Market trends in food, nutrition bars

Among the biggest hits in the packaged foods industry in recent years are food bars, those ubiquitous, portable, functional, affordable, convenient, meal- or snack-on-the-go treats that appeal to adults and children alike.

Market tracker Nielsen pegged the market for food bars at nearly $4 billion last year. This is up from around $700 million in 2000. Overall the category grew 11% in 2007 and for some segment-leading manufacturers the rate of growth was significantly higher than that. One major manufacturer’s CEO reported at a recent analysts’ meeting that sales of his company’s grain snacks, comprised mostly of cereal bars and other food bars, had risen 35% in the past 12 months.

The appeal to consumers is simple: Food bars satisfy cravings for quick, on-the-go foods that can curb hunger between meals, in a pinch or on a diet, or as a stand in for a meal. From a nutritional standpoint, they’re a convenience food consumers can feel good about eating. Many bars, for example, are low in fat and/or high in protein, and most contain feel-good ingredients, such as whole grains, yogurt, fruit and nuts.

Just how popular are food bars? Very. Recent research shows room for continued growth. Kerry Ingredients & Flavours, a leading supplier of ingredients and flavorings to food manufacturers, conducted an online consumer study in December 2007 that showed almost half (49%) of participating adults had eaten at least one food bar within the past 30 days. By food bar segment, snack bars held the largest market share, at 37%, and almost three in four consumers said they had eaten one or more snack bars within the month. Market share for other segments broke down as “nutritional intrinsic” bars, 24%; weight management bars, 22%; and “niche” granola bars, 18%.

The Kerry survey also found specific usage trends. While food bars are consumed across a wide range of occasions, consumers said they’re most likely to reach for them as between-meal snacks and/or replacements for breakfast. As expected, snack bars are most often consumed between meals, but nutrition intrinsic and niche granola bars are also enjoyed more often as snacks than as meal replacements. The only segment eaten more often as a meal than as a snack are weight management bars, which many women, in particular, choose as a breakfast replacement.

In fact, women outnumber men in consumption of all four food bar segments. The data show that of the market for niche granola and weight management bars, women make up 64% and 63% respectively, while men comprise just over a third of the market for each. The gender gap in the snack bar and nutrition intrinsic bar markets is less dramatic, but still significant. In the snack bar category, 58% of the market is women; for nutrition intrinsic bars, the gap closes a bit, with women comprising 53% of the market. Overall, women make up 58% of total food bar consumers.

Among other key demographic data gathered in the Kerry food bar study:

What, besides convenience, do consumers want in their bars? Participants in the Kerry study said taste is most important, but so is the use of whole grains and all-natural ingredients. Functional food components including protein, fiber, multiple vitamins and minerals, and antioxidants are also important. There are also a number of things consumers don’t want in food bars. Namely, they look for options that are low in fat, calories, cholesterol and sugar.

Asked to name the most important benefit of food bars, women mentioned help with weight loss and curbing hunger most often, while men mentioned curbing hunger and heart health.

Lest it be thought that food bars are an adults-only phenomenon, kids are a growing part of the market, as well. Kerry’s study shows children’s usage patterns similar to those of adults, with predominate consumption by kids for breakfast (22%), as school snacks (26%) and as after-school/before-dinner snacks (26%). Parents named curbing hunger and sustaining energy as key benefits to children, along with strong bones and healthy hearts.

Phil Molina ([email protected]) is marketing manager for the cereal and bar categories at Kerry Ingredients & Flavours. His background includes more than 23 years of food industry experience including a variety of brand management roles leading popular consumer brands, as well as developing a handful of successful entrepreneurial enterprises.