United States Snack Bar Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

United States Snack Bar Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The US snack bar market is expected to record a CAGR of 5.3% during the forecast period 2022-2027.

The COVID-19 pandemic resulted in the generation of opportunities for many private players to emerge in the market and cater to the inflated demand for snack products, which benefited the manufacturers of snack bars. The need for innovative snacks is high in the country due to the associated conveniences of storing, quick usage, and easy provision for nutrition and energy requirements. The snack and bar products saw reduced consumption as supermarkets re-allocated stock priorities to staples and essential supplies during the pandemic. For instance, General Mills Inc. estimated an organic sales growth of 2% because of consumers’ increased preference for health and wellness products.

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 lifestyles of consumers involving the consumption of smaller meals are further leading to the increased consumption of snacks, which is expected to propel the demand for snack bars. Owing to the availability of a wide range of flavors within various snack bar categories, the demand for snack bars has grown considerably.

With the growing vegan trend and use of organic ingredients in food and nutritional supplements on account of rising concerns over animal welfare, personal health, and most importantly, sustainability, there is a shift in consumer behavior, which is resulting in higher adoption of products made from plant sources compared to animal sources. Hence, snack bars made from all plant sources are gaining popularity in the market.

Key Market TrendsIncreasing Demand for Convenient Healthy Snacks

Due to their hectic lifestyles, on-the-go snacking is becoming extremely popular, especially among the working population, teenage children, people living in hostels, and bachelors. Moreover, the on-the-go snacking concept is closely associated with the easy consumption and handling of products that snack bars offer. Thus, the demand for snack bars is increasing due to the linked convenience of consumption, aided by disposable packaging that prevents the bars from coming in contact with hands, keeping them clean to work simultaneously. According to the US Department of Agriculture (USDA), consumers in United States spend more than half of their food budget on convenient foods, including snack bars, thus driving the consumption of snack bars in the country. In United States, the majority of consumers prefer snack bars over regular meals to satisfy their hunger. Consumption of snack bars is beneficial for health since they give energy and a high amount of nutrients.

Rising Demand for Organic Snack Bars

Organic bars that contain oats, nuts, and other natural ingredients are among the leading category with organic claims in United States. KIND and Nature Valley brands are the leading brands in the granola bars marketplace, owing to their vast portfolios and effective distribution strategies. The organic bars belong to the breakfast food category and are often eaten as a convenient and quick breakfast. This is due to the health benefits that consumers gain from consuming these products. For example, the consumption of rolled oats aids in weight loss and also helps in improving blood pressure. As the demand for such products is rising, manufacturers are engaging with several product innovations to offer consumers various types of flavors, such as products with a fruity or yogurt coating or with additional ingredients such as nuts, seeds, fruit, or chocolate. Therefore, the demand for such products is boosting the market.

Competitive Landscape

The market studied is highly competitive due to the presence of several domestic and international players. Major key players are PepsiCo Inc., GlaxoSmithKline PLC, General Mills Inc., Abbott Nutrition Manufacturing Inc., and The Kellogg Company. The key strategy being adopted by players in the segment is product innovation, which enables the company to meet consumers’ changing preferences. Some of the other top players follow mergers and acquisitions as their key strategy to expand their business and maintain dominance in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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