The global Meal Kit Delivery Services Market is valued at USD 15.9 Billion in 2022 and is projected to reach a value of USD 51.2 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 18.2% between 2023 and 2030.
The COVID-19 pandemic altered people's food consumption patterns, including a rise in the usage of meal-kit delivery services. A national survey of U.S. adults was conducted between July 2020 and September 2020 to define new users of meal-kit services during the pandemic and investigate relationships between new usage of meal-kits and dietary behaviors. In urban areas, 90.1% of new meal-kit users were under the age of 55, and 82% of them said they had kids in their houses. Current SNAP members made up more new users (32.8%) than never users (17.1%) till now.
The COVID-19 pandemic has presented a tremendous opportunity for the Meal Kit Delivery Services market, as nearly all restaurants, lodgings, and hotels have been closed worldwide. To increase their immunity and maintain a balanced diet, people have begun focusing more than ever on a healthy diet. As a result, more individuals are seeking healthy and simple meal options. Most Americans intended to keep their meal kit subscription purchase habits the same due to COVID-19. In contrast, 10% of respondents said they would be less inclined to buy a meal kit. Sixty-two percent of respondents said they had no plans to buy more or less.
Meal Kit Delivery Services Market Size, 2022 To 2030 (USD Billion)
Millennials' increasing preference for home-cooked and chef-prepared cuisine is a significant factor driving market expansion. Generations Y and Z are adopting and utilizing the delivery service at an increasing rate. The cost-effectiveness of home-cooked dishes drives the rising demand for the product compared to takeout and home delivery services. According to a survey by HUNTER in April 2020, 54% of American consumers cook more frequently than in the past, while 22% order more frequently prepared meal packages. Dining in is gaining popularity over dining out. Boomers and millennials have a growing preference for remaining in and cooking or ordering in rather than dining out. Consumers are also eating less at restaurants and preferring to dine at home. The attitudes and behaviors of the two greatest generational cohorts, such as baby boomers and millennials, are one of the major contributors to this transition. While the number of millennials has surpassed that of baby boomers, boomers remain a large population, and their behavior significantly impacts the home culinary market.
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The heat-and-eat segment has been gaining traction among United States consumers as several delivery service companies have launched single and multiple servings for consumers to purchase. For example, domestic cuisine is less expensive than restaurant food. In addition, the product's availability has made domestic dishes more time-efficient than takeout and home delivery services. Preparing food at home also allows for complete control over the ingredients, which benefits those allergic to or attempting to avoid specific food ingredients.
- North America generated more than 48.5% of revenue share in 2022
- Asia Pacific is anticipated to record fastest CAGR of 17% from 2023 to 2030
- By Offering, the Cook and Eat Meal Packages segment accounted for more than 60.1% of revenue share in 2022.
- By Service, the Single Delivery Systems segment registered more than 58% of revenue share in 2022.
- By Platform, the Online Platform segment recorded the highest market share in 2022.
The Meal Kit Delivery Services market has both positive and potential negative impacts on the economy. It supports employment and income generation across various sectors, encourages sustainable food practices, and offers cost-saving options for consumers. The Meal Kit Delivery Services aid employment through direct staff employment in fulfillment centers, partnerships with delivery partners, customer service roles, and collaborations with local food producers. However, addressing environmental concerns is crucial to ensure the long-term sustainability of the market. The combination of customer-centric strategies, operational efficiency, sustainability practices, innovation, and strong partnerships can contribute to the long-term sustainability of the Meal Kit Delivery Services market.
Top Market Trends
- Increasing Urbanization and Growing Popularity of Home-Cooked Meals: Migration of rural residents to main urban centers will likely increase demand for meal package delivery services. People who relocate to urban locations for employment have less time to purchase supplies and prepare meals. Additionally, nutritious and convenient meal options may only sometimes be readily available. Meal package delivery services provide a solution by delivering pre-portioned ingredients and recipes directly to the customer's door. In urban areas with limited space, meal package delivery services can provide a space-saving alternative to traditional grocery purchasing. Due to increased investment in infrastructure development, these services are becoming popular among older generations in urban and rural areas. Thus, shortly, the increase in urban population is anticipated to stimulate the development of the meal package delivery services market.
