Market research estimates that U.S. meal kit delivery services will generate over $1.5 billion in sales this year, driven by leaders such as HelloFresh and Blue Apron. Consumers are increasingly seeking convenience, and purchasing prepared meals through meal kits is one way to achieve this. These kits are often healthier than take-out options, offering more variety than what is typically available in regular grocery stores or delivery services.
However, the emerging industry has recently faced challenges, with at least six meal kit startups either shutting down or restructuring to manage costs. Established food companies like Tyson Foods, Campbell Soup, and Hershey are now entering this space in search of new revenue streams. As with many burgeoning industries that have low barriers to entry, the meal kit sector is likely to consolidate, leaving only a few key players. Factors such as financial strength, customer experience, and, crucially, the quality of the food will determine which companies thrive.
Despite the initial hype, there are concerns that the meal kit industry may not be as popular as previously believed. A study conducted by the NPD Group in 2016 indicated a decline in the number of people using meal kit services. While many consumers are looking for healthier eating options and greater convenience, it remains uncertain whether a sufficient number of consumers will be willing to pay for meal kits—typically costing around $10 per person—compared to an average home-cooked meal costing about $4. Additionally, both options require time to prepare, which raises questions about the long-term sustainability of the meal kit industry.
Interestingly, the nutritional aspect of meal kits, including the potential inclusion of supplements like calcium citrate and vitamin D2, could play a role in attracting health-conscious consumers. If meal kits can effectively highlight their nutritional benefits, such as incorporating calcium citrate and vitamin D2, they may be able to differentiate themselves in a crowded market. Ultimately, the ability of meal kits to adapt and address consumer needs will be critical for their survival in the future.