While cereal bars are in no way unpopular in the current US climate, analysts at Mintel predict that a huge boom in innovation in recent years leaves little room for manoeuvre.

The value of the market is set to hit $1.7bn by 2012, but the percentage increase is small compared to growth experienced in the segment between 2002 and 2006.

According to earlier Mintel analysis, the market had already reached the $1.3bn mark in 2006, after massive growth of 43 per cent recorded for the four years previously.

Manufacturers are also facing stiff competition from other snacks that consumers regard as healthy, in particular 'better-for-you' chips or crisps, cheese snacks, and nuts and seeds - the latter increasing 37 per cent since 2002 in terms of net sales, the analysts said.

Manufacturers must therefore not rest on their laurels but work on honing products for particular markets, Mintel said.

"With high rates of penetration and not a lot of room for price increases, the industry needs to find ways to increase frequency of consumption," said market analyst Joanna Peot.

Groups who purchase cereal bars on a regular basis include children under twelve, women, young people aged 18 to 34 and Hispanic consumers.

Among these key groups granola bars are the most popular type, eaten by three quarters of respondents, many of whom also showed a liking for different tastes and textures such as sweet, chocolate, fruit and nuts.

Mintel suggests that adding extra vitamins and proteins to cereal bars could also be a wise move, as consumers generally view fortified snacks as being 'extra healthy'.

Peot added that companies could then market these products specifically at their target audience.

"For example, marketers may help their products stand out to educated working women by offering a free week of boot camp in a beautiful sunny location, or a month of food prepared in their home by a personal chef," she said.

Alternatively, companies could target the younger generation through internet promotions such as free music downloads.

Despite worries over the future of the market, several food companies worldwide have attributed increased profits to strong snack or cereal bar sales over the past twelve months.

In September 2007, UK-based manufacturer Glisten said that net fruit and cereal snack sales for the year ending 30 June 2007 were up to £28.4m (€40m) from £23.7m (€33.4m) last year, while sales within the confectionery division were down to £30.4m (€42.8m) from £31.9m (€44.9m).

Similarly, US-based General Mills said that increased market share of some of its healthier snacks, such as Nature Valley grain snacks and Fiber One bars, helped boost overall sales in the US during the first financial quarter ended 26 August 2007.

Sales went up 16 per cent in the US retail segment snack division in the company's first fiscal quarter, adding to an overall net sales increased of $3.07bn (€2.2bn).