Now that the pandemic is receding, the snack bar category has been increasing in sales. That makes sense; people are on the go more often than before (back to the office, taking road trips, etc.), and a snack bar fits the bill when consumers want a quick and/or healthy snack to stash in a purse or glove compartment.

Market data

According to Chicago-based market research firm Circana’s data from the 52-week period ending July 16, the snack bars/granola bars/clusters category brought in $7.8 billion, an increase of 8.6% from the year prior.

The nutritional/intrinsic health value bars subcategory brought in $846 million of that number, with a 6.9% increase in sales. Category leaders included Clif, with $368.4 million and a 4.2% increase; Quest, with $368.4 million in sales and a nice 23.8% jump in sales; and KIND, with $304.5 million in sales and a slight 0.1% dip.

The breakfast/cereal/snack bars/clusters subcategory brought in $2.2 billion, with a 7.4% increase in sales. Kellogg brought in $752 million, a 5.2% increase from last year’s sales; and KIND brought in $305.87 million, an 1.8% increase. Private label bars/clusters brought in $244.5 million, with an 11.2% increase.

In the granola bars subcategory, which overall brought in $1.7 billion in sales, with a 9.7% increase, Nature Valley took the lead, with $675.6 million in sales and a 6.7% increase, followed by Quaker, with $450.7 million in sales and a 6.6% increase. Sunbelt brand also brought in $137.2 million in sales, an 22.6% increase.

Finally, the “all other snack/granola bars/clusters” subcategory brought in $275.6 million, with a healthy 43.1% increase, and Nature’s Bakery brought in $139.3 million of that, with a 39.3% increase. Kellogg brought in $70.3 million, a 39.2% increase, and private label brands brought in $22.4 million, with a 53.7% increase.

Trends

“While breakfast and starting the day off right continue to be an expanding space for snack bars, consumers are looking for the convenient nutrition of snack bars on more varied occasions,” says John Olsen, brand marketing director, KIND. “Consumers are also continuing to seek new flavor offerings, with savory and dessert-inspired flavors trending.”

On the flip side, Chris Cook, senior vice president of marketing and innovation, Lenny & Larry’s, says that a key trend the brand has observed in the snack bars category is consumer demand for more fruit-forward and refreshing flavors, versus the indulgent and rich options commonly available.

“Through this, earlier this summer we launched The Cookie-fied Bar Strawberries & Creme, which features an enticing blend of strawberry bits and sweet white chips. Additionally, we’ve identified that consumers appreciate personalized experiences, and this trend extends to the snack bars category as well,” he notes.

“Offering options for customized flavors, portion sizes, or ingredients can help engage customers and create a sense of ownership over their choices. As a result, we recently introduced The Cookie-fied Big Bar, a 90-gram version of the beloved original 45-gram version,” Cook adds.

Michael Reese, marketing director, better-for-you protein, The Hershey Company, says that protein is the No. 1 nutrient that consumers are looking to add to their diet, with 62% of consumers actively seeking to include protein in their daily diet (IFIC 2021 Food and Health Survey).

“High-protein snack bars are a great way to meet this trend, and we’ve continued to see strong growth in the protein bar segment,” he reveals.

“Protein bar consumers are continually demanding better taste, texture, and flavor experiences without sacrificing nutritional quality. For example, Hershey’s FULFIL brand offers multi-layered bars that mimic the eating experience of a traditional candy bar, while Hershey’s ONE Crunch Protein Bar focuses on a light, crispy eating experience designed for the mid-afternoon fuel-up occasion,” Reese comments.

Daniel Zakowski—CEO and co-founder, Ready. Set. Food!—says that the brand is seeing several trends in the snack bars category: allergen-inclusive (e.g., peanut), clean and healthy ingredients, no added sugar, and high protein from natural sources.

“Our new snack bars—Peanut Butter Strawberry, Apple Cinnamon, and Daniel Tiger Blueberry Banana—embrace all of these trends. All of our toddler Oat & Fruit bars follow food allergy prevention medical guidelines and cater to consumers seeking healthy ingredients, no added sugar, and a nutritious amount of nut and seed protein in each bite,” he notes.

Dan Meyer, consumer insight manager for convenience stores at General Mills, shares c-store insights: “In terms of c-store shopper attitudes around bars, we know that the channel tends to drive a different type of occasion. Shoppers purchase single units vs. multipacks and typically consume within 30 minutes. Foot traffic is highest in the mornings, so there’s also a ‘stock-up for the day’ mentality,” he notes.

“This channel was one of the first to shelve nutrition bars with traditional grain bars and have a high over-index with males buying the +20g or +30g protein bars. Women tend to over-index in grain bars. Satiety and ‘fill me up/fuel for the day’ are strong jobs to be done for this category in this channel,” Meyer suggests.

“The bar category lends itself to ‘no compromise snacking,’ especially in the indulgent space. There is more of a ‘better than’ mentality vs. ‘better-for-you’ in the traditional sense—i.e., better than a candy bar due to the presence of more protein, chocolate, and nuts/seeds, or sugar alcohols to bring down the sugar content on the nutrition label,” he expands.

“Permissible indulgence is still king in this channel; shoppers on the whole enter c-stores looking for a treat that’s ‘just for me’ and tend towards flavors with chocolate,” Meyer explains.

