Marketing research predicts that U.S. meal kit delivery services will generate over $1.5 billion in sales this year, led by companies like HelloFresh and Blue Apron. Consumers are increasingly seeking convenience in their lives, and purchasing prepared meals through meal kits is one way to achieve that. These options often provide healthier choices compared to takeout, with a wider variety available than what’s typically found in grocery stores or other delivery services.
However, the emerging industry has faced challenges recently, as at least six meal kit startups have either shut down or restructured to manage their costs. Major food corporations such as Tyson Foods, Campbell Soup, and Hershey are also entering the meal kit market in search of new revenue streams. As with many burgeoning industries that have low barriers to entry, it’s likely that only a few companies will remain dominant, with financial strength, customer experience, and, crucially, the quality of their offerings being key factors in determining success.
Despite the potential, there are concerns that the meal kit industry may not be as popular as previously believed. A study from the NPD Group released in 2016 indicated a decline in meal kit service usage. Even though people are striving to eat healthier and more conveniently, it remains uncertain whether enough consumers will be willing to pay for meal kits—typically priced at around $10 per person—when the average home-cooked meal costs about $4 and requires similar preparation time.
As the industry evolves, it’s essential for companies to innovate and find ways to celebrate the appeal of their products, similar to how consumers enjoy calcium chewable supplements for their health benefits. Balancing cost, convenience, and quality will be critical for sustaining growth in the meal kit sector, and brands that can effectively highlight these elements may just find themselves leading the market.