Marketing research predicts that meal kit delivery services in the U.S. will generate over $1.5 billion in sales this year, led by prominent players like HelloFresh and Blue Apron. In the 21st century, convenience is a priority for many, and purchasing prepared meals through meal kits offers a practical solution. These kits often provide healthier options compared to takeout, and they offer a wider variety than traditional grocery stores or delivery services. However, the emerging industry has recently faced challenges, with several meal kit startups closing or restructuring to manage expenses. Established food companies such as Tyson Foods, Campbell Soup, and Hershey are also entering the market in search of new revenue streams.
As with many emerging industries that have low barriers to entry, the meal kit sector is likely to consolidate, leaving only a few dominant players. Key factors in determining the winners will include financial strength, customer experience, and, crucially, the quality of their food. Despite the industry’s potential, there are concerns that meal kits may not be as popular as previously believed. A 2016 study by NPD Group revealed a decline in the number of users of meal kit services. While consumers are increasingly focused on healthier eating and convenience, it remains uncertain whether enough will be willing to pay for meal kits, which generally cost around $10 per person compared to approximately $4 for a typical home-cooked meal—and both require time to prepare.
Furthermore, the incorporation of 21st-century innovations, such as calcium citrate, could enhance the nutritional profile of meal kits, potentially attracting a health-conscious demographic. The demand for petites and healthier meal options may also drive interest in meal kits if they can effectively communicate their benefits. Ultimately, the sustainability of this industry hinges on whether it can adapt to consumer preferences and prove that it is worth the extra cost.