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Meal Replacement Products Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global meal replacement products market was valued at USD 11.4 billion in 2022 and is expected to expand at a CAGR of 8.5% from 2023 to 2030. Meal replacement products are becoming increasingly popular due to their convenience, portability, and health benefits. The increasing demand for convenience food among consumers is driving the market. The availability of meal replacement products in various shelf-stable forms such as bars, shakes, and powders is further propelling the market. Furthermore, the rising consumer awareness regarding the health benefits associated with meal replacement products is expected to fuel the market growth.
Moreover, the rise in the number of millennials and the increasing trend of busy lifestyles is further driving the demand for meal replacement products. The rising trend of veganism, as well as the increasing demand for plant-based proteins and health beverages, is expected to further support the growth of the market in the coming years. For instance, in April 2021, Huel, a UK-based meal replacement company, announced the launch of its new vegan meal replacement shake, Huel Black Edition. The new vegan shake is a high-protein, low-sugar, and low-calorie drink, consisting of plant-based proteins and grains.
Furthermore, increasing marketing activities and the introduction of innovative flavors are expected to support the growth of the market. For instance, in February 2021, Unilever announced the launch of its new meal replacement product, “Soylent Squared”, in the US market. The product comes in the form of a square-shaped bar with a nutritionally balanced formula, providing consumers with a convenient way to enjoy a full meal.
The introduction of meal replacement products with several health benefits, such as weight loss and improved digestion, is propelling the demand for these products. For instance, in June 2021, Healthy Habits launched a new meal replacement product, “Healthy Habits Meal Replacement”, which is packed with essential vitamins, minerals, and fibers. Furthermore, the rising trend of premiumization and the introduction of organic products are expected to further drive the market growth.
Product Insights
The RTD (Ready-To-Drink) meal replacements segment held the largest share of the market in 2021. This is mainly due to the convenience and ease of preparation associated with ready-to-drink meal replacements. Moreover, the rising health consciousness among people has increased the demand for fortified RTD meal replacements. According to an article published by Market Watch, in April 2021, the RTD meal replacement market is projected to reach USD 9.2 billion by 2027, at a CAGR of 5.9%.
The powder meal replacements segment is expected to register the highest CAGR of 8.3% during the forecast period. This is mainly attributed to the growing preference for convenience and the increasing demand for personalized nutrition. Additionally, the availability of meal replacement powder in a variety of flavors is expected to fuel the demand for powder meal replacements among consumers. According to an article published by Nutrition Insight, in April 2021, the global meal replacement market is estimated to reach USD 8.9 billion by 2030.
Distribution Channel Insights
The supermarkets and hypermarkets segment accounted for the largest share of the global meal replacement products market in 2022. The growth of the segment is mainly driven by the rising consumer inclination towards supermarkets & hypermarkets as a primary source to purchase food products. According to a report by the Food Marketing Institute in 2020, 40% of consumers prefer to purchase food products from supermarkets & hypermarkets as they provide convenience to purchase a variety of products in one place. In addition, the presence of knowledgeable store personnel in the supermarkets & hypermarkets assists the customers in making the right purchasing decisions.
The online segment is anticipated to expand at the highest CAGR of 12.7% over the forecast period. The growth of the segment is mainly driven by the rising consumer preference for online shopping, increasing internet penetration, and the emergence of e-commerce platforms as a convenient and cost-effective mode of shopping. For instance, in 2020, Huel launched Huel.com, an online platform to purchase meal replacement products such as shakes, breakfast bars, snacks, and hot & cold meals. The website provides detailed information about the products including nutritional values, ingredients, and other relevant data.
Type Insights
The powdered form segment accounted for the largest revenue share of 59.9% in the year 2022. The convenience and cost-effective nature of the powdered form meal replacements have increased the demand for this product type. Furthermore, the easy storage of these products has contributed to the growth of the segment. Furthermore, the growing trend of veganism and health consciousness among consumers has further increased the demand for meal replacement products, particularly in the powdered form.
The liquid form segment is anticipated to expand at the highest CAGR of 8.9% over the forecast period. The increasing demand for liquid meal replacements owing to the convenience of consuming the product has driven the segment growth. Also, the availability of liquid meal replacement products in the form of ready-to-drink shakes and smoothies has increased the demand for the product. For instance, in February 2020, Huel, a U.K.-based meal replacement brand, launched a new range of ready-to-drink shakes and smoothies.
Regional Insights
Asia Pacific is expected to witness the highest growth in the market over the forecast period. The growth is attributed to changing lifestyles, increasing disposable incomes, and rising health consciousness among consumers in the region. For instance, in February 2021, Herbalife Nutrition introduced new flavors of its meal replacement shakes in India. These new flavors are available in two variants—chocolate and vanilla.
Europe is the second-largest market for meal replacement products, followed by North America. The growing demand for healthy and convenient food products is expected to drive the market in the region. For instance, in October 2020, Huel, a U.K.-based company, launched its Huel Ready-to-drink (RTD) meal replacement shakes in Europe. This product is made with 20g of vegan protein, 26 essential vitamins and minerals, and is free from refined sugars and artificial ingredients.
Financial Projections
In this part of the meal replacement products 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 replacement products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main sources of revenue for a meal replacement products business come from the sales of meal replacements, subscription services, and other related products. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, the sale of merchandise, and selling the products to retailers.
Projecting Expenses
In this section, all the regular expenses related to keeping the meal replacement products business running will be described. The list of operating expenses includes product packaging, storage and shipping costs, wages, advertising, and others.
Key companies & market share insights
Some of the key companies operating in the meal replacement products 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 April 2022, Atkins Nutritionals launched a line of meal replacement shakes and bars.
– In June 2022, Herbalife Nutrition launched a line of meal replacement drinks and bars.
– In October 2022, SlimFast launched a new range of meal replacement bars and shakes.
Some of the prominent players in the meal replacement products market include:
– Herbalife Nutrition
– Atkins Nutritionals
– SlimFast
– Unilever
– Nestlé
– Kraft Heinz
– Kellogg Company
– Glanbia
– Huel
– Celsius Holdings, Inc.
Global Meal Replacement Products 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 replacement products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Ready-To-Drink
– Powders
– Bars
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Meal Replacement
– Snack Replacement
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What are the major applications of meal replacement products?
[A]: Meal replacement products are used in a variety of applications, including weight loss, muscle building, health and wellness, and meal replacements for busy lifestyles. They are also used as a convenient and healthy snack, as well as for convenience and cost savings.
[Q]: What are the top selling meal replacement products?
[A]: The top selling meal replacement products include protein shakes and bars, soy-based meal replacement drinks, and fortified nutrition bars.
[Q]: Who are the key players in the meal replacement products market?
[A]: The key players in the meal replacement products market include Nestle SA, GSK, Unilever, Herbalife International, Inc., Atkins Nutritionals, Inc., Hormel Foods Corporation, Kellogg Company, and Kraft Heinz Company.
[Q]: What are the factors driving the meal replacement products market?
[A]: Factors such as the increasing prevalence of obesity and diabetes, the rising demand for convenience foods, and the growing demand for ‘on-the-go’ meal replacement foods are driving the market growth.
[Q]: Which region offers the largest opportunity for sales of meal replacement products?
[A]: North America is expected to be the largest market for meal replacement products, due to the high prevalence of obesity and lifestyle diseases, and the presence of a large number of health-conscious consumers.
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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