Food Bars in the U.S.: Cereal/Granola Bar and Energy/Nutrition Bar Trends

Chapter 1: Executive Summary

Scope and Methodology

Food Bar Market Overview

Cereal Bars

Granola Bars

Energy/Nutrition Bars

A Boom in Food Bars

Food Bar Market Approaches $5.7 Billion in 2011

Table 1-1: U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2007-2011 (in millions of dollars)

Market Projected to Near $8.3 Billion in 2016

Table 1-2: Projected U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2011-2016 (in millions of dollars)

Long-Term Food Trends Framing Market Growth

The Cereal/Granola Bar Category

Insights and Opportunities

The Market for Cereal/Granola Bars

Different Trajectories for Cereal Bars and Granola Bars

2012 U.S. Retail Sales Projected at $3.2 Billion

Table 1-3: U.S. Retail Sales of Cereal Bars and Granola Bars, 2010 vs. 2011 (in millions of dollars)

Table 1-4: U.S. Retail Sales of Cereal Bars and Granola Bars, 2012 (in millions of dollars)

Table 1-5: Projected U.S. Retail Sales of Cereal Bars and Granola Bars, 2012-2016 (in millions of dollars)

Trends and New Products

Retail Dynamics

Demographics for Consumers

The Energy/Nutrition Bar Category

Insights and Opportunities

The Market

U.S. Retail Sales of Energy/Nutrition Bars Reach $2.5 Billion

Table 1-6: U.S. Retail Sales of Energy/nutrition Bars, 2008-2011 (in millions of dollars)

Double-Digit Growth for Lifestyle/Wellness & Diet Bars in Natural Channel

Retail Sales Projected to Approach $4.5 Billion in 2016

Table 1-7: Projected U.S. Retail Sales of Energy/nutrition Bars, 20011-2016 (in millions of dollars)

Trends and New Products

Milk Proteins Improve the Palatability of Energy/nutrition Bars

Gelatin as a Protein Source and Texturizing Agent in Energy/nutrition Bars

New Functional Ingredients Jazz Up the Market

Retail Dynamics

Mass Merchandisers at 30% Category Share

Demographics of Energy/Diet Bar Consumers

Chapter 2: Food Bar Market Overview

Key Points

Varieties of Food Bars

Cereal Bars

Granola Bars

Energy/Nutrition Bars

High-Carbohydrate Bars (Clif Bar, PowerBar, etc.)

High-Protein Bars (Myoplex, PowerBar Protein Plus, etc.)

Ingredients in Protein Bars

Leading Brands of Protein Bars

Lower-Calorie Bars (Luna, etc.)

Meal-Replacement Bars (Balance Bar, PR Bar, etc.)

Labeling and Quality/Content of Ingredients

Calorie Content Ranges

Too Much of a Good Thing

Advice for Energy Bar Use for People Engaged in Aerobic Sports

Market Size and Growth

Food Bar Market Approaches $5.7 Billion in 2011

Table 2-1: U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2007-2011 (in millions of dollars)

Market Projected to Near $8.3 Billion in 2016

Table 2-2: Projected U.S. Retail Sales of Cereal/Granola Bars and Energy/Nutrition Bars, 2011-2016 (in millions of dollars)

Average Mass-Market Price Per Unit and Price Per Volume for Food Bars

Table 2-3: Average Price Per Unit For Food Bars in Food, Drug and Mass-Merchandiser Stores, 2010-2011

Table 2-4: Average Price Per Volume For Food Bars in Food, Drug and Mass-Merchandiser Stores, 2010-2011

Private-Label Products in the Food Bar Market

Table 2-5: U.S. Retail Sales of Private Label Food Bars, by Category, in Food, Drug and Mass-Merchandiser Stores, 2010-2011 (in thousands of dollars)

Opportunities for Private-Label Manufacturers

Trends Affecting the Food Bar Market

2012 Trends

What’s In and What’s Out in Foods and Food Ingredients for 2012

2011 Trends

Consumer Awareness of Functional Foods Increases

Allergen-Free

The Food Allergen Labeling and Consumer Protection Act of 2004

Exemptions, Petition, and Notification to the FALCPA

Protein Enhanced/High-protein

Omega-3-enhanced

Probiotic-enhanced

Prebiotic-enhanced

The Use of Inulin and Oligofructose in Cereal Bars and Energy/nutrition Bars

Women’s Health

Weight Loss

Food and Beverage Manufacturers Pledge to Cut 1.5 Trillion Calories From the U.S. Food Supply

