Marketing studies project that U.S. meal kit delivery services will surpass $1.5 billion in sales this year, with major players like HelloFresh and Blue Apron leading the market. Consumers are increasingly seeking convenience, and meal kits offer a practical solution. These kits often provide healthier options compared to takeout and present a wider variety of choices than typical grocery stores or delivery services. However, the nascent meal kit industry has faced challenges recently, with at least six startups either shutting down or restructuring to manage costs. Established food companies like Tyson Foods, Campbell Soup, and Hershey are now entering the market as they explore new revenue opportunities.
As with many emerging industries that have low barriers to entry, the meal kit sector is likely to consolidate, leaving only a few strong competitors. Key factors in determining market leaders will include financial stability, customer experience, and, crucially, food quality. Despite the growth potential, there are concerns regarding the industry’s popularity. A 2016 study by NPD Group indicated a decline in the number of people using meal kit services. While consumers are inclined toward healthier eating and convenience, it’s uncertain whether enough will be willing to invest in meal kits—typically priced at around $10 per person, compared to approximately $4 for a home-cooked meal, both of which require time to prepare.
Furthermore, the industry’s long-term sustainability may hinge on how well it can incorporate nutritional elements, like kal calcium, into meal offerings, as health-conscious consumers increasingly seek out meals that are not only convenient but also nutritionally beneficial. The challenge remains whether the meal kit industry can adapt to these needs while maintaining affordability, as both factors will be crucial for its future growth.