Cereal Bars Market Size, Share & Trends Analysis Report By Product (Snack Bars, Energy & Nutrition Bars), By Distribution Channel (Traditional Grocery Stores, Convenience Stores), By Region, And Segment Forecasts, 2024 - 2030

Cereal Bars Market Size & Trends

The global cereal bars market size was estimated at USD 16.67 billion in 2023 and is expected to grow at a CAGR of 7.8% from 2024 to 2030. With increasing awareness of the importance of nutrition for overall health and well-being, consumers actively seek healthier snack choices. They are looking for options that provide essential nutrients while also meeting their dietary preferences and health goals. As consumers prioritize their health, there is an increased demand for nutritious, better-for-you snack options. Cereal bars are sought after by a larger consumer base seeking simplicity and nutrition in their snacks.

This trend prompts manufacturers to innovate and fortify their products to meet the evolving preferences for healthier, ready-to-eat snacks. Key industry players are focusing on product innovation and research and development (R&D) efforts to cater to this demand. For instance, in January 2023, Kellogg's Company received FDA approval to increase Vitamin D3 fortification in its breakfast cereals and grain-based bars.

The rise of on-the-go snacking, especially among younger consumers in countries such as the U.S., India, China, Brazil, and Vietnam, is reshaping the grocery landscape. This "snackification" trend is driving increased demand for snack category products such as cereal bars, breakfast cereals, cakes, and pastries. In May 2023, Nature Valley, a brand under General Mills, introduced Nature Valley Savory Nut Crunch Bars. These bars come in three flavors-Everything Bagel, White Cheddar, and Smoky BBQ-offering a unique and savory twist to the traditional snack bar experience. The company's commitment to providing wholesome snacks with real ingredients is evident in these new offerings with ingredients like whole grain oats, peanuts, almonds, and nut butter.

Millennials and Gen Z consumers are driving the demand for functional bars that fulfill specific nutritional needs, support energy requirements, aid weight management, or provide sleep support. In addition, the popularity of plant-based and ketogenic diets is fueling the development of new cereal bar varieties.

One notable trend is the emphasis on plant-based and vegan options, catering to the rising popularity of plant-based diets and offering alternative protein sources. New entrants are incorporating functional ingredients such as probiotics and omega-3 fatty acids to provide added health benefits beyond basic nutrition. They are also responding to the demand for low-sugar and allergen-free options, while exploring customization and personalization to meet individual dietary preferences. Furthermore, sustainability is a key focus, with startups adopting eco-friendly packaging solutions and emphasizing artisanal production methods.

Industry Dynamics

Manufacturers in the cereal bar industry are actively engaged in various initiatives to meet evolving consumer demands and market trends.

The degree of innovation is high in the cereal bar industry. Many cereal bars now offer high protein and fiber content to cater to health-conscious consumers looking for nutritious snack options. Manufacturers are creating bars with reduced sugar and carbohydrates to appeal to those following low-sugar or keto diets. In addition, manufacturers are including superfoods, probiotics, adaptogens, and other functional ingredients aimed at specific health benefits like improved digestion, stress reduction, and enhanced immunity.

The cereal bar industry has witnessed a significant level of merger and acquisition (M&A) activity in recent years. This trend is driven by several factors, including the desire for companies to expand their product portfolios, enter new markets, achieve economies of scale, and innovate by integrating new brands and technologies.

Regulations in the cereal bar industry have a significant impact on various aspects of the industry, including product formulation, labeling, marketing, and overall business operations. Manufacturers must comply with stringent food safety and quality standards set by regulatory bodies such as the Food and Drug Administration (FDA) in the US, and the European Food Safety Authority (EFSA) in the EU. These regulations ensure that cereal bars are safe for consumption and free from contaminants.

In the cereal bar industry, there are several product substitutes that consumers may consider based on their nutritional needs, dietary preferences, and lifestyle choices. These substitutes often cater to similar consumer demands for convenience, healthfulness, and specific nutritional benefits. Substitutes in the cereal bar industry include protein bars, granola bars, meal replacement bars, and homemade bars among others.

The cereal bar market has seen a variety of product launches in recent years, reflecting consumer demand for healthier, more diverse, and convenient snack options. These launches often focus on incorporating trending ingredients, addressing specific dietary needs, and offering innovative flavors and textures.

Regional expansion in the cereal bar industry involves companies strategically entering new geographic markets to capitalize on growth opportunities, expand their customer base, and diversify their revenue streams.

