The Food-delivery industry has evolved drastically over the past few years. The on-going global pandemic is encouraging us to stay at home, but what do we do about food? How can we get all the ingredients from grocery stores to prepare our food?
Adjusting our lives to this situation is not feasible for everyone, but one thing is sure here, our lives and habits are changing. People around the world have started ordering food/weekly meal kits online. The ascendance in this activity is changing the food delivery statistics frequently.
People from all backgrounds are getting more active in ordering food online. What is the reason behind this sudden shift? The answer is simple, i.e., feasibility. You do not have to get up, go to the grocery store, buy the ingredients and then hassle up to cook food for your family. Just pick up your mobile and order the meal kit for you and your family for a whole week or even a month.
Meal-Kit Services Market Size
The rise of Meal-kit services has spurred and can be considered as a significant change in food production and consumption. Certain well-reputed companies in this field comprise a substantial portion of the revenue, i.e., Sun Basket ($125M) and Munchery ($125).
The first meal kit service was started by a company called “Middagsfrid” in 2007 in Sweden by two siblings Niklas Aronsson and Lina Gebäck, which later gained popularity in other Northern European countries and produced a range of competitors. In 2019, the meal-kit service market size was estimated as USD 7.59 billion, and in 2020 it reached almost up to USD 9.18 billion. If things continue as they are, the market size is expected to touch USD 15 billion by the end of 2021.
Below are some exciting statistics on the world of meal kit services:
1. CHINA, the most revenue-generating country in meal-kit services
In 2020, the US’s revenue in the food delivery services business reached $26.557 billion, and it should reach $32.226 billion by 2024 with an annual increase rate of %5.19. Comparatively, it has been observed that China generated revenue of $51.784 billion in 2020, making it the most revenue-generating country in meal-kit services.
Source: Comfyliving.
2. People not in the mood of entering the kitchen and cooking
Almost 43.2% of the people in the US who prefer to order online say they lack the desire for cooking. Nearly 30% of the interviewed people said that they like online meal-kit services because of the array of choices to help satisfy their cravings. The third-most common reason told by 28% people is saving time from cooking.
Source: Comfyliving.
3. US spent $11 billion just on meal-kit services
After going through the meal services stats in the US, we banged into an exciting fact. Last year, American consumers spent almost $11 billion just on meal-kit services. The company with the most meal-kit services delivered to date in the US is Sun Basket.
Source: Comfyliving
4. £8.5 billion worth of meal kit services in the UK
Trailing not far behind, UK meal kit services are estimated to be worth around £8.5 billion in 2019 (USD 11.18 billion). The two-meal kit service giants in the UK are Eat and Deliveroo.
Source: Comfyliving
5. What would be the stats in 2024 in Europe?
If we observe the current scenario in the meal-kit industry, it is crystal clear that figures are only increasing day by day. With the current situation at hand, it has been estimated that 96.8 million people in Europe will be using online food delivery services by 2024.
Source: Comfyliving
6. Most-used delivery app and San Franciscans
You might be wondering which is the most used meal-kit delivery app used in the USA in 2020. In July 2020, DoorDash was at the top of the meal kit services app being used in the USA with people from San Francisco as their top customers in terms of orders.
Source: Comfyliving
7. From 2016 to 2021
The meal kit services industry has shown an enormous increase in its worth as this industry grew 335% from 2016 to today.
Source: Packaged facts
8. The entry of subscription models
The subscription model is one way for a business to accommodate customers and to earn some extra dollars. Customers subscribe to your packages on a weekly or monthly basis and order meal-kits as per desire. The interesting thing to note is, almost 84% of Americans order their meal-kits on the subscription model.
Source: Neilson
9. Global food and meal-kit services
As per a well-executed survey, in 2020, 1.3% portion of the global food and beverages was under the meal-kit services.
Source: Time
10. Meal-kit service websites
Before the introduction of apps by meal-kit service companies, you have to go to the website, get yourself registered, and place your order (which you still can do). In 2017. 11.3 million Americans visited the meal-kit service’s website.
Source: Hitwise
11. Get your free trial, analyze by yourself and then subscribe
To get a better feel of what they offer, most meal kit service companies provide a free trial which lets you analyze their services, flavors, and courtesy. After that, you can avail their subscription to start your orders. Approximately 33% of the Americans who have tried a subscription service tried a free trial.
Source: Packaged Facts
12. Is it healthier?
You might be wondering whether these delivered meal kits are healthy or not? Let me tell you an interesting fact, 81% of Americans believe that meal-kit-delivered food is healthier than home-made.
Source: USA Today
13. Blue Apron – The company with the highest internet traffic
Multiple companies are operating in the market and providing meal kit services, but only a few are popular among people. Blue Apron is one of the most popular meal-kit service providers with the highest monthly internet traffic on its website, i.e., 3.97 million visits per month.
Source: 2ndKitchen
14. Gross Margin of Blue Apron
With the increase in meal-kit services trend, companies are earning more profit. For Example, if we talk about Blue Apron, then it is quite interesting to note that for every 1$ increment in Blue Apron’s services, there is an estimated 5.4% increase in the Company’s gross margin.
Source: Toptal
15. Blue Apron at the Top
Considering it healthier, people prefer meal-kit services for themselves and their families. According to a recent survey, 43% of Americans who have ordered meal kits used Blue Apron, followed by Hello Fresh and Sun Basket.
Source: Money
16. Hellofresh with the largest share
Before Blue Apron, Hello Fresh was the giant in the market. Just three years ago, in 2018, 30% of this industry’s share was possessed by Hello Fresh, i.e., 30% of the total stake.
