Australia Snack Bar Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Australia Snack Bar Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Australian snack bar market is expected to register a CAGR of 4.38% during the forecast period (2021 - 2026).

COVID-19 pandemic has forced people to consume more healthy food to improve and boost their immunity. With the consumption of snack bars that are packed with various nutritious ingredients, its consumption is on the rise. It also resulted in many market opportunities for many players enabling them to use healthy ingredients instead of using inflammatory ingredients or artificial sweeteners in the country.

As Australian consumers become more health-conscious, they are looking for alternatives to conventional snack food items, such as potato chips and chocolates. This represents an exciting opportunity for the manufacturers of nutritious snack bars, to step in and cater to the demand, but only if they can differentiate themselves from other brands, identify their current and potential consumers, and tailor their marketing communications accordingly.

Cereal bars have various benefits as they improve blood pressure, reduce cholesterol and blood sugar levels, improve gut health, and provide antioxidants. The rising health consciousness among the Indian people has led to the adoption of a healthy diet and active lifestyle, which has resulted in higher consumption of snack bars.

Key Market TrendsDemand for Health and Convenience Snacking

Consumer demand for convenient and healthy on-the-go snack options has been the primary reason for the sales of snack bars in the country. The changing lifestyle of consumers involving the consumption of smaller meals is further leading to the increase in consumption of snacks, which is expected to propel the demand for snack bars. Owing to the availability of snack bars in a wide range of flavors, the demand for these products has increased considerably in Australia. In 2018, the market studied was led by the cereal bars segment, which was slightly ahead of the energy bars segment. Consumer preference for clean-label ingredients is high. Snack bars have various opportunities within the functional ingredients, reduced sugar, savory spins, and plant protein categories. Nestle SA, Vitaco Health Australia Pty Ltd, Carman's Fine Foods Pty Ltd, Be Natural, and Post Holdings Inc. are the leading brands in the market, having a dominating presence in the Australian snack bar market.

Sports Bars and Cereal Bars Go Head-to-Head

Stiff competition from new entrants and heavy price discounting are the key challenges for the nutritious snack bar market. The category is becoming overcrowded, with many new competitors willing to cut their pricing substantially. The sports bars segment of the sport and diet grocery category registered a growth rate of 7.9% over the last year and were the largest segment of the overall category in grocery. Trial and destination are key for a retailer to unlock the potential of the sports bars segment, whereas the demand for cereal bars comes from their properties related to functionality and health. With its range comprising cereals, porridges, wraps, sprinkles, and bars, Goodness Superfoods has become a successful brand. It also won the Healthy Food Guide Award for best breakfast cereal.

Competitive Landscape

Competition is fierce in the Australian snack bar market. Several international and small brands, such as Nestle SA, Vitaco Health Australia Pty Ltd, and Carman's Fine Foods Pty Ltd, are expanding their reach and range, making it tough for the leading players to maintain a market share. Stiff competition from new entrants and heavy price discounts are the key challenges for the snack bar market. The market is becoming overcrowded, with many new competitors willing to cut their pricing substantially. In Australia, the production of snack bars involves high costs. Thus, this is providing a challenge for the players in the market, as consumers are looking for pocket-friendly products. Additionally, the constant promotions within the supermarkets mean that many customers are now waiting for products to be on special offers for them to purchase, rather than being brand loyal.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Nestle SA
Cereal Partners Worldwide SA
Vitaco Health Australia Pty Ltd
Carman's Fine Foods Pty Ltd
Post Holdings Inc.
Be Natural
General Mills Inc.
Weight Watchers International Inc.
Freedom Foods Group Limited
The Kellogg Company

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