11 minute read
Category Outlook
On the comeback trail
BARS DOLLAR SALES
NUTRITIONAL/ INTRINSIC HEALTH VALUE
BREAKFAST/ CEREAL/SNACK
GRANOLA
ALL OTHER SNACK/GRANOLA
Latest 52 weeks ending Aug. 8, 2021 Source: IRI DOLLAR SALES ($ IN BILLIONS)
$3.18
$1.69
$1.37
$0.32 % CHANGE VS. A YEAR AGO
-1.8%
7.4%
-7.4%
44.9%
Sally Lyons Wyatt | EVP and practice leader | IRI
After months of stagnation, the world is steadily coming back into motion. This return to mobility is also a reflection of how bar consumption is being reestablished as people are returning to out-of-home activities such as school, work, sports and play. Largely bought and consumed for convenience, bars became somewhat obsolete as consumers were forced to curtail the activities that fuel on-the-go lifestyles, making 2020 a difficult year for the category.
But just as bars help fuel resiliency in busy lifestyles, these manufacturers also demonstrated their own tenacity by shifting more business online. In 2020, e-commerce exerted never-before-seen dominance as digital retailers had to quickly embrace a new way of business practically overnight.
Shifts in buying habits during the pandemic’s prime months caused e-commerce to grow more than ever as consumers opted to take their food purchasing online. With people spending more time online for school, work and social hours, marketers found an advantage in optimizing content to housebound consumers. Search engine-optimized ads attracted eyeballs, and through customized searches, consumers discovered the ability to align specific functional benefits and personalized diets with the foods they purchase.
For some smaller and entrepreneurial companies, the shift to online helped lower the barrier of entry within the category. With more equitable digital resources, emerging players could better compete without the traditional costs of a brick-and-mortar launch, said Sally Lyons Wyatt, EVP and practice leader for IRI. Midsize and large companies also successfully leveraged the online space by staying in front of consumers with a range of web ads and social media engagement.
Although online engagement and e-commerce show few signs of slowing, a return to mobility is once again a prime driver of growth within the category. IRI saw volume sales rise as vaccinations increased YTD 2021. That said, overall dollar sales for the 52 weeks ending Aug. 8 were $6.27 billion, a -0.7% change vs. a year ago. Unit sales were $185 billion, a -7.4% drop from the previous year.
All segments except granola bars realized both dollar and volume growth YTD. Omnichannel (brick-and-mortar and e-commerce) dollar sales in the category grew 6.4% YTD 2021 with brickand-mortar accounting for 81% of dollar share, driving 2.7% growth, while online accounted for the remaining 19% dollar share at a 25.3% increase.
In what is consistently a very competitive category, there is no shortage of options for those looking for healthy or permissibly indulgent bars. Within the category, consumers benefit from a growing list of alternatives and options that align with their specific functional and/or dietary needs. Trends within the category include heat-and-eat; refrigerated; infusions; ingredients that are sustainable, functional, upcycled or with reduced carbon emissions, plantbased proteins, collagen and alternative sweeteners; and bars focused on Top Nutritional/Intrinsic Health Value Bar Manufacturers and Current Dollar Sales ($ in millions)
QUEST NUTRITION LLC: $249.12
THE SIMPLY GOOD FOODS CO: $301.61
GENERAL MILLS INC: $319.29
Latest 52 weeks ending Aug. 8, 2021 Source: IRI CLIF BAR & CO: $764.22
KIND LLC: $271.78
KIND LLC: $90.70
PRIVATE LABEL: $106.89
MCKEE FOODS CORP: $107.99
Latest 52 weeks ending Aug. 8, 2021 Source: IRI GENERAL MILLS INC: $581.52
QUAKER OATS CO: $361.09
specific dietary needs, children and dayparts.
As convenience maintains a dominant role in the consumption of bars, Food Navigator USA pointed to growing desire to use bars at multiple times during the day.
Millennials, the primary consumers of bars, are driving interest in high-protein snacks that provide satiety and work as meal replacements, according to Glanbia Nutritionals.
Mordor Intelligence found millennials use snack bars as a meal replacement at least once a week. And USDA indicated that American consumers spend more than half of their food budget on convenient foods, including snack bars, with consumers scanning labels for ingredients that are recognizable, including organic and reduced sugar.
Euromonitor reported that consumers equate avoidance of sugar with a desire to increase general wellness and a feeling of healthiness. The long-term macro health trend finds 53% of consumers eating less sugar as a preferred method of weight loss. Bars with “no sugar added” claims have grown 21.4% in dollar sales. Products with “less sugar” claims show slight growth at 2.4%.
Growing awareness of the link between food and health is also promoting innovation around plant-based and protein ingredients within the category. Bars aligning with a high-protein diet are driving dollar growth of 5.4%, and bars more friendly to plant-based diets are up 5.6% in dollar sales, according to IRI. Popular plant-based proteins include oat, rice, peanut and almond.
For consumers looking to do good for themselves and for the planet, there are Top Breakfast/Cereal/Snack Bar Manufacturers and Current Dollar Sales ($ in millions)
SMALL PLANET FOODS INC: $142.74
PRIVATE LABEL: $188.72
GENERAL MILLS INC: $188.93 KELLOGG CO: $670.19
KIND LLC: $241.93
Latest 52 weeks ending Aug. 8, 2021 Source: IRI
a host of bars tailored to highlight key sustainability practices. Options touting sustainability attributes like recyclable packaging or B Corp. certification have increased dollar sales YTD, whether comparing sales to a year ago or 2019. Bars promoting recycled packaging or certification by Rainforest Alliance are also growing dollar sales YTD vs. one year ago. While sustainability messaging effectively connects with consumers, not all sustainability claims are realizing growth.
“This doesn’t mean a decline would correlate to the sustainability message, but the message is not enough for these products to increase sales,” Lyons Wyatt stated. “Manufacturers and retailers need to stay in tune with consumer preferences and then optimize packaging, labeling, websites and messaging to reach sustainably focused audiences most effectively.”
Looking forward, Lyons Wyatt predicted e-commerce will continue to drive growth for the category and for select bar segments in brick-andmortar. Mordor Intelligence predicted the category will grow at a CAGR of 4.5% from 2016-2026.
Additionally, agility and differentiation will be key to how bar manufacturers will distinguish themselves in this largely saturated category and maximize their growth potential. Using paid search, social media and shopping apps aligned to primary product attributes and nutritional benefits can further assist in building an online presence and driving consumers to specific bar brands, Lyons Wyatt concluded. CB
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clean-label freshness
Freshness contributes a lot to the eating quality of a loaf of bread: softness, resilience, moistness. And consumers expect that loaf to retain those characteristics longer. In fact, 70 percent of shoppers would like in-store bakery bread to stay fresh up to five days longer, and 90 percent would like commercial bread to remain fresh up to 14 days longer. In addition to wanting extended freshness, consumers are very aware of the food they are eating. “Consumers are seeking comfort knowing that foods they buy are genuinely safe to eat and authentic, real and fresh, ” said JoAnn Rupp, global insights manager at Corbion. “Clean-label claims, positionings and ingredients they recognize on the packages of the foods they buy give them some assurance that those foods are good for them to eat. ” Sixty-two percent of consumers agree with the statement, “I am what I eat; I pick my food carefully, ” according to Ms. Rupp. To do this, they read packaging labels carefully, looking for greater transparency from brands.
The science behind fresh
These consumer demands leave bakers with the task of extending shelf life and freshness markers like softness, resilience and moistness in a cleanlabel way. The natural anti-staling power of enzymes make it easier to walk this tight rope of clean label and longer-lasting baked goods. As bread ages on the shelf, it begins to lose those three appealing characteristics: softness, resilience and moistness. This is due to starch retrogradation. During the baking process, starches in the formulation, mainly amylopectin, absorb water, swell and gelatinize. This creates much of the tender eating quality in bread. However, after baking, the starch begins to lose some of the moisture it has absorbed, causing the starch granules to recrystallize. This process, known as retrogradation, is the main source of staling and causes bread crumb to become firm, dry and brittle. This process cannot be reversed, only delayed. Enzymes can slow the process down. “Enzymes help change the structure of starch to slow down the staling process and prevent recrystallization, ” said Jesse Stinson, director, technology, Corbion. These natural proteins cleave long-chain starches into shorter chains, which retrograde more slowly. This, in turn, delays staling and helps the bread crumb stay softer longer. “Recent advancements in enzyme technology have also made it easier for bakers to ensure other aspects of freshness, including softness, moistness, resilience, tenderness and shelf life, allowing them to deliver a premium baked good product, ” Ms. Stinson explained.
A freshness solution for every bread
Bakery customers and consumers are looking for longer lasting freshness and friendlier labels with
This model shows how diff erent blends in This model shows how diff erent blends in the Ultra Fresh portfolio exhibit the Ultra Fresh portfolio exhibit freshness indicators of freshness indicators of softness, resilience, softness, resilience, shelf-life extension shelf-life extension and more. and more.
Shelf-life extension p Sugar Replacement
5.0 4.0
l a c e m e n t 3.0 2.0 R e 1.0 S u g a r
Gumminess Softness
Ultra Fresh Premium Advantage Ultra Fresh Supreme 400 Ultra Fresh Classic 75 Ultra Fresh Premium 250 Moistness
recognizable ingredients. With Corbion’s Ultra Fresh® portfolio, bakers can deliver on those demands while minimizing food waste, enhancing product quality and increasing stock levels at retail — critical needs during the current pandemic. “We can tailor the enzyme solutions to address all aspects of freshness, including issues with softness, moistness, resilience, tenderness and shelf life, ” Ms. Stinson said. “We can also customize our solutions based on the desired texture and tolerance to ensure consistent quality throughout production. Working side by side with our customers allows us to identify and implement the most fitting solutions for their specific application and consumer needs. ” For premium breads, Corbion offers four solutions:
410X, Ultra Fresh Supreme 400 and Ultra Fresh Premium 220 with Organic Flour. Premium Advantage is Corbion’s most advanced freshness technology, providing a shelf life of more than 21 days for packaged bread. While improving shelf life and eating quality, this solution also enables formula sugar reduction. Supreme 410X contains the added bonus of mold inhibition, while Premium 220 optimizes freshness in extreme staling conditions such as refrigeration or freeze-thaw products. Premium 220 with Organic Flour offers bakers a balanced freshness solution that can be used in organic breads, rolls and buns. When it comes to conventional breads, Ultra Fresh Premium 1650 not only improves freshness but it also improves softness and provides a smoother, softer crumb. It is suitable for high-moisture doughs such as English muffins and high-fiber breads. Ultra Fresh Premium 250 provides a balance of freshness, softness, resilience and moistness in both white and wheat breads. Corbion also offers Ultra Fresh Classic 150 for value breads. This blend of enzymes not only provides a fresh solution but also contributes to a soft resilient crumb structure without gumminess. With an experienced team of experts and a portfolio packed with clean-label anti-staling ingredients, Corbion enables bakers to delight consumers using functional ingredients from nature that consumers feel good about, while delivering the consistent, high-quality shelf life that fits todays lifestyles. ENZYMES createbetter bakedgood s f r om creationto consumption
enzymes noun
Definition of enzymes Protein-based bio machines that speed up chemical reactions. They exist in all living organisms.
WHY ARE ENZYMES IMPORTANT FOR BAKING? • Strengthen dough • Increase dough absorption • Reduce dough mixing time • Increase bread volume • Increase bread quality • Reduce bread staling and increase shelf life • Reduce ingredient costs • Strengthen dough• Increase dough absorption • Reduce dough mixing time • Increase bread volume • Increase bread quality • Reduce bread staling and increase shelf life• Reduce ingredient costs
