Vegan Protein Bar Market Report

The main driving factor behind the demand for vegan protein bars is the ready-to-eat market. This is because consumers are getting more health-conscious and require healthy, convenient snacks. Therefore, RTE vegan protein bars are an easy solution as they provide plant-based protein with easy consumption. Data given by the International Journal of Business, Management & Economics states that the growth rate for the global RTE in the forthcoming five years is anticipated to rise by 4.3 percent compound annual growth rate up to 2025; additionally, a growing market demand for global convenience foods has also propelled the demand for protein bars, similar to ready-to-eat foods the global convenience food market, will grow with a compound annual growth rate of 4.4% by the end of 2025.

Adding vegan collagen has now become a major growth driver for the vegan protein bar market. Vegan collagen, which is acquired from plant-based sources, such as algae or soy, appeals to health-conscious consumers who are looking to shun animal-based collagens. The growing demand for vegan collagen in protein bars is opening the market, as it is plant-friendly for consumers looking to improve their wellness without going against their ethical choices.

Companies are capitalizing on this by adding vegan collagen to their products, making protein bars not just a snack but a wellness supplement. Companies such as Jade & Joy, and VeCollal have recently launched their plant-based vegan bars which consist of vegan collagen. With the awareness and recognition of the benefits provided by collagen, this technology is gaining more customers as it pushes the vegan protein bar market forward.

Added sugars and fillers are increasingly becoming a cause of concern to consumers who opt for healthier and more natural alternatives. Some vegan protein bars contain high amounts of added sugars to enhance taste but undermine their nutritional value and, in turn, cause health issues such as weight gain and blood sugar spikes. Other fillers include artificial flavorings, preservatives, and thickeners. Fillers enhance the texture and shelf life of products. Such additives might not make the bars that appeal to the health-conscious consumer, who is now increasingly demanding clean-label, whole-food-based products. As such, added sugars and fillers reduce the attractiveness of vegan protein bars in a fast-emerging market of clean and functional nutrition.

Flavor taste and texture are the main factors that are acting as potential barriers to the way of acceptance of vegan protein bars by consumers. Most of the plant-based bars receive negative reviews concerning having an unpleasant taste or having a chalky texture because of using proteins such as pea, soy, or rice. These are plant proteins that do not yield a product with a fine texture and a more neutral flavor like whey proteins and therefore give rise to products that can be either perceived as gritty or excessively dry.

Furthermore, some of the vegan protein bars can have a lingering aftertaste caused by fibers or certain plant extracts, preventing most potential buyers from partaking. Therefore, companies have to improve on flavor profiles and texturing while making competition succor to other existing brands, especially since these do not include vegan products. However, this continues to limit the growth of markets that would have considered it due to consumers who are particular with the taste.

Additionally, the major obstacle that could affect the success of vegan protein bars is the poorer quality of plant proteins compared to animal proteins. Many plant proteins such as those derived from peas, rice, and hemp have lower amounts of certain amino acids, which are specifically required for muscle repair and muscle growth. Hence, these protein sources are normally termed "incomplete" because they are deficient in one or more of the nine essential amino acids the body cannot synthesize on its own.

This leads to a possible hurdle for vegan protein bars in trying to narrow the gap between their nutritional profile and the much-accepted variant, whey, or casein-and-milk synthesized bars. Thus, consumers often have little faith in it in terms of the nutrients to be derived from it concerning their fitness goals, which lowers acceptability in itself. Moreover, although blending different plant proteins can redress the amino acid profiles, this complicates matters concerning taste and texture changes, all of which have to be addressed in product development.

To combine the indulgent flavor of Lotus Biscoff with the nutritional benefits of a protein-packed snack in February 2024, Trek teamed up with Biscoff to launch a new Trek Power Biscoff protein bar, the only protein bar to contain 100% real Biscoff in collaboration with the biscuit brand. The partnership combined Biscoff's popular brand and market appeal with the growing consumer demand for functional protein bars. Each bar contained 15g of plant-based soya protein, coated in vegan chocolate and filled with a layer of Biscoff spread. The bars had rolled out across the UK grocery channel from 14 February in a single (55g) and multi-pack format (3x44g). The innovation had come at a time of significant growth for Trek, which had reported 20.4% growth and £4.6 million RSV year-on-year.

To meet the growing demand for plant-based, sustainable snack options among health-conscious consumers in May 2023, Nestlé launched a new plant-based range of its YES! snack bars. Each bar contained 10 grams of plant protein from nuts and peas to give customers power when on the go. The plant-based protein bars in the new collection are all wholesome ingredients high in fiber, gluten-free, and have no artificial colors and preservatives. This chocolate is a new bar coming in two delicious flavor combinations-Almond, Peanut, and Double Dark Chocolate, and Cashew, Blueberry, and Dark Chocolate.

Chocolate with cocoa that comes sustainably certified by the Rainforest Alliance. As per Nestlé's research, most protein bar buyers now want natural protein sources without additives. More and more customers prefer plant protein to fuel their active lifestyles and busy days. YES protein bars tapped into an emerging trend towards pea protein without any compromise between 'healthy' and 'tasty', providing a new option to those consumers looking for more innovative plant protein alternatives.

To satisfy the fast-rising demand for high-protein, plant-based snacks targeted to health-aware consumers. In August 2023, PB2 Foods announced new product releases distributed to all Kroger outlets. PB2 Performance Plant Protein Bars in Chocolate Peanut Butter and Chocolate Almond flavors. With 13-15 g of protein per serving and powered by peanut and almond powders, the company stated that PB2 Performance Plant Protein Bars provided a healthy combination of natural, better-for-you ingredients that delivered on taste.

The protein bars were made with 100% gluten-free, vegan, kosher, and non-GMO ingredients. Each Chocolate Peanut Butter Bar contained 190 calories, 15 g of protein, 3-g of dietary fiber, and 4 g of sugars. The protein bars joined the PB2 Performance line of complete plant-based protein powders, including Peanut Protein with Dutch Cocoa and Almond Protein with Madagascar Vanilla.

North America is considered to be a promising market for vegan protein bars as it is increasingly gaining popularity for plant-based products. According to the Plant-Based Foods Association, there was an increased demand for vegan products in 2022 by 6.6% against the previous year, and the U.S. retail market for plant-based foods was valued at around US$ 8.1 billion. Plant-based protein bars also recorded significant leaps with a growth of 13% in 2022. The plant-based bars in the U.S. market at that time were valued at US$ 202 million approximately.

Adding up the data from The Good Food Institute, it was said that 60% of U.S. households bought plant-based products in 2023 and that plant-based foods occupy 1.1% of the overall retail food and beverage market. Most probably, this will continue to rise in the years to come with rising consumer interest in veganism regarding increasing demand for protein bars among U.S citizens.

The growing concern about health, environment, and ethics-welfare of animals has made the rise in demand for plant-based food products in Europe quite sharp. Thus, it has now become a very lucrative market for plant-based products in Europe. In its report, The Good Food Institute announced that the retail sales of plant-based products in Europe reached US$ 5.6 billion as of 2023, up by 5.5% compared to 2022.

Vegan ready meals, accounting for around 0.8% of total sales, which is about US$ 46 million, hold a volume share of 5.1 million kg. These increasing consumption levels of plant-based foods push a very lucrative vegan market. Among the many anticipated rapid growth rates is the category involving vegan protein bars, which many consumers tend to consume more as they switch to vegan and plant-based diets. This indicates the growing preference for healthier, sustainable, and ethically sourced foods.