KANSAS CITY — Since the pandemic disrupted consumer needs for on-the-go snacks, which typically drove snack and nutrition bar purchases, bars have experienced some noteworthy changes. Over the past couple of years, consumers rediscovered bars as a healthy, affordable and convenient snack choice, creating significant opportunities for continued growth in the category. To capitalize on the momentum, bar manufacturers are taking a balanced approach to innovation, promotion, price and bold flavor profiles.

Seventy-five percent of current bar buyers anticipate maintaining or increasing purchases in 2023, according to the Mintel “Snack, Nutrition and Performance Bars” 2023 US report. Consumers purchases are influenced by inflation, hybrid work schedules and general burnout. However, bars are a crowded category that fans the flame of competition.

“Brands that can strike the balance between innovation and familiarity while maintaining great taste will come out on top,” Sydney Olson, senior food and drink analyst, Mintel, said in the report.

Circana sales figures for the 52 weeks ended March 26 show that a 19% price per unit rise is fueling the dollar growth for bars, although unit growth declined by 8%. Overall, snack manufacturers are capturing consumer dollars, but they face headwinds with unit and volume softness. The growth in the category is driven by a combination of factors, including price increases and pack sizes.

“By putting in place the right price and size architecture, producers can capture those consumers trading down to stay in the category while purchasing the same brand, and those trading up who find the price per ounce to be more affordable or have the income to afford the price point for larger sizes,” said Sally Lyons Wyatt, executive vice president and practice leader, client insights, Circana.

Bar subcategories such as energy, cereal and granola bars are showing 9% to 10% dollar growth, according to Circana’s sales data. The “all other” snack bar subcategory posted 49.4% dollar growth. Ms. Lyons Wyatt noted that while several of these bar makers are entrepreneurial startups, it is likely that some of the larger manufacturers are zeroing in on functional benefits that consumers are looking for and winning with this approach.

Seeking functional nutrition

Bars typically fall into two main categories: better-for-you (BFY) bars that are nutritious and support diet and health goals, and permissible indulgence. The latter may not have the desired health claims, but consumers perceive them as healthier because of their ingredients.

Granola bars are seen as both BFY and a permissible indulgence, with the subcategories all other snack/granola bars and all other granola and nutritional bars driving growth, Ms. Lyons Wyatt said.

Granola and snack bars consistently prove their versatility, offering energy and nutrition suitable for any time of day, whether consumers are on the go or need a quick pick-me-up at home, said Erin Cancade, director of innovation, Riverside Natural Foods, Ont.

“We also notice continued progression toward cleaner ingredients with an emphasis on incorporating whole grains and real fruit,” she said. “MadeGood granola bars are made from wholesome ingredients and contain an excellent source of vitamins C and D, which help support immunity.”

Fifty-four percent of consumers choose snacks with functional benefits as a part of healthy eating, and 66% eat snacks for fuel and energy, according to Circana’s 2023 Snacking Survey. Forty-seven percent of consumers reported eating bars to help manage their weight, while 30% buy snack and granola bars to support their mental well-being. High protein bars, such as those with 16 or more grams of protein, grew 40%, according to data from Spins and Circana.

San Francisco-based B.T.R. Nation found that some of the most popular functional claims address energy, brain function and gut health.

“Driving category growth is the demand for real nutrition and function,” said Ashley Nickelsen, founder and chief snack officer, B.T.R. Nation. “Consumers are still looking for protein, but it’s not the only driving factor now. They seek nutrient-dense ingredients in a bar that actually has nutritional value with ingredients they understand.”

The B.T.R. Nation team maintains it is committed to “taking the junk out and infusing the good.” Their bars include functional ingredients, adaptogens, no added sugar, and a balance of fiber, fat and protein to help maintain optimal satiation.

Consumer demand for reduced and no-sugar snack options has created opportunities for product reformulation and new product development in the snack and nutrition bar categories. Anaheim, Calif.-based Nellson, a full-service bar and powder nutrition manufacturer, observed increased demand for reduced sugar and sugar-free products across its brand categories. But replacing sugar in bars can be challenging.

“Sugar’s functionality beyond taste is complex and is not as simple as a one-to-one ingredient exchange,” said Bart Child, chief commercial officer at Nellson. “Replicating all the sensory characteristics of sugar requires ingredient science expertise and understanding of product performance over time.”

