Meal Replacement Products Market Size, Share & Trends Analysis Report By Product (Powder, Ready-to-Drink, Protein Bar), By Distribution Channel, By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global meal replacement products market size to be valued at USD 25.02 billion by 2025 and is expected to grow at a compound annual growth rate (CAGR) of 6.5% during the forecast period. High prevalence of obesity, diabetes, and cardiovascular diseases among others is expected to propel consumer awareness regarding weight loss and weight management diets, which in turn, will drive the demand. Meal replacement products contain 200 to 400 calories along with fiber, protein, and other essential nutrients, which makes them convenient and all-inclusive food options. This factor is expected to further fuel the market growth.

Hectic lifestyle coupled with the rising demand for tasty, high-quality, and healthy food products is anticipated to drive the market growth. Additionally, long working hours and a rising number of people leading a sedentary lifestyle are expected to drive the market for ready-to-eat meal replacement products. These foods provide the right balance of fats, calories, proteins, and other healthy nutrients and require very less cooking time. Additionally, rising consumer awareness regarding the nutrition and ingredient list due to the clean label movement is expected to boost the demand for natural and organic meal replacement foods.

Consumers find meal replacement bars and shake as healthy alternatives to fast foods. This factor is projected to create growth opportunities for market players. Additionally, the availability of products with various nutrient combinations is projected to bode well for the demand. The inclination toward vegan food is expected to encourage innovation in the market. Major manufacturers, such as Soylent, produce plant-based meals to cater to the growing demand for vegan options.

Meal replacement products are easy to store and have longer shelf-life. Most of these products are available in the form of bars or ready-to-drink shakes, which makes them easy to carry and consume on the go. The powdered form is one of the most popular product types, especially among fitness enthusiasts. Many gyms promote meal replacement products to inculcate healthy dieting habits among their clients. With the increased utility of e-commerce as a selling medium, meal replacement products suppliers are expected to launch their products in their in-house online portals to expand their market size.

Meal Replacement Products Market Trends

The increasing prevalence of overweight issues and diabetes, as well as the growing population of health-conscious consumers, are expected to drive the global market. As the prevalence of obesity drives up, consumers are turning to meal replacement programs as an efficient way to lose weight. Nutritional supplement weight control methods are more relevant than other strategies because they aid in weight loss in a better manner; this, in turn, increases market demand and investment.

Furthermore, the growing awareness of healthy lifestyles is expected to fuel the global market. Meal replacements are an increasingly popular method of substituting regular food with a nutritious diet. However, the price of a nutritional meal replacement is higher than the cost of a conventional meal due to additional manufacturing techniques, which are used to boost the nutritional value of the product. This is expected to slow down the industry's growth.

Increasing consumer awareness regarding the significance of nutritious food consumption is boosting the growth of this market in emerging nations. The increasing obesity rates, a shift toward a healthier lifestyle, and the growing interest in health and nutrition all contribute to the advancement of food supplements across developing regions. The increasing incidences of chronic diseases are expected to provide opportunities for meal replacement market participants to expand their businesses into new markets.

Distribution Channel Insights

Due to a huge offline distribution network of global manufacturers, the sale of meal replacement products is mainly driven by offline channels. Since manufacturers have control over how and where their product is placed in a supermarket store, this segment is expected to hold the leading market share during the forecast period. Many gym owners also sell major meal replacement products in gyms, which is expected to increase offline sales.

With the growth of e-commerce, manufacturers are finding it easy to reach out to a wider audience at a minimal cost. This is pushing the manufacturers to create their websites and form contracts with major e-commerce platforms to drive online sales. Moreover, due to various fitness blogs and vlogs, virtual word-of-the-mouth advertising is witnessing significant growth. This is expected to drive online sales in near future. Moreover, manufacturers are investing in web advertisements and digital marketing strategies to increase customer base and influence them to purchase their products. This is expected to contribute to the rapid sales of meal replacement products via online distribution channels.

Product Insights

Meal replacement powder accounted for the largest market share in 2018. The fast-paced lifestyle and easy-storage of powder products are expected to drive the growth of this segment. Also, the manufacturers provide a free glass shaker with powder packets. The availability of a variety of flavors is projected to attract more consumers who focus on weight management and leading a healthy lifestyle.

Ready-to-drink bottles are expected to witness the fastest CAGR of 7.0% from 2019 to 2025. The rising popularity of bottled energy drinks is expected to fuel the demand for meal replacement drinks as well. Attractive packaging, digital marketing, and celebrity endorsements are increasing consumer preference for ready-to-drink foods. Moreover, these products are easily available with a clear label mentioning all the nutritional facts. Manufacturers also ensure that their products with flavored ingredients comply with the food regulations set by the government. These factors are expected to expand the scope of growth for this segment over the next eight years.

Protein bar was one of the least popular meal replacement products. These products are expensive compared to powder and ready-to-drink foods. Hectic lifestyle and willingness spend on premium and convenience products are expected to prompt the consumption of protein bars as on-go snack alternatives in near future.

Regional Insights

North America occupied the largest market share of over 45% in 2018. The U.S. drove the majority of regional demand due to the presence of a majority of the health-conscious population and increasing prevalence of obesity, diabetes, cardiovascular diseases, and high blood pressure, and high cholesterol levels among others. However, the Food and Drug Administration (FDA) does not use the term meal replacement for such products and instead classifies them as foods for special dietary use. Consumers and manufacturers are increasingly becoming aware of FDA regulations and definitions. Hence, this classification of meal-replacement products may impact market growth. However, manufacturers focus on developing the products that meet the nutritional and quality standards of the FDA to boost the sale.

Asia Pacific is expected to witness the fastest CAGR of 8.3% from 2019 to 2025. Rapid urbanization, increasing population, and awareness regarding various nutritional dietary requirements in developing countries including China and India are expected to fuel the growth. Additionally, growing e-commerce in these regions is anticipated to boost the sales of meal replacement products. Many manufacturers opt for the digital channel for advertising and reaching untapped or physically impenetrable markets to improve their market penetration. This is anticipated to positively influence industry growth. The major use of meal replacement products is for weight management purposes. Hence, many gym enthusiasts and fitness trainers recommend such products for effective weight loss. This is expected to propel regional industry growth.

Many European countries are also significantly contributing to the market share owing to increasing awareness about the benefits of meal replacement diets. Major countries in Central and South America and the Middle East and Africa are anticipated to witness steady growth due to manufacturers entering these markets via e-commerce.

Key Companies & Market Share Insights

The global market is highly fragmented and competitive due to the presence of many global players such as Kellogg, Abbott Nutrition, Herbalife, and Unilever. Rising health consciousness coupled with the prevalence of diseases such as obesity and diabetes is expected to encourage innovation. Manufacturers focus on introducing new products with different nutritional qualities to attract a newer consumer base. Digital marketing and celebrity endorsements are some of the major trends observed in the industry.

Recent Developments

• In June 2022, Abbott Nutrition announced the development of a novel Continuous Glucose-Ketone Monitoring System. The system will enable people suffering from diabetes to monitor their ketones and glucose level in one sensor

• In May 2022, Abbott Nutrition signed a consent decree, related to the company’s Sturgis, Michigan infant formula plant, with the U.S. FDA. As per the decree, the FDA and Abbott Nutrition agree to expand upon the required steps for maintaining the facility and resuming production in the plant

• On February 2022, Unilever announced its decision to sell Unilever Life, a direct selling business in Thailand, to the RS Group. This acquisition by RS Group will significantly increase and expand the company’s ecosystem

Meal Replacement Products Market Report Scope

Global Meal Replacement Products Market Segmentation

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 2015 to 2025. For this study, Grand View Research has segmented the global meal replacement products market report based on product type, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)

  • Powder

  • Ready to Drink

  • Protein Bar

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2015 - 2025)

  • North America

    •  The U.S.

  • Europe

    •  Germany

  • Asia Pacific

    • China

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa