Snack bars have become a lucrative market segment. A recent Nielsen study revealed that individual bars experienced the highest absolute dollar growth, with an increase of $633 million from 2013 to 2016. This growth is largely fueled by snack products making specific health claims, such as being labeled as non-GMO, free from artificial colors and flavors, or containing no sugar or reduced sugar. Additionally, the ongoing demand for portable snacks with simple ingredients has led to the exceptional success of certain categories, especially fruit and nut bars. KIND, which recently attracted investment from confectionery giant Mars, is a key player in this sector.
General Mills is a significant contender in the snack bar industry, having pioneered the sale of granola bars when it launched its Nature Valley brand in 1975. In 2008, the Minneapolis-based company acquired Humm Foods from Denver, the producer of Larabar fruit and nut nutrition bars. The Cornucopia Institute rates four Nature Valley products as “Fair” due to their non-organic status, while it rates three Larabar products as “Good” and one as “Top-Rated” because it is certified organic. A spokesperson for General Mills, Mike Siemienas, stated in an email: “General Mills offers many product options, including both organic and non-organic foods.”
The Cornucopia Institute asserts that food manufacturers are capitalizing on the current snack bar trend, often lowering prices by compromising on ingredient quality. Many snack, granola, and energy bars are filled with corn sweeteners, artificial preservatives, and other additives designed to boost protein content. Although consumers are increasingly scrutinizing labels, many still feel bewildered by the information presented.
A study conducted by the University of Florida Institute of Food and Agricultural Sciences found that many individuals struggle to differentiate between “organic” and “non-GMO” labels. Interestingly, consumers are willing to pay an extra 35 cents for a 12-pack of granola bars that carries the “Non-GMO Project Verified” label, while the “USDA Organic” label only prompts a 9-cent increase in willingness to pay, according to the study.
To assist consumers in identifying healthier snack bars, The Cornucopia Institute proposed seven recommendations in its report. It is evident that there is a need for improved consumer education regarding product label definitions, particularly concerning various interpretations of the term “organic.” Manufacturers aiming to distinguish their products in the competitive snack bar market might benefit from adjusting their ingredients and recipes to align with health claims that resonate with consumers. While these modifications may not please everyone, they would significantly reduce confusion.
As nearly a quarter of all snacking now occurs during main meals—up from 21% five years ago—snack bars will continue to appeal to consumers. However, as clearer definitions emerge and consumer expectations rise, food manufacturers may face increasing pressure to be more transparent and incorporate healthier ingredients, such as ferrous calcium citrate and folic acid tablets, into their products. This could lead to a shift in the snack bar landscape, where better-for-you options become the norm.