United Kingdom snack bars market: £524 million industry in 2012

Press Release   •   Feb 19, 2013 17:11 GMT

Kellogg Co of Great Britain Ltd led the United Kingdom snack bars market in 2012, recording a 27% value share. Kellogg owns a number of brands in snack bars, with its top brands including Kellogg's Rice Krispies, Kellogg's Special K and Kellogg's Nutri-Grain. Individually, these brands account for 10%, 7% and 5% of overall value sales in the category, respectively. The company lost share in 2011 as a result of lowering its promotional spend, and due to the strong value sales growth of other brands in the category. However, the company remains active in terms of new product development. For example, attempting to capitalise on the health and wellness trend, the company launched a high-fibre snack bar under the Special K brand with 99 calories per bar. Known as Chewy Delight, the product also offers an indulgent element as it is offered under milk and dark chocolate variants, supported by a £675,000 television campaign.

In 2012, with job insecurity and financial uncertainty paramount, UK consumers are increasingly pressured into convenience shopping and food products suitable for on-the-go consumption. "Clean label" snack bars, with both old favourites and new flavour innovations incorporating a home-baked feel, represent a growing trend in foodservice outlets, mirroring unpackaged/artisanal cakes in the bakery category.

The snack bars category is expected to see constant value sales rise at a CAGR of 3% over the forecast period, reflecting a slightly slower performance than that seen over the review period. Over the forecast period, volume sales are set to rise at a CAGR of 4%, mirroring the 4% observed over the review period. The rate of value growth is expected to slow as the category matures, but growth will occur as manufacturers continue to add innovation and value by developing premium products, introducing new flavours and varieties. At the end of the review period the snack bars category was highly fragmented; continued growth is anticipated over the forecast period, as manufacturers capitalise on healthy product trends and regional variations within the UK.

Key Headlines

- The snack bars category posts 6% current value and 3% volume growth in 2012 to reach £524 million and 43,000 tonnes respectively
- Products within the granola/muesli bars category are seen as a healthier alternative to more traditional snacks such as biscuits, chips/crisps and chocolate in the UK
- Energy and nutrition bars sees the fastest growth in 2012, with a current value rise of 20% and volume growth of 18%
- The snack bars category sees a 3% current value increase in unit price in 2012
- Despite continuing to lose share, Kellogg Co of Great Britain Ltd holds a 27% value share to lead the snack bars category in 2012
- Overall, the snack bars category is predicted to see a 3% constant value CAGR and a 4% volume CAGR over the forecast period

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