The cereal bar market is Anticipated to Touch a CAGR of 8% During the Forecast Period (2023-2031).
Consumers across the globe have been shifting their focus toward changing their dietary habits. This involves eating healthy food, adopting an active lifestyle, and increasing the intake of dietary supplements to meet the dietary demands of the human body. Since the advent of automation and computers, there has been an increase in the number of desk jobs which has led to people leading a more sedentary lifestyle. In addition to this, there has been a considerable increase in the urban population. People have been flocking to cities and have been living alone or with other tenants. Their busy schedules always prevent them from eating healthy food.
Cereal bars fulfill dietary needs and is also an ideal substitute for meals. It also acts as a dietary and nutrition supplement for individuals looking to adopt a healthier lifestyle by going to gyms. Players involved in this market are focusing on bringing an assortment of products into the market focusing on specific needs of the various consumers in the to gain traction in the cereal bar market. In addition to this, there have been considerable improvement in farming practices across the globe. This has resulted in an abundance of raw material such as wheat, flour, corn, among others which are among the main ingredients required to produce cereal bars. The availability of these raw materials and the advancement in trade friendly practices will also lead to the growth of this market. Moreover, the advent of e-commerce and influencer marketing owing to the growth of the social media too are likely to be tailwind factors for the growth of this market.
Global purchasing power has improved to a significant extent over the last few years and is likely to keep on growing till the forecast period. In addition to this, this has also led the consumers to invest in healthy food and dietary alternatives. Consumers are now focusing consuming dried fruit snacks which are rich sources for minerals, vitamins, and fibres. These aspects are anticipated to increase the demand for cereal bars which are rich in dried fruit content. Dried fruits such as almonds, cashew nuts, are among the common ingredients used in manufacturing of cereal bars. The rise in popularity of cereal bars having dried fruits can also be underlined by the growth in trade of increase in trade of frozen fruits and nuts which was USD 4.42 billion in the year 2017 and was around USD 4.94 billion in the year 2018.
As the spending capacity of the consumer keeps on increasing, so will the demand for cereal bars to fulfil the dietary requirements of the ever growing population. in addition to this, there has been an increasing number of populations which have been signing up for gyms and other fitness classes. These classes promote the consumption of protein bars to meet their dietary demands. Furthermore, there has been a rise in trend of mobile fitness applications which also give advice on diet to be followed. These aspects will drive the demand for cereal bars and lead to the growth of the cereal bars market in the forecast period.
Based on types, the cereal bars market is segmented into breakfast bars, snacks bars, health and wellness bars, energy and nutrition bars, and others. During the working hours, humans always have the craving for a snack. The modern consumer wants to submit to his cravings but also wants to watch out for his or her health. This is one of the major aspect why snacks bars are likely to have the highest market share in this market. These cereal bars are positioned as the most convenient option for a snack or a meal. Various companies have come up with products which aid the consumers in burning fat, managing their weight, bringing their calorie intake under control, while also craving their hunger. These offerings appeal to the health conscious mindset of the consumer which is one of the primary factors to drive the growth of this market.
Based on sales channel, the market is segmented into business to business (B2B), and business to customer (B2C). B2B segment will dominate the market owing to the robust supply and distribution chains that have been set up across the globe. Hypermarkets and supermarkets are likely to be among the most favoured retail stops for the consumers owing to the tangibility of the product on display. In addition to this, these retail spaces also provide a chance for the producers of cereal bars to directly interact with the customers.
North America is anticipated to hold significant share in the market owing to the changing eating and food consumption habits of the consumers. There has also been increase in preferring healthy food substitutes instead of junk foods amongst the consumers in this region. In addition to this, obesity is a prominent problem among the population of this region, especially in the U.S. Moreover, the availability of cereal bars in a variety flavours which are available at discounted prices and are present in attractive packaging are also likely to be among the factors which will lead to the growth of this market.
The U.S. will be among the major consumers of cereal bars. As per the Centers for Disease Control and Prevention (CDC), the percentage of adults aged 20 and over with overweight, including obesity was around 71.6% in the year 2016. These figures are likely to lead to people getting more conscious of what they consume to avoid any illnesses resulting out of obesity and overweight issues. Players involved in the market are likely to influence the buying patterns of the consumer by getting into partnerships with various dieticians to promote their product.
Kellogg’s has a dominant market share in this market. Nestle has a significant market share owing to the diverse product range it provides and also due to its range in the dairy industry. furthermore, the company invests a considerable amount in research and has around 21 R&D centres. Its research initiatives are among its key competitive advantages. Companies are also investing in technologies which focuses on sustainable packaging and are eco-friendly at the same time.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|