The India snack bar market is expected to reach USD 185 million by 2023, witnessing a double-digit CAGR, during the forecast period. The India snack bar sale has recorded a historic CAGR of 20.1%, during the past five years. Snack bar is still a niche category in India, which accounts for less than 1% of the global snack bar market.
The cereal and granola bar segment is the fastest-growing, after the energy bar segment, in India. Rising health & wellness trend among the population, increased purchasing power, and indulgence are the various factors that fuel the snack bar market growth. Expanding distribution channel in Tier I cities is further accelerating the growth of the snack bar market. Competition from the savory and snack market and breakfast cereals is the major restraint for the market.
Energy bar sale in India is expected to grow at a faster rate, of 25%, over the forecast period. Energy bar includes sports nutrition bars and snack bars designated to meet both daily and sports nutrition needs. Growing demand for energy-boosting functional products among young population is driving the market. Energy bar is a perfect combination of nutrition and taste, which is fueling the market growth. Consumers are likely to spend more on healthy snack products driven by the changing lifestyles and dietary intake. Consumers are increasingly becoming health conscious when it comes to a bite between meals, featuring healthy benefits with convenience and nutritional component, while on-the-go snacking fueled the nutrition bar market. Health & wellness is the key trend driving the energy bar consumption pattern. Granola and muesli bar is the second largest category, followed by other cereal bars.
Convenience stores led the sales, with a share of more than 50% in the distribution channel segment. Expanding retail chain in the country offers a potential growth opportunity to the market. Online retail grew faster at a rate of 28% during 2012-2017. Supermarket/hypermarket is the second largest retail channel in India, which is growing at a faster pace, offering a growth opportunity for nutritional bar sale.
There is growing competition in the India snack bar market, with a large number of International players entering the market. Rite Bite, Nature Valley, and Alpen are the top brands in the market. Product launch in different flavors, such as the popular chocolate flavor, targeting athletes, women, and diabetic people is the primary strategy adopted by the market players. Companies introducing hybrid product mix of snack bar and biscuit is the key challenge for the market. For example, Danone India that launched Protinex Bytes, has targeted to capture the healthy snack market. Many biscuit players, such as Britannia, are planning to enter the cereal bar market.
Major Players: Naturell (India) Pvt Ltd, Nestlé SA, Nature's bounty co., Kellogg NA Co., and General Mills Inc., among others.
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