The global granola market is estimated to reach USD 4 billion in 2024. It is anticipated to grow at a CAGR of 4.1% during the assessment period and reach a value of USD 6 billion by 2034.
| Attributes | Description |
|---|---|
| Estimated Global Granola Market Size (2024E) | USD 4 billion |
| Projected Global Granola Market Value (2034F) | USD 6 billion |
| Value-based CAGR (2024 to 2034) | 4.1% |
Granola demand is surging as granola breakfast cereals and bars gain in popularity. Traditionally, North America and Europe have been bastions for breakfast cereals and these regions represent significant growth opportunities for market players. Granola’s healthy nature is also a significant contributing factor to the rise in demand as well.
The 2023 value of the granola market was USD 3.7 billion, while in 2024 the value is estimated to be USD 4 billion, a Y-o-Y growth of 8%. When it comes to the flavor, chocolate is the most sought-after, expected to account for 34% of the market share in 2024.
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Granola is emerging as one of the most common ingredients in breakfast cereals. The healthy nature of granola is seeing the health-conscious population seek breakfast cereals made from it at a higher rate.
North America and Europe lead the way when it comes to having cereals for breakfast. Cereals are considered a staple of breakfasts in these regions. Hence, these regions rank high in terms of spending on breakfast cereals, leading to increased spending for granola cereals too.
While North America and Europe are regions where breakfast cereals have a hold on the populace, the increasing Westernization is also seeing Asian nations adapt breakfast cereals at a higher rate. Hence, there is increased growth potential in the Asia Pacific. The following table highlights the growth of breakfast cereals in key countries around the world:
| Countries | Demand for Breakfast Cereals |
|---|---|
| United States | Largest market worldwide for breakfast cereals |
| United Kingdom | Second-largest market worldwide for breakfast cereals |
| China | Increasing urbanization leading to greater recourse to breakfast cereals |
| Japan | Increasing preference for Western breakfast options |
| Canada | High per capita consumption |
Granola is noted for its role in promoting health and well-being. As consumers look to curb the intake of unhealthy and fattening food, the option of granola is becoming more prominent. Granola is also popular among people who follow gluten-free diets.
Producers are also increasing the keto content of granola, adding another dash of healthiness to the products. Hence, the production of grainless and keto-friendly granola products has surged. The following table highlights some key brands and the keto-friendly granola products they produce.
| Company | Product |
|---|---|
| Riverside Natural Foods | Good to Go Grain-Free Granola |
| Love Grown Foods | Line of keto-friendly, gluten and grain-free granolas |
| NuTrial | Keto Nut Granola |
| Purely Elizabeth | Grain-free apple walnut granola |
| Mawa | GrainFreeNola |
The demand for healthy food is complemented by the clamor for natural and minimally processed food. Made from natural ingredients like oats and nuts, granola satisfies consumers who want to eat more organically.
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As the working class grows worldwide, the adoption of convenience food is multiplying rapidly. Granola is incorporated into various convenience foods, from breakfast items to start the day or meal toppers to end the night. Consumers leading busy lifestyles are hence convinced by the easy-to-eat nature of granola products.
A key factor in the increase in demand for convenience food has been the growing urbanization worldwide. This urban population generally leads busy lifestyles, often preferring readily consumable products like granola bars and single-serve granola packs. The following table highlights the urban population and growth rate in major countries.
| Countries | Urban Population |
|---|---|
| United States | 83.3% |
| China | 64.6% |
| Japan | 92% |
| Germany | 77.8% |
| India | 36.4% |
Rather than being strictly limited to traditional ingredients like nuts and oats, granola makers in the artisanal and premium space are producing niche products. These niche products not only offer a distinct taste to consumers but are also visually appealing. The demand for artisanal granola has also sparked growth for small-time producers who have distinctive products.
The following table provides examples of artisanal brands and the distinctive products they sell.
| Brand | Products |
|---|---|
| Addicted-Freshly Baked | Contains no preservatives and added sugar, sweetened with fruit puree and organic honey. |
| One Fifity Peel | Slow-roasted granola with gula melaka and extra virgin coconut oil. |
| Crust n Clusters | Fit as a Fiddle Granola, Confetti Felicity Granola, and other artisanal varieties. |
| RAD ROUTINE | Ghana Haze Granola, made with chocolate chips |
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Though a number of sugar-free versions of granola are available, a significant number of granola products contain added sugar. With growing distaste for sugar, the potential of granola products with added sugar is limited. The use of artificial sweeteners is also a repellent for a sizable subset of health-conscious consumers.
The sugar content of granola has influenced consumers to adopt other healthy breakfast foods such as oatmeal and quinoa flakes. Another alternative consumers have turned to is making granola at home. While suppliers have the opportunity to supply consumers with DIY granola kits, home-making also cuts into the sales of finished granola products.
Granola cereals are often pricey as compared to traditional breakfast cereals. According to the Food and Agriculture Organization (FAO), almost 36% of the world’s population were unable to afford a healthy diet in 2022. Hence, price sensitivity is a significant obstacle in the path of the market.
