Energy Bar Market

Market Overview

The global energy bar market size was valued at USD 668 million in 2021, which is envisioned to grow at a CAGR of 6.65% and reach USD 1.11 billion during the forecast period. 

An energy bar is a nutritious snack with nutritional ingredients that boost energy and endurance. It is distinguished from other protein and snack bars by its high sugar and carbohydrate content, which adds to its high energy benefit. Energy bars contain elements like granola, oats, nuts, and seeds that are rich in energy. These bars are preferred for delivering an immediate energy boost during shorter workout sessions like running or cycling.

Other examples of these types of workouts include swimming and rowing. Since energy bars contain no added sugar, they are appropriate for everyone. Energy bars are a handy on-the-go snack that gives an immediate energy boost. Athletes need nutritious snacks to perform well and must consume at least one meal daily. Energy bars rich in fiber help suppress appetite, improve digestive health, and manage weight. Consequently, athlete popularity of these products has increased.

The increasing popularity of energy bars among athletes and young adults is an emerging factor anticipated to spur the energy bar market expansion over the forecast period. Moreover, since the pandemic outbreak, there has been a significant shift in consumer behavior, as customers in developing nations are less brand loyal and more willing to try new products in a low-supply environment. As a result, internet distributors are seeing a rise in interest from consumers confined to their homes and seeking retail alternatives.

Market Dynamics

Market Drivers

The Rising Popularity for Packed Food Items and The Convenient Nutritional Go-to Snack to Aid Growth

The growing preference for prepackaged snacks and confectionery foods has increased the demand for energy bars. In addition, hectic work schedules and the desire to save time while cooking contributes to the rising demand for energy bars. A rise in consumers' purchasing power and a growing preference for flavorful food has increased the popularity of energy bar consumption. Increased global participation in various cultural events and activities resulted in a substantial increase in revenue. In addition, the trend of prepackaged snacks for on-the-go consumption has increased the demand for energy bars. Moreover, ingredient variations in snack products attract customers' attention, encouraging them to purchase such items based on their needs, thereby driving the energy bar market growth

In addition, changes in consumption patterns and increased awareness of healthy foods have increased the consumption of convenience foods. Due to the hectic lifestyles of the working population, on-the-go snacking has become incredibly common. However, on-the-go snacks are closely associated with energy bars because they are simple to consume. Consumers widely consume bars containing a high concentration of micro-nutrients that boost energy. Thus, the benefits offered by energy bars, such as easy consumption and disposable packaging, ensure the product's safety and increase demand for energy bars over the forecast period.

Market Restraints

The Preconceptions for Snack Bars Are Rapidly Changing to Restrict Market Growth

Constantly shifting customer preferences and tastes for snack food products increase the cost of research, manufacturing, and distribution infrastructure for the major players, thereby limiting the expansion of the energy bar market share. In addition, the widespread participation of local snack manufacturers has hindered the activities of global industry players. In addition, the wide availability of alternative products, such as energy drinks, cookies, and powder, is anticipated to restrain the energy bar market growth.

Market Opportunities

Increased Demand for Dietary Food Products to Boost Market Opportunities

The increased intake of low-carb and low-fat energy bars results from the growing demand for diet foods. In addition, as an increasing number of people are aware of the positive effects of natural, chemical-free foods on their health, the production of gluten-free and non-allergic nutrition foods has become convenient. In addition, the increasing incidence of diabetes has increased the consumption of low-sugar foods, creating new market opportunities.

Regional Analysis

The region-wise segmentation of the global energy bar market includes Europe, North America, Asia Pacific, and LAMEA.

North America and Europe Will Dominate the Regional Market

North America will command the market with the largest market share, growing at a CAGR of 7.28% during the forecast period. Popularity for functional ingredients, delicacy, meal replacement, and on-the-go snacks is propelling the development of the energy bar market share in North America. The absorption of energy bars is more excellent among those aged 18 to 50 than those aged 50 and older. Growth in the population of gym-goers who desire to maintain their health and fitness drives the demand for energy bars. The increasing popularity of "clean label" and "free-from" products is driving the market for energy bars in North America, especially in the United States. It is anticipated to play an essential role in the market's growth over the next few years. Numerous consumers, including athletes, are attracted to energy bars due to their multiple functions. Due to the absence of caffeine, energy bars are gaining popularity among athletes in the United States.

