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Meal Kit Market Size
Meal Kit Market size in terms of transaction was valued at USD 14.4 billion in 2022 and is anticipated to register a CAGR of over 12.7% between 2023 and 2032. hanging consumer preferences for convenient yet home-cooked meals have driven the industry's expansion.
Meal kits offer a unique solution by providing pre-portioned ingredients and easy-to-follow recipes, saving time on meal planning and grocery shopping. Moreover, the COVID-19 pandemic accelerated the market's growth, as people sought safe and reliable alternatives to dining out. This period also witnessed increased interest in cooking and experimenting with new recipes, which meal kits cater to. Additionally, companies have adapted by offering various dietary options, catering to different cuisines, and enhancing sustainability efforts, which further broadens their appeal.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 14.4 Billion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 12.7% |
| 2032 Value Projection: | USD 47.2 Billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 180 |
| Tables, Charts & Figures: | 281 |
| Segments covered: | Type, Offering, Type |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The primary obstacles for the market is cost, as meal kits tend to be more expensive than traditional grocery shopping, which can deter some potential customers. Furthermore, sustainability concerns exist, with the industry generating a significant amount of packaging waste, particularly in terms of individual ingredients being pre-packaged. Meal kit companies are actively working to address this issue through more eco-friendly packaging options, but it remains a concern.
COVID-19 Impact
The pandemic accelerated trends that were already shaping the market, such as the rise of e-commerce and the preference for home-cooked meals. Meal kit services, with their delivery model, perfectly aligned with the increased demand for contactless shopping and cooking at home. As a result, the industry experienced a significant boost in subscribers and revenue during the pandemic.
Meal Kit Market Trends
Customers increasingly seek tailored meal options to accommodate their dietary preferences and restrictions. This has led to the development of more customizable meal kits, allowing consumers to choose from a variety of recipes and ingredients that align with their individual tastes and dietary requirements. Sustainability is another significant trend in the meal kit industry. With growing awareness of environmental issues, consumers are becoming more eco-conscious. Meal kit companies are responding by adopting sustainable practices, including reducing packaging waste, sourcing local and organic ingredients, and implementing green logistics solutions.
Meal Kit Market Analysis
Based on type, the meal kit market is segmented into vegetarian, non-vegetarian, vegan, paleo, keto, Mediterranean, other. The non vegetarian segment accounted for USD 6.5 billion and held the largest share in terms of revenue in 2022. Non-vegetarian meal kits have broader consumer appeal, as they cater to a larger portion of the population. This is because many people are not exclusively vegetarian and enjoy a variety of meat and seafood options. In addition, Meat and seafood are rich sources of protein, and for those who follow protein-centric diets or are athletes, non-vegetarian options are often preferred to meet their dietary requirements
Based on offering, the meal kit market is further sub-segmented into cook & eat, heat & eat, ready-to-eat. The ready to eat accounted for the highest CAGR of 13.4% over the forecast period is experiencing rapid growth for several compelling reasons. With the fast-paced modern lifestyle, consumers are increasingly seeking convenience and efficiency in their meal choices. Ready-to-eat foods offer a hassle-free solution, saving time and effort, which aligns with the following key factors driving this growth. Busy professionals, students, and families often find it challenging to prepare homemade meals from scratch due to time constraints. RTE foods, such as pre-packaged salads, microwaveable dinners, and grab-and-go snacks, provide an instant and accessible option for individuals with hectic schedules. This convenience is especially relevant in urban areas, where commutes and work hours are long, making home cooking less feasible.
Based on the distribution channel, the meal kit market is further sub segmented in online, grocery stores, other. The online segment is has dominated in terms of revenue in the year 2022 and accounted for the largest revenue share of USD 8.3 billion. This growth can be attributed to convenience offered by the online shopping. Consumers can browse and purchase products from the comfort of their homes or on-the-go through their mobile devices. This convenience is a major driver of the online segment's growth, as it saves time and effort, and eliminates the need for physical travel to brick-and-mortar stores.
North America region dominated the regional segment and accounted for the largest revenues share of USD 5.3 billion in 2022. This growth can be attributed to the urbanization trend in region which has led to increased demand for convenient food options. In urban areas, long commutes and demanding work schedules often leave little time for cooking from scratch. Meal kits provide a convenient solution for busy urban professionals and families. In addition, the region has a high level of internet and smartphone penetration. Meal kit services have leveraged technology to make it easy for consumers to order and manage their subscriptions online or through mobile apps. This tech integration has contributed to the market's growth and accessibility.
Meal Kit Market Share
Major companies operating in the meal kit market includes:
- Blue Apron
- HelloFresh
- Sun Basket
- Relish Labs LLC (Home Chef)
- Gobble
- Marley Spoon
- Purple Carrot
- Fresh n' Lean
- Hungryroot
Blue Apron offers a variety of meal plans to choose from, including two-person and family plans, as well as plans for specific dietary restrictions, such as vegetarian and gluten-free. Each meal plan includes three recipes per week, and each recipe serves two or four people. The recipes are developed by a team of chefs and nutritionists, and they are all designed to be easy to follow and delicious. The company also offers a variety of cooking tools and utensils, as well as pantry items, to help customers get started. The market players are undergoing various strategic initiatives such as mergers and acquisition, new product launch.
Meal Kit Industry News
In May 2023, Blue Apron company was acquired by FreshRealm. The acquisition is expected to meet consumer demand and geographical expansion of the company.
The Meal Kit Market research report includes in-depth coverage of the industry with estimates & forecast in terms of transactional value (USD Billion) and transactional volume (Kilo Tonnes) from 2018 to 2032, for the following segments:
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By Meal Type
- Vegetarian
- Non-vegetarian
- Vegan
- Paleo
- Keto
- Mediterranean
- Other
By Offering
- Cook & eat
- Heat & eat
- Ready-to-eat
By Distribution Channel
- Online
- Grocery stores
- Other
The above information is provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Indonesia
- Australia
- Malaysia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- Saudi Arabia
- South Africa
- Egypt
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