Brands that create allergen- and sensitivity-free foods will resonate with many consumers. Thirty-two million Americans have been diagnosed with food allergies, and that number is on the rise, according to statistics by FARE (Food Allergy Research & Education), a nonprofit engaged in food allergy advocacy. It is not surprising that allergen-free claims on snacks had 9% unit growth and 25% dollar growth, according to Spins and Circana. MadeGood offers a number of products that address allergy claims.

“We are committed to providing high-quality, organic, allergy-friendly options that can be enjoyed during any snacking occasion,” Ms. Cancade said. “We always use the highest quality wholesome ingredients, such as gluten-free rolled oats, crisp rice, real fruits and natural sweeteners.”

Great taste trumps nutrition

Despite the fact that functional nutrition is a central attribute for the bar category, taste remains nonnegotiable for consumers. Sixty-two percent strongly agree the bars they buy must taste good, according to the Mintel bars report, outpacing all other requirements, including the need for healthy and affordable products.

“Taste is king,” Ms. Nickelsen said. “When we bring a new bar to market, we holistically think about flavor and function, and we consider the fun nostalgic flavors that consumers would enjoy. Then we work to ensure we can make that flavor really sing using only real food ingredients. It’s not easy, and it can take a year to nail a new flavor. It’s all about striking the right balance between taste, texture and ingredient profile.”

MadeGood remains dedicated to ensuring its products strike a balance between nutrition and taste. The company enhances the nutritional value of snack products by incorporating vegetable extracts and says this process does not compromise taste.

Bold flavors are preferred by 83% of snack consumers, and 20% like both sweet and savory bars, according to the Circana 2023 snacking survey. Texture plays into consumer bar cravings as well with 24% enjoying a chewy bar and 20% preferring crunchy, crispy bars.

“Tried-and-true flavors like chocolate chip, chocolate, cheese, honey and peanut butter drive dollar sales across snack categories,” Ms. Lyons Wyatt noted. “However, variety and unusual flavor profile blends, sweet and hot and spicy drive unit sales, so bold combinations may be a way to engage consumers with new bar flavors.”

Mintel found that flavor profiles, such as parfait bars with yogurt, fruit and granola, seasonal flavors and bars featuring other snack foods like potato chips are resonating with consumers, creating strong opportunities for co-branding and strategic partnerships.

“Promotions can include fun, seasonal or limited-time offerings to create a buzz and generate excitement and renewed brand awareness,” Mr. Child said.

B.T.R Nation has offered several seasonal flavors, and other types of bars will launch over the next 12 to 15 months, including a fruit forward bar in July.

“At the end of the day, a bar is more than fuel,” Ms. Nickelsen said. “Flavor profiles elicit emotion, and bars aren’t the same as a juice or tincture or supplement. Consumers shouldn’t have to make a sacrifice in the bar category. That’s why B.T.R. Nation brings fun flavors like cinnamon cookie dough and dark chocolate brownie to market.”

A bar for every occasion

Bars are consumed throughout the day, especially in the mornings and afternoons, according to the Circana survey. Forty-nine percent of consumers eat bars for fuel or energy, 44% to satisfy hunger and 32% to achieve daily nutritional goals. Seventy-five percent of consumers eat bars at home, but a significant number still buy bars as an on-the-go snack.

“Bars is a category that can do it all for consumers,” Ms. Lyons Wyatt said. “With bar products appealing to both in-home and on-the-go convenience, producers have a large canvas to paint the vision for the category.”

Considering when and why consumers eat certain snacks will help bakers create strategies for engagement. It is up to producers to identify what that new bar occasion looks like for their product lines. They must then determine how to promote the product to relevant consumers.

“Specific messaging promoting different bars for specific eating occasions or even adding a new bar occasion is key for success,” Ms. Lyons Wyatt observed. “If producers can create and capitalize on that new bar occasion, they will drive units and volume, and the dollars will flood in.”

For instance, MadeGood Mornings, a new soft-baked oatmeal bar, is being launched to serve as a morning meal.

Promoting the versatility of bars allows brands to appeal to value-minded consumers and those with busy schedules. Mintel data showed that bar consumption as an evening snack for adults and part of children’s mealtimes saw growth this year. Creating a mini version of an existing bar might fill a need for a BFY alternative for a child’s lunch or as a permissible indulgence consumed by adults at midday or after dinner.