The region of Europe will hold USD 340 million during the forecast period growing at a CAGR of 6.25%. To satisfy consumer demand for transparent and health-oriented products, many European companies are redesigning their energy bars to adhere to clean label requirements. People in the United Kingdom are increasingly health-conscious and frequent fitness facilities and health clubs, increasing the demand for energy bars. The primary consumers of sports energy products are athletes and bodybuilders. The need is fueled by sports enthusiasts' extensive use of sports nutrition products, which is anticipated to create market opportunities for energy bar producers.

Increasing consumption and need for nutrition and health products, purchasing behavior, and product innovation are the primary factors pushing the energy bar market in the United Kingdom. In European nations like France and Germany, where the need for energy bars is expanding rapidly, clean label goods are paving the way. To satisfy customer demands for clarity, healthy-positioned products, and labels, many European companies are restoring their bars by clean label requirements, excluding many popular ingredients. Many companies are developing novel products that utilize alternative protein sources to keep up with the trend.

Segmental Analysis

The global energy bar market is classified based on type, nature, distribution channel, and region.

By Type Analysis

Based on type, the fragments are protein bar, nutrition bar, cereal bar, and fiber bar.

The protein bar segment is projected to hold the largest share during the forecast period and grow at a CAGR of 7.25%. Protein bars are portable, high-protein, and carbohydrate-content snacks. It is an excellent source of protein and other nutrients. It contains proteins that facilitate protein synthesis, muscle growth, and fat loss. Increased health awareness, shifting socioeconomic needs, and a lack of time to prepare food with proper/balanced nutrition are driving a rapid increase in the demand for packaged and convenience foods.

Consequently, the global protein bar market is anticipated to grow. Consumers choose weight management and energy goods, such as protein bars, to maintain a fit and healthy lifestyle. This lifestyle change is a significant market driver for protein bars.

The nutrition bar segment will hold the second-largest share. Low in sugar, high in protein, and omega-3-rich, nutrition bars contain few additives. A nutrition bar is a perfect replacement for a proper meal for individuals needing immediate energy. The item's high nutritive benefits drive the nutrition bar market expansion. The growing working population and buyers' hectic lifestyles have created a good market opportunity for nutrition bars.

By Nature Analysis

Based on nature, the fragments are organic and conventional.

The organic energy bar is most likely to hold the largest market share during the forecast period growing at a CAGR of 6.80%. Organic energy bars are snacks with a high nutritional value that are nourished with various vitamins and minerals to increase physical energy. Organic energy bars source ingredients from farms that don't use synthetic fertilizers or pesticides. Youth participation in sports and physical activities is increasing. The rising demand for healthy, organic, high-nutritional-value snacks and the rising demand for sports nutrition is anticipated to drive the growth of the organic segment.

The conventional energy bar segment will hold the second-largest share. The raw materials for traditional energy bars are cultivated with chemical fertilizers and pesticides. The majority of the time, conventional energy bars are consumed as snacks. One of the industry trends that drives the conventional section is that conventional energy bars are more accessible to manufacture than organic energy bars.

By Distribution Channel Analysis

Based on the distribution channel, the fragments are hypermarkets & supermarkets, convenience stores, specialty stores, and online sales channels.

The specialty store segment will hold the largest market share during the forecast period growing at a CAGR of 7.41%. A specialty store is a small retail establishment selling a specific product line and related items. Global consumers have made shopping a daily occurrence, and they typically prefer to analyze and evaluate a product before purchase, thereby increasing the retail sales of energy bars through specialty stores. Specialty stores provide consumers superior service, detailed product specifications, and expert advice, thereby increasing product sales. Additionally, these stores promote both international and private label brands in their stores.

The online sales channel segment will hold the second-largest market share. Online stores are digital stores where products and services are marketed through websites without a physical location. These online platforms are popular for buying food and beverages because they are easily accessible and provide substantial discounts and special offers. In addition, the online sales channel has expanded its consumer base, which has led to its emergence as a critical revenue source for many businesses.

Recent Developments

• In 2022, General Mills Inc. completed the acquisition of TNT Crust, a manufacturer of high-quality frozen pizza crusts. 
• In 2022, General Mills Inc. announced a multi-year partnership with Regrow Agriculture to monitor agricultural practices and their environmental impacts across 175 million acres of farmland in North America, Europe, and South America.