The cost of food along with other inflationary pressures are forcing consumers to change their buying habits. There is no question that prices have impacted consumers, said Sally Lyons Wyatt, global executive vice president and chief advisor consumer goods and foodservice insights, Circana, but she added that value means different things to different people.

“Getting the value proposition right is the key,” she said. “To appeal to consumers looking for health benefits, CPGs should zero in on the channels consumers are shopping and the packaging and price points they need to hit in those channels.”

She acknowledged that bars are facing a few obstacles looking ahead, so it’s important for brands to offer customers what they want where and when they are looking for a snack. Effective messaging behind their products on social media channels can create excitement.

“If they have products and options out in the marketplace at a variety of sizes and with the right flavors consumers are looking for, then they have a tailwind behind them,” Lyons Wyatt said. “But they have to be able to be agile enough to have the right packaging and size in the different channels, so they maximize their incrementality and get back into growth in unit sales.”

She noted that online bar sales at brick-and-mortar retailers offering grocery delivery and pickup are doing well.

“Online is a favored channel for them right now where there is growth,” Lyons Wyatt said. “I think there will continue to be growth. It is one of those categories that is suited for online, whether delivery or pickup. We are seeing delivery especially with brick-and-mortar retailers winning.”

Bar makers interested in expanding their customer base should find ways to differentiate their products, especially since consumers are turning to cheaper retail brands.

“There’s some great room and opportunity for bars to do more limited-time offers,” Lyons Wyatt said. “They have done some and they need to do more of those. Those generate excitement and retailers love them. It would almost be a safe bet to say they would get on the shelf.”

Bar manufacturers should also stick close to the benefits of their bars, she said.

“Help consumers on their journey,” Lyons Wyatt said. “There are different diets that bars have been a huge part of, whether it’s keto, whether it’s low-fat, whether it’s high protein, they’ve been able to pivot and do that. They need to make sure there are offerings across the different diet types where it makes sense.”

Adriana Chychula, analyst, food, drink and nutrition, Mintel, said consumers are making choices based on tighter budgets.

“The category as a whole is still growing steadily — 6.4% from 2022-23 — speaking to consumers’ lifestyle needs,” she said. “However, private labels also grew 15.3% over the last year, pointing to some value recalculations. That said, those who can afford to maintain their premium preferences will do so.”

Michelle McAndrews, vice president of marketing and ecommerce at Kate’s Real Food, said her company has navigated the ups and downs of the market by adapting the business as needed while sticking to the company’s core values.

“Looking ahead, we remain optimistic about the future of the bar market and our role within it,” she said. “As consumer demand for nutritious, convenient snacks continues to grow, we’re confident that our organic snack brand will continue to thrive by staying true to our values, listening to our customers and embracing change as an opportunity for growth.”

She added she anticipates a growing demand for functional ingredients and targeted nutritional benefits and an emphasis on clean label foods, sustainability and transparent, ethical sourcing.

“Consumers are becoming increasingly aware of the impact of their food choices on their overall health and well-being,” McAndrews said. “As a result, we foresee a rise in bars formulated with specific health benefits, such as immune support and gut health. By incorporating ingredients like adaptogens, probiotics and superfoods, manufacturers can offer bars that not only taste great but also address specific health concerns.”

Nutritional needs based on fitness and performance will fuel bar sales as well, she said.

“A prominent trajectory we see is the rising demand for functional protein bars,” McAndrews said. “With an increasing focus on health and fitness, consumers are seeking convenient and nutritious options to support their active lifestyles. This trend isn’t just about building muscle; it’s about fueling the body with the right nutrients for optimal performance and recovery.”

Henry Hughes, vice president of marketing. Bobo’s, said he expects consumers to continue to prioritize real food over health trends.

“We’ve seen trends come and go for quite some time, but Bobo’s has maintained its own space in the category by sticking to who we are at our core,” he said.

Consumers turn to bars for convenience, indulgence and to fulfill nutritional needs. Bar manufacturers that provide healthful benefits and great taste can grab the interest of consumers and keep them if they reach consumers with the right messaging in the right channels.

“Limited-time offers, frame up their proposition from a dieting standpoint for what it means for the different types of diets, zero in on those functional benefits where it makes sense,” Lyons Wyatt advised. “Bars have all the makings to continue to have success on a unit and dollar perspective, but it’s going to take an integrated approach.”

This article is an excerpt from the June 2024 issue of Baking & Snack. To read the entire feature on Bars, click here.