- Increasing Prevalence of Home-Cooked Meals: In several countries, the emergence of the COVID-19 pandemic led to the closure of restaurants. This resulted in a rapid increase in delivery and takeout orders. Major restaurants began outsourcing their operations to phantom kitchens to meet this demand. Ghost kitchens produce only food for delivery and have no customer-facing or dining areas. These facilities have lower administrative expenses than traditional brick-and-mortar eateries. They only require a commercial kitchen space and do not require a dining area. These facilities are optimized for takeout and delivery orders. This improves operational efficiency and speeds up service. In the coming years, these advantages are anticipated to increase the number of phantom kitchens, thereby expanding the market for meal box delivery services.
- Rising Population of Working Class: According to the most recent market trends for meal package delivery services, the employed customer segment is anticipated to lead the industry during the forecast period. Frequently, a strenuous work week leaves employed people with little or no time to cook or purchase. Diet-conscious individuals can support a healthy lifestyle by utilizing meal package delivery services, which typically provide healthy meal options. Therefore, employed consumers favor meal packages to circumvent the cooking challenge. Meal packages with pre-measured ingredients reduce food waste compared to traditional grocery purchasing. This can be an attractive feature for environmentally conscious individuals. Meal package delivery services offer various meal options, including vegetarian and globally-inspired options, which may appeal to individuals seeking novel and varied meal options.
The global Meal Kit Delivery Services market can be categorized on the following: Offering, Service, Platform, Meal Type, and Region. Based on Offering, the market can be categorized into Heat & Eat and Cook & Eat. Additionally, based on Service, the market can be split into Single and Multiple. However, based on Platform, the market can be differentiated into Online and Offline. Furthermore, based on Meal Type, the market can be segregated into Vegan, Vegetarian, and Non-Vegetarian. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Based on Offering
Cook and Eat Meal Packages to Account for Largest Market Share Due to Increasing Prevalence of Gourmet-Styled Meals
The Cook-And-Eat meal package delivery service held a larger market share in 2022 and is projected to maintain its dominance throughout the forecast period. The dominance is attributable to the appeal of gourmet-style domestic cookery among young people. It also allows testing new recipes or gourmet dishes without additional restaurant costs. These recipes require more time than the heat-and-eat segment but save significantly more time than traditional cooking methods. Additionally, it saves a great deal of time going to supermarkets and grocery stores because all the ingredients are pre-portioned in the exact quantity needed for one or more people. However, the heat-and-eat segment is expected to grow more rapidly over the forecast period. Heat-and-eat meal package delivery services provide consumers with chef-prepared meals. On the website, consumers can select their ingredients for a dish or one of the available recipes.
Based on Service
Single Delivery Systems to Sell More Meal Kits Owing to Rising Working Population
In 2022, the Single Delivery service generated most of the global revenue. Bachelors who are studying, pursuing a degree, living away from their families, working, or engaged in a specific profession and cannot devote sufficient time to cooking will find the singular delivery service segment extremely convenient. In addition, most of these bachelors are unfamiliar with healthful cooking techniques. Thus, service providers provide a comprehensive answer to these concerns of a bachelor. Most singles have sought a healthier diet that benefits the body and psyche. During the forecast period, the multiple-delivery service segment is anticipated to experience a higher growth rate. Families are becoming busier and more anxious as the proportion of households with two working parents rises. To alleviate this burden, households select delivery services that offer time- and labor-efficient culinary solutions.
Based on Platform
Online Platform Solutions to Accommodate for Maximum Revenue Owing to Greater Ease of Convenience
In 2022, the Online platform generated the most revenue worldwide. Companies have established online platforms that can provide client service with greater flexibility and accessibility around the clock. Most businesses offer their products through their websites to provide consumers with convenience. Customers prefer to visit websites to learn about the weekly and monthly menus and available food subscriptions instead of calling or visiting the service provider in person. It also helps businesses serve consumers across a large geographical area. During the forecast years, the offline platform is anticipated to experience a quicker growth rate. These items can be purchased from Walmart, Kroger, Tesco, and other major retailers. Due to the vast consumer base of these stores, both small and large businesses sell their products through this channel.
