Meal replacement bars may outgrow global market demand for protein-rich bars in the years ahead
As the global food and beverages industry continues to progress, the functional bars market is expected to flourish significantly. This report is based on an in-depth examination of the global functional bars market and throws light on the different segments of the market such as by function, packaging, nature, product type, sales channel and region. In terms of product type, the functional bars market is segmented into energy bars, protein-rich bars, meal replacement bars and low carbohydrate bars. A growing health conscious population across the globe has shown increasing preference towards the consumption of different types of functional bars available in the market. This detailed market research study indicates higher growth prospects for meal-replacement bars. The segment in expected to register a CAGR of 4.1% during the forecast period. This growth is mainly driven by the burgeoning obese population and also an increasing inclination of people towards weight loss. This study reveals the current domination of protein-rich bars in the global market, expected to hold a market value of over US$ 470 Mn by the end of 2026.
Manufacturers to focus on innovative packaging to gain traction; composition of functional bars to acquire a large consumer base in the near future
Functional food bars hit retail shelves during the time period 1999 – 2001 gaining traction among the target consumers. Since then, the market is growing at a steady rate, mostly due to the increased efforts by key manufacturers like improvement in sensory quality. Manufacturers have bettered their products to such an extent that taste is no more a negative factor for functional bars. Improved ingredient quality and the introduction of newer process technology has made functional bars available in attractive flavors and compositions, some of which are only unique to bar offerings. This is expected to drive the functional bars market over the forecast period, as more number of people are expected to consume functional bars regularly, owing to the attractive product offerings with added health benefits, thus increasing the demand for functional bars. Some key confectionery manufacturers have converted their lines of products into functional by introducing high protein ingredients to increase per unit protein servings to attract newer consumers while retaining the older ones.
Along with the introduction of new and attractive flavors and tastes, manufacturers operating in the global functional bars market are now also focusing on smart labeling. These labels mention added or fortified functional ingredients present in confectionery bar products, to mask the presence of high sugar levels or calories. To eliminate the general perception of the different health risks related to the consumption of confectionery, it is expected that manufacturers will likely add functional ingredients into their final products to gain back their customer base, as well as target new consumers in the growing functional bars market.
Tall claims of functional bars often accompanied by misleading composition related information, thereby restricting consumer adoption
A large part of the functional bars market is dominated by the protein segment, which is generally consumed to increase endurance and energy. However, the other analog ingredient present in the product is not always healthy. To enhance the taste and texture of their products, several functional bars manufacturers use ingredients that are known to be dangerous (if consumed in substantial amounts) for humans. Some of these ingredients are sugar alcohols, synthetic texture enhancers, flavor inhibitors, and isolated hormones as protein source. Such information about the composition of functional bars and manufacturing techniques is expected to hinder revenue growth of the global market and deteriorate demand mainly among extra health conscious people.
Global Food and Beverages Industry Outlook
The food and beverage industry in North America is colossal and comprises and number of players in largely fragmented and multi-tiered supply chains. The industry is stringently regulated and players often have to adapt to a landscape that changes quite frequently. The primary demand drivers in North America are witnessing fast-paced evolution, as dietary habits receive emphasis, especially among consumers who scour every label to read the ingredients. Although mergers and acquisitions have been a staple in the food and beverage industry, uncertainties in political climate in Europe and America lead to a slowdown in 2016. As there is more clarity on the U.S. Presidential election and Brexit, the pace of mergers and acquisitions is likely to pick up.
The evolving tastes and preferences of consumers are not lost on manufacturers, as offerings have been broadened to accommodate organic and natural food products. Many established players are focusing in acquiring smaller companies which have the expertise and reputation of being pros in specific organic and natural domains. These smaller companies have deep brad loyalty, and owing to the small scale of production, it is much easier for them to come up with innovative products. These factors, combined with increasing emphasis on organic and natural, are likely to make smaller companies attractive targets for mergers and acquisitions.
List of factors tracked in the Food Ingredients Market Report
In the food ingredients sub-domain, the following factors have been tracked.
PMR utilizes robust methodology and approach to arrive at market size and related projections. The research methodology for this report is based on 3 dimensional model. We conduct about 45-60 min duration detailed interviews with product manufacturers; apart from this we also collect market feedback from industry experts. To validate this data, we interact with senior panel members having more than 10 years of experience in relevant field. The panel members help in validating the findings and fill the gaps if any. In addition, we leverage on our existing pool of information, paid database and other valid information sources available in public domain. Usually industry interactions extend to more than 50+ interviews from market participants across the value chain.
PMR collects data from secondary sources including company annual reports, association publications, industry presentations, white papers, and company press releases apart from these we leverage over paid database subscriptions and industry magazines to collect market information and developments in exhaustive manner. After being done with desk research, detailed questionnaire and discussion guide is formulated to initiate primary research with key industry personnel; the discussion aims at collecting key insights, growth perspectives, prevalent market trends and quantitative insights including market size and competition developments. Both of these research approaches help us in arriving at base year numbers and market hypothesis.
Key Questions Answered
By Product Type
By Sales Channel