New Strategies in Weight Management Products

Weight-loss Ingredients Trends

Ingredients that Enhance Satiety

Fiber

Manufacturers Must Substantiate Claims for Weight-loss Products

Ingredients Trends

Konjac—A Novel, Multitasking Ingredient

Cereal Bars and Nutritional/Energy Bars Appeal to All Demographics

Formulation and Ingredient Trends

Long-Term Food Trends Framing Market Growth

Allergen-Free

The Food Allergen Labeling and Consumer Protection Act of 2004

Exemptions, Petition, and Notification to the FALCPA

Protein Enhanced/High-Protein

Omega-3-Enhanced

Probiotic-Enhanced

Prebiotic-Enhanced

Inulin and Oligofructose

Women’s Health

Weight Loss

New Strategies in Weight Management Products

Ingredients that Enhance Satiety

Fiber

Manufacturers Must Substantiate Claims for Weight-Loss Products

Chapter 3: The Cereal/Granola Bar Category

Key Points

Insights and Opportunities

The Products

Cereal Bars

Granola Bars

The Market

2012 U.S. Retail Sales Projected at $3.2 Billion

Table 3-1: U.S. Retail Sales of Cereal Bars and Granola Bars, 2010 vs. 2011 (in millions of dollars)

Table 3-2: U.S. Retail Sales of Cereal Bars and Granola Bars, 2012 (in millions of dollars)

Table 3-3: Historical and Projected U.S. Retail Sales of Cereal Bars and Granola Bars, 2007-2016 (in millions of dollars)

Symphony-IRI FMDx Sales of Granola Bars at $1 Billion

Table 3-4: SymphonyIRI-Tracked Sales of Breakfast/Cereal/Snack Bars and Granola Bars Through Food Stores, Drugstores, and Mass Merchandisers Other Than Walmart, 2011 (in thousands of dollars)

The Marketers

Kellogg Corners Three-Fifths of Mass-Market Cereal Bar Sales

Figure 3-1: Symphony-IRI Tracked Marketer Shares of Breakfast/Cereal/Snack Bar Sales, 2011

Table 3-5: SymphonyIRI-Tracked FDMx Sales and Segment Shares for Selected Brand Lines of Breakfast/Cereal/Snack Bars, 2010-2011 (in thousands of dollars and percent)

General Mills Leads in Granola Bars

Figure 3-2: Symphony-IRI Tracked Marketer Shares of Granola Bar Sales, 2011

Table 3-6: SymphonyIRI-Tracked FMDx Sales and Segment Shares for Selected Brands Lines of Granola Bars, 2010-2011 (in thousands of dollars and percent)

Competitive Profile: Clif Bar & Co., Emeryville, CA

Company Profile

Financial Information

Products

Corporate Strategy

Competitive Profile: General Mills, Inc., Minneapolis. MN

Company Overview

Financial Information

Cereal Bar and Granola Bar Products

Corporate Strategy

Competitive Profile: Hain Celestial Group, Inc., Melville, NY

Company Overview

Financial Information

Cereal Bar and Granola Bar Products

Competitive Profile: Kellogg Co., Battle Creek, MI

Company Overview

Financial Information

Cereal Bar and Granola Bar Products

Competitive Profile: KIND LLC, New York, NY

Company Overview

Financial Information

Snack Bar Products

Corporate Strategy

Competitive Profile: Kraft Foods Inc., Northfield, IL

Financial Information

Cereal Bar and Granola Bar Products

Corporate Strategy

Competitive Profile: McKee Foods Corporation, Collegedale, TN

Company Overview

Cereal Bar and Granola Bar Products

Competitive Profile: Odwalla Inc., Half Moon Bay, CA (a division of The Coca Cola Company)

Company Overview

Cereal Bar and Snack Bar Products

Company Strategy

Competitive Profile: Quaker Oats Co. (a division of PepsiCo)

Company Overview

Cereal Bar and Granola Bar Products

Competitive Profile: Shandiz Natural Foods, Markham, Ontario, Canada

Company Overview

Business Strategy

Competitive Profile: Slim-Fast Food Co. (a Unilever Company)

Company Overview

Financial Information

Energy/nutrition Bars

Business Strategy

Trends and New Products

Snacking, Early and Late

Cargill Introduces Prototype Granola and Snack Bars Containing High Oleic Canola Oil

Blurring the Lines—A Growing Number of Cereal and Granola Bars Feature Nutritional Benefits

Selected Products Introduced in 2012

General Mills Introduces Nature Valley Protein Bars

Kashi Company Combines Fruit and Vegetables in New Tasty Soft n' Chewy Bar

Kraft Launches Refrigerated MilkBite Milk & Granola Bars

Selected Products Introduced in 2011

Gluten-Free Granola Bars Introduced by Bakery On Main

Clif Kid’s Zbar Crispy Organic Snack

Kashi TLC Peanutty Dark Chocolate Layered Granola Bars Join the Company’s TLC Line