“Bar manufacturers can build on this momentum by reexamining their customers’ current needs and finding needs not yet being met,” Mr. Child noted.

Building on these behaviors can encourage consumers to see bars in new ways and consider them for new needs, while leveraging other attributes. For example, individual portion sizes continue to appeal, with 61% of consumers saying they prefer them, according to the Circana survey.

“Smaller portion sizes continue to interest our customers,” Mr. Child said. “In addition to portable convenience, some brands are recognizing additional benefits to a smaller size. From a sustainable standpoint, consumers don’t have to commit to a full-size bar since minis offer an alternative to food waste.”

Innovation creates star players

The blurring of categories continues to impact bars because other products are providing similar benefits. For example, cookies and other snacks now deliver on the same characteristics of portable, permissible nutrition. Manufacturers need to determine how to stay relevant and deliver on those attributes that consumers are looking for and expand their brands. Bar producers must consider competition outside the category as well.

“If I were a bar company, I’d be looking at energy drinks for innovation, consider what’s appealing to consumers in the energy drinks, and then try to innovate with those claims or ingredients within bar products,” Ms. Lyons Wyatt said.

Innovation is challenging, and meeting consumer needs around snacking is central to success. About a quarter of bar buyers have not purchased but are interested in purchasing bars with functional benefits, bars with ethical claims and refrigerated bars, according to Mintel’s report.

“Refrigerated bars are an exciting opportunity for brands as they deliver differentiation from center store and have a unique, upright, soldier-style carton similar to the way high-end chocolate bars are displayed,” Mr. Child said. “They also allow for use of ingredients that may be sensitive to oxidation and heat. We expect to see more growth in this category.”

Producers can leverage bars’ versatility using inspired product innovation. Creating a new bar occasion to add to the snacking day and strategically promoting it will engage consumers. For example, B.T.R. Nation has shared the company’s mission to reimagine the modern vending machine with its customers to build a following and special niche for its bar products.

“I started B.T.R. Nation as a tribute to my parents who were battling cancer,” Ms. Nickelsen said. “We were tired of eating junk out of hospital vending machines. When they passed away, I took my recipes and brought them to market. We’ve found that telling our story, sharing our mission and creating a movement has helped B.T.R. stand out in a very saturated category.”

Mintel also reported that brands must stand out without overwhelming or confusing consumers by using simple labels and clear claims.

Consumers seek value

Bars are a versatile category appealing to many consumers for different reasons. Circana’s snacking survey found that 72% of consumers consider price before choosing what to snack on, and 25% buy what’s on sale rather than favorite brands. These behaviors make price a considerable factor for producers, and it can be a headwind if they don’t have the right combination of price, channel and variety.

MadeGood observed that its consumers were trading up to value pack sizes. To cater to this preference, the brand is launching family packs of its favorite granola bar flavors and formats, offering value, convenience and savings for consumers. Its Granola Minis multipacks include 24 individual pouches of two flavor profiles, 12 chocolate chip and 12 mixed berry.

“Enhancing price/pack size architecture; aligning day-parts, variety and packaging; promoting to relevant demographics, and accelerating digital marketing is the way to engage consumers,” Ms. Lyons Wyatt said. “Manufacturers have to balance efforts within these considerations.”

Value should be central to bar promotional strategies as more than 6 in 10 consumers agree bars are affordable compared with other snacks and meals, according to the Mintel bar report. Bars are positioned for success due to the maturity and variety of products offered within the category, and bars reach households across a wide range of financial means.

Promotions are key to getting consumers back into stores. More trips to the supermarket increase the opportunity to sell more units. Producers should expand product assortment across channels with price points that allow consumers of all demographics to stay within or expand purchasing consumption by using promotions and digital social platforms.

“Promotions using relevant messaging for the different consumer groups are where marketing teams can have the most fun and get creative to leverage engagement, especially among younger consumers,” Ms. Lyons Wyatt observed.

On-the-go snacking creates numerous opportunities to promote bars to relevant consumer demographics using appealing channels. Focusing innovation around on-trend functional benefits, bold flavors, convenient formats and versatile eating occasions can spell success.