Meal Kit Delivery Services Market Size, Share & Trends Analysis Report By Offering (Heat & Eat, Cook & Eat), By Service (Single, Multiple), By Platform (Online, Offline), Meal Type (Vegan, Vegetarian, Non-Vegetarian), And Segment Forecasts, 2022 - 2030

Report Overview 

The global meal kit delivery services market size was valued at USD 15.21 billion in 2021 and is expected to witness a compound annual growth rate (CAGR) of 17.4% from 2022 to 2030. Increasing preference for home-cooked and chef-cooked food among millennials is a major factor contributing to the growth of the market. The delivery service has been gaining high popularity and adoption among generation Y and Z.  The increasing preference for the product is driven by the benefits of homemade meals as they are more economical in comparison to takeouts and home delivery services.

The COVID-19 pandemic has offered a huge opportunity to the market for meal kit delivery services as almost all the restaurants, eateries, and hotels were shut down across the globe. People have started focusing on a healthy diet more than ever to increase their immunity and to maintain a balanced diet as a result, an increasing number of people have been looking for healthy and easy meals options. Furthermore, key players in the market have witnessed a surge in sales during the pandemic as compared to 2019. Companies like Blue Apron have also reported a hike in global sales, followed by HelloFresh, which doubled its customer base in the U.S. with an increase of 66% in its Y-O-Y revenue.

The heat and eat segment has been gaining traction among consumers in the U.S. as several delivery service companies have been tapping into this segment by launching single and multiple servings for consumers. For instance, homemade food is more economical than eating at a restaurant. Furthermore, the availability of the product has made homemade meals more time-saving in comparison to takeouts and home delivery services. 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.

According to a survey conducted by HUNTER in April 2020, 54% of consumers in America are cooking more than before and 22% are ordering prepared meal kits more frequently. 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. Several delivery service companies offer larger portions, but still provide calorie count and nutritional information based on the portions.

Offering Insights 

The cook and eat segment dominated the market for meal kit delivery services and held the largest revenue share of 60.7% in 2021. The segment is expected to maintain dominance over the forecast period. The dominance 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 the heat and eat segment but are a big-time saver than the conventional method of cooking. Further, it saves a lot of time on going to supermarkets and grocery stores as all the ingredients come pre-portioned in the exact amount required for a single person or more.

However, the heat and eat segment is projected to register a faster CAGR of 17.8% in the market for meal kit delivery services from 2022 to 2030. Heat and eat meal kit delivery service providers offer meals prepared by chefs to consumers. The consumers can either choose their ingredients for the food 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. For instance, Freshly Inc. offers customized meals as well as its signature collection that includes Dijon Pork Chop, and Traditional Beef Stew among others. The average refrigerated shelf life of prepared these are around 3-5 days and it takes around 5-15 minutes to heat and serve them.

Service Insights

The single delivery service segment dominated the market for meal kit delivery services and accounted for the largest revenue share of 57.8% in 2021.The single delivery service segment is 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 in healthy cooking. Thus, service providers offer a complete solution to these issues of a single bachelor.Most of these single people have been looking for a healthier diet, which is beneficial to both body and mind.

The multiple delivery service segment is expected to register the highest CAGR of 17.7% in the market for meal kit delivery services from 2022 to 2030. 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 these 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 segment dominated the market for meal kit delivery services and accounted for the largest revenue share of 63.2% in 2021. Companies that are having 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 products through their own websites to offer convenience to the consumers. Customers prefer to visit websites and find out about the weekly and monthly menu and the types of food subscriptions available, instead of visiting the service provider in person or over a call.It also helps the companies to serve customers settled across a geographical area.

The offline platform is expected to register a CAGR of 17.8% in the market for meal kit delivery services from 2022 to 2030. These products are available at Walmart, Kroger, Tesco, and other major retailers. Both small and large companies offer their products through this channel due to the large consumer base of these stores. Moreover, many consumers like to purchase these products with other grocery items, which is driving the demand through offline platforms. Several retailers such as Raley's, Walmart, and Meijer, Inc. have also begun launching meal kits of their own, featuring varieties of veg and non-veg dishes, owing to the rising consumer base that does not want the commitment of a subscription.

Meal Type Insights

The non-vegetarian segment dominated the market for meal kit delivery services and held the largest revenue share of 63.7% in 2021. The segment is expected to maintain its dominance over the forecast period. The segment’s growth can be attributed to the presence of protein, as well as vitamins and minerals such as A, B6, B12, niacin, and thiamine in meat, which make it appealing to consumers who want to include lean protein in their diets. Several product delivery service companies are offering a diverse variety of fresh, value-added, and healthy meats, which is driving the consumption of non-vegetarian meal kits. Other factors such as growing awareness levels regarding the benefits of consuming non-vegetarian diets including fish and chicken are driving the product demand.

The vegetarian meal kits segment is expected to witness a CAGR of 17.6% in the market for meal kit delivery services from 2022 to 2030. One of the main reasons why many people follow a vegetarian diet is that they prefer to consume a high proportion of fresh, healthful, plant-based foods, which provide antioxidants and fiber, along with various long-term health benefits. Most likely, the adoption of plant-based and cruelty-free diets are the factors responsible for the increase in the number of vegetarians across the globe. These figures indicate that the demand for vegetarian and vegan kits is expected to increase.

Regional Insights

North America dominated the meal kit delivery services market and accounted for the largest revenue share of 46.2% in 2021. A large number of consumers purchase these kits in the region to save their time and effort. The product has become a healthier and inexpensive alternative to pre-cooked food items available in retail stores, delivery services, or restaurants. Furthermore, companies such as Blue Apron and Sun Basket have witnessed a sharp increase in product demand during the COVID-19 outbreak, as consumers feel it is safer to eat home-cooked food. In March 2020, Blue Apron experienced increased demand for its meal kits reflecting, in part, changes to consumer behavior in response to the COVID-19 pandemic.

In Asia Pacific, the market is expected to witness a CAGR of 18.8% in the market for meal kit delivery services from 2022 to 2030. The market is expected to witness incredible growth in the region due to the convenience and freshness of the product. The increasing number of time-poor consumers in the region has been propelling the demand for these delivery services. China, Japan, and South Korea are the key markets of the region. Furthermore, COVID-19 has increased the interest in home-cooked food and surged the demand for the product in the nation. Countries including Australia, Japan, China, Singapore, Sri Lanka, South Korea, and India are driving the market for vegetarian and vegan meal kits.

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, acquisitions, and product launches remain one of the key strategic initiatives in the industry. For instance:

• In August 2021, Freshly Inc., launched its first-ever plant-based prepared meals line - ‘Purely Plant’, including six new meals featuring plant-based proteins made with clean, whole-food ingredients to cater to ongoing demand for variety, taste, nutrition, plant-based meal options and convenience among consumers. Meals can be heated and served in three minutes with no preparation required.

• 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 increase its consumer base across the country. 

• In October 2020, Nestlé acquired Freshly Inc. for USD 950 million. This acquisition was aimed at boosting the growth opportunities for Freshly Inc. and it also allowed Nestlé to enter the fast-growing industry in the U.S.

Some of the prominent players in the meal kit delivery services market include:

• Blue Apron, LLC

• Freshly Inc.

• HelloFresh

• Sun Basket

• Relish Labs LLC (Home Chef)

• Gobble

• Marley Spoon Inc.

• Purple Carrot

• Fresh n' Lean

• Hungryroot

Meal Kit Delivery Services Market Report Scope 

Segments Covered in the Report

This report forecasts revenue 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 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, meal type, and region:

• Offering Outlook (Revenue, USD Million, 2017 - 2030)

  • Heat & Eat

  • Cook & Eat

• Service Outlook (Revenue, USD Million, 2017 - 2030)

  • Single

  • Multiple

• Platform Outlook (Revenue, USD Million, 2017 - 2030)

  • Online

  • Offline

• Meal Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Vegan

  • Vegetarian

  • Non-Vegetarian

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa