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Energy Bars Market Size to Grow at a CAGR of 6.4% During the Forecast Period 2021-2026

(Food-Beverage-News.Com, December 20, 2021 ) Energy Bars Market size was estimated at $645.2 million in 2020, projected to grow at a CAGR of 6.4% during the forecast period 2021-2026. The Energy Bar Industry is being propelled forward by rising health consciousness and the adoption of good eating habits. Energy bars are a healthier alternative to healthy bars since they are made out of natural ingredients such as cereals and other functional energy-based items that assist the body get more energy quickly. Snack bars with a high protein content made with fruits, nuts, grains, and cereals are also included. They're high in carbohydrates, protein, fiber, low in sugars, and saturated fat, and they have a wide variety of calories to keep going. Furthermore, energy bars aid in weight reduction, digestion, mental refreshment, and the revitalization of energy supply in the body. Athletes require healthy snacking as well as eating a meal at regular intervals throughout the day in order to operate. Energy bars such as Cereal bars are high in fiber and help with appetite suppression, digestion, and weight reduction. As a result, athletes' demand for these products is growing. Furthermore, because of their widespread availability, these bars are a convenient grab-and-go option that is well suited for snacking as a result, these cereal bars are also known as snack bars. Energy bars have become a staple in today's fast-paced world, with many individuals opting for a bite-sized bar instead of a low-calorie breakfast or healthy snack. However, not all Energy bars or cereal bars are healthy, some well-known brands contain sugar and processed carbohydrates, both of which are caloric and cause a "sugar rush," putting the market's development at risk.

Energy Bars Market Segment Analysis – By Type:

The Energy Bar market is divided into organic and conventional categories based on type. Organic energy bars accounted for the biggest proportion of the global energy bar market in 2020, owing to customer preference for healthy, organic snacks. Owing to their busy and stressful lifestyles, consumers are gravitating for fast snack foods with great nutritional content with natural ingredients like cereals which are boosting the organic category even further. As glucose is absorbed twice as quickly as fructose, an energy bar with more glucose derivatives will perform better or twice the amount can be absorbed per hour. Furthermore, rising public awareness of the hazardous chemicals used in food processing, as well as increased demand for sports nutrition, is poised to boost market expansion in the future years. The Conventional Energy Bar segment is predicted to grow with the fastest CAGR of 6.9% in the forecast period 2021-2026. For the conventional energy bar category to remain competitive, factors such as the rising desire for fast and healthy energy-boosting food options are critical in maintaining its place on the market. Energy bar demand from growing areas is also taken into account in the market research, as well as expanding sports nutrition demand, product innovation, and product innovation.

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Energy Bars Market Segment Analysis – By Distribution Channel:

The Energy Bar market is divided into Supermarkets/Hypermarkets, Convenience Stores, E-Commerce, Specialty Stores, and Others. Owing to the extensive availability of items, a big consumer base may readily get them, the Supermarkets/Hypermarkets sector has accounted for the greatest revenue market share in 2020. As there are so many firms on the market offering different types of energy bars, such as cereal bars, nutrition bars, Protein bars, and Fiber bars, at different prices, amounts, and quality, customers in this industry are more likely to be picky. In the projection period 2021-2026, the E-Commerce segment is expected to expand at the quickest CAGR of 7.2%. This is mostly owing to the increased snacking that has occurred as a result of the epidemic, as people seek comfort and continue to work, learn, and play at home, near the pantry. Energy Bars has the same amount of caffeine as a shot of espresso (65mg), as well as 90 calories and 13 grams of carbohydrates, making it a fantastic pre-workout or mid-day snack. “Nine out of ten worldwide people say they snack more 46% or the same 42% during the pandemic as before it,” according to the Mondelez International State of Snacking research, and 53% say they buy brands that remind them of their youth. To attract the attention of this snack-obsessed population and improve sales, cereal bar makers invest in their e-commerce platforms and online ordering techniques. In response to the increasing and ongoing popularity of snacks, as well as the massive rise in e-commerce, Cereal snacks producers have created dynamic landing sites to provide engaging shopping experiences. On these brand sites, customers may learn about new products, receive special offers, and buy items online with only a few clicks.

