Meal Kit Market: Analysis By Meal Type, By Offering Type, By Distribution Channel, By Region Size & Forecast with Impact Analysis of COVID-19 and Forecast up to 2029

A Meal Kit is a subscription service in which the company sends the customer pre-portioned or partially prepared food ingredients and recipes. The customer must then prepare the food themselves at home. This is unique in relation to dinner conveyance administrations as they convey completely prepared food to the client straightforwardly from an eatery or cloud kitchen. Further, these products are delivered to the customer at a regular interval such as weekend or month. In 2023, the global meal kit market was valued at US$17.44 billion, and is probable to reach US$38.81 billion by 2029.

The global meal-kit market represents the online order and delivery of a recipe kit that includes fresh ingredients ready to be prepared, sent directly to the consumer. Subscription and rising e-commerce penetration are the major factors driving the meal kit market size. Subscriptions provide customers with a convenient and time-saving solution for meal planning and grocery shopping. By subscribing to a meal kit service, customers receive pre-portioned ingredients and detailed recipes directly to their doorstep, eliminating the need for them to spend time planning meals or shopping for ingredients. Further, the growing awareness about the customized food products delivery at the doorstep among millennial consumers through social media and another source of media is expected to boost the demand for the meal kits. Additionally, a rise in the female workforce coupled with rapid urbanization is expected to drive the growth of the meal kit market during the forecast period since more female workforce cause more time-poor consumers which is one of the main reasons for the use of meal kits. The global meal kit market value is projected to grow at a CAGR of 14.26%, during the forecast period of 2024-2029.

Market Segmentation Analysis:

By Meal Type: According to the report, the global meal kit market is segmented into three meal types: Non vegetarian, Vegetarian and Vegan. Non vegetarian segment acquired majority of share in the market in 2023 and is expected to grow with the fastest CAGR, as protein and vitamins and minerals such as A, B6, B12, niacin, and thiamine in meat, make it attractive for consumers who want to include lean protein in their diets. Furthermore, they offer a wider variety of options, incorporating different types of meat, such as chicken, beef, fish, and others. This diversity leads to a greater number of innovative recipes and flavors, thus attracting more consumers. Therefore, augmenting the demand for non-vegetarian meal kits.

By Offering Type: According to the report, the global meal kit market is segmented into two offering type: Cook and Eat and Heat and Eat. Cook and Eat segment acquired majority of share in the market in 2023, due to the popularity of gourmet-style home cooking amongst youngsters. It also lets an individual try new recipes or gourmet meals without expending extra money eating at restaurants. Whereas, Heat and Eat segment have the fastest growing CAGR in the future, owing to their high accessibility and convenience. They are being increasingly adopted by those who do not know cooking or by people who have a busy schedule.

By Distribution Channel: According to the report, the global meal kit market is segmented into four distribution channels: Online, Supermarket, Convenience Stores and Others. Online segment acquired majority of share in the market in 2023 and is expected to grow with the fastest CAGR, as they allow consumers to browse, select, and order meal kits from the comfort of their homes, making it highly convenient. Moreover, online distribution channels allow meal kit companies to reach a broader audience, not limited by geographical boundaries, which aids in widening the potential customer base. Additionally, they offer more scope for meal customization as consumers can easily specify their dietary preferences, allergies, or dislikes, ensuring that they receive meal kits tailored to their needs.

By Region: The report provides insight into the meal kit market based on the supply, namely Asia Pacific, Europe, North America and Rest of the World. North America meal kit market enjoyed the highest market share in 2023, owing to the rising disposable income, which allows discretionary spending on services, such as meal kits that provide convenience and variety. Increase in demand for convenient cooking options to save time and effort and a large number of the working population are augmenting market progress in North America region. The US and Canada, in particular, have witnessed a surge in demand for meal kits, with numerous companies competing in the market. Major metropolitan areas have become hubs for meal kit delivery services, catering to the preferences of consumers seeking convenient, time-saving, and varied meal options.

Asia Pacific meal kit market is expected to grow with the fastest CAGR, as rise in adoption of meal kits in Japan, South Korea, and China is fueling market statistics in the region. Additionally, there are various future trends that lead to the growth such as customized meal kits, use of organic products, ready to eat meal kits, which make it convenient for the customers

Global Meal Kit Market Dynamics:

Growth Drivers: Rapid urbanization plays a pivotal role in driving growth in the global meal kit market as urbanization often leads to changes in demographics, including an increase in the number of single-person households, dual-income families, and young professionals. These demographic shifts contribute to a rise in demand for convenient and tailored food solutions, making meal kits an attractive option for those who may not have the time or inclination to plan and shop for meals. As a result, there is a growing demand for convenient and time-saving solutions when it comes to meal preparation. Further, the market is expected to increase due to increasing e-commerce, growing number of working professionals, amplified disposable income, economical solutions & diverse offerings, extended delivery services, etc.

Challenges: The market's expansion is projected to be hampered by logistical complexities, as effective management of inventory and supply chain logistics is vital to prevent ingredient shortages or excesses. Many meal kit ingredients are perishable and require specific temperature controls to maintain freshness. Ensuring that ingredients remain at the right temperature throughout the entire supply chain, from storage to transportation to delivery, is a logistical challenge. The other challenges that meal kit market faces include high cost, risk of low food quality, etc.

Trends: One of the most distinct and pervasive trends observed in the global meal kit market is embracing eco-friendly practices like veganism. Since veganism became a trend in response to animal cruelty, there has been an uptick in demand for plant-based foods. Many had also given up meat for health reasons. As a result, more vegans are opting to eat plant-based meals. Companies such as Freshly, Purple Carrot, and Fresh n' Lean specialize in this area, particularly among those following plant-based diets. This will cause the market for plant-based products to expand rapidly. More trends in the market are believed to augment the growth of meal kit market during the forecasted period include, subscription models, customized meal kits, organic products, growing popularity of ready-to-eat (RTE) meal kits, etc.

Impact Analysis of COVID-19 and Way Forward:

The impact of COVID-19 on the meal kit market was positive. Since almost all hotels, restaurants, and eateries were closed around the world due to the COVID-19 pandemic, the market had a great chance to expand. As a result of people's increased health-consciousness and increased focus on healthy eating to boost immunity and maintain a well-balanced diet, a rapid rise in the number of people seeking easy, healthy meals became available. Whereas, the increased demand initially benefited the meal kit industry, some companies faced financial challenges due to increased competition, rising costs, and the need for continuous innovation. The long-term financial impact varied among companies.

Competitive Landscape and Recent Developments:

Global meal kit market is fragmented. Hellofresh is the largest and most relevant player with ~50% of the global market share. Market players have implemented sustainable growth techniques in the market. To strengthen their position in the market, some of the leading competitors are pursuing various growth methods such as mergers, acquisitions, collaborations, and agreements. Key players of global meal kit market are:

• HelloFresh SE
• Marley Spoon SE
• Blue Apron Holdings, Inc.
• Home Chef
• FreshDirect
• Fresh N Lean
• Green Chef
• The Purple Carrot
• Gousto
• Sunbasket
• Gobble
• Dinnerly

The key players are constantly investing in strategic initiatives, such as new launches, mergers & acquisitions, introducing their products to emerging markets and more, to maintain a competitive edge in this market. For instance, in January 2023, HelloFresh and Chefs Plate announced their merger, creating a global meal kit powerhouse. This move aimed to capitalize on economies of scale, expand their reach, and fend off competition. Also, in November 2022, HelloFresh and Warner Bros. Discovery Global Consumer Products have launched a limited-edition meal kit named the Elf Spaghetti Meal Kit. The meal kit is inspired by the movie "Elf" and includes all the ingredients needed to make a spaghetti dinner, and they are available for purchase on the HelloFresh website for a limited time.