Energy Bar Market by Type (Protein Bar, Nutrition Bar, Cereal Bar, and Fiber Bar), Distribution Channel (Specialty Stores, Hypermarkets & Supermarkets, Online Sales Channel, and Convenience Stores), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global Energy Bar Market Analysis

The global energy bar market size is predicted to garner $29,447.10 million in the 2021–2028 timeframe, growing from $13,495.89 million in 2020, at a healthy CAGR of 10.50%.

Market Synopsis

Strategic alliances among market players, along with growing changes in meal patterns and craze of healthy foods, is expected to accelerate the growth of the energy bar market.

However, higher cost of energy bar along with growing concerns related to energy bar calories might be some of the growth-restricting factors for the market.

According to the regional analysis, the Asia-Pacific energy bar market size is anticipated to grow during the review period and generate revenue of $8,097.95 million, with CAGR of 12.00% due to increasing consciousness of consumers about the benefits of energy bar.

Energy Bar Overview

Energy bars are defined as the food supplement bars which provide energy, nutrition value, and other food benefits to the body. Energy bar contains fats, proteins, and carbohydrates, which help in providing immediate energy and are therefore used as a meal replacement. Moreover, now-a-days healthy energy bars are used mostly in the post-workout training for building up of new muscle tissue and repairmen of muscle tears during the workout.  

Covid-19 Impact on Energy Bar Market Share

The novel coronavirus pandemic had a devastating effect on several industries. The global energy market experienced a moderate growth during this period. Energy bar market was affected due to the outbreak of COVID-19 in three different ways such as demand, production, supply chain, and market disruption. On the other hand, COVID-19 has puffed up the demand for innovative snacks owing to growing trends of easy provision for nutrition and energy requirements, quick applications, and convenience of storing. Therefore, the importance of good health has skyrocketed, thus moderately driving the growth of the market.

In addition to this, many companies in different countries have stepped forward to help other countries by offering energy bar in pandemic times. For instance, General Mills, American multinational manufacturer, announced on October 2020, that they have initiated a program named “manufacture to donate" initiative. In response to this initiative, company manufactured different kinds of granola bars, whole grain cereals, and waffles for feeding people in America that are in need. The above-stated factors show that the pandemic may generate substantial investment opportunities in the market in the coming years.

Increasing Prevalence of Convenient and Healthy On-The-Go Snacking to Surge the Market Growth

The global energy bar industry is witnessing a massive growth mainly due to increasingly fast-moving lifestyles along with the need for instant energy among the youngsters. Also, growing trends for convenient and healthy food that are quick and instant energy providers are some of the factors that drive the market for energy bar. Moreover, according to a survey of 2018 by U.S. Food and Drug Administration, a federal agency of the Department of Health and Human Services, in America people do not get the sufficient or right amount of dietary fibers; therefore, healthy energy bars are the best sources of fiber and nutrition that come in different flavors. All such aspects in the food sector are leading to the overall growth of energy bar market.

Equivalently, companies that are emerging in energy bar industry are already leading market players to innovate strategies for customers. For example, in August 2019, the Hershey Company, largest chocolate manufacturers in the world and American multinational company, announced that they acquired One Brand LLC, US based food industry. The main aim of the acquisition is to increase the productivity of nutrition bars that have low-sugar content and are high-protein nutrition bars. These types of initiatives from market leaders are also predicted to drive the growth of the market.

To know more about global energy bar market trends, drivers, get in touch with our analysts here.

High Cost of Energy Bar to Restrain the Market Growth

The energy bars are costlier as they are prepared with high quality ingredients such as nuts, cashews, almonds, and others that offer instant energy, therefore making it unaffordable by many people. This factor is expected to restrain the growth of the global market during the forecast period. Moreover, energy bars are packed with premium packaging that includes wrapping and box, increasing the overall price of the energy bars. These are some of the factors anticipated to hinder the market value of the energy bar in the next few years.

Growing Demand for Different Flavors and Texture to Create Massive Investment Opportunities

The global energy bar market is spreading at a very fast pace due to increasing demand for different flavors and textures in energy bars. Also, according to result published in trends that is impacting nutrition bar market, 74% of the people that consume energy bars are demanding for good taste along with 60% of the people concerned with the ingredients and texture of the energy bar. Some of the common examples of demanding ingredients are millets, amaranth, soy, chocolates, fruits, grains, and other cereals. All such aspects thereby are positively affecting the market growth.

Furthermore, energy bar industry already has leading market players innovating strategies to attract customers. For example, in 2020, General Mills, American multinational manufacturer, announced that they have launched Nature Valley products that are packed with sustained energy bars having nut butter and dried fruits along with them being chewy, crunchy, and creamy in texture. Also, they are available in two different flavors, such as almond butter & blueberry and butter & cranberry. All such aspects may further lead to lucrative market opportunities for key players in the upcoming years.

