Meal Kit Delivery: Taking a Bite Out of the Grocery Market?


Whether it’s to keep up with their New Year’s resolutions, save time on a busy schedule, or get better acquainted with the art of cooking, more and more households are signing up for meal delivery kits rather than making the trip to their local market or grocery chain. Could this be good news for food and beverage brands?

Since the market was coined by companies like HelloFresh and Blue Apron five years ago, over 170 Meal Kit delivery brands have popped up with the promise of delivering fresh, whole ingredients for a quick at-home meal on a weekly basis in the United States alone. Food industry consulting firm Technomic predicts that the meal-kit service market will garner between $3 billion and $5 billion in sales over the next decade based on current adoption rates.

And while some might call it heavily-saturated, the meal kit market has many hopeful upstart brands who see their service taking a bigger spot on the consumer’s dinner plate. Co-founder of one such service, Fabian Siegel predicts that, “Supermarkets will be replaced: Amazon will take care of the pantry; meal kit delivery services […] will take care of the ‘what we are cooking tonight.’”

Could he be on to something? Let’s consider the facts:

Millennials are changing how they see food – and brands should too

  • 40 percent of subscribers to meal kit services are parents
  • Saving time is the top reason given for using meal kits, which provide all of the ingredients necessary to prepare a meal
  • Consumers also cite the fact these services makes dinner easier to prepare and they provide variety in their meals
  • The freshness of ingredients and experience is particularly appealing to young adults
  • Those using meal kits are generally satisfied and two thirds of kit users are ‘extremely or very satisfied’, but price may be a barrier for continued use and adoption by others.
  • Meal kit food delivery services generated more than $1 billion in sales in 2015, of which the U.S. market accounts for 40 percent
  • Technomic also found that meal kit service subscribers are typically older millennials, equally split among genders, 47 percent of whom have a household income of over $125,000.

So what do the facts above tell us?

If you’re a food and beverage brand focused on being a meaningful part of your consumers’ daily lives and eating regimens, offering a meal kit delivery option may be a crucial next step towards taking up more pantry and/or fridge space. Implementation could be as simple as bundling up some of your existing products for more value.

So what do you think? Will you be looking to get in on that meal kit delivery action?

Dayana Cadet

Dayana Cadet

Dayana’s love affair with writing spans all manner of content. As the Content Specialist at Hubba, connecting people to the things they love is where she thrives.

Follow her at @D_isforDayana
Dayana Cadet