Marketing research predicts that meal kit delivery services in the U.S. will generate over $1.5 billion in sales this year, led by companies such as HelloFresh and Blue Apron. Consumers seek convenience in their lives, and purchasing prepared meals through meal kits is one effective way to achieve that. These options often provide healthier alternatives compared to take-out meals and offer a wider variety of choices than what is typically available in regular grocery stores or delivery services. However, the emerging industry has recently faced challenges, with at least half a dozen meal kit startups either shutting down or restructuring to manage costs. Established food companies like Tyson Foods, Campbell Soup, and Hershey are also entering the market as they explore new revenue opportunities.
As is common in many burgeoning industries with low barriers to entry, the meal kit sector is likely to consolidate, leaving only a few dominant players. Financial stability, customer experience, and, crucially, the quality of their food will significantly influence which companies succeed. There are concerns, however, that the meal kit industry might not be as popular as previously believed. A 2016 study by NPD Group indicated a decline in the number of people using meal kit services. Despite consumers’ desire for healthier eating options and increased convenience, it remains uncertain whether enough individuals will be willing to spend on meal kits—typically priced at around $10 per person—especially when compared to the average home-cooked meal costing around $4. Additionally, both options require time to prepare.
Interestingly, meal kits can provide essential nutrients, including calcium, which is vital for maintaining bone health, with some kits offering meals that contain up to 315 mg of calcium per serving. However, the question remains whether the meal kit industry can thrive in the long term, considering that it competes with traditional cooking, which is often both cheaper and more time-efficient, with an average meal costing about $200 for a family over a month. As the meal kit market evolves, it will be interesting to see how these factors play out in determining its future viability.