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Granola Market – Size, Share, Outlook, and Opportunity Analysis, 2018 - 2025

Granola Market, Granola Market Size, Granola Market Outlook
Apeksha Motghare | 04.10.2018
Granola is an on-the-go breakfast snack, which is baked and consists of oats, nuts, and sweeteners such as honey or sugar. Dried fruits such as raisins and dates, are sometimes added to granola. Granola is condensed into a bar making it easy carry for hiking, short trips or other outdoor activities. It is consumed with fresh fruits such as strawberries, bananas or blueberries, and other forms of cereal. It also serves as a topping for desserts.

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Market Dynamics

Various health benefits associated with consumption of granola such as weight management and its ability to maintain presence of healthy ingredients such as vitamins, minerals, and omega 3 is expected to be major factor for growth of the global granola market. There are numerous brands such as ConAgra foods, Nestlé that offer products containing high level of fibers that aids in weight maintenance and to maintain digestive health. Granola, induced with flax seeds, is helpful in improving digestion. The added health benefits and the growing demand for granola is a major driver that is expected to boost growth of the global granola market in the forecast period.

However, presence of herbicides in granola-based products is a major restraint negatively impacting growth of the global granola market. For instance, according to a study by the U.S.-based Environmental Working Group in 2018, a number of cereals, granola bars, and oat-based products contained glyphosate, which is found to be carcinogenic. These factors are expected to hamper growth of the global granola market during the forecast period.

Market Trends

Rising demand for vegan based products boosts demand for packaged snack food items such as granola bars among consumers on a large scale. Hence, manufactures are engaging in manufacturing a large variety of vegan granola bars. For instance, Nature Valley Crunchy Granola Bars and Earnest Eats Vegan Chewy Granola Bars are some vegan granola bars available in the market.

Market Outlook

By product type, the bars segment is expected to grow at the fastest rate during the forecast period. Granola bars consists of granola mixed with honey or artificial syrup, that is pressed and baked into a bar, resulting in the production of a convenient on-the-go snack. Granola bars are packaged using a sealed pouch for retaining its freshness as well as easy better handling for consumption at a later point.

Europe is expected to be the leading region in the global granola market in 2017 and is expected to continue its dominance during the forecast period (2018-2025). This is due to high demand for on-the-go breakfast products in the region. According to Coherent Market Insights, Europe was the largest market for on-the-go breakfast products with a market share of over 35% in 2016, and is expected to remain the leading region during the forecast period (2018-2025). Factors such as large working population, fast paced lifestyle, and high demand for packaged food, are expected to substantially increase demand for on-the-go breakfast products. For instance, according to the European Union, the economically active population in EU-28 was 245 Mn in 2016. These factors are expected to drive demand for granola in Europe during the forecast period.

Asia pacific is anticipated to be the fastest growing market for on the global granola market during the forecast period. The growth in the economy of the developing countries has increased the per capita income of the population which has altered their lifestyles in terms of feeding habits, which in turn has fuelled the market for granola. Moreover, due to the increasing working population in countries such as India, China and Japan, the need for convenience breakfast has surged significantly in these countries, thereby pushing the growth of this market.

Key Players

Key players operating in the global granola market are engaging in numerous organic and inorganic activities, in order to enhance their business presence in the market. For instance, MadeGood launched two new products in 2018, Soft Baked Mini Cookies and Crispy Light Granola in the market.

Some of the key players operating in the granola market are Sunnycrunch, Kellogg Corners, General Mills, Nature Valley, Kraft Foods Inc., ConAgra foods, Nestlé, Slim-Fast Food Co., Clif Bar & Coand, and others.

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