New York, Sept. 20, 2023 (GLOBE NEWSWIRE) -- Granola market size is expected to increase from USD 8.9 Billion in 2022 to USD 11.9 Billion in 2032 and register a CAGR of 3.0% over the forecast period (2023-2032)
Granola is a versatile and nutritious food option, especially suited for breakfast, that has gained immense popularity among an increase consumer base globally in recent years. It consists of a mix of whole grains, nuts, seeds, and sweeteners like honey or maple syrup, offering an ideal combination of taste and health benefits. Granola can provide a quick energy boost, owing to its high carbohydrate content, making it an ideal choice for breakfast or a midday snack. Granola is also rich in dietary fiber, which not only aids in digestion but also promotes a sense of fullness, making it a valuable tool for weight management. In addition, it is nutrient-packed, offering essential vitamins, minerals, and antioxidants that contribute to overall well-being.
Granola bars are widely popular among consumers and are particularly favored among those individuals who participate in various outdoor, sports, and other physical activities. In terms of health benefits, whole grains can reduce the risk of heart disease, while the fiber content supports digestive health and helps control appetite. Various types of granola widely available in the market include classic blends with oats, nuts, honey, and dried fruit, as well as low-sugar options for health-conscious consumers, gluten-free varieties for those with sensitivities, protein-packed versions with added protein sources, and organic choices made from organic ingredients.
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Key takeaways
- North America continues to account for the largest volume sales and revenue share of between 34% and 36% in the global market and exceeds that of the various regional markets by a large difference, and 2022 revenue reached over USD 3.4 billion.
- As per calculations based on U.S. Census data and Simmons National Consumer Survey (NHCS), approximately 165 million Americans consumed nutritional snacks (granola, fruit, etc.) in 2020.
- In 2022, Sunbelt ranked third in terms of granola bar brand preference in the United States, as sales accounted for USD 110 Million in the first quarter of the year.
- As of July 2023, breakfast remains at the top of the list for eating cereal, and cereal is typically consumed for breakfast by approximately 79% of global consumers.
- Cereals are also consumed as a snack option, with 28% opting for it as a morning snack, 25% as an afternoon snack, and 19% as an evening snack. This yardstick also applies to those consumers opting for cereal as lunch and dinner snacks.
- As of 2022, Nature Valley registered sales revenue exceeding USD 615 Million for granola bars, followed by Quaker with close to USD 405 Million, while revenue of other known brands was significantly lower.
- According to the Government of Canada, 422 new granola and granola bar products were launched in Canada between January 2016 and October 2020, and the top categories of granola and granola bar products offered were breakfast cereals, snacks, dairy, bakery and chocolate confectionery in 2020.
Trending Factors
Demand Driven by Rise of E-commerce During COVID-19 & Increasing Wellness Trends
Revenue from the global granola market has increased significantly in the recent past, and even more following the COVID-19 pandemic and subsequent lockdowns. Social distancing, restrictions on physical shopping, and the need to minimize exposure to potential infection resulted in more individuals opting to order necessities through e-commerce platforms. Disruptions in the supply chain during the lockdowns also resulted in an increasing pool of consumers being presented with options they had never tried before as a result of shortages of and fractured supply and logistics. Online platforms offer convenience, and extensive product choices, and some offer subscription services, which is a trend that is appealing to consumers.
Granola and breakfast cereals manufacturers and retailers adapted to this trend, making their products readily available through e-Commerce platforms and the trend developed during the testing times continues to remain active currently.
Bars, such as granola bars, are a staple of convenient, on-the-go snacking options for a sizable consumer base globally. The bar category registered a robust rebound in 2021 following the easing of restrictions and the world returned to the ‘new normal’. As per reliable data sources, the bar category reported USD 6.4 billion in sales, and this was for nutritional, cereal, and snack bar segments, till October 2021. The pandemic also served to encourage a larger number of individuals to make healthier dietary choices to boost their immune systems and enhance overall well-being. Granola, being a nutrient-dense option rich in whole grains, fiber, and essential vitamins, aligns well with these health-conscious preferences. Consumers are increasingly opting for snacks that offer both taste and nutritional benefits, and in recent times, granola has been fitting this bill perfectly for many.
