U.S. market for nutrition bars booming, study says

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Dublin, Ireland-based Research and Markets on August 25 announced the addition of "Nutrition and Energy Bars in the United States" to their repertoire of reports.

The consumer market for nutrition and energy bars in the U.S. was $838 million in 2004 (excluding sales through Wal-Mart), growing an impressive 169% between 1999 and 2004. It is one of the fastest growing food categories, benefiting from the confluence of consumers' interest in low-carb foods, desire for healthier snack and meal replacement alternatives, demand for portable snacks and meals, and general nutrition and fitness needs.

Although the overall growth rate is high, products with low-carb positioning, like those from Atkins Nutritionals, accounted for a large proportion of growth during the review period. With experts agreeing that interest in low-carb diets peaked in early 2004, it is unlikely that this high growth rate in nutrition and energy bars will be sustained. Increased competition from the major multinational food companies and candy purveyors like Mars, as well as broader distribution, have limited price increases and narrowed margins. Consumer demand for portable snack and meal options and diet control, however, will help to promote sales in the category.

Based on this research, overall growth in the market will be strong in 2005-2006, despite having had a weak year of growth in 2004. Growth is expected to result from four factors:

1. Aggressive product development to improve taste and broaden flavor choices;
2. Consumer desire for products that can be eaten "on the go";
3. Weight loss efforts;
4. Increased sampling due to increased competition and broader distribution.

For this report, nutrition and energy bars are defined by the location in which they are likely to be found in a store. In typical supermarkets, mass merchandisers, and warehouse clubs, nutrition and energy bars are separate from what this report calls "cereal bars." Nutrition and energy bars will typically be located with vitamins and supplements, or in a special section close to boxed cereals. The bars are sold individually and in boxes.

Nutritional and energy bars are usually, though not exclusively, marketed to adults while cereal bars are usually, though not exclusively, marketed to children. In addition to cereal bars, this report excludes cake bars, nut-based confectionery bars, chocolate confectionery, breakfast cereals, trail mix, cookies, and crackers.

For more information, visit www.researchandmarkets.com/reports/c23239.