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Meal Kit Delivery Services Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global meal kit delivery services market was valued at USD 8.5 billion in 2022 and is projected to reach USD 15.5 billion by 2030, expanding at a CAGR of 8.2% during the forecast period (2023–2030). Meal kit delivery services offer consumers pre-measured ingredients and detailed recipes to help them prepare meals at home. Meal kit delivery services are convenient, varied, and cost-effective, catering to a wide range of customer needs. The key factors driving the growth of the market include the growing demand for convenient meal solutions and an increasing focus on health and wellness.
The growing trend of subscription-based meal kit delivery services is a major factor driving the market growth. Meal kit delivery services allow customers to select their meals and schedule them as per their convenience. Furthermore, the growing popularity of vegetarian, vegan, gluten-free, and organic meals is boosting the demand for meal kit delivery services. Consumers are increasingly shifting toward plant-based diets, which has resulted in a surge in the number of vegetarian meal kit delivery services. For instance, in March 2022, Purple Carrot launched its vegan meal kit delivery service in the U.S., which offers a wide range of plant-based ingredients and recipes.
Furthermore, the increasing availability of meal kit delivery services via online and mobile platforms is driving the market growth. The growing use of mobile applications, such as Uber Eats, has made it easier for customers to order meal kits. Furthermore, the emergence of new players in the market offering new and creative recipes, including plant-based and organic meal kits, is expected to drive the market’s growth in the coming years.
Moreover, the increasing focus on health and wellness is driving the demand for meal kit delivery services. Consumers are becoming increasingly health conscious, which has led to an increased demand for healthy meal kits. Furthermore, the increasing number of working women is driving the demand for meal kit delivery services as they do not have enough time to cook. The increasing disposable income among the population is also driving the demand for meal kit delivery services.
Product Insights
The ready-to-cook meal kits segment held the largest market share of 45.2% in 2020. The growing demand for quick and convenient meals is driving the growth of the ready-to-cook meal kits segment. According to an article published by Harvard Business Review, in February 2020, more than 70% of consumers ordered meal kits. Furthermore, increasing adoption of online meal delivery services, rising awareness about healthy eating, and an increase in the number of working women are some of the key factors driving the growth of the ready-to-cook meal kits market.
The fresh prepared meal kits segment is expected to expand at the fastest CAGR of 10.4% during the forecast period. The growing preference for fresh ingredients among consumers is driving the growth of the segment. According to an article published by Food and Wine, in March 2020, 87% of consumers said they prefer fresh ingredients. The availability of a variety of meal kits with fresh ingredients and the convenience of ordering meal kits online are some of the key factors driving the growth of the market.
Distribution Channel Insights
The online segment is anticipated to account for the highest market share of over 62.3% in 2022. Growing popularity of e-commerce platforms and the introduction of various meal kit delivery services have been instrumental in the growth of the segment. Companies such as HelloFresh, Marley Spoon, and Blue Apron are offering subscription-based meal kit delivery services to the customers. They provide a wide range of meal kits that include vegetables, fruits, chicken, fish, and other ingredients. Moreover, the companies also offer discounts, free delivery, and exclusive deals to attract customers.
The supermarkets and hypermarkets segment is expected to expand at a CAGR of 11.2% over the forecast period. The segment is witnessing rapid growth as a result of the rising consumer preference for convenience while shopping. Supermarkets and hypermarkets are equipped with all the necessary items that are required for cooking, making them a preferred choice for customers. In addition, the availability of a wide range of meal kit delivery service providers in these stores is further boosting the segment growth.
Type Insights
The subscription-based meal kit delivery services segment accounted for the largest revenue share of 56.7% in the year 2022. The development of subscription services by major e-commerce companies such as Amazon Fresh and HelloFresh have created a huge demand for the meal kit delivery services. Moreover, the convenience of the subscription-based meal kit delivery services has increased its popularity among consumers, leading to a surge in demand.
The on-demand meal kit delivery services segment is anticipated to expand at the highest CAGR of 11.6% over the forecast period. The increasing trend of online ordering and delivery services by various companies such as Grubhub and UberEats have created a huge demand for the on-demand meal kit delivery services. Additionally, the increasing preference of consumers for healthy and organic food is fueling the demand for the on-demand meal kit delivery services.
Regional Insights
North America is expected to maintain its dominance in the global meal kit delivery services market over the forecast period. This regional dominance can be attributed to the presence of some of the leading players such as HelloFresh, Blue Apron, and Plated in the region. The rising inclination of consumers towards convenience and the availability of a variety of meal kits to choose from is expected to drive the market growth in the region.
Europe is expected to witness the second-fastest growth in the coming years. The presence of prominent players in the region such as Marley Spoon, Gousto, and Just Eat has helped boost the demand for meal kit delivery services in the region. The growing health consciousness among consumers is expected to drive the market growth in the region.
Asia Pacific is expected to witness the fastest growth over the forecast period owing to the rising disposable income, improving lifestyle, and growing health consciousness in the region. Furthermore, the rapid urbanization and the presence of prominent players such as Ripe Delivered in the region are expected to drive the market growth in the region.
Financial Projections
In this part of the meal kit delivery services business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your meal kit delivery services. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a meal kit delivery services business comes from subscription fees, delivery fees, and other fees associated with the service. Here you will find a list with a description of each of them and other possible sources of profit such as the sale of merchandise and partnerships with restaurants and other businesses.
Projecting Expenses
In this section, all the regular expenses related to keeping the meal kit delivery services business running will be described. The list of operating expenses includes wages, packaging and delivery supplies, marketing and advertising costs, utilities, insurance policies, and others.
Key companies & market share insights
Some of the key companies operating in the meal kit delivery services market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Hello Fresh launched a new meal kit delivery service in the US.
– In August 2022, Blue Apron launched a new meal kit delivery service in the UK.
– In October 2022, Plated launched a meal kit delivery service for consumers with specific dietary needs.
Some of the prominent players in the meal kit delivery services market include:
– Hello Fresh
– Blue Apron
– Plated
– Sun Basket
– Home Chef
– Freshly
– Marley Spoon
– Gousto
– EveryPlate
– PeachDish
Global Meal Kit Delivery Services Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global meal kit delivery services market based on meal type, regional presence, and distribution channel:
1. Meal Type Outlook (Revenue, USD Million, 2017 – 2030)
– Ready-to-Cook
– Ready-to-Eat
– Others
2. Regional Presence Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
3. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Online
– Offline
Frequently Asked Questions
[Q]: What is the Potential of Meal Kit Delivery Services?
[A]: Meal kit delivery services have emerged as an attractive alternative to traditional grocery shopping. The convenience of having ingredients and meals delivered to customers’ doors has been a major driver of the meal kit delivery services market. The rising trend of online grocery shopping, time-saving advantages, and healthy lifestyle trends have also contributed to the growth of the market. Additionally, the increasing popularity of subscription-based models, which offer discounts and customization options, have also been a key factor in the growth of the market.
[Q]: Who are the Key Players in the Meal Kit Delivery Services Market?
[A]: The key players in the meal kit delivery services market are HelloFresh SE, Blue Apron, Plated, Chef’d, Home Chef, Gousto, Marley Spoon, and Sun Basket.
[Q]: What Region Offers the Largest Opportunity for Sales of Meal Kit Delivery Services?
[A]: North America is estimated to be the largest market for meal kit delivery services, with an absolute dollar opportunity of US$ 5.2 billion in 2020. The region is significantly advanced in terms of technology and infrastructure. The presence of major players in the region, such as HelloFresh, Blue Apron, and Chef’d, is expected to drive the growth of the market in the region.
[Q]: What are the factors driving the meal kit delivery services market?
[A]: The factors driving the meal kit delivery services market include the rising trend of online grocery shopping, time-saving advantages, and healthy lifestyle trends. Additionally, the increasing popularity of subscription-based models, which offer discounts and customization options, have also been a key factor in the growth of the market.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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