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Driving Factors
Healthy For Diabetics and Consumers Seeking Sugar-Free Breakfast Options
Granola is a good source of protein, fiber, and fat, and can be adopted as a balanced meal or snack for individuals with diabetes. Some granola types can be beneficial for blood sugar management, and proper planning with a dietitian for diabetes meal planning can offer significant benefits in short and long-term sugar level management.
However, consumers with diabetes need to monitor their sugar levels as some types of granola contain higher amounts of carbohydrates and added sugars compared to others. In addition, an increasing number of consumers worldwide are opting to wean off from products containing added sugar and practicing healthier eating habits and consumption patterns. As a result, several manufacturers offering various products are developing and offering a variety of products with low-sugar or no added sugar to capitalize on this trend that is gaining rapid traction.
Furthermore, increasing global awareness about the importance and benefits of a balanced diet and nutritional value is supporting the growth of the granola market. A trend observed in the market is that granola is being positioned as a recognizable, nutritious option as an increasing base of health-conscious consumers seek out products with low added sugars and clean ingredients.
Ideal Options for Busy Lifestyle and Consumers With On-The-Go Eating Habits
Also, busy lifestyles have become the norm, and consumers seek convenient and nutritious snacks to compensate for meals and unhealthy food habits. Granola bars and on-the-go pouches have become popular choices, aligning perfectly with the demand for portable, portion-controlled snacks. This trend has boosted sales and revenue for granola manufacturers to a significant extent.
In addition, granola product manufacturers have responded to changing consumer preferences by diversifying their product offerings, and including gluten-free, organic, and protein-enriched granola variants to cater to specific dietary needs and preferences. The introduction of new flavors and ingredients has also generated interest and is attracting a broader customer base.
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| Report Attribute | Details |
| Market Value (2022) | US$ 8.9 Bn |
| Market Size (2032) | US$ 11.9 Bn |
| CAGR (from 2023 to 2032) | 3% |
| North America Revenue Share | 34% - 36% |
| Historic Period | 2016 to 2022 |
| Base Year | 2022 |
| Forecast Year | 2023 to 2032 |
Restraining Factors
Product Labeling, Health Claims Under Regulatory Scrutiny, and Saturation Impacts
Health and regulatory concerns are also key factors having a negative impact on potential market revenue growth. While granola is perceived as a healthy snack, some products may contain high levels of added sugars or unhealthy fats. Increasing scrutiny of product labeling and health claims by regulatory authorities has led to the implementation of more stringent regulations and standards, and this can limit marketing claims that granola brands can make. Besides impacting consumer trust, it can also potentially slow down market growth.
In addition, competition and market saturation can cause a slowdown in market growth. The granola market landscape has become increasingly competitive, with numerous brands and products focused on leveraging maximum consumer attention. Market saturation can create challenges for new entrants to gain a foothold, and can also lead to price wars, reduced profit margins, and as a result, established granola companies may find it difficult to achieve substantial revenue growth in an already crowded market.
Regional Analysis
North America's Continued Dominance in Global Market: Projections & Outlook
North America accounted for the largest revenue share in between 34% and 36% of global revenue in 2022 and is expected to continue to dominate other regional markets in terms of sales volume and revenue share contribution to the global granola market. Some key factors driving steady revenue growth of the North American granola market include health consciousness, awareness of nutritional benefits, convenience, dietary preferences, flavor variety, and ease of availability. Primary among these factors is North American consumers have become increasingly health-conscious over the years, and granola is perceived as a healthy breakfast or snack option due to its high fiber content, whole grains, and natural ingredients, it also aligns with the growing trend of choosing foods that promote overall well-being.
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Growth Opportunities
Specialized Product Offerings by Companies Positions Products Within Easier Reach
Product innovation and diversification can open up major revenue growth streams for players operating in the market. Companies can capitalize on the rapidly expanding health-conscious consumer base by investing in developing and introducing more innovative granola product lines. Creating unique flavors, incorporating superfoods, developing gluten-free or organic options, and introducing protein-enriched variants can attract a broader range of consumers with diverse dietary preferences.
Product Type Analysis
Granola Bars Segment Accounts for Largest Revenue Share and Trend To Continue
The bars segment among the product type segments accounted for the majority of revenue share in 2022 and is expected to continue to contribute the largest revenue share to the global granola market over the forecast period. Granola bars offer major convenience, storage, and cost-effectiveness, and this product form is ideal for on-the-go eating options for busy individuals seeking quick and nutritious snacks or breakfast options. Individuals of varying preferences and eating habits can adapt to granola bars owing to a wide range of ingredients, mixes, including gluten-free, vegan, and organic, and flavors available in the market. Extensive marketing and branding efforts by various brands are further contributing to increased visibility and popularity.
