United States Energy Bar Market - Growth, Trends, and Forecasts (2023 - 2028)

United States Energy Bar Market - Growth, Trends, and Forecasts (2023 - 2028)

The US energy bar market is forecast to witness a CAGR of 6.5% over the next five years.

The energy bar market in the country is majorly driven by the growing interest among people to participate in various physical activities, including sports, gym, and others. Energy bars may be used as an energy source during athletic events such as marathons, triathlons, and other activities requiring a high energy expenditure for long periods. They are also commonly used as a meal or a snack replacement in weight-loss programs. Additionally, as energy bars are prepared with lots of nutritious ingredients, such as cereals, rolled oats, dried fruits, nuts, and seeds, they contain a balanced amount of essential nutrients required for a human body, such as carbohydrates, proteins, fibers, good fats, vitamins, and minerals. Such factors are further attracting consumers, thus adding to the market's growth.

Moreover, the United States is one of the most developed nations, and consumers demand highly convenient food owing to their fast-paced lifestyles. Healthy and convenient foods like energy bars are expected to grow during the forecast period. With this growing demand, players in the market are keen on launching products that are gluten-free with different flavors and nutrient ingredients that cater to large consumer bases. For instance, in January 2023, Bobo's, known for their oat bars, oat bites, and baked goods, announced that it was expanding its lineup with a new real food protein bar line debuting in two delicious flavors: Chocolate Chip Peanut Butter and Double Chocolate Almond Butter. The company claimed that each new bar is packed with 15g of protein from peanuts or almonds, pea protein and other wholesome ingredients that deliver a satisfying protein boost and taste. The new protein bars also claim to be verified non-GMO, certified gluten-free, and kosher. Such developments in the country are expected to further boost the market's growth.

The key driver of energy bar sales in the country is the demand for simple and healthful on-the-go food options. It has also become a perfect alternative for people who require quick meals or snacks due to its tiny packaging and strong energy content. Faced with more significant time constraints from work, childcare, and commuting, people in the nation often turn to convenience foods. Among convenient food options, energy bars gained popularity as a quick and healthy option, thus boosting its demand. In the same line, players in the manufacturers are targeting consumers with active lifestyles and busy schedules and molding their designs and packaging to consume energy bars as quick and energizing snacks. According to Snack Food & Wholesale Bakery, based on sales, in 2021, a few major manufacturers in the US energy bar market include Clid Bar & Co., General Mills, Simply Good Foods, Kind, and Quest. In 2021, Clif Bar & Co. was the leading granola bar vendor in the United States, with its sales accounting for about USD 722.19 million.

Furthermore, the growing demand for energy bars to meet a variety of customer needs has resulted in a variety of product improvements as well as a rise in the usage of healthy components. Gluten-free, vegan, low fat, low calorie, no added sugars, and sweetener labels are fueling market expansion.

In the United States, mass merchandisers, i.e., supermarkets/hypermarkets, have an inherent advantage in terms of sufficient shelf space and the bundling of products that are primarily aimed at achieving economies of scale. The supermarkets/hypermarkets provide a super-sized shopping experience with suitable displays and assortments of indulgent snacking products. They even provide a comfortable shopping experience by offering a whole lot of brands for their customers to choose from. For instance, according to US Census Bureau, last year, the United States supermarket and grocery store sales amounted to about USD 766 billion, an increase compared to the previous year, in which supermarket and grocery store sales were about USD 741.57 billion.

In the developed markets of the United States, the majority of energy bars are purchased through modern grocery retailers, such as supermarkets and hypermarkets, due to the easy access to supermarkets and hypermarkets, which plays a vital role in the positive growth of energy bar sales in the country. Moreover, in the United States, consumers can visit various types of supermarkets, such as natural/gourmet food supermarkets, warehouse grocery stores, and military commissaries. The most common type of supermarket in the country is the conventional kind, followed by the supercenter for groceries and mass merchandise. Such factors are expected to further boost sales through this channel during the forecast period.

The US energy bar market is competitive with many existing multinational players. Innovative product launches and clean-label ingredients are the various strategies adopted by these players. Private-label brands provide tough competition to the existing players with their flavored product offerings. Leading players in the market are Kellogg NA Co., GlaxoSmithKline PLC, Abbott Nutrition Manufacturing Inc., General Mills, Inc., and Clif Bar & Company. The major players in the market studied have been focusing on strategies like product innovation, mergers, acquisitions, and geographic expansions, to establish a strong consumer base and esteemed position in the market.

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