The market has seen a significant increase in the recent past and is predicted to grow significantly during the forecasted period as well.
The global meal kit market continues its steady expansion, as lifestyle and consumer preferences change. Heat-and-eat and ready-to-eat kits have become particularly popular among urban professionals who prioritize convenience and efficiency. HelloFresh and Blue Apron have expanded their offerings to meet specific dietary needs such as vegan, keto and gluten-free meals while emphasizing eco-friendly packaging solutions and local sourcing to achieve sustainability objectives.
Demand is increasingly driven by online purchasing, with smartphone penetration steadily growing and subscription models providing doorstep delivery and customization. North America remains the dominant market, while Asia-Pacific and Europe have quickly adopted these meal solutions due to an increase in health-consciousness among their populations as they explore international cuisines more freely. These shifts point toward global shift toward convenient, healthy meal solutions with global appeal.
Hello Fresh delivered over 30 million meals monthly worldwide in 2023, reaching 20 million consumers in the US alone. 60% of consumers choose meal kits due to convenience while 40% opt for tailored dietary solutions; online channels accounted for 70% of sales globally thanks to over 6 billion smartphones in use - North America leading this growth with 5 million subscribing households, while Asia-Pacific experienced double-digit expansion due to urbanization and an increase in awareness.
Market Dynamic
The heat-and-eat category is experiencing a growth in popularity within the US, with various delivery service businesses taking advantage of this trend by introducing individual & multiple serving options. For instance, opting for homemade meals proves to be a more budget-friendly option in comparison to dining out at restaurants. Additionally, the broad availability of these products has improved the time efficiency of preparing homemade meals, in contrast to choosing for takeout or home delivery.
Preparing food at home also provides individuals complete authority over ingredient selection, especially for those with food allergies or dietary preferences seeking to avoid specific ingredients.
However, meal kits often carry an expensive price tag compared to buying the same ingredients from a local grocery store, which may create some challenges for those working within tight financial budgets. The process of meal kit delivery includes a complex logistical network, surrounding ingredient sourcing, packaging, & transportation.
Especially for smaller meal kit companies, effectively managing & scaling these operations can create difficulties. Another challenge towards meal kits is the large waste generated from excessive packaging, an issue that hasn't gone unnoticed. Despite combined efforts by many providers to reduce their environmental impact, this remains a valid concern for strict consumers.
Research Scope and Analysis
By Offering
Cook & eat meal kit delivery services secure a significant market share, and are expected to persist throughout the forecast period. This dominance is driven by the avid adoption of gourmet-style home cooking, especially among the younger generation. This trend provides individuals the opportunity to look at new recipes & gourmet experiences without the added expense of dining out. While these recipes demand more time compared to the heat & eating segment, they remain a significant time-saver when compared with traditional cooking methods.
Furthermore, convenience grows to efficient grocery management, as all ingredients arrive pre-portioned, lowering the need for supermarket trips. This aspect, customized for single individuals or more, contributes to the segment's growth as well.
By Service
In 2023, a significant portion of the global revenue for the meal kit market is due to the single delivery service category. This segment serves mainly individuals, like bachelors, who are studying, pursuing degrees, or working at a far distance away from their families. The convenience of this service proves especially valuable to those with demanding work commitments and lacking the time for proper cooking.
Furthermore, many in this group lack proficiency in preparing nutritious meals. In addition, service providers provide a complete solution to address these challenges faced by single individuals. Primarily, a major portion of these solitary individuals look for healthier dietary options that positively impact both physical well-being & mental clarity.
Also, the multiple-delivery service segment is anticipated to see rapid growth in the forecasted period. A huge number of families now consist of two working parents, leading to elevated levels of busyness & stress. To address this challenge, households are constantly looking for delivery services that provide practical solutions for the demanding & time-intensive tasks associated with cooking, such trends are expected to further drive the growth of the multiple delivery service sector.
By Product
The non-vegetarian meal kit delivery service emerges as the leader in market share by product type by contributing significantly towards the global revenue of the meal kit market in 2023 and is anticipated to continue its leadership during the forecasted period. This growth is due to the meat's richness in essential nutrients like protein, and vitamins (such as A, B6, B12, niacin, and thiamine), which interest individuals seeking lean protein sources. In addition, many product delivery companies offer a range of fresh, value-added, & health-conscious meat options, growing the popularity of non-vegetarian meal kits. Further the increasing awareness of the benefits of non-vegetarian diets, like fish & chicken, further fuels the demand for such products.
Moreover, vegetarian meal kits are also anticipated for significant growth over the forecasted period. This tendency is majorly driven by consumers' growing tendency towards adopting vegetarian diets. These dietary preferences gain traction owing to the aim of consuming a significant proportion of fresh, nourishing plant-based foods. Such choices give advantages like antioxidants & fiber, linked to enduring health benefits.
By Distribution Channel
In 2023, a significant growth in the global revenue of the Meal Kits Market comes from the effective usage of online platforms. Companies strategically use these platforms to provide clients with better service flexibility around the clock. By providing their range of products on user-friendly websites, most businesses cater to customer preferences for hassle-free browsing of weekly & monthly menus, along with many food subscription options.
This digital approach reduces the need for in-person visits or phone inquiries, allowing seamless interactions & serving customers across various geographical regions. Further, the integration of online platforms as a growth booster for the Meal Kits Market's 2023 revenue growth demonstrated the companies' skill at utilizing digital tools to increase accessibility & customer engagement. Skillful integration of these platforms into operational strategies allowed companies to provide ongoing support & interaction.
An existing tactic involved presenting consumers with the convenience of exploring complete menus on a regular basis, along with diverse food subscription models. By transitioning away from traditional face-to-face interactions or phone communications, companies not only enhanced customer experiences but also effectively reached & served many customers across geographic areas.
The Global Meal Kits Market Report is segmented on the basis of the following:
By Offering
- Heat and Eat
- Cook and Eat
By Service
By Product
- Vegan
- Vegetarian
- Non-Vegetarian
By Distribution Channel
Regional Analysis
The North American region secures a considerable market share, accounting for
about 39.9% of total revenue for the Global Meal Kits Market. In the region, a significant number of consumers look for meal kits as a convenient time-saving solution. This trend has gained momentum due to the recognition of meal kits as a cost-effective & healthier substitute for pre-packaged food items found in retail outlets, along with those offered by delivery services & restaurants. These kits not only reduce the effort of meal preparation but also provide a greater variety of options, contributing to their growing popularity as a practical choice for those seeking both nutritional value & convenience. So, all these factors & trends will further move towards the growth of the market over the coming future as well.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global meal kits market possesses a dynamic & competitive landscape, as many players, from established food industry giants to innovative startups, companies compete for market share by offering a variety of cuisine options, catering to many dietary preferences, & emphasizing convenience, freshness, & customization. Strategic collaborations with grocery chains & e-commerce platforms, along with technological advancements in delivery logistics & packaging, are major factors shaping the competitive landscape of the market. In addition, the key players constantly look to improve the user experiences through user-friendly interfaces, flexible subscription models, & sustainable sourcing practices, all while adapting to changing & evolving consumer demands & market trends.
For instance, in April 2023, the partnership between Blue Apron & Dashmart, supported by DoorDash, took a major step forward. This strategic expansion focuses on enabling the wide delivery of Blue Apron's Heat & Eat meals across eleven key markets, including New York City, using DashMart's advanced platform. This initiative looks at the companies' unwavering commitment to growing their customer base & optimizing product accessibility, building upon DashMart's successful initial pilot program in Philadelphia.
Some of the prominent players in the Global Meal Kits Market are:
- Blue Apron
- Freshly Inc
- Fresh n’ Lean
- HelloFresh
- Gobble
- Purple Carrot
- Sun Basket
- Snap Kitchen
- Marley Spoon
- Daily Harvest
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Meal Kits Market
The COVID-19 pandemic & subsequent recession significantly impacted the global meal kits market. With lockdowns & social distancing steps in place, consumer behavior shifted towards suitable & home-based dining solutions, driving a growth in demand for meal kits. This trend was fueled by the desire for easy cooking experiences, healthier eating options, & reduced restaurant outings. While the recession posed financial constraints for many, the cost-effectiveness & curated ingredients of meal kits appealed to a variety of budgets. As a result, the industry noticed notable growth, adapting to the changing needs of consumers seeking both culinary enjoyment & economic caution.