrient source for a snack or meal. The snack bar category is viewed as assisting for customers with weight management by delivering items that aid in fat burning, additional nutrients, and calorie control. These items are appealing to health-conscious consumers and those attempting to achieve a specific health objective. Energy Bars & Nutrition Bars Segment is predicted to grow with the fastest CAGR of 9.3% in the forecast period 2021-2026. Breakfast bars are quickly being replaced with energy bars, which is contributing to their market growth. The market is being driven by rising health awareness and willingness to pay for healthier food options. Many customers choose energy bars as a complement to their normal diet; they also use one or two energy bars to replace breakfast. For instance, Kellogg's sells high-protein snack bars in a number of flavors, including caramel, pretzel, cashew, protein, which includes soy protein isolate, soluble corn fiber, cashew, palm kernel, soy lecithin, and palm oil, among other ingredients.
Cereal Bar Market Segment Analysis – By Distribution Channel:
Based on Distribution Channel, Cereal Bar market is segmented Supermarkets/Hypermarkets, Convenience Stores, E-Commerce, Speciality Stores and Others. Supermarkets/Hypermarkets segment is accounted for the largest revenue market share in 2020 owing to the widespread availability of products, a huge consumer base may easily obtain them. As there are numerous companies on the market that provide various varieties of cereal bars like energy bars, nutrition bars, snack bars at varying costs, quantities, and quality, consumers in this sector are likely to be more choosy. E-Commerce segment anticipated to grow with the fastest CAGR of 10.0% in the forecast period 2021-2026. This is majorly attributed to the increased Snacking as a result of the pandemic, as individuals seek comfort and continue to work, learn, and play at home, close to the pantry. According to the Mondelez International State of Snacking study, “nine out of ten worldwide adults say they snack more (46%) or the same (42%) during the epidemic as before it,” and 53% said they buy brands that bring back childhood memories. Cereal Bar manufacturers invest in their ecommerce platforms and online ordering tactics to capture the attention of this snack-obsessed demographic and increase sales. Snack food manufacturers have built dynamic landing pages to deliver interesting shopping experiences in response to the rising and continuing fondness for snacks and the huge increase in ecommerce. Shoppers discover new goods, hear about specials, and buy items online with only a few clicks on these brand sites.
Cereal Bar Market Segment Analysis – By Geography:
Based on Geography, North America Cereal Bar Market accounted for the 37.3% revenue share in 2020. For the modern American breakfast, there is no need for a bowl or milk. In the United States, the most important meal of the day is moving away from the traditional snap, crackle, and pop of cold cereals and toward the handy deliciousness packed inside the food industry's growing assortment of nutritious and cereal bars. Sales are being driven by increased demand for nutrition bars, granola bars as a morning option. Rising demand for natural ingredients in snacks, meal replacement, on-the-go snacking, and product innovation all contributed to the Cereal Bar market's growth. Asia-Pacific is poised to grow with the fastest CAGR in the forecast period 2021-2026. Growing economies and rising family income are two main drivers driving the cereal bar market in Asia Pacific to expand. The growing middle-class population loves to consume cereal bars often, which is projected to boost demand for cereal bars in these nations. This market in Asia Pacific is also being driven by a growing number of health-conscious people.
Cereal Bar Market Segment Analysis-Drivers
Growing Demand for Cereal Bras as a Healthy Snacking:
Customers' shifting eating patterns, such as snacking in between meals or snacking instead of meals is growing demand for healthy snacking alternatives which is expected to boost the market growth in the near future. The availability of novel tastes at low prices, as well as appealing packaging, is expected to boost regional expansion in the near future. Owing to the strong demand for breakfast grains and cereal in countries such as the United States, China, and India among consumers of all ages, the healthy cereals bars market is expected to develop steadily throughout the projected period. When it comes to snacking in between meals, consumers are becoming more health aware. Owing to their nutritional content, cereal and energy bars are now experiencing intense competition from healthier protein and snack bars. To boost cereal bar sales, companies are concentrating on including beneficial ingredients. Healthy ingredients such as superfruits and coconut are gaining popularity among consumers. The customer was drawn in by the trendiness of the product as well as its nutritious worth. Nutrition and Energy bars are made with dried fruits like raisins and dates. It goes well with fresh fruits like strawberries, bananas, and blueberries, as well as other cereals. It can also be used as a dessert topper. The many health advantages associated with Cereal intake, such as weight control and the capacity to maintain the presence of beneficial components like vitamins, minerals, and omega 3, are projected to be a key driver in the global cereal Bar market's expansion.
Cereal Bar Market Segment Analysis-Challenges
High Sugar Content:
Cereal bars are a convenient grab-and-go snack, but they aren't always as nutritious as they appear, and many of them are high in sugar. A snack's effectiveness is determined by the amount of protein and fiber it contains. This is a mixture that helps in maintaining a healthy blood sugar level by delaying the release of carbohydrates into the bloodstream, keeping the stomach fuller for longer and giving continuous energy. High-sugar foods are quickly burned by the body, resulting in an energy slump and sugar or carb cravings, which are signs of a blood sugar fall. While this food is strong in protein and fiber, it also contains a variety of refined sugars that are bad for blood sugar control. It keeps it going for a while, but it isn't really healthy. When it comes to flapjacks, despite the fact that this product is a flapjack rather than a typical cereal bar, it provides less protein per gram than some of the other items evaluated here. While nutrition bars have the benefit of containing oats, which are a good source of slow-release complex carbohydrates, they're not as healthy as they might be because they're sweetened with added cane sugar rather than the sugar found naturally in fruit or dried fruit.
Cereal Bar Market Segment Landscape:
Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Cereal Bar Market. Cereal Bar Market top 10 companies are Nestlé SA, General Mills, Inc., Atkins Nutritionals, Kellogg Company, Quaker Oats Co., Clif Bar, Kashi, Mars, MCKee Foods, Naturell (India) Pvt., Ltd., and Pharmavite.
Acquisitions/Product Launches:
In December 2020 Kellogg's has launched breakfast-inspired Kellogg's Cereal Bars, a new way to enjoy Froot Loops and Frosted Flakes on the go and throughout the day. The new bars are created from cereal bits and are half the size of a cereal portion.
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