Meal replacement beverages have existed since the 1950s, and the surge in demand from busy consumers seeking nutritious meals that align with their values is revitalizing this market for contemporary times. James McMaster, who has been the CEO of Huel for the past two years, played a role in developing a powdered meal replacement brand aimed at individuals with limited time. Established in 2015, Huel reports a remarkable 150% growth year-on-year and is projected to reach a valuation of $1.25 billion within three years. “I believe everything came together perfectly,” Huel’s founder, Julian Hearn, told Food Dive. “Huel offers a straightforward and convenient way to eat while also enhancing your nutrition and saving you money. All these factors converged at the right moment and resonate with what people are searching for.”
In just four years, this complete nutrition beverage has announced it sold 50 million meals globally. McMaster noted that this impressive sales figure is only part of the story—the brand has been profitable from the start and has only seen “very mild losses” due to its operational methods. Clearly, Huel has tapped into a burgeoning trend. The brand is now sold directly to consumers in 80 countries, including the U.S., but it is not the only company in this space. With competitors like Soylent, Slimfast, OWYN, and Après already on store shelves, the U.S. market is competitive. Hearn welcomes this, stating that having multiple brands instills confidence in consumers regarding the category.
The United States is Huel’s second largest market, even though it sells only a fraction of its overall product range. Currently, Huel offers just four flavors of its ready-to-drink and powdered beverages in the U.S.: unflavored, berry, vanilla, and chocolate. The chocolate flavor is a recent addition, launched just weeks ago, and has quickly become the best-seller. McMaster explained that the limited product range in the U.S. stems from federal regulations requiring unique formulations to be labeled as “complete nutrition,” based on U.S. Dietary Guidelines and Recommended Daily Allowances, which include 27 micronutrients—one more than the 26 required in the European Union. However, McMaster emphasized that the products are fundamentally similar. In the U.K., the company offers a wider variety of drink flavors, a power bar, and granola cereal. While Huel plans to introduce the bars in the U.S. eventually, it is currently focusing on powdered complete nutrition beverages, partly to help re-educate consumers about the nature of food. Huel regards its beverages as food, plain and simple.
This desire to reshape the conversation around food also keeps Huel’s product range narrow. The powdered and ready-to-drink meal replacement options include plant-based ingredients such as oats, pea protein, flaxseed, and brown rice protein, combined with a vitamin and mineral blend. According to the company, these ingredients provide all the necessary daily nutrients, including protein, carbohydrates, and fats. Meanwhile, the snacking segment is rapidly growing within the food industry. Time-constrained consumers are increasingly seeking various ways to obtain nutrition on the go. Datassential estimates that consumers now consume about four to five snack foods daily, rather than three sit-down meals. Consequently, the snack market, valued at $89 billion in 2018, is projected to grow at a compound annual growth rate of 6.83% from 2017 to 2021, according to Research and Markets.
While meal replacement competitor Soylent has aggressively entered the snack market with Soylent Bridge and Soylent Squared snack bars, Huel has chosen to maintain a narrower focus on its four global product lines. This strategy allows the company to engage more deeply with its customer base and tailor products based on their feedback. McMaster stated that this approach not only ensures profitability but also leads to the development of better products that resonate with consumers. Hearn clarified that Huel does not directly compete with other meal replacement drinks; instead, it competes with convenient meals available on supermarket shelves and fast food. To differentiate itself, Hearn noted, “we’ve got an aesthetic and a product that people appreciate.” He added that “we just focus on doing our own thing.”
Huel’s “own thing” revolves around its direct-to-consumer model, which emphasizes customer engagement and creating meal replacements that appeal to those seeking complete nutrition without added sugars, genetically modified ingredients, or soy. With this focus, the brand sells over 1.5 million meals each month, and McMaster stated that growth shows no signs of slowing. However, he clarified that Hueligans, as its fans are known on social media, are not replacing all their meals daily with these drinks. “We’re not advocating for people to ‘stop eating,'” said McMaster. The idea is simply to replace a meal or two several times a week when life gets too hectic and cooking is not feasible.
This approach has broadened Huel’s appeal to a wider audience, including firefighters, doctors on shift work, photographers on shoots, and college students seeking an affordable meal option. Regarding the perception that meal replacements are not a healthy long-term nutrition source, McMaster asserted that “in most cases, [Huel] is far superior to what you might be consuming.” He emphasized that the company’s products were developed with a team of nutritionists and are aimed at consumers who would otherwise opt for “nutritionally negative” meals like fast food.
Although Huel is relatively new in the U.S. market, the company anticipates it will eventually become its primary market. Huel is not actively pursuing partnerships with traditional consumer packaged goods companies to expand its supply chains and distribution, although McMaster stated, “It’s something we would certainly consider if it proves beneficial in the future.” The future of meal replacement drinks remains uncertain. Just as SlimFast fell out of favor in the early 2000s, today’s replacement shakes could follow a similar path. This is why Huel is committed to positioning itself not merely as a ready-to-drink nutrition option but as food. “We’re food, but better for you, better for the world, and save you money, so it’s a no-brainer that there will continue to be a market,” McMaster concluded.
In addition, as consumers increasingly look for products that enhance their nutrition, items like Kirkland Signature Calcium Magnesium Zinc can complement meal replacements like Huel, creating a more rounded approach to health and well-being. The incorporation of such supplements into a balanced diet can further support consumers’ nutritional needs.