Meal Kits Market Size and Trends by Type, Meal Type, Offering Type, Subscription Model, End-User, Distribution Channel and Region

Meal Kits Market size was valued at USD 18.1 Billion in 2022 and is expected to grow at a CAGR of 14.7 percent from 2023 to 2029 to reach USD 47.27 Billion.
Meal Kits Market Overview
Meal Kit providers offer specialized kits such as vegetarian, vegan, and dietary-specific options, to cater to a wider range of consumer preferences. The market has experienced significant growth and transformation due to changing consumer preferences, changing lifestyles and technological advancements. Appealing and catering to individual lifestyle choices is a growing trend within the industry. For example, the vegan lifestyle requires an individual to avoid meat and animal-based food, which results in the need for unique ingredients to prepare basic meals. Consumers majorly love meal kits for convenience and time-saving. As per the study, 27% of people have tried meal kit services, compared to just 14% in rural areas.To know about the Research Methodology :- Request Free Sample Report
Meal Kits Market Dynamics
Sustainability Practices by Meal Kits Providers

The meal kits are the better option for cutting down on food waste. Proper packaging materials such as plastic are used for meal kits. In terms of carbon footprints, the emissions from processing and distribution, fertilizer production and farm equipment are more important than those from packaging used to maintain the freshness of food. Many consumers seek more improvements in packaging such as more compostable packaging, fewer plastics and insulation made from recycled materials. The meal kit industry is majorly focusing on making changes concerning the sustainability of its services, especially in packaging and changing consumer perceptions.

Increasing Popularity of Pre-Made Meal Choices

Convenience is the key selling point of meal kits. These kits include pre-cooked options that no longer require preparation. Pre-made meals encourage individuals who are used to ordering takeout or dining out. The increasing popularity of these meals has highlighted the importance of health-conscious choices.

Online Services Offered by Meal Kits Companies

The strategy of many companies is to become a full-service online retailer to provide consumers with flexible ways to order meals or other quick food options to their homes. In 2021, companies such as Blue Apron began their own online marketplaces due to which customers are able to add other grocery items such as proteins, produce and pantry staples to their meal purchases. By adding easy-to-use, low-commitment features such as an online marketplace to their services, the companies have an opportunity to attract new customers and maintain existing ones who feel constricted by the traditional subscription model.

Investments in the Meal Kits Market

Meal Kits services have been backed by huge investments in the past. Many companies are investing in research and development, which is leading to the creation of new and improved meal offerings. This includes diverse menu options, specialized dietary plans and unique recipes that cater to a wide range of consumer preferences. The investments by companies in technological advancements support the development of user-friendly apps, websites and other technology platforms that improve customer experience. Some of the companies are trending towards outside investments. For example – Plant-based purple carrot raised USD 12.8 million through funding and Sun Basket raised $125 million from outside financing. Acquiring new customers is more expensive than retaining existing ones.

High Costs of Meal Kits and Services

Meal kits are mostly expensive. High prices of meal kits exclude a population with lower disposable income, which limits the overall market growth. Consumers who initially sign up for meal kit subscriptions also cancel or reduce their subscriptions if they find cost too high relative to the value they receive, which impacts the growth of meal kit companies by reduction in their revenue. A large number of a subscription cancellation leads to the more investment of more resources in marketing and customer acquisition to replace those lost customers.
Meal Kits Market Regional Insights
North American Meal Kits Market dominated the global market with the largest market share followed by Europe. The regional market has experienced significant growth over the years. As per the research, the market is competitive, which has led to innovative offerings, pricing strategies, and marketing efforts. In the region, some companies have formed partnerships with grocery stores and retail chains to increase their distribution channel. The HelloFresh company accounts for around 69 percent of the total US Meal Kit Market. Around 82% of US citizens believe that meal kits delivered to the home are believed to be healthier than restaurant food. The European Meal Kits Market is expected to grow at a high rate during the forecast period. Consumers in the region are interested in exploring new flavors, cuisines, and recipes. Many companies in the region are offering customization options to accommodate dietary preferences, which aims to cater to a diverse range of consumers, including those with vegetarian, vegan, or gluten-free diets. In August 2023, Hellofish launched the ready meals service factor in Europe. The brand aims to become the market leader and grow in many of the European countries.
Meal Kits Market Segment Analysis
Based on Type: The market is divided into vegan, vegetarian and non-vegetarian. The non-vegetarian segment dominated the global market with a high Meal Kits Market share in 2022. Consumers who enjoy a balanced diet that includes animal protein highly demand traditional non-vegetarian meal kits. The vegan segment is expected to grow at a high rate during the forecast period as people are increasingly embracing plant-based diets for ethical, environmental, and health reasons. The vegetarian segment is also expected to grow at a high rate during the forecast period. Vegetarian meal kits are popular among consumers who are looking to reduce their meat consumption or adopt a more plant-based diet. These kits offer various vegetable-based and protein-rich options.

Based on End-User: The market is divided into Families and Individuals. The individuals segment dominated the global market with the largest Meal Kits Market share. Meal kits are convenient for busy individuals especially those with demanding work schedules. This saves their time for meal planning and grocery shopping. Young adults living alone or in a shared flat prefer meal kits with portion control, reduced food waste, and the opportunity to experiment with cooking without the need to purchase large quantities of ingredients.

Based on Distribution Channel: The market is divided into Online and Offline. The Online segment is growing rapidly. The companies are increasingly starting to develop and operate their own e-commerce websites where consumers browse meal options, customize their orders and subscribe to receive regular deliveries of meal kits. The convenience and wide range of choices that consumers get by ordering online is driving the market growth.
Meal Kits Market Competitive Landscape
As per the research, the market is highly competitive and becoming increasingly competitive. This is attributed to the increasing innovation and differentiation among meal kit providers. This section of the report provides a detailed analysis of the competitors with their investment plans in research and development, revenue, sales, production capacities and company overview. SWOT analysis was used to provide the strengths and weaknesses of the Meal Kits key competitors. The big companies buying small ones is the growing trend in recent years. The giant meal kit services are expanding their operations while decreasing competition by purchasing smaller companies. The acquisitions and mergers are expected to increase during the forecast period.

In June 2023, Blue Apron introduced two easy meal kits with brand-new ingredients. BBQ Rib Feast and Summer Crab Picnic are the two easy meal kits introduced. In April 2023, the expansion of partnership between Blue Apron and DashMart by DoorDash expanded the availability of Blue Apron’s Heat & Eat meals to 11 markets. In March 2023, the company introduced its first-ever brunch box to elevate weekend meals. In Dec 2022, Intelligent Foods, a powerhouse food manufacturer of healthy meal and supplement solutions acquired the popular 15-minute meal kit service Gobble. Under the umbrella of intelligent foods, the deal will also unite two industry-leading premium meal kits providers, Gobble and Sunbasket to diversify the manufacturer’s offerings and expand their US market reach to over 40 million households. Sunbasket and Gobble will continue to exist as separate brands, reaching their distinct target consumers based on their needs and demographics.
Global Meal Kits Market Scope: Inquire before buying



Global Meal Kits Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 18.1 Bn.


Forecast Period 2023 to 2029 CAGR:
14.7%
Market Size in 2029:
US $ 47.27 Bn.


 Segments Covered:
by Meal Type
Family Meal Kits
Quick and Easy Meal Kits
Gourmet Meal Kits
Breakfast/Brunch Meal Kits


by Type
Vegan
Vegetarian
Non-vegetarian


by Offering Type
Heat and Eat
Cook and Eat


by Subscription Model
Weekly Subscription Meal Kits
Monthly Subscription Meal Kits
One-Time Purchase Meal Kits


by End-User
Families
Individuals


by Distribution Channel
Online
Offline



Meal Kits Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Meal Kits Key Players
1. Blue Apron, LLC
2. Freshly Inc.
3. HelloFresh
4. Sun Basket, Inc.
5. Relish Labs LLC
6. Gobble
7. Marley Spoon Inc.
8. Purple Carrot
9. Fresh n' Lean
10. Hungryroot, Inc.
11. One Potato
12. Trifecta Nutrition
13. Chef'd
14. Dinnerly
15. Green Chef
16. EveryPlate
17. Home Chef

Frequently Asked Questions

1] What is the expected CAGR of the Global Meal Kits Market during the forecast period?
Ans. During the forecast period, the Global Meal Kits Market is expected to grow at a CAGR of 14.7 percent.

2] What was the Meal Kits Market size in 2022?
Ans. USD 18.1 Bn was the Meal Kits Market size in 2022.

3] What is the expected Meal Kits Market size by 2029?
Ans. USD 47.27 Bn is the expected Meal Kits Market size by 2029.

4] What are the Meal Kits Market segments?
Ans. The market is divided by Type, Meal Type, Offering Type, Subscription Model, End-User and Distribution Channel.

5] Which regional Meal Kits Market share is expected to grow at a high rate during the forecast period?
Ans. The Meal Kits Market of Asia Pacific is expected to grow at a high rate during the forecast period.