Cereal Bars Market Size, Share & Industry Analysis, By Product Type (Breakfast Bars and Energy & Nutrition Bars), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, Online Retail Stores, and Others), and Regional Forecast, 2024– 2032

The global cereal bars market size was valued at USD 12.89 billion in 2023 and is projected to grow from USD 13.43 billion in 2024 to USD 23.13 billion by 2032, exhibiting a CAGR of 7.03% during the forecast period. North America dominated the cereal bars market with a market share of 50.04% in 2023. Moreover, the cereal bars market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 6.43 billion by 2032, driven by growing consumer interest in immunity boosting, keto friendly healthy bars made with cereals.

Cereal bars, commonly known as muesli bars or granola bars, are prepared from cereal and other ingredients. The product is a convenient and proportioned food that provides instant energy to the users. The bars are commonly consumed as a substitute for traditional breakfast and meals. The growing consumer concern for better health, convenient packaging, easy accessibility, and product awareness are a few factors driving the global market growth. Furthermore, industry players' continuous involvement in R&D activities, new product launches, geographical expansion, strengthening of e-commerce presence, and spending on marketing operations are also expected to contribute to the product demand during the forecast period globally.

The product is a common option for on-the-go snacking among consumers, with multiple benefits such as convenience, health, and indulgence. However, the sudden changes in the supply chain and closure of distribution channels, including supermarkets, hypermarkets, and specialty stores, have negatively affected product sales during the COVID-19 period.

Furthermore, the COVID-19 pandemic has continued for more than a couple of months. Moreover, footfall in the shops near the picnic places, gardens, and gyms fell precipitously, which affected the cereal bar sales. Therefore, the pandemic had a negative impact on the global market growth.

Cereal Bars Market Trends

Increasing New Product Launches with Special Nutritional Claims to Augment the Market Growth

Millennials and Gen-Z consumers are increasingly opting for bars with benefits, such as nutritional requirement fulfillment, energy needs fulfilment, weight management support, and sleep support. A portion of the consumers are also purchasing protein cereal bars as a way to get essential nutrition and as a supportive snack to meet home exercise routine needs. Furthermore, the growing plant-based and ketogenic dietary trends bolster the new cereal bar development activities in the industry. This factor is another factor positively affecting the market growth. For instance, in June 2021, Munk-Pack, one of the emerging low-sugar bars manufacturing companies, expanded its keto granola bars in two different flavors, such as coconut cocoa chip and blueberry almond vanilla offerings in more than 1,000 Walmart locations across the U.S. market.

Cereal Bars Market Growth Factors

Increasing Number of New Entrants in the Industry to Drive the Market Growth

In many countries, including the U.S, China, Brazil, and Vietnam, on-the-go snacking has become more popular among young consumers over traditional meals. The growth of the “snackification” trend has been changing the scenario of grocery and supermarket shelves worldwide. The continuously increasing demand for snack category products such as cereal bars, breakfast cereals, cakes, and pastries is attracting players to enter the industry. Thus, new entrants are seeking financial support from investors to expand their business activities. For instance, in June 2022, Munk Pack, a brand of low-sugar snack bars, raised USD 5 million from its financing round to improve its distribution operation, growth, expansion of the team, and product innovation activities.

Growing Focus on Innovation and R&D Activities to Propel the Product Demand

Since consumers are more inclined toward their better health, nutrition-rich, better-for-you snack products have gained higher importance. Furthermore, a larger base of consumers prefers nutrition and simple ingredients in snack products such as breakfast bars and granola bars. This factor encourages manufacturers to develop innovative, nutrition-rich, and fortified products to meet the rising consumer demand for healthier RTE snack products, including cereal bars. Thus, industry key players emphasize product innovation and R&D activities to push the demand for products such as granola bars, cereal bars and protein cereal bars to the next heights. For instance, in January 2023, Kellogg's Company, a global cereals and bars manufacturing company, received approval from the FDA to increase the fortification level of Vitamin D3 in the breakfast cereals and grain-based bars category. 

RESTRAINING FACTORS

High Sugar Content and Expensive Prices May Restrain the Market Growth

A large number of consumers prefer granola bars because of convenience, health benefits, flavorful indulgence, and versatility. These bars are a good source of protein and fibre. However, they have high-added sugar, carbs, and artificial ingredients. Moreover, a regular granola bar contains up to 15 grams of sugar per serving. The excess added sugar consumption can lead to several health-associated risks, such as diabetes, obesity, and heart disease.

Furthermore, most of the nutritional bars or granola bars cost between USD 2 to 3 per piece. In addition, there are many alternative products available in the market costing less than the bar’s price. It is an important factor that influences the change in buying decisions, thereby hampering the market growth.

Cereal Bars Market Segmentation Analysis

By Product Type Analysis

Quick Energy Shot Offered by Energy & Nutrition Bars to Propel the Segment Growth

Based on product type, the market is segmented into breakfast bars and energy & nutrition bars.

