Energy bar market is anticipated to grow at a significant CAGR of 4.9% during the forecast period (2024-2031). Growing consumer health consciousness, a need for convenient snacks, the shift to plant-based diets, and sports involvement are the main factors propelling the energy bar market. Considering more individuals are participating in sports and fitness activities, athletes and active individuals are looking for energy bars that provide sustained energy and aid in recovery.  Additionally, the market growth is also driven through e-commerce expansion, innovations of products, increasing awareness of sustainable packaging, and growing disposable income in developing economies. 

Market Dynamics

Increased Health and Wellness Awareness

The consumption of energy bars increases with health and wellness trends, driven by a clean-label, natural ingredient base, and functional foods that enable consumers to meet their dietary requirements. For instance, in August 2024, Pakka Ltd announced its second collaboration with Brawny Bear, a nutrition company known for its date-based healthy food products. Through this partnership, the brand has launched Date Energy Bars, India’s first energy bar with compostable flexible packaging. This launch expands Brawny Bear’s existing range of date-based food products, which includes chocolates, nut butter, milkshake/energy powders, and natural sweeteners. The innovative flexible compostable packaging by the company gives healthy snack options to the customer and answers the new India challenge of packaging waste.

Innovations in Product Varieties

Organizations are incorporating specialized flavors and functional ingredients, catered to fulfill specific dietary essentials requirements, which boosts the market growth. In March 2023, Bagrrys launched "The Mighty Muesli Bars" in three varieties such as Choco Nut Delight, Signature Crunch, and Fruits, Nuts & Seeds catering to the mindful, fitness-conscious, and digitally-savvy global Indian.

Market Segmentation

• Based on nature, the market is segmented into organic, and conventional.

• Based on the ingredients, the market is segmented into cereals & grains, nuts & seeds, fruits, protein, and chocolate coated.

• Based on the distribution channel, the market is segmented into online, and offline. 

Conventional Segment is projected to Hold the Largest Market Share

Conventional energy bars are one of the most popular snacks currently, promoted by their cost-effectiveness, wide accessibility, and versatility. The inorganic energy bars are rich in proteins, carbohydrates, and vitamins, and are convenient for various customer needs. Traditional energy bars are utilized extensively in academic and professional settings since they supply energy during breaks from studying, working, and games. These bars are typically more processed due to the additions used to enhance flavor, texture, and shelf life. 

Cereals & Grains Segment to Hold a Considerable Market Share

The rise in demand for such super-convenient snacks-on-the-go that possess an ideal balance between taste and nutritional value propels the market growth. For instance, in 2024, Ready introduced its Kids' Whole Grain Protein Bars. The new product contains 6 grams of protein, 8 grams of whole grains, and 20% less sugar than other leading kids' whole grain snack bars and is designed to meet the nutritional needs of active children.

Regional Outlook

The global energy bar market is further segmented based on region including North America (the US, and Canada), Europe (the UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Demand for Protein and Functional Foods In the Asia-Pacific Region

This market is dominated by the rising demand for protein-rich food, such as plant-based and whey protein among health-conscious consumers who focus on the nutritional benefits that energy bars can provide in India. For instance, in March 2023, Nutrizoe introduced India’s first dedicated energy bars for women Zoe Bars. It is high in protein and is fortified with essential multivitamins like Vitamin A, B2 (Riboflavin), B3 (Niacin), B6(Pyridoxine), B7 (Biotin), B9 (Folate), B12, Vitamin D, Vitamin C, and Zinc. Ideal for women of all ages, the formulation blend of the energy bars includes 3 types of protein Whey, Biotin, and Folate, along with the right amounts of calcium, and vitamins that help keep the women healthy. 

Global Energy Bar Market Growth by Region 2024-2031

North America Holds Major Market Share

The growing popularity of sports activities and the increased participation in fitness routines have increased the demand for energy and protein bars in North America. According to the Sports and Fitness Industry Association (SFIA), in 2023, various sports categories in the US saw strong growth, with Winter Sports, Team Sports, Racquet Sports, and Water Sports experiencing increases of over 9%. Winter sports led the way, growing by 22% compared to 2022, largely driven by favorable weather conditions. Team sports also saw major growth with a 10.8% increase. Additionally, with outdoor recreation becoming more popular in the US, individuals need portable, nutrient-packed options for sustaining energy during activities such as hiking, running, or cycling. Furthermore, North American consumers' interest in functional food items that provide advantages beyond simple nourishment is growing. With products aimed at enhancing performance, energy, and recovery, energy bars align with this trend.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the energy bar market include Kellanova, General Mills Inc., Nestlé S.A., Mars Inc., and others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. 

Recent Developments

• In September 2024, VERB® Energy, a caffeinated energy bar brand in the US announced its launch in 91 GNC stores nationwide. This expansion marks a significant milestone in VERB® Energy's mission to provide convenient, healthy, and sustainable energy to consumers everywhere.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global energy bar market. Based on the availability of data, information related to new products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.