The global snack bar market is expected to grow at a CAGR of 3.79% over the forecast period to reach a total market size of US$19.107 billion by 2025, increasing from US$15.285 billion in 2019. The snack bars are referred to as replacers and a portion of healthy snack food which provides a sufficient amount of nutritional value. The high nutrition value of snack bars is making them famous among the young population which is driving the growth of the market during the forecast period.
Expanding retailing business like convenience stores
In recent years, convenience and departmental stores with supermarkets have witnessed an increase in sales. Established on the evolution of continence and other retail businesses in various parts of the world, the development and growth of convenience stores are directly related to economic growth and speed of urbanization which is projected to propel the market over the forecast period. In addition, with the growing number of smartphone users, time spent on the internet also an increase that drives the growth of e-commerce platforms which is also opening the scope of distribution of the snack bar.
Increasing household expenditure in developing countries
It is considered as one of the prime drivers for the growth of the market during the forecast period. According to the Organisation for Economic Co-operation and Development data, the household spending in Mexico and Brazil has increased from US$ 1,276 billion and US$1,850 billion in 2012 to nearly US$ 1,635 billion and US$2,153 billion by the end of 2018. Both and public and private players are investing heavily in the developing countries to cater to the growing demand for the snack bar on account of rapid urbanization and growing health awareness.
North America is holding a significant share in the market
By geography, the snack bar market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America is expected to hold a significant share in the market owing to the presence of major players coupled with the growing number of product launches in the countries like the Canada and United States. In addition, a growing number of health-conscious people and changing lifestyles are the factors boosting the demand of the product and with the rising availability of a variety of flavors and trends towards consuming frequent meals due to hectic lifestyles are further expected to drive the market in the region. In the Asia Pacific region, due to changes in breakfast consumption patterns in the past couple of years and rising western influence in countries like China and India the market is expected to witness substantial growth over the forecast period. Besides, growing consumer awareness regarding the health benefits of snack bars coupled with the product development of high fiber and multigrain bars has also triggered the market growth opportunities in the region in the coming years. Besides, rising disposable incomes and living standards are encouraging Chinese and Indians to adopt the Western lifestyle. Growing demand for ready-to-make and ready-to-eat breakfast food and beverage products is augmenting the demand for snack bars across the region. Furthermore, the rising number of supermarket chains and grocery stores in Mexico also contribute to the growth of the snack bars market by making it easily available to consumers. According to the National Association of Retailers (ANTAD), there were more than 2,658 store openings out of which 85 percent were specialized stores, 10 percent were supermarkets, and four percent were department stores. Also, in 2018, Walmart announced the acquisition of Cornershop, Inc., a leading online marketplace for on-demand delivery from supermarkets and specialty food retailers in Mexico and Chile in order to accelerate its growth in Latin America.
Prominent key market players in the snack bar market include Nature Valley, Kellogg’s, Alpen And Jordan, Quaker Oats, Kind Bars, Cliff Bars, Earnest Eats, Mars, Oriole Healthy Foods, And the Hain Celestial Group. There is intense competition; different companies are adopting different strategies to improve their margins over the competitors. Big market players look for strategic partnerships including mergers and acquisitions and joint ventures to boost their market share. Also, market players are tapering down their strategies to specific regional markets and are focusing on various country specific breakfast habits to target customer’s base and promoting their brand. In addition, market players are investing heavily in research and development and product launch of innovative, fruit flavored, and high fiber snack bars in the market. For instance, in January 2020, UK based Border moved into snack bars under Dark Chocolate Ginger product to capitalize on the boom in demand for foods that people can eat on the move. Also, in July 2019, UK Sports nutrition company Grenade launched “Reload” which is an oat-based protein bar high in fiber and low in sugar. In July 2019, Nooro’s expands its CBD snack bar range by introducing two new flavors. Major market players in the global snack bar market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the global snack bar market.