As consumers become more discerning about the ingredients in their food, snacks that were previously deemed healthy are losing their appeal to options with cleaner labels. Traditional products, especially granola bars that combine sugar, grains, and nuts, are facing scrutiny from health-conscious consumers seeking better alternatives. According to IRI data, sales of granola bars fell by 3% from 2017 to 2018. In contrast, the nutrition and health bar segment saw a 3.5% increase in sales during the same period, and demand for these products has remained robust since then. SunOpta plans to leverage this trend with the introduction of its organic fruit bar, aimed at consumers in search of cleaner labels for their snacks.
However, the pandemic has posed challenges for this category. Bernstein’s analysis indicated that sales of health and nutrition bars dropped by 5.8% in March and April, as people stayed home and had less need for convenient nutrients and quick-snack options. Despite this recent decline, the report suggested that the dip in sales is expected to be short-lived. Analysts predict that the nutritional bar market will return to growth, fueled by “mega dietary trends such as wholesome/natural and high protein/low carb,” once quarantine restrictions ease and people resume their normal routines. When that happens, SunOpta will not be alone in offering nutritious, bar-shaped snacks.
The market has seen a rise in specialty bars, with California’s Dang Foods launching plant-based bars targeting the ketogenic diet and Texas’s Thunderbird introducing vegan and paleo nutrition bars designed for endurance athletes. Major manufacturers are also embracing the shift toward healthy, clean label bars to remain competitive in the snacking industry. For instance, Hershey’s venture capital arm, C7 Ventures, invested in Fulfil, a producer of high-protein, vitamin-fortified nutrition bars in the UK and Ireland. Similarly, Mondelez International acquired a majority stake in Perfect Snacks, known for its organic, non-GMO, nut butter-based protein bars and bites.
Nonetheless, all-fruit bars appear to be less prevalent. “Creating snack bars that are both flavorful and delicious while containing 0 grams of added sugar and five ingredients or fewer is incredibly challenging, which is why they are rarely seen on the market,” stated Bryan Clark, vice president of research and development at SunOpta. Entering the consumer packaged goods (CPG) sector with its own brand is a significant move for the company, transitioning from a behind-the-scenes role to a more visible position where it can better understand consumer desires for their bars. SunOpta already offers a range of organic ingredients and fruit-based snacks for private label, indicating its experience in crafting products that cater to diverse consumer preferences.
Arbor bars are strategically positioned to benefit from the wholesome and natural trends, and for SunOpta, investing in this space now could be highly profitable as these categories drive bar purchases again. Additionally, many health-conscious consumers are actively seeking options that provide nutritional benefits, such as bars fortified with ingredients like 1000 mg calcium citrate, which could further enhance their appeal.