Energy Bars Market Segment Analysis – By Geography:

Based on Geography, in 2020, the North American Energy Bars Market accounted for 43 percent of total revenue. The growing demand for nutrition-rich items among consumers is largely to blame for North America's leading position in the Energy Bars market. In addition, growing consumer interest in health, fitness, and wellbeing, as well as increased demand for sports nutrition, will propel the energy bar market in this sector. There is no need for a bowl of milk in the typical American breakfast. The most important meal of the day in the United States is shifting away from cold cereals' typical snap, crackle, and pop in favor of the convenient pleasure contained inside the food industry's increasing selection of healthy and energy-packed cereal bars. The market expansion of the North American area was aided by rising clean label claims on products such as no artificial ingredients and high fiber content. In the projection period 2021-2026, Asia-Pacific is expected to expand at the quickest rate. The expansion of the cereal bar market in Asia-Pacific is being driven by two primary factors such as growing economies and expanding family income. The increasing middle-class population enjoys eating cereal bars on a regular basis, which is expected to increase the demand for cereal bars in these countries. An increasing number of health-conscious consumers are driving this market in Asia-Pacific.

Energy Bars Market Segment Analysis Drivers

Rising Demand for Energy Bars as a Healthy Snacking:

Energy bars are dietary supplements that contain protein as well as other elements such as carbohydrates, vitamins, lipids, and minerals. Isolated protein from plant or animal sources, such as soy, milk, and eggs, is used in energy bars. They're abundant in vital amino acids, which help maintain muscular growth, heal wounds and rebuild damaged tissues, produce red blood cells, and enhance immunity. Energy bars are becoming increasingly popular among people of all ages, particularly athletes and sportspeople who engage in strenuous physical activity. The Energy bar market is primarily driven by rising awareness of protein deficit or protein energy. As a result of today's hectic lifestyle, energy bars are also expected to benefit from growing fitness trends and an increase in demand for on-the-go food items. As a result of the increasing frequency of lactose intolerance throughout the world, demand for gluten-free plant-based energy bars such as cereal bars is expected to increase, in turn, is projected to boost the market's overall growth throughout the forecast period. Lactose intolerance was reported in 2017 by about 75% of all native and African Americans, and 90% of Asian Americans, according to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK).

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Energy Bars Market Segment Analysis-Challenges

High Sugar Content:

Cereal bars are a quick grab-and-go snack, but they aren't always as healthy as they look, and many are heavy in sugar. The quantity of protein and fiber in a snack determines how effective it is. This is a combination that aids in the maintenance of a healthy blood sugar level by delaying the absorption of carbohydrates into the circulation, keeping the stomach fuller for longer, and providing continuous energy. High-sugar meals are quickly burnt by the body, resulting in fatigue and sugar or carb cravings, both of which are indicators of a blood sugar drop. When the fructose ratio is too high, energy bars become substantially less effective, so one must be aware of bars that don't include many grains and rely on a combination of dried fruit and syrups for energy. Fructose is fruit sugar, therefore fruits are abundant in it, and Agave syrup is especially high in fructose. This product is high in protein and fiber, but it also contains a variety of refined carbohydrates that are detrimental to blood sugar management. For a short period of time, it keeps things moving, but it isn't good in the long run. As with flapjacks, this product delivers less protein per gram than some of the other goods tested. Even while nutrition bars contain slow-release complex carbohydrate sources like oats, they're not as nutritious as one may think because they are sweetened with added cane sugar instead of the naturally occurring sugar found in fruit or dried fruits.

Energy Bars Market Segment Landscape:

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Energy Bars Market. Energy Bars 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 2020, KIND Healthy Snacks (KIND) introduced KIND® Energy food that delivers long-lasting energy from whole grains. The initial element in the product line, oats, provides complex carbohydrates, which are the preferred nutrition for long-term energy.

In 2020, General Mills extended their energy bar product line with the launch of the Natural Valley brand. The firm released two types of packed sustained energy bars: peanut butter and cranberry and almond butter and blueberry.

Key Takeaways

Demand for convenience food is expanding at a faster rate, owing to increased awareness of nutritious meals, changes in eating patterns and existing nutritional habits, and a desire to explore new products.

The growth of the cereal bar market is projected to be supported by a rising number of new product launches with varied flavors, cereal, high fiber content, and more dried fruits.

For instance, In July 2019, Mondelez Perfect Snacks has been acquired by z International, which has a controlling stake in the firm. Among the snack products offered by Perfect Snacks are the "Perfect Bar," "The Original Refrigerated Protein Bar," and "nut-butter based protein bars." Mondelez is anticipated to grow as a result of this acquisition.

Kellogg India, for example, planned to expand its line with new Indianized goods adapted to local preferences in April 2021. In addition to breakfast, Kellogg India is now concentrating on the 'in-between meal' market. It has lately introduced the K Energy bars to enter this industry.

High production costs arising from fluctuating raw material prices and high sugar content, on the other hand, are expected to stifle market expansion.

Related Reports:

A. Cereal Bar Market

B. Snack Bars Market

For more Food and Beverage related reports, please click here

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Venkat Reddy

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