Mars Expands Kudos Line

Odwalla Introduces White Chocolate Macadamia Nut Mix Bars and Dark Chocolate Chip Walnut Bars

PR•Bar Launches Five New Granola Bars in August 2011

Cereal and Snack Bar Manufacturers Address the Obesity Epidemic

Cereal Bars by Any Other Name

Superfruit and Resveratol Enter the Cereal Bar Sector

Retail Dynamics

Mass Merchandisers at 30% Category Share

Table 3-7: Retail Channel Shares for Energy/nutrition Bars, 2012 (percent)

63% of Category Customers Buy Cereal/Granola Bars at Supermarkets/ Grocery Stores

Table 3-8: Consumer Purchasing of Cereal/Granola Bars by Retailer Type, 2012 (percent of energy/nutrition bar purchasers)

Consumer Trends

14% of Adults Use Energy/Diet Bars

Table 3-9: Consumer Purchasing Rates for Energy/Nutrition Bars vs. Cereal/Granola Bars, 2004-2011 (percent of U.S. adults)

Demographics for Cereal/Granola Bar Consumers

Table 3-10: Demographics for Cereal/Granola Bar Consumers, 2011 (percent and index for U.S. adults)

Nature Valley and Quaker Chewy Lead in Consumer Base

Table 3-11: Usage Rates and Consumer Base for Selected Brands Lines of Cereal/Granola Bars, 2009-2011 (percentage and number in thousands)

Nature Valley, Nutri-Grain, and General Mills Milk and Cereal Bars Lead in Frequent Users

Table 3-12: Frequency of Consumption for Selected Brands of Cereal/Granola Bars, 2011 (number of U.S. adults)

Granola Bars Ready for an Image Makeover?

Table 3-10: Selected Traits of Consumers Who Use Cereal/Granola Bars as Nutritional Snacks, 2011

Chapter 4: The Energy/Nutrition Bar Category

Key Points

Insights and Opportunities

The Products

Energy Bars

Carbohydrate Energy Bars

Protein Energy Bars

Maximizing the Benefits of Energy Bars

Diet/Weight Management Bars

Condition-Specific Bars

Bars With Less

Bars with More

The Market

U.S. Retail Sales of Energy/Nutrition Bars Reach $2.5 Billion

Table 4-1: U.S. Retail Sales of Energy/nutrition Bars, 2008-2011 (in millions of dollars)

Double-Digit Growth for Lifestyle/Wellness & Diet Bars in Natural Channel

Retail Sales Projected to Approach $4.5 Billion in 2016

Table 4-2: Projected U.S. Retail Sales of Energy/nutrition Bars, 20011-2016 (in millions of dollars)

SymphonyIRI-Tracked FMDx Sales at $1 Billion

Table 4-3: SymphonyIRI-Tracked FMDx Sales of Nutritional/Intrinsic Health Value Bars, 2010-2011 (in thousands of dollars)

The Sports Nutrition Context

Sports Nutrition Products Target a Broader Consumer Base

The Global Market for Sports Nutrition Products

What’s Next in the Sports Nutrition Sector

The Marketers

Clif Bar Claims 23% of Mass-Market Sales

Figure 4-1: SymphonyIRI-Tracked FMDx Marketer Shares of Nutritional/Intrinsic Health Value Bar Sales, 2011 (percent)

Table 4-4: SymphonyIRI-Tracked FDMx Sales and Segment Shares for Selected Brand Lines of Nutritional/ Intrinsic Health Value Bars, 2010-2011 (in thousands of dollars and percent)

Competitive Profile: Abbott Nutrition (a division of Abbott Laboratories)

Company Overview

Energy/nutrition Bar Products

Competitive Profile: Active Health Foods, Inc., Riverside, CA

Company Overview

Products

Business Strategy

Competitive Profile: Brynwood Partners VI L.P.

Company Overview

Energy/nutrition Bar Products

Business Strategy

Competitive Profile: Fullbar LLC, Greenwood Village, CO

Company Overview

Energy/nutrition Bar Products

Business Strategy

Competitive Proflle: Nestlé, Vevey, Switzerland

Company Overview

Financial Information

Energy/nutrition Bar Products

Competitor Profile: YouBar, Los Angeles, CA

Company Overview

Products

Corporate Strategy

Trends and New Products

Milk Proteins Improve the Palatability of Energy/nutrition Bars

Gelatin as a Protein Source and Texturizing Agent in Energy/nutrition Bars

Benefits of Soy Proteins Combined With Dairy Ingredients

New Functional Ingredients Jazz Up the Market

CoQ10

L-Carnitine

Omega-3

Resveratrol

Vitamin K2

Trends in Selected Ingredients

Energy/nutrition Bar Category Offers Something for Everyone, from Women Bodybuilders to Vampire-Wannabe Teens

