The North American cereal bar market is projected to witness a CAGR of 4.8%, during the forecast period (2020-2025).
- The North American cereal bar market witnessed growth, owing to the consumers' need for convenient and on-the-go snack options. Furthermore, cereal and energy bars are the most popular snacks among adults in this region.
- New products, an increase in demand for low-fat cereal bars, the increasing popularity of grab and go breakfast options, the change in snacking culture, and broad retail distribution, that encourages both planned and impulse buying decisions, are expected to be key drivers for the market studied in this region.
Key Market Trends
Increasing Consumption of Convenient, On-the-go Meal and Snack Options
According to the United States Department of Agriculture (USDA), consumers in the United States spend more than half of their food budget on convenient foods, including snack bars, in turn driving the consumption of snack bars in the country. In the United States, the majority of consumers prefer snack bars to satisfy hunger by replacing a meal. For instance, according to FoodBev Welch's survey conducted in 2017, around 92% of millennials were reported consuming snacks (including cereal bars) as a meal replacement at least once a week. Around 26% of the millennial population in the United States also consume snacks as a meal replacement. The growing consumer preference for the nutrient intakes for snacks, especially among kids, is influencing the key players to introduce cereal bars and other convenient food products with improved nutritious content.
Rising Consumer Inclination Toward Organic Cereal Bars
In the United States, organic granola/muesli bars have an upper hand among the organic bars. The snack bar manufacturers' focus to meet various consumer expectations of taste, indulgence, nutrition, and functionality, is expected to drive the growth of organic snack bars in upcoming years. The popularity of gluten-free diets is driving the adoption of the same by a rising number of people in the United States, who avoid the protein-rich products, either as a lifestyle choice or because of gluten intolerance or following the diagnosis of celiac diseases. The above-mentioned factors are likely to create a huge opportunity for cereal bar manufacturers to introduce more gluten-free cereal bars in the market. Thus, the launch of new organic/gluten-free products and the greater demand by consumers are expected to boost the growth in the sector. For instance, in 2018, Clif bar launched a granola bar made from organic plant-based ingredients, primarily targeting athletes and sport participants.
The North American cereal bar market is competitive, with a large number of 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. Major players in the market include PepsiCo Inc., Kellogg Company, and Clif Bar & Company, among others.
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