The German energy bar market is anticipated to record a CAGR of 8% during the forecast period (2019-2024).
- The long-term rise in the on-the-go snacking trend and increasing demand for sports nutrition products have helped the energy bar market grow.
- Product innovation and increasing shelf space in retail channels have been key drivers that have supported visibility, consumer interest, and have attracted new customers to the market.
- Germany is particularly active when it comes to “raw”-labeled food and drink innovation. The “raw” label is not only a trend for fresh produce, but also for other food, such as snack bars and energy bars. The “raw” trend has become quite popular among snack bar consumers, as two in five Germans think that conventional bars are processed, too.
Key Market Trends
Increased Penetration of Organised Retail
The evolving retail industry is marked by the emergence of many stores in the hypermarket, supermarket, and convenience stores segments. Comfort and convenience are increasingly becoming important to customers because of their hectic lifestyles and work schedules. According to a survey conducted by the European Commission, supermarkets were found to be the major distribution channel behind the consumption of sports energy bars in Germany. Large organized retail stores stock many brands and a variety of sports energy bars under one roof, providing more options to consumers. With the increase in preference for clean-label branded products among consumers, the importance of organized retailers selling clean-label energy bars has also increased. The penetration of organized retail will also enable consumers to seek information about various brands, compare prices, nutritional content, which results in a better purchase decision.
Sports nutritional products were once classified as a niche category - designed particularly for athletes and full-time sports personnel, particularly for energy and endurance increase. The scenario has altered quite significantly, with such products getting popular and being demanded by diverse consumer groups, as the regular exercisers and everyday consumers are looking for extra nutrition for their workouts and daily lives. According to a survey conducted by the European Commission, energy increase and endurance increase were found to be the major reasons behind the consumption of sports energy bars in Germany. Taste preference and attention increase were some of the other significant reasons.
The German energy bar market is fragmented, due to the presence of various domestic and international players. General Mills Inc. and Clif Bar & Company are the major players in the market. New product launches, market expansion, partnerships, and acquisitions are the preferred strategic approaches adopted by most companies involved in the German energy bar market. Product development and innovation are the major strategies preferred by competitors. As consumer perception toward the ingredients fluctuates with time, the manufacturers are developing their products, in order to meet the demands of the consumers. For instance, Clif Bar & Company launched its new product CLIF® Nut Butter-Filled energy bar in 2017, to add to the existing range of energy bars.
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