Based on Meal Type
Non-Vegetarian Meals to Increase their Width During Forecast Due to Increasing Awareness of Proteins and Minerals
In 2022, the Non-Vegetarian meal package delivery service held the largest market share and was anticipated to dominate throughout the forecast period. The segment's growth can be attributed to protein and vitamins and minerals such as A, B6, B12, niacin, and thiamine in meat, making it appealing to consumers who wish to incorporate lean protein into their diets. Several product delivery services offer an assortment of fresh, value-added, and nutritious meats, driving the demand for non-vegetarian meal packages. Other factors, such as increasing awareness of the benefits of ingesting non-vegetarian diets, such as fish and chicken, propel the demand for the product. The segment of vegetarian meal packages is anticipated to proliferate. One of the main reasons so many individuals adopt a vegetarian diet is that they prefer to eat an abundance of wholesome, fresh plant-based meals which offer antioxidants, fiber, and other long-term health advantages.
Based on Region
North America to Lead Global Sales Due to Increasing Awareness Regarding Pre-Cooked Meals
North America contributed the most to the market in 2022. Many consumers purchase these kits in the region to save time and effort. The product has become a healthier, more affordable alternative to pre-cooked food items sold in grocery stores, restaurants, and delivery services. In addition, companies such as Blue Apron and Sun Basket have seen a significant rise in product demand during the COVID-19 outbreak, as consumers feel safer eating home-cooked meals. In March 2020, Blue Apron saw increased demand for its meal packages, partly due to alterations in consumer behavior caused by the COVID-19 pandemic.
The Asia Pacific market is expected to have the highest CAGR during the forecast period. Due to the product's convenience and freshness, the region's market is anticipated to experience extraordinary growth. The increasing number of time-crunched consumers in the region has fueled demand for these delivery services. Japan, China, and South Korea are the region's most important markets.
The global Meal Kit Delivery Services market is highly competitive, with numerous players vying for market share. The competition stems from established players and new entrants looking to capitalize on the growing demand for convenient and healthy meal options. Major companies engage in strategic alliances, mergers & acquisitions, and joint ventures to acquire a market advantage. For instance, the availability of Blue Apron's Heat & Eat meals was increased via DashMart by DoorDash, Inc. to 11 markets involving New York City. This collaboration represents a significant possibility for the business to grow its clientele and give users access to products without a subscription.
The key players in the global Meal Kit Delivery Services market include - Blue Apron LLC (U.S.), Freshly Inc. (U.S.), HelloFresh (Germany), Sun Basket (U.S.), Relish Labs LLC (U.S.), Gobble (U.S.), Marley Spoon Inc. (Germany), Purple Carrot (U.S.), Fresh n' Lean (U.S.), Hungryroot (U.S.) among others.
Recent Market Developments
- September 2022: Freshly, Inc. debuted its first-ever plant-based prepared meal line, 'Purely Plant,' which includes six new meals featuring plant-based proteins created with clean, whole-food ingredients to meet consumers' ongoing demand for variety, flavor, nutrition, plant-based meal options, and convenience. No preparation is necessary to reheat and serve meals in three minutes.
- June 2021: Blue Apron LLC introduced a new offering on Walmart.com. Customers can buy various meal kits without a subscription from Blue Apron on Walmart.com. These meal kits include traditional menu items and recipes that everyone in the family enjoys. Blue Apron is the first and only meal-kit supplier on the Walmart Marketplace platform, which caters to millions of customers who shop there every month.
- May 2020: HelloFresh paid $277 million for Factor75, LLC. The acquisition intended to strengthen HelloFresh's position in the U.S. market and expand its national customer base.
Segmentation of the Global Meal Kit Delivery Services Market
- Offering (Heat & Eat, Cook & Eat)
- Service (Single, Multiple)
- Platform (Online, Offline)
- Meal Type (Vegan, Vegetarian, Non-Vegetarian)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- Blue Apron LLC (U.S.)
- Freshly Inc. (U.S.)
- HelloFresh (Germany)
- Sun Basket (U.S.)
- Relish Labs LLC (U.S.)
- Gobble (U.S.)
- Marley Spoon Inc. (Germany)
- Purple Carrot (U.S.)
- Fresh n' Lean (U.S.)
- Hungryroot (U.S.)
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