Flavor Analysis
Chocolate Continues to Remain Most Preferred Flavor Among Flavor Segments
The chocolate segment dominates other flavor type segments in terms of revenue share in the granola market currently and the trend is expected to maintain traction over the forecast period. Though flavor preferences vary from region to region and consumer demographics, as well as changing trends, chocolate seems to have wider appeal among a larger consumer base. Classic flavors such as vanilla and strawberry also have wide appeal, and fruit-inspired flavors like strawberry, banana, and coconut are preferred among consumers who have developed a taste for these over time.
Segments Covered in the Report
Product Type
- Cereals
- Bars
- Baked Goods
- Trail Mix
- Fruit Crisps
Flavor
- Classic Vanilla
- Exotic Chocolate
- Strawberry
- Banana
- Coconut
Distribution Channel
- Supermarkets and Hypermarkets
- Convenient Stores
- Online Stores
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa
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Distribution Channel
Physically Shopping for Granola Via Offline Channels Still Ranks Top of The List
Supermarket/hypermarkets segment accounted for around 54% of the revenue share generated by the distribution channel segments in 2022 and is expected to continue to dominate other segments in its category in terms of revenue share over the forecast period. Supermarkets and hypermarkets are highly favored among a large consumer base owing to wide product selection, convenience of one-stop shopping, and promotional discounts offered through this channel.
Competitive Landscape Analysis
The global granola market is characterized by intense competition, driven by increasing consumer demand for healthier and more convenient breakfast and snack options. To maintain a leading position in the market, companies employ various strategies, such as product innovation and introduction of new flavors, inclusion of new ingredients, and innovation in packaging options to cater to evolving consumer preferences and dietary trends. Companies are also investing in research and development to create granola products that are gluten-free, organic, low in sugar, or tailored to specific dietary needs, such as vegan or keto diets.
Focus on brand recognition and marketing is enabling leading players to leverage their brand strength to build consumer trust and loyalty through investment in marketing campaigns that emphasize the nutritional benefits of granola, its versatility as a meal or snack, and its natural and wholesome image. Social media and digital marketing have become increasingly important in reaching and engaging with a larger base of consumers. This is coupled with new product introductions, with companies focusing on innovative flavors and ingredients, including incorporating superfoods like quinoa, chia seeds, and a variety of nuts and fruits. In addition, the trend toward offering portion-controlled and on-the-go packaging formats, catering to consumers' busy lifestyles, is a current focus area. Furthermore, leading companies are introducing eco-friendly packaging options and emphasizing their commitment to environmental responsibility.
Key Market Players
- Sunny Crunch Foods Ltd.
- Kellogg Company
- General Mills, Inc.
- Kraft Foods Group, Inc.
- Conagra Brands, Inc.
- Nestlé S.A.
- Slim Fast Nutritional Food LLC
- Clif Bar & Company
- The Quaker Oats Company, Inc.
- Standard Functional Foods Group, Inc.
Recent Developments
- In July 2023, Chicago's woman-owned startup, For Good Granola, has added Sweet Curry to its lineup of buckwheat granola without oats, following its recent achievement of receiving two 2023 Sofi Awards in the specialty food industry. This nutrient-packed buckwheat granola, free from oats, dominated the Cereals & Granola category, earning both the Gold and New Product Awards.
- In January 2023, Kellogg Co.'s RXBAR, known for its wholesome nutrition bars, has announced the introduction of its very first line of granola, available in three flavors: original, peanut butter, and chocolate. Prior to this release, the company had focused exclusively on producing clean-label nutrition bars. Simultaneously with the granola launch, RXBAR is launching the inaugural bar in its new Craft Batch series: Strawberry RXBAR, packed with 12 gms of protein per serving.
- In January 2023, Kind LLC, a subsidiary of Mars, Inc., has introduced soft-baked granola in two flavors: dark chocolate peanut butter and dark chocolate chunk. These soft granola options are gluten-free and crafted from a whole-grain oat foundation. They expand Kind's range of granola offerings, which originally featured crunchy clusters.
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