Sports and Energy Bars U.S

Sports and Energy Bars U.S. Market oday’s time-pressured consumers to 8 percent in 2002 with most of that rapidly on taste and built brand iden- Tare turning to convenience prod- lost share of sales flowing into super- tities that focused on the needs of a ucts that simplify their lifestyles. Sports markets. The change in market share growing consumer base, leading to and energy bars are one of the most is attributed to the low penetration of rapid growth in the number of sub- portable of foods and pack a lot of nutri- health- or natural-food outlets rela- brands managed by each leader. The ents to provide a quick energy boost. tive to supermarkets, such that once top six companies, which control According to the 2002 Balance Bar sports and energy bars began to rise 75 percent of the market, each sup- National Study, 43 percent of the U.S. rapidly in popularity, the shift of sales port at least three subbrands, and most population eats on the go on a regular was inevitable. Through the main- of them maintain five or more. basis (several times a week or more). streaming of the distribution channels in 1997 to 2002, sports and energy Segmentation continues to This is the basic change that has allowed transform the market bars became conveniently accessible sports and energy bar manufacturers to Segments have evolved rapidly hand move from operating in a defined niche for all consumers. Greater distribution encourages trial and/or impulse in hand with sales growth throughout (endurance and full-time athletes) to 1998 to 2003. Bars that started the serving everyone seeking convenient purchases, which will aid in the con- tinued expansion of the market. period with a purely athletic posi- and healthy forms of nutrition. tioning (which was nearly all of them, The Food and Drug Administration Aging products are being by some measures) now maintain that and other health-related organizations displaced core of customers while also targeting have brought to light the unhealthy All of the leading manufacturers have much larger bases of active adults or state of the population. Mainstream experienced significant growth, caus- those simply seeking better nutrition consumers have begun to assess their ing market shares among brands to on the go. Indeed, the largest brand, eating habits and look for nutritionally shift. Over the analysis period of 2000 Slim-Fast, which has always been thor- superior food options. Improved taste, to 2002, more-recent entrants consis- oughly identified with dieting, began increasing choices and a leap to main- tently outperformed older brands. The in 2002 to change the focus of the stream distribution have thrust sports original Balance Bar, PowerBar and Clif brand to healthy lifestyles. and energy bars into view for millions Bar experienced an erosion in their Any segmentation chosen in 2003 of Americans. Accordingly, the cate- market share, down 3.8 percent, is simply a snapshot in time, and the gory has become larger and more dif- 3.4 percent and 2.4 percent respectively. progression of the market will very ferentiated as it evolves to meet more PowerBar’s newer products (Dipped probably require a larger number of consumers’ needs. Harvest and Pria) and Balance’s newer new or different segments in the near products (Balance Gold and Balance future. This report divides the sports Shift to wide distribution Oasis) generated strong sales, though and energy bar market into diet, ath- A dramatic shift in the distribution they did not fully compensate for the letic and lifestyle/wellness bars, rec- patterns of sports and energy bars sales losses of their mentor brands at ognizing that many of the products occurred during 1997 to 2002. While food stores, chain drug stores and mass have attributes of at least one of the natural- and health-food stores led the merchants. Clif Bar’s aggressive and other segments. As such, lifestyle/well- retailing of sports and energy bars as innovative product introductions (Luna ness and diet bars have 42 percent and recently as 1997, supermarkets and Bar and the Ice series), however, led 41 percent of the market respectively, convenience stores are the primary to gains in overall market share. while athletic bars control 17 percent. retail drivers in 2003. The retail share As recently as 1998, there were few Many leading brands, which were of natural- or health-food stores bar options at most of the leading originally athletic bars, such as Clif declined from 38.7 percent in 1998 manufacturers. Companies improved Bar, PowerBar and Balance Bar, have ➤ The Manufacturing Confectioner • October 2003 15.

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