Despite two in five (38%) consumers not eating cereal bars within the last six months, value sales of cereal bars continued to grow alongside volume growth on the back of promotional activity and commoditydriven price increases as well as the entry of Belvita into the market. In 2011, the market grew by 5% over the previous year, reaching £389 million. Cereal/granola bars are the largest segment in the market, holding a share of just over half (52%), their high share partly reflecting the broad scope of the segment. The segment showed strong growth in 2011, driven in particular by Nature Valley and the ongoing success of Rice Krispies Squares. On the other hand, fruit bars struggled in 2011 and while the segment still holds a 29% share of the market, its leading brands saw sales decline over the year.

UK retail value sales of cereal, energy and snack bars, by type, 2011 (est)

Source: Mintel/based on SymphonyIRI Group InfoScan

Market Factors

Despite many snacking markets benefiting from the trend for consumers to stay at home to save money in the aftermath of the recession, the proportion of consumers who snack between meals has fallen in the UK to 77%. Cereal bars have perhaps been less affected due to their strong on the go credentials. The bars are eaten on the go by over two in five (42%) users, well ahead of the overall on the go snacking average of 25%, positioning them favourably to continue resonating with time-pressed consumers. The market is also well positioned to benefit from its association with lunchboxes, particularly among adults. Some 27% of users of cereal bars eat them as part of a packed lunch, with the relatively stable outlook for usage of packed lunch likely to continue providing a market for cereal bars. Usage in children’s lunchboxes rises to 34% among households with children, showing that despite School Food Trust (SFT) and school guidelines which restrict their use in schools, the bars are seen by a large pool of parents as a suitable snack for their children.

Rising obesity levels see many manufacturers look to ‘better for you’ snacks…

Obesity levels are on the rise in the UK, despite the best efforts of government initiatives such as the Change4Life campaign and the banning of the sale of HFSS foods within schools. In 2011, one in five adults were classified as obese, with another 32% overweight, exerting greater pressure on government budgets, which has subsequently looked to manufacturers to improve the nutritional content of their products.

… while many consumers still look for indulgence

A conflict of interests has developed since 2009 whereby many consumers are looking to balance their awareness of health issues and quest for a healthy lifestyle with allowing themselves small indulgent treats. Cereal bars conveniently straddle both health and indulgence, with 63% of users seeing the bars as a healthy alternative snack while, somewhat surprisingly, 23% eat them as a treat. In the wider snacking market, there has also been a fall in the proportion of consumers who scrutinise the nutritional content of their food (down to 49%). At 51%, cereal bar users fall in line with this average, indicating that this remains a consideration for the majority.

Chris Wisson

Senior Food Analyst

E-mail: cwisson@mintel.com

Part of MINTEL study - Cereal, Energy and Snack Bars - Executive Summary for UK, February 2012