However, with the production of economically priced granola bars and cereals, stakeholders are making the product more affordable. Through online means, market players are also offering discounts, buy-one-get-one offers, and more. Hence, manufacturers are actively working towards making the product more accessible to the general populace.
In non-Western countries, granola is often regarded as a luxury product. Instead, the preference is given in these countries to local breakfasts and healthy products. A way through which manufacturers are overcoming this obstacle is through infusing granola with local ingredients. Ingredients like matcha, turmeric, and tahini are being incorporated into granola products to make them less Westernized and more local.
Granolas come in various flavors such as vanilla, chocolate, coconut, strawberry, banana, and others. Among these, chocolate is the most popular of the flavors.
Chocolate flavor is expected to account for 34% of the market share in 2024. Flavors provide a sweetness to the granola bars that makes them more palatable for consumers. Chocolate is generally recognized to be the sweetest of the flavors.
Chocolate granola bars are a popular snack item and are marketed extensively for providing indulgence while still being healthy. Brands like Monsoon Harvest, Nature’s Valley, and Yoga Bar provide a wide variety of chocolate granola bars that are popular among consumers. Diversity in chocolate, such as dark chocolate, chocolate chips, and more is also being embraced by both manufacturers and consumers.
Granola comes in the form of bars and cereals. Cereals continue to be the top product type due to their popularity as a breakfast staple and increasing adoption in Asian nations. However, bars are also on the up, expected to account for 23% of the market share in 2024.
Granola is used in the making of salads, cookies, cupcakes, gratins, trail mixes, puddings, breakfast baked goods, fruit crisps, and more. The product is employed majorly in the making of breakfast baked goods such as muffins and biscuits.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Canada | 7.5% |
| China | 6.2% |
| United Kingdom | 6.1% |
| Spain | 6.6% |
| United States | 6% |
The United States granola market is estimated to advance at a CAGR of 6% over the 2024 to 2034 period. As a staple of breakfast cereals, granola enjoys wide-ranging popularity in the United States. Granola bars too are popular among both children and adults in the country.
In such a case, where granola has established itself in the daily life of American consumers, brands face the challenge of standing out. Artisanal brands like KIND Snacks and Purely Elizabeth stand out by introducing new innovative products. For instance, in January 2024, Purely Elizabeth launched the Cookie Granola. Hence, product differentiation is a key strategy for stakeholders in the United States.
The granola market in China is expected to register a CAGR of 6.2% from 2024 to 2034. Obesity has become a major problem in China. According to the 2020 Report on Chinese Residents Chronic Diseases and Nutrition, about half of Chinese adults are overweight, while the number for school-going children is 20%. Efforts have been steeped up to reduce the problem.
The desire to eat healthier is sparking the popularity of granola products in the country. For instance, Japanese brand Calbee’s Frugra and Mygla granola products are popular among Chinese consumers. With their focus on dietary fiber and composition from ingredients like oats, rye, and coconuts, these products are satisfying the cravings of Chinese consumers while still remaining healthy.
The granola market in Spain is set to progress at a CAGR of 6.6% from 2024 to 2034. Spain’s vibrant culinary culture and increase in snacking trends are providing a myriad of opportunities for market players. Foreign players are especially taking advantage of the Spanish population’s propensity to experiment with food.
For instance, French brand Carrefour has launched insect-based granola bars in Spain. Meanwhile, PepsiCo’s more traditional Quaker Cruesli granola cereal is also enjoying popularity in the country. Hence, Spain is set to be a lucrative country for the market in the coming years.
Market giants like General Mills, Kellogg’s, and Pepsico hold a sizable portion of the market share. However, the nature of the market is a fragmented one. Tier 1 companies are estimated to hold only 30% of the revenue share in 2024. Instead, it is smaller tier 3 companies that are set to hold the biggest share, accounting for half of the revenue in 2024.
The market is diverse due to the presence of companies that concentrate on local demand, giving more than a fair fight to market giants. For instance, in the United Kingdom, Jordans and Rude Health are popular local brands. Supermarkets too sell granola of their own making, for instance, Whole Foods’ 365 Everyday Value and Tesco Finest Granola.
The competitive nature of the market allows for artisanal brands to make their mark. By concentrating on keto-friendly, grain-free, and other niche varieties, artisanal brands such as KIND Snacks and Purely Elizabeth are flourishing.
Based on the product type, the market is segmented into bars and cereals.
Granola flavors include vanilla, chocolate, coconut, strawberry, banana, and others.
Applications of granola include salads, cookies, cupcakes, gratins, trail mix, puddings, breakfast baked goods, fruit crisps, and others.
The market is analyzed region-wise, including North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East and Africa.
The market’s value for 2023 was estimated to be USD 3.7 billion.
The market is predicted to reach a size of USD 6 billion by 2034.
The market is anticipated to be valued at USD 4 billion in 2024.
The market is predicted to witness a CAGR of 4.1% during the forecast period.
Canada is set to be a promising country, with a CAGR of 7.5% over the next ten years.
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Granola Market