Trends and innovation

Zakowski says Ready. Set. Food! tracks consumer trends through focus groups, research, advisory panels made up of parents and science/medical communities, and more.

“In addition to the high protein and no-sugar-added trends, we're seeing a rise in licensed products entering this category. Our new partnership with the Daniel Tiger's Neighborhood license has been an immediate success with consumers—since Daniel Tiger himself has a food allergy, it allows him to share his experiences and lessons in a way that benefits our message of early allergen introduction for a future of food freedom,” he explains.

Alexandra Case, brand manager for snacks and bars, General Mills, notes that since c-store shoppers gravitate towards indulgence and high-protein, the company is seeing those two areas drive the bars category.

“In indulgence, think unique flavors and textures as well as form breaks—doughnuts, pastries, king-size bars. In performance, it has to be double-digit (20+ grams) protein often paired with low sugar, low carb. C-store consumers spend on average [less than] three min in a store, so every item really needs to have a ‘stoppability’ factor because consumers don’t take a long time to decide what they want. Often that item is consumed immediately upon leaving the store, so bringing that taste-forward appeal plus satiety is critical,” she advises.

Reese says that Hershey’s Human Insights team continuously listens to consumers to understand new occasions, trending flavor profiles, and opportunities to drive innovation.

“One example where you can see this come to life is in our ONE Bar portfolio, which continues to evolve with recent new flavors like Fruity Cereal that play into trending nostalgic taste experiences,” he notes.

Cook says that Lenny & Larry’s target consumers who prioritize health and wellness and value options that fit with their busy schedules.

“From workout fanatics to busy parents, many of our consumers rely on functionality, accessibility, and quality-focused products to fuel themselves and their families,” he comments.

“Additionally, over the past few years, there has been an increase in consumer demand for plant-based and dairy-free options within the cookie category. Our leadership efforts in this space are centered around delivering products that align with this demand and prioritize healthier, less-processed options,” Cook shares.

To address these needs, Lenny & Larry’s started several key programs and initiatives:

• Product innovation: Lenny & Larry’s continuously invests in research and development to create better-for-you snacks that meet the demand for healthier options. The brand carefully selects high-quality ingredients and focuses on minimizing artificial additives, preservatives, and excessive processing in its recipes.
• Nutritional transparency: Lenny & Larry’s believes in providing transparent information to its consumers. All products prominently display detailed nutritional information, including calories, macronutrients, and ingredients, as well as diet-specific callouts, i.e. dairy-free, gluten-free, and vegan. This transparency empowers consumers to make informed choices that align with their health and dietary goals.
• Clean-label commitment: Lenny & Larry’s has maintained a focus on keeping labels clean across its portfolio. This means avoiding artificial flavors, colors, sweeteners, and hydrogenated oils.
• Partnerships and certifications: Lenny & Larry’s actively seeks partnerships with organizations and certifications that share its commitment to healthier, less processed options. For example, it works with reputable suppliers who provide it with ethically sourced, non-GMO ingredients, and ensure its products meet vegan certifications, such Vegan Action qualifications.

“We are continuing to see allergen-free options increase in availability and popularity, catering to consumers with food allergies and intolerances. Bars that are free from common allergens like nuts, gluten, soy, and dairy are becoming more prevalent and are appreciated by consumers with specific dietary restrictions. We are proud to offer products that are gluten-free, vegan, and soy-free, as well as free from high fructose corn syrup, artificial sweeteners, and sugar alcohols,” he finishes.

New and upcoming products

Zakowski that this year, Ready. Set. Food! has segued from the baby space into the toddler snack category with the introduction of its Oat & Fruit bars.

“We plan to introduce additional SKUs and flavors of bars in addition to innovative new snack offering—all tailored to the early allergen introduction journey for toddlers,” he adds.

Reese says that Hershey introduced FULFIL at scale in 2022, and has been seeing it take off in 2023.

“It recently won SELF’s 2023 Pantry Award for Best Protein Bar, and we’ve seen a very positive response from consumers with fantastic ratings and reviews so far. We are quite excited to see FULFIL bars continue to grow in 2024 and beyond,” he relates.

Case notes that General Mills’ brands have seen success across a few platforms. “In Nature Valley, we’re really hitting on indulgence with our Nature Valley Wafer bars and Nature Valley Muffin bars that just launched, plus we are really happy with our performance in King-Size Chex Mix Bars and will continue to bring new flavors in 2024,” she comments.

“We’re also innovating in [the] performance [category] to bring more beyond our Cereal Protein Bars—Cinnamon Toast Crunch & Golden Grahams flavors,” Case elaborates. 

In early 2023, KIND launched several new products, unlocking new white spaces in the breakfast and snack categories, says a KIND spokesperson.

“Innovations focused on better-for-you twists on classic KIND products, specifically for KIND’s #1 selling granola portfolio. These innovations include the launch of KIND Soft Baked Granola [bar], which offers a chewier, softer granola texture, and KIND Grab and Go Granola, which features best-selling flavors now available in convenient on-the-go packaging,” they say. “Consumers can also look out for limited-edition fall flavors for the KIND Thins line, including Chocolate Pumpkin Spice and Caramel Apple Cinnamon, which are in stores nationwide right now.”

Cook says that innovation fuels the Lenny & Larry brand’s journey to provide functional products in a fun, humorous format, redefining the way the world indulges in a satisfying and unique snacking experience.