Energy Bar Market is Estimated To Witness High Growth Owing To Increasing Demand For On-The-Go Snacking
The Energy Bar Market is estimated to be valued at US$ 3.38 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Energy bars provide a convenient source of on-the-go nutrition. They are enriched with vitamins, minerals and other nutrients. Some key ingredients in energy bars include cereals, nuts, dried fruits, cocoa, gluten-free oats etc. Their compact size and longer shelf-life make them suitable for consumption anytime during the day.
Market key trends:
The demand for on-the-go snacking options is increasing significantly owing to fast-paced lifestyle and hectic work schedules. People prefer snacking in between their mealtimes to curb hunger pangs and boost energy levels. Energy bars are well-positioned to capitalize on this trend since they can be easily carried and consumed anywhere. Moreover, the availability of innovative flavors and formats such as crispy energy bars, chocolate-coated energy bars etc. is triggering their sales. Manufacturers are also launching protein-rich variants to target health-conscious consumers. The growing popularity of active lifestyles and increasing participation in sports/fitness activities have further boosted the consumption of energy bars as a pre/post-workout snack.
Porter's Analysis
Threat of new entrants: The energy bar market has moderate threat of new entrants due to high initial capital requirement, strong economies of scale, and presence of established brands.
Bargaining power of buyers: Buyers have high bargaining power due to availability of alternatives and their increased demand for variety.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of alternate raw material sources and brands ability to develop long term supply partnerships.
Threat of new substitutes: Threat of new substitutes is low as energy bars have already established themselves as a popular breakfast replacement and energy booster on-the-go snack.
Competitive rivalry: High as top players compete aggressively on pricing, variety, innovation and marketing.
SWOT Analysis
Strength: Wide product portfolio and innovation in tastes and ingredients. Global presence of key players.
Weakness: High raw material prices and vulnerability to climate changes affecting agricultural produce. Dependence on seasonal crops for ingredients.
Opportunity: Growing health awareness is driving demand for on-the-go nutrition. Increasing focus on organic, non-GMO, vegan and protein-rich variants.
Threats: competition from alternate snacks like cereals, biscuits, trail mixes etc. Stringent regulatory environment governing F&B products.
Key Takeaways
The Global Energy Bar Market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing demand for nutritional on-the-go snacks. North America dominates the regional energy bar market share, followed by Europe. In terms of value, the U.S. accounted for the maximum market share of over 80% of the North American energy bar market in 2023. Asia Pacific region is projected to be the fastest growing market, driven by increasing health awareness and disposable income in countries like China and India.
Regional analysis
Asia Pacific region is projected to witness highest CAGR of over 7% during 2023-2030. Expansion of retail market and promotional activities by foreign brands are driving consumption. China accounts for the major share of APAC energy bars market while India is emerging as a high growth market.
Key players
Key players operating in the energy bar market are Nature Essential Foods Pvt Ltd, Lotus Bakeries, General Mills Inc., Clif Bar & Company, ProBar LLC, Post Holdings Inc., BumbleBar Inc., PepsiCo Inc., Eat Anytime, TORQ Limited, OTE Sports Ltd, Kind LLC, Science in Sports PLC, and Kellogg Company.