Meal Kit Market

Meal Kit Market Size:

The global meal kit market size reached US$ 14.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 41.9 Billion by 2032, exhibiting a growth rate (CAGR) of 12.87% during 2024-2032. The rising health consciousness among consumers, the increasing demand for culinary experimentation among the masses, changing consumer lifestyles, the rapid proliferation of smartphones, and increasing internet penetration are some of the major factors propelling the market growth.

Meal Kit Market Analysis:

• Major Market Drivers: The rising demand for convenience is driving the demand for meal kit as these kits save time on meal planning and grocery shopping. Meal kits often offer portion control and balanced diet options which is further boosting health consciousness among consumers. The demand for culinary diversity without the complexity of sourcing ingredients and the increased focus on sustainable eating practices, with pre-portioned ingredients reducing food waste, further driving the market.
• Key Market Trends: The rising shift towards organic and locally sourced ingredients caters to growing health and environmental concerns which represents one of the key trends of the market. There’s an increasing variety of dietary-specific options, like gluten-free, vegan, and paleo kits, to attract a diverse customer base.
• Geographical Trends: North America accounted for the largest region in the meal kit market growth. The increasing pace of life is leading to a demand for quick and convenient meal solutions which is driving the market growth across the region. The rising health awareness among consumers is pushing for meal kits that offer nutritional transparency and fresh, organic ingredients.
• Competitive Landscape: Some of the major market players in the meal kit industry include Albertsons Companies, Inc., Blue Apron LLC, Fresh n' Lean, Gobble Inc (Intelligent Foods), Gousto, HelloFresh, Hungryroot, MarleySpoon Pty Ltd, My Food Bag Ltd, Oisix ra daichi Inc., SimplyCook Ltd., among many others.
• Challenges and Opportunities: The market faces various challenges such as logistics costs and the need for efficient cold chain management to ensure ingredient freshness. However, the market also faces several opportunities including significant potential in expanding customer bases through tailored dietary preferences and lifestyle-specific kits (including keto, and vegan).
   

Meal Kit Market Trends:

Rising Demand for Convenience

The market is also driven by consumers seeking convenience and meal kits offering a time-saving solution by providing pre-measure, ready-to-cook ingredients which further appeals to busy households seeking streamlined meal reparation without sacrificing home cooking. For instance, the National Frozen and Refrigerated Food Association released a report detailing Americans' changing approach toward food, in December 2023, since its peak in 2020 and 2021, cooking at home has decreased slightly, but 64% of Americans are continuing to do so to save money and control their budget. Similarly, according to a survey of modern life, 61.3% are getting less than an hour per day of physical activity from activities such as how you work, yard work, commuting, or running errands. 41.9% of Americans eat at home-cooked meals four or fewer nights per week; 16.4% only do so one-two nights per week.

Growing Health and Dietary Trends

The increasing emphasis of consumers on health, wellness, and dietary restrictions is supporting the demand for meal kits that cater to specific dietary needs, including gluten-free, vegan, or ketogenic diets. This further provides balanced and nutritionally aware meal options which is further influencing the market growth. According to the “What's Trending in Nutrition” survey by Pollock Communication, 78% of registered dietitian nutritionists (RDNs) believe that consumer eating habits are shifting away from the traditional three meals a day to more frequent snacking because of the pandemic. While health is paramount as a purchase driver, the channel economy is also a significant concern. For this reason, 60% of RDNs predict greater demand for food and beverages that are affordable and value-based. According to a study by the National Centre for Biotechnology Information, most of the respondents (69.9%) reported that they absorbed a ketogenic diet for more than one month. Among them, 12.8% followed it for six to 12 months, and 7.5% for more than one year.

Significant Technological Advancements

The growing online platforms and mobile apps are making it easier for customers to customize, order, and schedule their meetings which is improving user experience and accessibility thus driving further adoption of the service. For instance, in September 2023, Albertsons Companies, Inc. unveiled the latest digital enhancements to its shoppable Meal Plans and Recipes tool available within the retailer's grocery apps and websites including Albertsons, Safeway, Jewel-Oscoa, Shaw’s ACME, and Tom Thumb banners. Designed to provide customers with culinary inspiration throughout the week while saving time and money, the meal plan feature includes a budget tracker, an expanded library of more than 8000 exclusive recipes shoppable ingredient list, and a hands-free cooking mood with step by step-by-step timer.

Meal Kit Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on meal type, offering type, and distribution channel.

Breakup by Meal Type:

• Vegetarian
• Non-vegetarian
   

Non-Vegetarian holds the largest market share.

The report has provided a detailed breakup and analysis of the meal kit market based on the meal type. This includes vegetarian and non-vegetarian. According to the report, non-vegetarian represented the largest market segment.

Non-vegetarian segment is dominating the market due to its extensive consumption of non-vegetarian food worldwide. Non-vegetarian foods white a wider variety of options, incorporating various types of meat like chicken, beef, fish, and others. This diversity leads to a greater number of innovative recipes and flavors, thereby attracting more consumers. Several consumers find preparing non-vegetarian dishes at home complex due to factors like difficulty in sourcing quality meats or uncertainty in handling and cooking various types of meat. According to the National Family Health Survey (NFHS) data by The Indian Express, in total, an overwhelming 83.4% of men and 70.6% of women in the 15-49 years age group have non-vegetarian food daily, weekly, or occasionally.

Breakup by Offering Type:

• Heat and Eat
• Cook and Eat
   

Cook and Eat holds the largest market share.

The report has provided a detailed breakup and analysis of the meal kit market based on the offering type. This includes heat and eat and cook and eat. According to the report, cook and eat represented the largest market segment.

The cook-and-eat meal kit segment is dominating the market as it provides consumers with an engaging and immersive culinary experience. The act of preparing meals from scratch allows users to learn new skills, try out new recipes, and enjoy the satisfaction of creating a meal. It also offers complete control over the freshness and quality of the food which is a significant advantage over ready-to-eat meals, where cooking processes have been completed beforehand. Cook-and-eat meal kits are considered healthier than their RTE counterparts as they tend to contain less sodium, sugar, and artificial ingredients.

Breakup by Distribution Channel:

• Convenience Stores
• Online
• Hypermarket/Supermarket
• Others
   

Online holds the largest market share.

The report has provided a detailed breakup and analysis of the meal kit market based on the distribution channel. This includes convenience stores, online, hypermarket/supermarket, and others. According to the report, online represented the largest market segment.

Online distribution channels are dominating the market as they allow consumers to browse, select, and order meal kits from the comfort of their homes, making it highly convenient. Several meal kit companies operate on a subscription model, which is easily managed online as it allows users to customize their orders, select delivery dates, and cancel their subscriptions with just a few clicks. Online distribution channel allows meal kit companies to reach a broad audience, not limited by geographical boundaries, which aids in widening the potential customer base.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest meal kit market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for meal kit.

The rising disposable income which allows discretionary spending on services like meal kits that provide convenience and variety is driving the market growth in the North American region. The fast-paced, busy lifestyle of people in North America is creating a high demand for convenient meal solutions that save time on meal planning, grocery shopping, and preparation. The growing Internet penetration rates and widespread adoption of e-commerce in the region are supporting the online distribution model used by many meal kit services further influencing the market demand. The presence of robust meal kit companies in the region is leading to early exposure and acceptance of the concept by consumers which is further facilitating the market growth across the region.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the meal kit industry include Albertsons Companies, Inc., Blue Apron LLC, Fresh n' Lean, Gobble Inc (Intelligent Foods), Gousto, HelloFresh, Hungryroot, MarleySpoon Pty Ltd, My Food Bag Ltd, Oisix ra daichi Inc., and SimplyCook Ltd.
  
  (Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.)
   
• The competitive landscape of the meal kit market is marked by a diverse mix of startups and established food industry giants. Key players like Blue Apron and HelloFresh dominate, focusing on subscription-based services that offer diverse culinary options and flexible meal plans. The competition intensifies as supermarkets and restaurants also enter the meal kit space, offering ready-to-cook options with no subscription required, catering to more spontaneous purchasing decisions. Technology integration for seamless ordering and customer engagement is also a critical strategy. For instance, in June 2023, meal kit and food solutions provider, My Food Bag announced that it had completed the implementation of automated pick technology in its Christchurch and Auckland distribution centers.

Meal Kit Market News:

• In January 2024, Albertsons Companies launched new meals as grocers aim to gain a share from restaurants by setting their sights on convenient meal occasions.
• In June 2023, Blue Apron introduces two easy meal kits with brand new ingredients, perfect for summertime gatherings and festive celebrations. Created to serve up to 8, the limited-time offering includes delicious and hassle-free seasonal favorites, giving customers two unique options to choose from to meet their hosting needs.
• In December 2022, Intelligent Foods, a powerhouse food manufacturer of healthy meal and supplement solutions, announced the acquisition of the popular 15-minute meal kit service Gobble for an undisclosed amount.

Meal Kit Market Report Scope:

Key Questions Answered in This Report:

• How has the global meal kit market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global meal kit market?
• What is the impact of each driver, restraint, and opportunity on the global meal kit market?
• What are the key regional markets?
• Which countries represent the most attractive meal kit market?
• What is the breakup of the market based on the meal type?
• Which is the most attractive meal type in the meal kit market?
• What is the breakup of the market based on the offering type?
• Which is the most attractive offering type in the meal kit market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the meal kit market?
• What is the competitive structure of the global meal kit market?
• Who are the key players/companies in the global meal kit market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the meal kit market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global meal kit market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the meal kit industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.