Support Your Local Energy/nutrition Bar

Selected Products Introduced in 2012

Balance Bar’s Balance-tine’s Day Chocolate Gift Assortment

Selected Products Introduced in 2011

Baked Chocolate Raspberry Nutrition Bar Introduced by Archer Daniels Midland

Iron Girl Energy Bar Targets Women Athletes

Brynwood Partners Launches Balance nimble and Café Bars

Abbott Nutrition Introduces Sweet & Salty Nutrition Bars

Joulebody Introduces a Detox Meal Replacement Bar

ResVez Debuts a Second Resveratrol-Containing Nutrition Bar

Mostly Raw Ingredient Probar HALO Bars Enter the Market

ThinkProducts Introduces thinkThin Natural, Low-Sugar Nut Bar

Quaker Oats Launches Bakery-Inspired, Reduced-calorie Nutrition Bars

F-Factor Bars from Health Valley Offer 12 Grams of Fiber

Vega Sport Protein Bars With All Natural, Plant-Based Ingredients Target Athletes

Live Smart Original Flax Bars Offer Allergen-Free Snacking

Mars Launches Marathon Smart Stuff Bars

Selected Innovative Products Introduced in 2010

Pure NRG Launches Chia Breakfast Bar

FullBar Addresses the Weight Management Trend in Snacking

POM Wonderful Introduces PomX Antioxidant Superbar Line

Slim Secrets Introduces Snack Bars to Control Appetite

Gatorade G Series Pro 01 Prime Pre-Game Fuel Nutrition Bars Enter the Market

Nature’s Plus Source of Life Targets Teen Vampire Wannabes

AllerEnergy Addresses Consumers Seeking Allergen-free Nutrition Bars

Retail Dynamics

Mass Merchandisers at 30% Category Share

Table 4-5: Retail Channel Shares for Energy/nutrition Bars, 2012 (percent)

55% Buy Energy/Nutrition Bars at Walmart and Other Supercenters

Table 4-6: Consumer Purchasing of Energy/nutrition Bars by Retailer Type, 2012 (percent of energy/nutrition bar purchasers)

Consumer Trends

14% of Adults Use Energy/Diet Bars

Table 4-7: Consumer Purchasing Rates for Energy/Nutrition Bars vs. Cereal/Granola Bars, 2004-2011 (percent of U.S. adults)

Frequent Users Are More Likely To Also Use Cereal/Granola Bars

Table 4-8: Number of Energy/Nutrition Bars Consumed in the Previous 30 Days, 2004 vs. 2011 (percent of U.S. adults)

Demographics of Energy/Diet Bar Consumers

Table 4-9: Demographics for Energy/Nutrition Bar Consumers, 2011 (percent and index for U.S. adults)

Kashi Brand Edges Out Clif Bars in Consumer Base

Table 4-10 Overall Consumer Base for Selected Brands of Energy/Nutrition Bars, 2007-2011 (number in thousands of U.S. adults)

2.4 Million Dieting Adults Use Slim-Fast Bars

Table 4-11: Selected Brands of Energy/Diet Bars Most Often Purchased by Consumers Who Are Dieting to Lose Weight (number of U.S. adults and index)

Clif Bar Leads with 1.6 Million Frequent Users

Table 4-12: Frequency of Consumption for Selected Brands of Energy/Nutrition Bars, 2011 (number of U.S. adults)

Snack and Sweet in United States

United States Confectionery Sales, Usdmn

• $ 250
• Industry data
• January 2013

Yearly, From 2005 To 2018
By Business Monitor International
Source: FedStats, US Department of Commerce, BMI/BMI calculation

• Industries : Snack and Sweet
• Countries : United States

United States Gum Sales, Usdmn

• $ 250
• Industry data
• January 2013

Yearly, From 2005 To 2017
By Business Monitor International
Source: FedStats, US Department of Commerce, BMI

• Industries : Snack and Sweet
• Countries : United States

United States Chocolate Sales, Us$mn

• $ 250
• Industry data
• January 2013

Yearly, From 2005 To 2017
By Business Monitor International
Source: FedStats, US Department of Commerce, BMI/BMI calculation

• Industries : Snack and Sweet
• Countries : United States

United States Sugar Confectionery Sales, Us$mn

• $ 250
• Industry data
• January 2013

Yearly, From 2002 To 2017
By Business Monitor International
Source: FedStats, US Department of Commerce, BMI/BMI calculation

• Industries : Snack and Sweet
• Countries : United States

United States Confectionery Sales, Usd, % Chg Y-o-y

• $ 250
• Industry data
• January 2013

Yearly, From 2006 To 2017
By Business Monitor International
Source: FedStats, US Department of Commerce, BMI/BMI calculation

• Industries : Snack and Sweet
• Countries : United States