To know more about global energy bar market trends, opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The protein bar type sub-segment is predicted to have a dominating market share in the global market. The sub-segment is expected to register a revenue of $12,031.47 million during the forecast period. Protein bar sub-segment is growing at a higher pace due to increasing consumer preferences towards healthy food that are easy to carry and help in overcoming protein deficiencies in the body. On the other hand, protein bar offers benefits such as it gives muscle-enhancing proteins; it lower down the cholesterol, blood pressure, and triglycerides. These factors and strategic alliances by key companies may bolster the growth of the sub-segment during the forecast period and energy bar market demand.

The nutrition bar type sub-segment is predicted to have a fastest growing in the global market. The sub-segment is expected to register a revenue of $8,862.55 million during the forecast period. Nutrition bar defines all kinds of healthy energy bars that contain any kind of cereals and high energy ingredients, targeted for the people who require quick energy but do not have time for a meal. In addition to this, rising population inclining toward gymnasium for maintaining health and fitness globally are some of the aspects that will drive the sub-segment growth. Moreover, key players operating in the market are adopting strategic collaborations to offer best type of energy bar to customers. For instance, KIND, US based snacks company, in 2020, announced that they have launched KIND energy bars that offer instant energy and are made with different whole grains, carbohydrates, and oats.

KIND energy bars are the type of energy bars that are made with ingredients such as whole grain and oats, that provide instant energy. These factors and strategic alliances by key companies may bolster the growth of the sub-segment during the forecast period.  

Source: Research Dive Analysis

The specialty stores sub-segment of the global energy bar market is projected to have the dominant share. It is also projected to surpass $12,043.11 million by 2028, with an increase from $5,520.87 million in 2020. This growth in the market can be attributed to discounts and convenience that specialty stores offer. Specialty stores are one of the most attracting distribution channels among the consumers because they offer easy accessibility of food and beverages at the time of shopping along with entertainment activities. Moreover, in specialty stores, people can freely compare products and select the best product according to their preferences. All such elements may increase the demand for sub-segment and energy bar market demand.

The hypermarkets & supermarkets sub-segment of the global energy bar market is projected to have the fastest growth. It is also projected to surpass $7,749.44 million by 2028, with an increase from $3,228.93 million in 2020. Supermarkets/hypermarkets offer super-sized shopping experiences with suitable energy bar products. Moreover, in bigger cities especially in metropolitan cities people are preferring supermarkets/hypermarkets, thereby driving the global market for energy bars and sub-segment.

Source: Research Dive Analysis

The Market for Energy Bar in North America to be the Most Dominant

The North America energy bar market accounted $5,384.86 million in 2020 and is projected to register a revenue of $11,366.58 million by 2028. The extensive growth of the North America energy bar market is mainly driven by higher disposable incomes with existence of top leading companies augmenting the industry growth in the region. Moreover, growing trends of healthy diets after workouts that give instant energy is one of the factors that is fueling the market growth across the globe. These factors will ultimately drive the demand in the energy bar market across the region.

The Market for Energy Bar in Asia-Pacific to be the Fastest Growing

The share of Asia-Pacific energy bar market is expected to rise at a CAGR of 12.00%, by registering a revenue of $8,097.95 million by 2028. The growth shall be a result of rising awareness of people towards the healthy snacking along with increasing per capita income of people. In addition to this, increasing trends of gyms and different yoga or health clubs in the region also drive the energy bar market. Such aspects may bolster the demand for energy bar market, in the upcoming years.

Competitive Scenario in the Global Energy Bar Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading energy bar market players are General Mills Inc, Cliff Bar & Company, Kind LLC, McKee Foods Corporation, Kellogg Company, Brighter Foods Ltd, NuGo Nutrition, Premier Nutrition Inc, Probar LLC, and Quest Nutrition.

Porter’s Five Forces Analysis for the Global Energy Bar Market:

• Bargaining Power of Suppliers: The product suppliers of energy bar market are high in number and are larger and more globalized. So, there will be less threat from the suppliers.
  Thus, the bargaining power of suppliers is low. 
• Bargaining Power of Buyers: Buyers demand cost effective energy bars that give instant energy. This has increased the pressure on the energy bar providers to offer the best energy bars in a cost-effective way. Thus, many suppliers are offering best yet cost –effective energy bars. This gives the buyers the option to freely choose energy bar that best fits their preference.
  Thus, the bargaining power of the buyers is high.
• Threat of New Entrants: Companies entering the energy bar market are adopting various innovations such as developing energy bar that are available in different flavors and textures.
  Thus, the threat of the new entrants is moderate.
• Threat of Substitutes: There are different types of food available for instant energy, but energy bar is the best choice because it is more effective as suggested by many studies.
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including General Mills Inc and Cliff Bar & Company. These companies are launching their value-added services in the international market and strengthening the footprint worldwide.
  Therefore, competitive rivalry in the market is high.