Global Meal Kits Market by Product Type (Vegan, Vegetarian, and Non-Vegetarian), By Offering Type (Heat and Eat, Cook and Eat), By Service (Single and Multiple), By Distribution Channel (Convenience Stores, Online, Hypermarket/Supermarket, and Other Distribution Channels), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

Global Meal Kits Market size is expected to be worth around USD 55.4 Bn by 2032 from USD 14.8 Bn in 2022, growing at a CAGR of 14.5% during the forecast period from 2023 to 2032.

Ready-to-make meals come in meal kits that contain all ingredients necessary for preparation. The instruction sheet provides clear directions and photos to assist with assembly - these meals can be used for two or four people and typically take no more than 30 minutes to cook. The market's growth can be attributed to millennials' growing preference for chef-prepared and home-cooked meals. Generation Y, Z are increasingly using delivery services as well due to the many advantages that homemade meals provide compared to takeout or home delivery options. Meal kit sales are conducted by market players who deliver meals to consumers. These meals may include pre-cooked meals, pre-made food products, customized food ingredients, and fresh ingredients that allow consumers to finish cooking at home. Meal kits can serve as a convenient, cost-effective, and nutritious alternative to grocery shopping - making them an attractive alternative.

According to the National Library of Medicine, meal kit services enable greater social distancing and saw a dramatic spike in use during the first year after the pandemic. In America alone, only 15% of households had ordered them prior to the crisis; by 2020, nearly 25% had taken advantage of such services.

Due to the hectic lifestyles of both spouses in a family, which leaves less time for cooking or shopping for vegetables, meal kit market growth is expected. According to the U.S. Bureau of Labor Statistics, women's participation in the labor force increased from 57.1% in 2018 to 57.4% in 2019, and NITI (National Institution for Transforming India), Aayog reported that female labor increased from 23.1% in 2018 to 27.9% by 2020; this rapid urbanization and rise of female workers are predicted to fuel demand for meal kits over the forecast period as more busy women will need less time for cooking and shopping for produce themselves - hence making meal kits increasingly popular among busy households.

Market Scope

By Product Type Analysis

Non-vegetarians dominated the meal kit delivery market in 2022, accounting for 65.7% of the total revenue generated. This segment is expected to remain dominant over the forecast period due to meat's high level of protein and essential vitamins and minerals such as A, B6, B12, and niacin, making it attractive to people seeking to increase their lean protein intake. Many companies offering non-vegetarian meal plans provide fresh, high-quality, nutritious meats; product demand has also been driven up due to growing awareness regarding the health benefits of eating non-vegetarian meals like fish or chicken.

From 2023 to 2032, vegetarian meal kits are projected to experience a 19.6% compound annual growth rate (CAGR). As more people opt for fresh, plant-based food as part of their diets, many anticipate increased demand for vegan and vegetarian kits that provide ample antioxidants, fiber, and other long-term health advantages. With the rising adoption of cruelty-free and plant-based diets across the board, these numbers suggest vegan and vegetarian kits will remain in high demand.

By Offering Type Analysis

In 2022, the cook-and-eat segment will dominate this market with the highest revenue share at 62.7%, which is expected to remain dominant during the forecast period due to the growing popularity of home cooking among young people, particularly gourmet-style cooking. These recipes take more time than those offered in heat-and-eat sections but are much more efficient, you don't need to go shopping for ingredients proportioned for one person or more, which saves time in shopping trips to supermarkets or groceries stores.

This market is expected to expand at an annual growth rate of 17.8% between 2023 and 2032, driven by the heat and eat category. Chefs prepare these meals, and customers can select ingredients or browse existing recipes on the site, with ease of use being a key factor. These kits have become increasingly popular around the world due to their convenience. Freshly Inc. offers custom meals as well as its signature collection, such as Dijon Pork Chop or Traditional Beef Stew that have a shelf life of 3-5 days, can be heated easily in 5-15 minutes, then served.

By Service Analysis

The single delivery service segment was the leading player in this market in 2022, accounting for 59.4% of the total revenue share. Many bachelors lack the necessary skills to cook healthy meals on their own; service providers can assist them in finding a nutritious diet that benefits both body and mind.

From 2023 to 2032, the multiple delivery service segment is projected to experience the highest compound annual growth rate of 18.3%. As more families have two working parents, managing household responsibilities can become harder and more stressful. Delivery services offer an easy solution by relieving them of cooking responsibilities which can take up valuable time. Lack of time is often the primary reason people don't participate in traditional cooking; yet millennials love food, so finding ways to save time while still having cooked traditional meals is becoming increasingly popular among this generation. Multiple meal service providers provide the ideal solution for these problems.

By Distribution Channel Analysis

In 2022, the online segment accounted for 62.2% of global meal kits market revenue; it is expected to remain dominant over the forecast period. With greater consumer reach through technology advancements and easier internet accessibility, many companies are seeing increased awareness regarding different purchase patterns due to this growing influence from Generation Z and millennials on product purchases.

Key Market Segments

By Product Type

• Vegan
• Vegetarian
• Non-Vegetarian

By Offering Type

• Heat and Eat
• Cook and Eat

By Service

• Single
• Multiple

 By Distribution Channel

• Convenience Stores
• Online
• Hypermarket/Supermarket
• Other Distribution Channels

Market Dynamics

Drivers

Because of the busy lifestyles of both spouses in a household, which leaves less time for cooking or shopping for produce, meal kit market growth is expected to accelerate during the forecast period. According to data released by the U.S Bureau of Labor Statistics in 2019, women's participation in the labor force increased from 57.1% in 2018 to 57.4% in 2019, while NITI (National Institution for Transforming India), Analog reported an increase in female labor from 23.1% in 2018 to 27.9% by 2020; this rapid urbanization coupled with rising numbers of female workers is expected to fuel growth in demand for meal kits over this period since more women tend to be busy than men do; hence why meal kits become so popular among them.

Due to their insufficient time for cooking, educated individuals tend to opt for meal kits over restaurant-prepared meals in order to save effort and time. According to the National Library of Medicine, cooking has seen an uptick in popularity from 2003-2016; college-educated male chefs saw their proportion increase from 37.9% in 2003 to 51.9% by 2016, and female chefs' proportion increased from 64.7% to 68.7% between 2003 and 2016. As these individuals are less likely to cook themselves, they will likely purchase pre-packaged meals instead.

Restraints

Meal kits tend to be costlier than purchasing the same ingredients at a grocery store, which can be an issue for those on tight budgets. Meal kit delivery involves an intricate logistics network involving sourcing ingredients, packaging, and shipping. Meal kit companies, particularly smaller ones, may find it challenging to manage and scale operations efficiently. Meal kits have also been criticized for their excessive packaging waste - which can be considerable. Many providers are working hard to reduce their environmental impact, but this still poses a concern for customers. Meal kits offer convenience but may not provide the level of customization some consumers desire. For instance, customers may want to substitute or omit certain ingredients based on dietary preferences or restrictions. Furthermore, the meal kit market has become increasingly crowded, with many companies competing for customers' attention, this makes it difficult for newer or smaller businesses to stand out and attract customers.

Opportunity

Since veganism became a trend in response to animal cruelty, there has been an uptick in demand for plant-based foods. A survey by the Vegan Society revealed that the UK's number of vegans quadrupled between 2014-2018, totaling 6,00,000. Vegetarians in the UK comprised 1.16% of its population in 2019, according to a government survey. Of this number, 63% are newcomers to veganism, while 81% are experienced and have been vegetarians for some time. 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.

Market players are offering personalized meals, creating a growth opportunity. Personalized kits enable consumers to select their own meals and make informed choices. HelloFresh, Home Chef, and other providers provide meal plans tailored specifically to customers' preferences. Customers are drawn to this market due to its versatility in customizing meal kits according to their tastes and dietary needs.

Trends

Meal kits have become increasingly popular because of their convenience, variety, and customization options. Customers appreciate having pre-measured ingredients delivered directly to their doorstep for easy convenience. Meal kit providers were expanding their selection beyond traditional dinner choices to include breakfast, lunch, and snack options as well. There was also an increasing trend towards healthier and more sustainable meal kit ingredients like organic or non-GMO, which are often sourced locally. Meal kit companies have been joining forces with restaurants, grocery stores, and other food brands to expand their menus and reach new customers. Some meal kit companies were adopting technology into their services, such as providing personalized recipe recommendations based on customer preferences or using AI to predict customer demand. The meal kit market was becoming increasingly competitive, with new players entering the space and established players expanding their offerings.

COVID-19 Impact Analysis

Covid-19 Positively Impacted On Global Meal Kits Market

Because of the COVID-19 pandemic, restaurant and eatery closures worldwide created a new market for meal delivery services. As people sought ways to boost immunity and maintain a healthy lifestyle, key players in this space saw their sales surge due to demand. Blue Apron and HelloFresh reported increases in global sales, while HelloFresh saw an uptick in the U.S. customer base with a 66% year-over-year revenue increase.

Regional Analysis

North America Dominated the Global Meal Kits Market with a Revenue Share of 48.2%

North America was the leading market for this market in 2022, accounting for 48.2% of total revenue. These kits are popular because they save time and money while providing healthier, more affordable alternatives to pre-cooked foods available from restaurants, online delivery services, or retail stores. Blue Apron, Sun Basket, and others have experienced a spike in product demand due to COVID-19 pandemic-induced changes in consumer behavior. Blue Apron experienced an uptick in its March 2020 meal kit sales due to changes in consumer preferences caused by this crisis; Sun Basket even saw an uptick in demand during March 2020 due to changes in consumer behavior due to this crisis.

Asia Pacific is expected to experience a 19.8% CAGR in between 2023 and 2032, driven by convenience as well as freshness. These services are increasingly sought after by busy consumers in China, Japan, South Korea, and Japan; COVID-19 has further fueled interest in home-cooked foods within China which will further propel demand in this country. India leads in vegetarian/vegan meal kit sales followed by Japan, China, and Singapore.

Key Regions

North America

• The US
• Canada
• Mexico

Eastern Europe

• Russia
• Poland
• The Czech Republic
• Greece
• Rest of Eastern Europe

Western Europe

• Germany
• France
• The UK
• Spain
• Italy
• Portugal
• Ireland
• Austria
• Switzerland
• Benelux
• Nordic
• Rest of Western Europe

APAC

• China
• Japan
• South Korea
• India
• Australia & New Zealand
• Indonesia
• Malaysia
• Philippines
• Singapore
• Thailand
• Vietnam
• Rest of APAC

 Latin America

• Brazil
• Colombia
• Chile
• Argentina
• Costa Rica
• Rest of Latin America

Middle East & Africa

• Algeria
• Egypt
• Israel
• Kuwait
• Nigeria
• Saudi Arabia
• South Africa
• Turkey
• United Arab Emirates
• Rest of MEA

Key Players Analysis

HelloFresh is a German meal kit company operating in multiple countries, such as the United States, Germany, the United Kingdom, and Australia. It provides vegetarian, low-calorie, and family-friendly options. Blue Apron was another pioneer of this industry; they offer weekly menus of chef-designed recipes delivered right to customers' doorsteps. Home Chef is another American meal kit startup founded in 2013 that also provides vegetarian, low-calorie, and low-carbohydrate options along with partnerships with several grocery store chains to expand its reach.

Market Key Players

With the presence of many local and regional players, the market for meal kit is fragmented. Market players are subject to intense competition from top market players, particularly those with strong brand recognition and high distribution networks. To stay on top of the market, companies have gained various expansion strategies such as partnerships and product launches.

The following are some of the major players in the global meal kit industry

• Blue Apron, LLC
• Freshly Inc.
• HelloFresh
• Sun Basket, Inc.
• Relish Labs LLC (Home Chef)
• Gobble
• Marley Spoon Inc.
• Purple Carrot
• Fresh n' Lean
• Hungryroot, Inc.
• Other Key Players

Recent Development

• In August 2021, Freshly Inc. recently unveiled their groundbreaking plant-based prepared meals line, 'Purely Plant'. This includes six new meals that incorporate plant-based proteins and are made with whole food ingredients for convenience - heat and serve in just three minutes, no preparation necessary with Freshly's plant-based prepared meal range, customers are now able to get variety, taste and nutrition at their fingertips in just three minutes
• In November 2020, HelloFresh recently acquired Factor75, LLC for USD 277 million with the goal of strengthening their position in the U.S. market and increasing their customer base across America.
• In October 2020, Freshly Inc. was acquired by Nestle for USD 950 million to boost their growth and gain entry to the rapidly-expanding U.S. industry.

 Report Scope