The “granola bars” category brought in $1.468 billion in sales, with a modest 8.9% increase from last year, and was led by Nature Valley, which brought in $616 million in sales and experienced an 8.0% increase. Quaker was not far behind, with $404 million in sales and a 14.9% increase, with Sunbelt coming in third, with $110 million in sales and a 2.5% increase.

In the “AO [All Other] Snack/Granola Bars” category, the category brought in $48 million in sales, with a large 52.3% increase from last year, and the category leader were private label brands, with $13 million in sales and 102.5% increase. Munk Pack brought in $6.34 million in sales, with a 420.5% increase, and Core Bar brought in $5.691 million in sales, with a 103.4% increase.

Looking back
“There are long-term tailwinds in low-sugar and plant-based, and currently keto-friendly products are driving category growth more than protein, energy, or general nutrition,” says Tobias Glienke, co-founder, Munk Pack, Greenwich, CT.

“Historically, consumers buying products with these attributes were forced to sacrifice on taste. Innovation has now enabled products to have both these strong nutritional attributes and great taste, and consumers are increasingly buying these products to meet their dietary lifestyles. In addition, products with added functional benefits (e.g., immunity) are experiencing strong growth. From a flavor standpoint, there continues to be demand for indulgent flavors,” he notes.

Glienke says that at this time two years ago, Munk Pack was adapting to working from home and figuring out how to overcome the challenges the pandemic brought to the industry.

“We’re now a fully remote team, which has also more than doubled in size, so we’re really proud of the growth and culture that has been able to thrive in this setting. Though retail expansion in the industry was initially put on hold for a portion of 2020, since then we’ve been thrilled to gain national distribution in Walmart and Sprouts while also more recently bringing our keto-friendly, low-sugar bars to Kroger and Meijer shoppers throughout the country,” he shares.

“In tandem with those efforts we’ve put more support into our e-commerce business, which has seen 380% Year over Year growth from just our DTC channel from 2020–⁠2021,” Glienke finishes.

Linda Zink, chief marketing officer, Simply Good Foods Company (comprised of Atkins and Quest nutritional brands), Denver, says that more consumers are learning about the health and wellness benefits of limiting carbs and sugar.

“With this education, we’re continuing to focus on awareness of the Atkins lifestyle and our variety of products, including our on-the-go bars and shakes, as well as indulgent options that fit into our consumers’ lifestyle and support their nutritional or health goals,” she says.

Zink notes that the past two years have caused many people to reflect and decide to make positive changes to improve their health.

“As a result, in October 2021, we launched #AtkinsSmallWins, a five-week campaign that celebrates small wins—the simple steps or attainable goals that can help people improve overall health and wellness,” she adds.

“[Although] during the peak of stay-at-home we saw the bar category decline, we’ve found that as people return to their normal routines, they are looking for better nutrition on-the-go, including in the form of bars, and the category has rebounded and returned to growth.”

In March 2022, CLIF Bar & Co., Emeryville, CA, released its new Thins snack bars nationwide, allowing consumers to enjoy their favorite CLIF flavors during those “everyday snacking” moments.

“Our research shows that the return of office commutes and travel is on the rise. In fact, 75% of Americans plan to travel in 2022, and half of those admit they snack more when on the move. Meanwhile, 43% of employed Americans are working in hybrid environments and need snacks that can adapt to their changing work settings,” says Liz Watson, CLIF brand manager. “CLIF Thins are lightweight and easily stored in purses, carry-ons, and desks, [consumers can] always have a quick and easy pick-me-up in [their] hectic schedules.”

Looking forward
Nellson, LLC recently released a new infographic titled “Consumers are raising the bar.” This new resource examines the nutrition and snack bar category highlighting key market data, consumer trends, and how function and format can drive sales.

In addition, Mintel recently reported that 40% of US adults who anticipated eating more bars in 2021 cited new health goals.

“Prior to the pandemic, the nutrition bar market was thriving as consumers desired for bars that provided functional health and wellness benefits,” says Bart Child, chief commercial officer, Nellson.

“Today, more and more consumers are looking for foods to support their wellness journey, helping expedite the emerging trend of products formulated to deliver functionally specific health benefits. This creates an opportunity for bar brands to build a bar that promotes well-being. For some consumers that might mean treating oneself to a bar formulated to deliver an indulgent eating experience or a bar formulated with a blend of ingredients designed to relieve stress or provide a mental boost,” he finishes.

Zink says that with the low-carb lifestyle section in retail, we will see consumer needs continue to evolve, as consumers become increasingly aware of carbs and sugar, and want to make smarter choices.