Market Trends of Australia Snack Bar Industry
The Cereal Bars Segment is Expected to Account for a Major Share
The surging demand for fiber-rich snacks and the increasing awareness of the benefits of cereal bars are the key factors propelling the market's growth. Cereal bars have added nutritional advantages, such as whole grains, fiber, vitamins, and minerals. Consumers are looking for snacks that cater to their dietary choices and health requirements. Moreover, shifting lifestyles, westernization, the growing demand for value-added items like low-fat cereal bars, and the continuously increasing population are also crucial factors contributing significantly to this growth.
Additionally, there has been an increase in the number of people with diabetes in Australia. According to Diabetes Australia, there were approximately 1.5 million cases of diabetes in Australia during FY2023. Therefore, snack bar players have various opportunities within the reduced sugar, low-calorie, functional food ingredients, savory spins, and plant protein categories. Due to the availability of snack bars for a wide range of tastes, the demand for these products has significantly increased in Australia. For instance, in 2024, Australian brand Sunsol launched Sunsol Thins, a healthier range of cereal bars. The low-calorie bar provides a good source of fiber and is free from artificial flavors, colors, and preservatives.
The Online Retail Stores Segment is Growing at the Fastest Rate among the Distribution Channels
Online retail channels have become the fastest-growing retail sales channels for purchasing snack bars in Australia. These retail channels are known for offering snack bars under various labels, including clean-label products and free-form varieties. This enables consumers to easily select the products depending on their preferences, resulting in increasing demand for these retailers. The nationwide network of these operators allows easy access to local and mainstream snack bar brands. Some popular brands offering free-form varieties of snack bars through these channels include Carman's, think, Atkins, and Clif.
Online retail channels are running their business by adopting a range of marketing ideologies. These channels are focused on integrated technologies to offer customers complete convenience while purchasing various products, including snack bars. For instance, the concept of drone delivery has been around for many years in Australia. In 2022, the Supermarket chain 'Coles' became the first major Australian retailer to offer drone delivery directly from their stores to customers’ homes. The service provides customers with easy delivery options and offers various grocery items, including snack bars.
