Meal Kit Delivery Services Market

Meal Kit Delivery Services Market Size (2024 to 2029):

Meal Kit Delivery Services Market is expected to grow at a CAGR of 17.80 %, from USD 25.02 billion in 2024 to USD 56.70 billion in 2029.

Meal Kit Delivery Services is a weekly or monthly subscription service that sends recipes and food ingredients to customers so they can cook their own fresh meals at home. Services that include the delivery of pre-cooked meals are called meal delivery services. This subscription model is an increasingly popular and pervasive example of personalization in the food and beverage industry. On average, it takes 30 minutes to an hour to prepare and cook a meal. Most Meal Kit Delivery Services companies require customers to sign up for the service. Meals sent to customers are based on preferences selected at the beginning of their subscription and will include items based on the preferences of customers who are vegetarian or non-vegetarian. Meal kit delivery service is a food business model in which a meal kit service provider delivers partially or fully prepared food to customers. Meal kit delivery services are adding value in the marketplace by benefits such as saving time, saving money, and reducing food waste.

A major factor driving the growth of the global Meal Kit Delivery Services market is the increasing need for these kits among customers with busy lifestyles.

MARKET DRIVERS:

Demand for meal kit delivery services is driven by a growing urban population, a growing number of female workers, and increasing middle-class population in developing countries such as China and India. The rising preference for home-cooked meals among millennials is expected to be a major factor in the growth of the market. Also, these homemade products are considered healthier than commercially prepared foods high in fat, salt, and sugar. Preparing food at home gives you full control over the type of ingredients we want and can be helpful for people who are allergic to certain ingredients or want to avoid some ingredients. Meal kit delivery service providers offer balanced ingredients, which simplifies cooking and eliminates the need to purchase a variety of ingredients. Overall, these meal kit delivery services have reduced cooking time and energy-consuming labor, allowing hobbyists to try exotic dishes for themselves. Changes in meal kit preferences are driven by the benefits associated with home-cooked meals. For example, home cooking is cheaper than eating at a restaurant. This market for meal kit delivery services is supposed to become more and more accepted during the outlook period due to the significant adoption of hassle-free food preparation technology among kitchen savvy consumers. Financing startups and investors driven by innovative ideas can create new opportunities for the market. The concept of door-to-door delivery of pre-measured food ingredients in conjunction with cookbooks is likely to drive market growth. It also saved time for home cooked meals compared to takeout and courier because Meal Kit Delivery Services were readily available.

Also, as lifestyles improve in emerging countries, people's disposable income increases, and they tend to purchase Meal Kit Delivery Services subscriptions. These factors forced the companies to offer a delivery of better-quality meal kits every week or month. The service's ease of use, quick and convenient cooking mode, less time consuming, and consideration of food preferences are foreseen to contribute to the growth of the meal kit delivery services market. The growth of the grocery market and the retail industry is estimated to provide profitable opportunities for market participants in the coming years. The concept of door-to-door delivery of pre-measured food ingredients in conjunction with cookbooks is likely to drive market growth.

MARKET RESTRAINTS:

Factors such as the preference for traditional cooking methods, the preparation of fresh food in some parts of the world, and health concerns play a role in restricting market growth. Also, due to the high rate of meal cancellations, the market is struggling to grow.

REPORT COVERAGE: 

SEGMENTAL ANALYSIS

Global Meal Kit Delivery Services Market Analysis By Offering:

The heat and eat segment led the market, accounting for more than 65% of global sales in 2020. With the growth of busy and hectic lifestyles around the world among millennials, the range of services in heat and eat will expand in the future. The cook-and-eat segment is expected to record the fastest CAGR of 13.2% between 2021 and 2026. It is suitable for students and beginners who try new recipes and gourmets firsthand. Plus, these food and kitchen kit delivery services save time on shopping and are much healthier than other ready-to-eat meals.

Global Meal Kit Delivery Services Market Analysis By Platform:

Offline platforms accounted for the largest share of over 65% in the global meal kit delivery services market in 2020. The growing demand for meal kit delivery services has led many local small and medium-sized businesses to offer these delivery services. This kit delivery service often serves local cuisine that people are well versed in. The meal kit offline business includes locally grown vegetables and fruits in the meal kit. The online platform is expected to record the fastest CAGR of 13.4% between 2021 and 2026. Online businesses have a wider distribution network.

Global Meal Kit Delivery Services Market Analysis By Service:

The single service segment had the largest share in 2020, with more than 55%. Millennials and Gen Z make up the largest consumer group at these meal kit delivery services. This includes mostly busy students and professionals with a focus on maintaining a healthier lifestyle. Multi-kit delivery services are expected to record the fastest CAGR of 13.0% between 2021 and 2026. As lifestyle increases, it is common for families with working parents to find it difficult to cook.

REGIONAL ANALYSIS

North America dominated the global meal kit delivery service market and accounted for more than 30% of total sales in 2021. The United States is becoming a large number of meal kit delivery service providers. More and more people are recognizing the negative health effects associated with junk food, and the trend has accelerated as it has gained popularity in the United States over the years. The Asia Pacific region is estimated to expand from 2022 - 2027 with the fastest CAGR of 14.0%. Major economies, including India, Japan, China, Malaysia, Indonesia, Thailand, Singapore, and Vietnam, have been transformed into manufacturing centers. Therefore, the increase in employment leads to a hectic lifestyle, with few opportunities for daily tasks and cooking. Therefore, the region is expected to see an increase in demand for meal kit delivery services during the forecast period.

KEY PLAYERS IN MEAL KIT DELIVERY SERVICES MARKET

Key Players in the Global Meal Kit Delivery Services Market are Just Add Cooking, Blue Apron, Din, Ahold USA, Cooking Simplified, Chef'd, Gobble, Foodstirs, Green Chef, FreshDirect, HelloFresh, Green Blender, Home Chef, Handpick, Maki Spoon, Hungry Root, Munchery, Potato, Saffron Crystal, PeachDish, Terra's Kitchen, Tyson Foods, Sun Basket, BurgaBox, Martha & Marley Spoon, Feastive, Farmhouse Delivery Dinner Club, Foodstirs, The Purple Carrot, Kitchen Table, Good Egg, Direct Tie.

RECENT HAPPENINGS IN MEAL KIT DELIVERY SERVICES MARKET:

In March 2020, Purple Carrot launched a deal offering $ 30 off the first week of food delivery at Purple Carrot. The company offers a plan for two and a plan for four.

DETAILED SEGMENTATION OF GLOBAL MEAL KIT DELIVERY SERVICES MARKET INCLUDED IN THIS REPORT    

This research report on the Global Meal Kit Delivery Services Market has been segmented and sub-segmented based on Offering, Platform, Service & Region.      

By Offering:

• Cook & Eat
• Heat & Eat by supply

By Platform:

• Online
• Offline

By Service:

• One
• Several