The energy & nutrition bars segment holds the largest share in the global market. Consumers are purchasing energy bars to improve their physical performance and mental health. These bars are made from oats, grains, nuts, and other flavored ingredients, which provide a quick shot of energy to the consumers. Thus, consumers often use the product as an energy refiller between meals and pre & post-workout meals.

The breakfast bars segment is anticipated to continue to grow at a high rate during the forecast period due to the increasing popularity of ketogenic and vegan dieting practices among users globally. Furthermore, rising instances of introducing new products to retail shelves are also pushing the segment growth to new heights.

By Distribution Channel Analysis

Impulsive Buying Behavior of Consumers to Bolster the Supermarkets/Hypermarkets Segment Growth

Based on distribution channel, the market is categorized into supermarkets/hypermarkets, specialty stores, convenience stores, online retail stores, and others.

The supermarkets/hypermarkets segment holds the largest share owing to their easy accessibility and proximity. In addition, there is a dedicated shelf for granola bars in family packages paired with attractive discounts and offers. Furthermore, these retailers place the bars near the billing counter, which triggers the impulsive buying behavior of the product among consumers.

The online retail stores segment is expected to continue to grow with higher CAGR during the forecast period owing to their robust convenience, exotic offers, and enhanced shopping experience. The increased digital literacy rates among individuals across developing nations such as India and Brazil are expected to contribute further to the growth of the segment in the upcoming years.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, the Asia Pacific, South America and the Middle East & Africa.

North America is anticipated to hold the largest share in the global market during the forecast period. The growth in users’ interest in immunity-boosting and stress-relief bars, along with the changing lifestyle of young consumers seeking keto-friendly, meal-replacement, and intermittent fasting products, is contributing to the creation of traction for granola bars. Furthermore, refrigerated bars such as energy bars, granola bars, and fruit & nut bars are anticipated to witness demand in the upcoming years for addressing consumers' preference for natural, fresh, clean labels, and premium taste.

Consumers in the European market are seeking novel snack products that meet their dietary requirements, such as vegan while delivering the required nutrition. In addition, youth are opting for quick, nutritious, on-the-go, and ready-to-eat snack products, including granola bars, as they are ideal choices for convenient and healthy food, which is propelling market growth in the region. Furthermore, the rising popularity of free-from, natural, plant-based, and better-for-you products is increasing the product demand.

In the Asia Pacific, Japan and Australia are leading and attractive markets for both breakfast and energy bars. Granola bars with healthy nutrients such as protein, vitamins, and fibres are grabbing more attention among health-conscious consumers. Furthermore, the increasing number of new entrants to the industry with innovative product lines is another important factor driving the granola bars market in the Asia Pacific, including China, India, and South Korea.

The rising purchasing capacity paired with consumers' expenditure on outside food consumption is positively supporting the growth of granola bars sales in South America. Furthermore, evolving consumption patterns and diets among consumers are further boosting the market growth.

The Middle East & Africa market is observing a gradual rise in demand for granola bars, owing to growing urbanization and exposure to Western food culture. Furthermore, industry players focus on expanding their geographical presence in the region to propel the market growth to the next height in the upcoming years.

List of Key Companies in Cereal Bars Market

Companies Focus on Product Development to Gain a Competitive Edge

Various regional and international players are consistently working on formulating advanced strategies to gain a competitive advantage. Many companies are using new product launching strategies to witness market growth. Furthermore, they are expanding their presence on e-commerce platforms and incorporating digital tools to expand their share in the global market space.

List of Key Companies Profiled:

• General Mills Inc., (U.S.)


• WK Kellogg Co., (U.S.)


• Nestle S.A. (Switzerland)


• PepsiCo Inc. (U.S.)


• Clif Bar & Co. (U.S.)


• McKee Foods Corporation (U.S.)


• Atkins Nutritionals, Inc. (U.S.)


• Kind LLC (U.S.)


• Dextro Energy GmbH & Co.KG (Germany)


• JUNKLESS Foods Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: Barrys India, an Indian company, introduced new varieties of energy bars with multi-grains, nuts, and other ingredients in three varieties such as Choco Nut Delight, Signature Crunch, and Fruits, Nuts & Seeds.


• January 2023: General Mills Inc., a global food and beverage company, launched three new products to expand its cereal bar category in three various flavors: Cinnamon Toast Crunch Cereal bars, Lucky Charms, and Peach Cheerios.


• February 2022: McKee Foods Corp., a snacks bar manufacturing company, expanded its Sunbelt Bakery brand by launching Panada chewy granola bars. The product contains whole grains, white chocolate chips, and corn syrup and is available in a family pack of 8 bars.


• January 2022: Magic Spoon, a cereal manufacturing company, entered the cereal bar business category by introducing a limited-edition cereal bar in two flavors: Cookies & cream and Cocoa peanut butter.


• January 2021: Kellogg’s Company, a global cereal and snacks company, introduced keto-friendly snack bars in two different flavors: Chocolate Almond Fudge and Peanut Butter Fudge. The product is available on retail shelves across the U.S. market.

REPORT COVERAGE

The report provides a detailed analysis of the global market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides this, it offers insights into the global cereal bars market share, trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation