Meal Kit Market - Forecast(2022 - 2027)

The global Meal Kit Market size is anticipated to reach $21.46 billion by 2027, growing at a CAGR of 11.6% during the forecast period 2022-2027. A Meal Kit is a subscription service where the company delivers pre-portioned or partially prepared food ingredients and recipes to the customer, who then has to prepare the food at home by themselves. This is different from meal delivery services as they deliver fully cooked food to the customer directly from a restaurant or cloud kitchen. Increasing preference for healthy and homemade meals among the younger population and increasing usage of super-absorbent polymer from sodium polyacrylate is driving the growth. However, increasing concerns regarding the quality of food provided by the services and non-convenience food act as a major challenge that can hamper demand generation.

Report Coverage

The report: "Meal Kit Market Forecast (2022-2027)", by Industry ARC, covers an in-depth analysis of the following segments of the Meal Kit Market.

By Offering: Heat & Eat, Cook & Eat

By Service Type: Single, Multiple

By Platform: Online, Offline

By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and Rest of World (Middle East and Africa).

Key Takeaways

Geographically, North America accounted for the highest Meal Kit market share in 2020 and it is poised to dominate the market over the period 2022-2027 owing to the rapid growth and development of the foodservice industry in the region.

An increase in the working women population in developed and developing countries is anticipated to drive the market. However, the low awareness levels of the service in emerging economies is a major challenge for the Meal Kit market.

Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Meal Kit Market report.

Meal Kit Market Segment Analysis-By Offering

Based on Offering, the Meal Kit market is segmented into Heat & Eat and Cook & Eat. The Cook & Eat segment dominated the Meal Kit market in 2020 with 12.7% of the overall market share. The growth is attributed to the rise in popularity of home cooking amongst the youth. Meal Kits provide the opportunity to try out new recipes without the need for expensive restaurant visits. Even though Cook & Eat meals take more time to prepare than Heat & Eat, they are still much faster than the traditional method of cooking. The Heat & Eat segment is projected to register the fastest growth during the forecast period 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.

Meal Kit Market Segment Analysis-By Service Type

Based on Service Type, the Meal Kit market is further segmented into Single and Multiple. The Single service kit segment is anticipated to be the largest during the forecast period 2022-2027 with 11.9% of the overall market share owing to their high convenience among youngsters who live away from their families for education or work. Furthermore, a large number of such youngsters may not be skilled in cooking. Single Meal Kit services provide a complete solution for this issue without the need to sacrifice food quality or health. The Multiple Meal Kit segment is anticipated to register the fastest growth during the forecast period owing to their increasing adoption by families with two working parents.

Meal Kit Market Segment Analysis-By Geography

The Meal Kit Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. The North American region accounted for the largest market share of more than 32% owing to the high development and awareness of the foodservice industry. The increasing concern of the population towards their personal health is another factor causing the rapid growth of the market. As Meal Kits are a healthier option when compared to purchasing pre-cooked meals from restaurants or supermarkets, they become a more preferred option. The Asia Pacific region is projected to grow the fastest during the forecast period 2022-2027 owing to the significant rise in disposable income. Rapid urbanization and industrialization in the region have caused an increase in the number of nuclear families with two working parents. This has resulted in the rise in demand for Meal Kits as it is a convenient but healthy alternative for home food consumption.

Meal Kit Market Drivers

An Increase in Awareness of the Dangers of Fast Foods is anticipated to Drive Market Growth.

The cases of lifestyle illnesses such as diabetes, blood pressure, cardiovascular diseases, cancer, and so on are witnessing a rapid rise. A major factor in their growth can be attributed to the shift in dietary habits. As time required to cook healthy food at home is high, the demand for high-calorie fast food surged. It was found that in the U.S., around 14.4% of the total daily calories in children came from fast food products. However, owing to the increase in global awareness of the health risks posed by fast foods, the demand for a healthy alternative such as Meal Kits has risen.

Development of Innovative Packaging Technology is Projected to Boost Demand.

The use of Super absorbent polymer in Meal Kit packaging has led to decrease instances of food and liquid leakage. This has simplified the delivery process and reduced the chances of customer dissatisfaction. These Polymers are made of sodium polyacrylate, which is known for its ability to absorb 100 to 1000 times its mass in water.

Meal Kit Market Challenges

Higher Cost of Meal Kits is Anticipated to Hamper Market Growth.

The higher cost of meal kits acts as a major challenge, especially among the less affluent population. Many customers perceive meal kits to be highly expensive as it is cheaper to order the same ingredients online from a grocery store and have them delivered to their address. This drastically limits the penetration of their service. For instance, it is estimated that only 4% of the US population has ever used Meal Kit services.

The Risk of Low Food Quality Standards is projected to limit growth opportunities

Owing to the fact that the Meal Kit industry is highly dependent on all the supply chain network partners to ensure the quality of the delivered ingredients, there may arise instances when damaged or low-quality ingredients are delivered. This will lead to a drop in customer satisfaction, resulting in the cancellation of future services. The constant quality control monitoring of food suppliers, packaging, delivery agents and so on may not always be feasible.

Meal Kit Market Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Meal Kit Market. Top 10 companies in of the industry are-

1. Blue Apron

2. PeachDish

3. Gobble Inc

4. Chef'd LLC

5. Ahold

6. Gousto

7. Green Chef Corporation

8. The Purple Carrot

9. Home Chef

10. Sunbasket

Partnerships/Product Launches:

In October 2020, Blue Apron expanded its menu offerings to make it more convenient for home cooks to receive additional meals every week. The company is offering more variety, flexibility, and choice by giving customers the option to order multiple boxes per week, customize select components of recipes, as well as expanding the Two-Person Signature menu to allow home cooks to get up to four recipes per box.

In September 2020, Chef Sanjeev Kapoor announced the launch of KitFresh Meal Kits in Bengaluru on Amazon India under his newly founded venture, KSK Food. These Meal Kits consist of ingredients put together by Kapoor to help customers recreate some of his most iconic recipes.