GVR Report cover Meal Kit Delivery Services Market Size, Share & Trends Report

Meal Kit Delivery Services Market Size, Share & Trends Analysis Report By Offering (Heat & Eat, Cook & Eat), By Service (Single, Multiple), By Platform (Online, Offline), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68038-224-2
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 100

Report Overview

The global meal kit delivery services market size was valued at USD 10.26 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.0% from 2021 to 2028. Increasing preference for homemade meals among millennials is a major factor contributing to the growth of the market. The service has been gaining high popularity and adoption among generation Y and Z. Most consumers are of the opinion that the price paid for the service is justified for the benefits it provides. The COVID-19 pandemic has offered a significant opportunity to the market as almost all the restaurants, eateries, and hotels were shut down across the globe. People are focusing on a healthy diet more than ever to increase their immunity and maintain a balanced diet. A meal kit seems to be a one-stop solution for virtually all players across the entire F&B ecosystem, including retailers, e-tailers, FMCG brand owners, and restaurants, to get themselves out of this pandemic logjam and maximize the opportunities in the current scenario.

U.S. meal kit delivery services market size, by platform, 2018 - 2028 (USD Billion)

The increasing preference for meal kits is being driven by the benefits of homemade meals. For instance, homemade food is more economical than eating at a restaurant. Furthermore, the availability of meal kits has made homemade meals more time-saving in comparison to takeouts and home deliveries. Preparing food at home also gives full control over the ingredients one wishes to use and comes in handy for people who are allergic to certain food ingredients or are trying to avoid specific ingredients.

Dining in is becoming more popular than dining out. Boomers, as well as millennials, increasingly prefer staying at home and cooking or ordering in rather than spending money at restaurants. Consumers are also making fewer visits to restaurants and are opting to stay at home.

One of the key factors contributing to this shift is the attitudes and behaviors of the two largest generational groups—boomers and millennials. While millennials have surpassed baby boomers in number, boomers remain a large population and their behaviors have a significant influence on the marketplace that caters to cooking at home.

Meal kit delivery services are an ideal solution since meal planning in advance significantly helps reduce food wastage. Meal kits have ingredients in the exact quantity that is required to prepare a meal since each portion is pre-measured. Some companies offer larger portions, but still provide calorie count and nutritional information based on the portions.

Service Insights

The single service kits captured the largest share of more than 55.0% in 2020. The single service kits are extremely convenient for bachelors who are studying, perusing a degree, or are staying away from family and are working or involved in a particular job and are unable to invest enough time in cooking.

Furthermore, most of these bachelors are not well versed with healthy cooking. These service providers offer a complete solution to these issues pertaining to food for bachelors. Most of these single people have been trying to find a healthier substitute, which is beneficial to the body and mind.

The multiple service kits are expected to register the fastest CAGR of 13.4% from 2021 to 2028. Families are becoming busier and stressed as a large number of families feature two working parents. In order to reduce this burden, households are opting for meal kit delivery services that provide a proper solution to the time and effort-intensive task of cooking.

Lack of time is typically the main reason for lack of participation in conventional cooking. Along with this, the generation of millennials is known for being foodies, and thus wants something that falls between conventional cooking and yet saves time. Thus, these multiple meal kit service providers offer the perfect solution to these problems.

Platform Insights

The online platform accounted for the largest share of more than 60.0% in 2020. Companies have established an online platform are capable of providing client service through greater flexibility by being available round the clock.

The majority of the companies offer their meal kit through their own websites to offer convenience to the consumers. Customers prefer to visit the website and find out about the weekly and monthly menu and the types of food subscription available, instead of visiting the service provider in person, over a call.

The offline platform is expected to register the fastest CAGR of 14.0% from 2021 to 2028. Offline meal kits are available at Walmart, Kroger, Tesco, and other major retailers. Both small and large companies offer their meal kit through this channel due to the large consumer base of these stores. Moreover, many consumers like to purchase meal kits with other grocery products, which is driving the demand through the offline platform.

Offering Insights

Cook and eat meal kit delivery service held the largest share of 61.0% in 2020 and is expected to maintain its lead over the forecast period. This can be attributed to the popularity of gourmet-style, home-cooking amongst youngsters. It also lets one try new recipes or gourmet meals without spending extra money eating at restaurants.

These recipes are more time-intensive than heat and eat meal kits but are a big time saver than the conventional method of cooking. Furthermore, it saves a lot of time on going to supermarkets and grocery stores. Millennials are bringing their I-want-to-do attitudes into the kitchen. They love to share food with friends, families, and acquaintances during block parties, potlucks, and family gatherings.

Global meal kit delivery services market share, by offering, 2020 (%)

The heat and eat segment is projected to register the fastest growth rate of 13.4% from 2021 to 2028. Heat and eat meal kit delivery service providers offer prepared meals to the consumers. These meals are prepared by chefs; consumers can either choose their ingredients for the meal or select from the already available recipes on the website.

These kits have been gaining popularity across the globe owing to the comfort and accessibility of products. The key factors driving the meal kit delivery service include the affluent lifestyle and the increasing number of millennial customers, along with the growth of the working women population, which has resulted in altering lifestyles and less time for home cooking. Companies like Freshly, Snap Kitchen, and Fresh and Easy are some of the companies that offer such meals.

Regional Insights

North America held the largest share of over 45.0% in 2020. The foodservice industry in the U.S. and Canada has been witnessing considerable growth in the recent past. A large number of consumers purchase meal kits in the region to save their time and effort. Meal kits have become a healthier and inexpensive alternative to pre-cooked food items available in retail stores or restaurants.

Asia Pacific is expected to expand at the fastest CAGR of 14.5% from 2021 to 2028. The regional market is expected to witness incredible growth in the years to come due to the convenience and freshness of the meal kits. The increasing number of time-poor consumers in the region has been propelling the demand for the service. China, Japan, and South Korea are the key markets of the region. Furthermore, the coronavirus pandemic has increased the interest in home-cooked food and surged the demand for meal kits in the nation.

Key Companies & Market Share Insights

The market for meal kit delivery services is characterized by the presence of a few well-established players and several small and medium players. Mergers and acquisitions are among the key strategic initiatives in the industry. For instance, in November 2020, HelloFresh acquired Factor75, LLC for USD 277 million. The acquisition was aimed at strengthening HelloFresh’s position in the U.S. market and expanding its consumer base across the country.

Similarly, in November 2020, Nestlé acquired Freshly Inc. for USD 950 million. This acquisition was aimed at boosting the growth opportunities for Freshly Inc. The acquisition also allowed Nestlé to enter the fast-growing meal kit service industry in the U.S. Some prominent players in the global meal kit delivery services market include:

  • Blue Apron, LLC

  • EveryPlate

  • Freshly Inc.

  • Gobble

  • Green Chef Corporation

  • HelloFresh

  • Relish Labs LLC (Home Chef)

  • Hungryroot

  • Marley Spoon Inc.

  • Purple Carrot

  • Fresh n' Lean

  • Takeout Kit

  • bistroMD, LLC

  • CookUnity

  • Fresh and Easy

  • Sun Basket

  • Factor75 LLC

  • Trifecta Inc.

  • Snap Kitchen, LLC

  • Daily Harvest

  • Splendid Spoon

  • Diet-To-Go

  • RealEats

Meal Kit Delivery Services Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 12.73 billion

Revenue forecast in 2028

USD 27.33 billion

Growth Rate

CAGR of 13.0% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Offering, service, platform, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Mexico; Germany; U.K.; France; China; Japan; Brazil

Key companies profiled

Blue Apron, LLC; EveryPlate; Freshly Inc.; Gobble; Green Chef Corporation; HelloFresh; Relish Labs LLC (Home Chef); Hungryroot; Marley Spoon Inc.; Purple Carrot; Fresh n' Lean; Takeout Kit; bistroMD, LLC; CookUnity; Fresh and Easy; Sun Basket; Factor75 LLC; Trifecta Inc.; Snap Kitchen, LLC; Daily Harvest; Splendid Spoon; Diet-To-Go; RealEats

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the global meal kit delivery services market report on the basis of offering, service, platform, and region:

  • Offering Outlook (Revenue, USD Million, 2016 - 2028)

    • Heat & Eat

    • Cook & Eat

  • Service Outlook (Revenue, USD Million, 2016 - 2028)

    • Single

    • Multiple

  • Platform Outlook (Revenue, USD Million, 2016 - 2028)

    • Online

    • Offline

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa

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