Product Insights

Snacks bars segment accounted for a revenue share of 47.0% in 2023. The market for snack bars is experiencing significant growth, driven by various factors and consumer trends. Snack bars have emerged as the epitome of a wholesome and convenient snack option, meticulously crafted from natural ingredients to provide a diverse array of vital components such as protein, fiber, vitamins, and minerals. This diverse assortment of flavors and varieties, spanning from energy bars to protein bars and rustic granola bars, caters to consumers who prioritize both nutritional value and sensory enjoyment.

Energy & nutrition bars segment is expected to grow at a CAGR of 8.8% from 2024 to 2030. With a global shift toward healthier lifestyles, consumers are increasingly conscious of their dietary choices, seeking convenient options that do not compromise on nutrition. This trend is particularly pronounced among individuals with busy schedules who require quick, on-the-go solutions to fuel their day. Energy and nutrition bars perfectly fit this need, offering a portable source of sustenance packed with functional ingredients like protein, fiber, and vitamins. Nutrition and energy bars have become increasingly popular, especially among athletes and those who lead active lifestyles.

Distribution Channel Insights

Sales through hypermarkets & supermarkets accounted for a revenue share of 33.9% in 2023. People prefer buying cereal bars from supermarkets and hypermarkets for several reasons. Primarily, these large retail outlets offer a wide variety of options, allowing consumers to choose from different brands, flavors, and nutritional profiles. This variety caters to diverse preferences and dietary needs, ensuring that shoppers can find cereal bars that align with their tastes and health goals. Supermarkets and hypermarkets often offer competitive pricing due to their ability to leverage economies of scale and negotiate bulk discounts with suppliers. This makes cereal bars more affordable for consumers than purchasing them from smaller retail stores or specialty shops.

Sales of cereal bar through online channels are expected to grow at a CAGR of 8.9% from 2024 to 2030. Consumers gravitate toward purchasing cereal bars from online stores and e-commerce channels for various reasons. The convenience factor stands out prominently, as individuals can browse and buy cereal bars from the comfort of their homes or while on the go. Online platforms typically offer a wider range of options compared to physical stores, catering to diverse dietary preferences and needs. In addition, online shopping allows for easy price comparison, access to customer reviews, and the opportunity to find discounts or special promotions. The doorstep delivery feature saves time and effort, particularly for busy individuals.

Regional Insights

The North America cereal bar market accounted for a revenue share of 42.9% in 2023. The market in North America is expected to grow in the coming years, fueled by a rising demand for vegan snack bars and a preference for smaller portions of nutritionally dense food. This trend reflects evolving consumer lifestyles and dietary preferences, along with the increasing prevalence of nuclear families in developed nations. Americans are increasingly drawn to cereal bars due to their convenience, portability, and perceived health benefits. These bars offer a quick and easy snack option for busy lifestyles as they require no preparation and are suitable for on-the-go consumption. Marketed as healthy alternatives, cereal bars often contain whole grains, nuts, seeds, and dried fruits, appealing to health-conscious consumers seeking nutritious snacks.

U.S. Cereal Bar Market Trends

The cereal bars market in the U.S. is expected to grow at a CAGR of 5.9% from 2024 to 2030. The growing inclination toward healthier snacking alternatives is expected to drive market expansion in the U.S. Regional growth is likely to be boosted by the presence of innovative flavor offerings, discounted pricing, and appealing packaging. Healthy cereal bars are expected to experience significant growth, driven by a high demand for breakfast grains and cereals, particularly among consumers of all age groups in the U.S.

Europe Cereal Bars Market Trends

The cereal bar market in Europe is expected to grow at a CAGR of 7.9% from 2024 to 2030. Busy lifestyles and the need for convenient, on-the-go snacks make cereal bars a popular choice. Increasing health consciousness leads consumers to seek nutritious options, and cereal bars often contain wholesome ingredients such as whole grains, nuts, and fruits. The market's variety and innovation, offering flavors and benefits such as high protein, low sugar, and organic options, cater to diverse preferences. Effective marketing strategies and attractive packaging further boost their popularity and sales in Europe.

The Germany cereal bar market is expected to grow at a CAGR of 9.6% from 2024 to 2030. In Germany's fast-paced society, characterized by a rising number of single households, the demand for ultra-convenient food options is increasing, particularly for ready-to-eat meals and snack bars. Store shelves include an array of snack bars catering to diverse dietary needs and preferences, including protein-rich, nutritious, and gluten- and dairy-free varieties, drawing the attention of health-conscious consumers.

The cereal bar market in the UK is expected to grow at a CAGR of 6.3% from 2024 to 2030. In the UK, a substantial proportion of adults frequently opt for cereal bars, with approximately two-thirds displaying a keen interest in nutritionally advantageous options. Presently, the marketplace is saturated with a variety of snack bars, spanning from protein-rich to nutritious, gluten-free, and sugar-free variants, each targeting distinct consumer demographics.

Asia Pacific Cereal Bar Market Trends

Asia Pacific cereal bar market is expected to grow with a CAGR of 10.8% from 2024 to 2030. The market for cereal bars in Asia Pacific is experiencing substantial growth as consumers seek nutritionally balanced snacks suitable for on-the-go consumption. They are increasingly valuing snacks that not only offer convenience but also align with their preferences for healthy and clean-label products. The surge in the popularity of functional foods further propels this market. The market dynamics are also shaped by the growing consumer emphasis on health and wellness, driving the demand for organic snack bars and cereal bars.

The cereal bar market in China is expected to grow at a CAGR of 11.1% from 2024 to 2030. The trend toward natural and healthy food products is influencing the cereal bar market in China. Consumers are increasingly opting for products made with natural ingredients, whole grains, and added nutritional value, contributing to the growth of the market.

The India cereal bar market is expected to grow at a CAGR of 12.7% from 2024 to 2030. Cereal bars, known for their convenience and nutritional advantages, are gaining traction among consumers seeking convenient snack choices that strike a balance between taste and health. The inclination toward natural and wholesome food items is exerting an influence on the cereal bar market in India.

Central & South America Cereal Bar Market Trends

In the Central and South America cereal bar market, consumers are showing a growing preference for fiber-rich snacks, with increasing awareness of the advantages associated with cereal bars, thus driving market expansion. Moreover, shifting consumption habits and dietary preferences among consumers in the region are amplifying the demand for cereal bars. The rising purchasing power and higher expenditure on dining out are also contributing positively to the sales of granola bars in the region.

Middle East & Africa Cereal Bar Market Trends

The Middle East & Africa cereal bar market has an increasing number of local brands that are diversifying their offerings to include fruit-based snacks, thereby expanding consumer options. Regional and international food exhibitions are especially noteworthy and play a pivotal role in promoting local cereal bar offerings in the Middle East and Africa market. These exhibitions serve as platforms where numerous local brands present a wide array of sweet and savory fruit snack options to a discerning audience.

Key Cereal bars Company Insights

The global cereal bar industry is characterized by the presence of numerous well-established players such as General Mills, Inc.; Naturell India Pvt. Ltd.; Mars Incorporated and its Affilitates; BELLRING BRANDS, INC.; Nestlé S.A.; Think!; The Kellogg Company; Atkins Nutritional; McKee Foods; PepsiCo Inc.; and Cliff Bar & Company, among others. The market players face intense competition from each other as some of them are among the top cereal manufacturers with diverse product portfolios for cereal bars. These companies have a large customer base due to the presence of established and vast distribution networks to reach out to both regional and international consumers.

Recent Developments

• In April 2024, KIND Snacks announced a range of new product launches that emphasize the brand's commitment to delivering both taste and nourishment to consumers. The company expanded its core nut bar line with new flavors in the Seeds, Nuts, and Fruits line, described as "trail mix in a bar," including Strawberry Sunflower Seed, Dark Chocolate Raspberry Pumpkin, and Orange Cranberry Pumpkin Seed.

• In March 2024, Think!, a protein snack brand under Glanbia Performance Nutrition, announced its newest addition: think! MINIS Protein Snack Bars. These bars pack a satisfying punch with 100 calories and 6 grams of protein per serving. Consumers can indulge in dessert-inspired flavors like Chocolate Chip, Cupcake Batter, Chunky Chocolate Peanut, and Chocolate Almond Brownie, along with three exclusive Girl Scout Cookie-inspired options.

• In February 2024, Fordham Athletic Director Ed Kull announced a partnership between the Rams (a basketball team) and JUNKLESS, a rapidly growing granola bar brand in the U.S. These chewy granola bars are crafted from simple, wholesome ingredients such as 100% whole grain oats and real fruit, offering 34% less sugar than the leading granola bar. Exclusively free from artificial flavors, colors, preservatives, high-fructose corn syrup, or hydrogenated oils, JUNKLESS distinguishes itself in the market. The bars are available in five distinct flavors: Chocolate Chip, Peanut Butter Chocolate Chip, Strawberry, Cinnamon Roll, and Oats & Honey.

Cereal Bars Market Report Scope

Global Cereal Bars Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global cereal bar market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Snack Bars

  • Energy & Nutrition Bars

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Hypermarkets & Supermarkets

  • Traditional Grocery Stores

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

  • Europe

    • UK

    • Germany

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa