Meal Kit Delivery Services Market Analysis

Meal Kit Delivery Services Market Analysis

Based on food type, the meal kit delivery services market is divided into ready-to-cook and ready-to-eat. The ready-to-eat segment accounted for over 55% market share in 2022 and is expected to see significant growth within the market. As consumers increasingly seek convenience, this segment caters to those who desire fully prepared, ready-to-consume meals. It eliminates the need for any cooking or meal assembly, making it ideal for busy individuals and families.
 

Additionally, the growing demand for healthier & restaurant-quality options that can be enjoyed at home fuels this trend. Ready-to-eat meal kits offer an enticing solution, providing gourmet & chef-prepared dishes with minimal efforts, thereby attracting a broader customer base and contributing to market expansion. For instance, in August 2023, HelloFresh launched the Factor ready-to-eat brand in Europe, starting in the Netherlands and Belgium. This move reflects its plans for strategic expansion to tap into a broader customer base. It allowed HelloFresh to diversify its offerings, aligning with its multi-tier brand strategy, and capture new segments of consumers seeking convenient & restaurant-quality meal options, further solidifying its presence in the competitive market.
 

Based on the delivery model, the meal kit services market is categorized into subscription-based and on-demand. The subscription-based segment held around 60% business share in 2022. The subscription-based segment in the market is expected to grow owing to its unique appeal to consumers. Subscriptions offer convenience, predictability, and cost savings, making them attractive for busy individuals and families. As the meal kit market continues to innovate with flexible plans, customization options, and diverse menus, subscription models are likely to retain and expand their customer base. For instance, in July 2023, Just Add Vegan launched a seed round in Australia, contributing to the subscription-based segment growth. By introducing vegan-focused meal kits, the company serves consumers seeking specialized dietary options. This expansion offers more choices within the subscription model, attracting vegan enthusiasts and broadening the overall market appeal for subscription-based meal kits.
 

North America led the meal kit delivery services market with a share of over 35% in 2022 and is expected to see robust growth over the forecast period. The region's busy lifestyles and a growing appetite for convenience make meal kits attractive options. The pandemic-induced shift toward cooking at home has boosted demand. Meal kits align with evolving consumer preferences for healthy, customizable, and diverse meal options.
 

For instance, in January 2023, Factor expanded into Canada by introducing its ready-to-heat meal delivery service, offering chef-prepared & dietitian-approved meals for Canadian consumers. This move enabled the company to meet the growing demand for convenient, healthy dining options and extend its reach beyond the U.S., enhancing mealtime choices for Canadians by delivering restaurant-quality meals directly to their homes. Increased digitalization and tech-savvy consumers contribute to market expansion, with a focus on user-friendly online food delivery platforms and subscription models.