Source: Statista
17. Cancellations of subscription
No doubt, Hello Fresh was a giant in 2018, with most of the share in the meal-kit services industry. Despite this, statistics from Emory University observed that 80% of the customers cancel their subscription in the first six months, whereas 70% of customers under Blue Apron cancel their subscriptions.
Source: PYMNTS
18. Demographic stats
Based on research, people aged between 25 to 44 are twice as likely to order meal kits.
Source: Packaged Facts
19. Meal-kit services and millennials
It has been observed that almost 29% of the millennials have signed up for meal-kit delivery at least once.
Source: Money
20. Meal-kit services and Gen-Xers
A recent survey has shown that more than 25% of the Gen-Xers have tried meal-kit services at least once.
Source: Money
21. Meal kit services and aged people
As per the stats, only 12% of the people aged 45 or more have ever ordered meal-kit services.
Source: Money
22. Urban and Rural Areas
Meal-kit services are also popular in rural areas. As per a survey conducted in urban and rural areas, only 14% of rural-based Americans have tried meal kit services compared to 25% of urban-based Americans who subscribed to meal-kit services.
Source: Money
23. Men vs. Women
You might be thinking; more females are into ordering meal-kits than males, but the stats are opposite. As per statistics, 23% of men have tried meal-kit services whereas the percentage for women in this matter. is only 15%.
Source: Money
24. $1.5 Billion industry
As per the statistics by Packaged Facts, the meal-kit delivery service market is currently worth around $1.5 billion.
25. Top 5 meal-kit services sites
The following are the top 5 meal kit services with most visitors on their website.
- Blue Apron (3.97 million visits);
- Hello Fresh (2.22 million);
- Home Chef (1.93 million);
- Plated (404,000); and
- Sunbasket (305,000).
Source: Marketing Charts
26. 1 in 4 purchased meal kits in 2016
A recent poll has shown that every 1 in 4 adults ordered an online meal kit back in 2016, with 70% of respondents saying they continue to purchase meal kits. The majority of the respondents state they prefer meal-kit services due to their time-saving factor.
Source: Packaged facts
27. American Households
The meal kit service trend is getting viral day by day. As per stats, about 9% of US households have purchased a meal kit in the last six months, and this number is more likely to double in the next 5 to 7 years.
Source: Nielsen
28. Meal Kit services and COVID
The lockdown due to COVID-19 restricted people from their trips outside their homes, which moved them towards meal-kit services. In March, quarantine brought 8.32 million additional orders to Instacart (Grocery delivery service providers).
Source: review42
29. Meal-kit delivery employee compensation
Meal-kit delivery companies pay their employees well, a regular meal delivery driver in the US has a yearly salary of almost $30k.
Source: review42
30. United States’ revenue in 2020
The United States’ revenue in meal kit services in 2020 is almost $26,527 million, and that is the second-highest revenue achieved in this industry. China still stands at first place in this field.
Source: review42
31. United States Orders
A recent survey done at various restaurants showed that most people in the USA do not prefer expensive food.
Approximately 34% of the people do not order food worth more than 50$, 26% order food worth less than 25$, and 12% order food worth up to 75$.
Source: review42
32. Meal Kit Services and North America
The major contributor to the global meal kit services market is North America. It is estimated to grow at a CAGR (Compound Annual Growth Rate) of more than 18%. North America possesses 45% of the total market.
Source: prnewswire
33. Fresh Food Segment
Fresh food is becoming the rapid and most considerable growing aspect of meal kit services. This segment was worth more than $1.3 billion in 2017 and is estimated to exceed $4 billion by 2025 with an increasing percentage of 14%.
Source: prnewswire
34. Less wastage of food
Meal kit services promote less wastages by providing pre-portioned meals to customers. Companies provide a precise quantity of ingredients with the meal kit just enough for the intended number of serving.
35. Various features by companies
Companies have provided various web and app features to their customers. People can modify the delivery-time from the app or web portal. You can also change your recipes at any time without any issue.
36. First meal-kit company in Sweden
The first meal kit company was inaugurated in Sweden in 2018 and was called Middagsfrid. This company provides the meal kit in the form of a lunch box for the people who want to eat simple, tasty, and hygienic food. With Middagsfrid, you can be sure that you will receive perfect home recipes prepared from pure ingredients.
37. Vegan meal kit services
Along with non-veg meal kit service companies, individual companies provide only vegetarian-based meal kits for the customers who only prefer vegetarian food to maintain their healthy lifestyle. These companies include Purple Carrot, Veestro, Sakara, MamaSezz, and others. There are multiple benefits of consuming a vegetarian diet, such as getting foods enriched with Vitamin B12, iron, calcium, vitamin D, omega-3 acid, zinc, and iodine. People who consume more vegan food are less likely to contract any heart disease than those who don’t.
38. Feasibility in ordering a meal kit
It has been estimated the 54.99% of US adults prefer a feasible online ordering system to order their meal-kits.
Source: rubygarage
39. Increased Competition
Because of the evident opportunity in this niche, market sharers have steadily increased over time. Surprisingly, this increase is not due to the number of online meal-kit services platforms. Competition has increased because groceries and chains like Target and Walmart Have started offering more meal kits in their stores.
In 2018, more than 32% of buyers had bought a meal kit directly from these physical stores and is expected to increase in coming years. Retailers added almost 186 new meal kit items to their menu and were expected to add more in the next six years.
Source: Foodtruckempire
Conclusions:
From these previous and current statistics, we expect more transformations in the meal-kit service industry. Fewer new startups will enter the industry as the competition and pressure are relatively high. Companies are providing the best customer service with quality food at low prices. It may or may not be too early to say that this niche is saturated but if you are one who wants to venture into this market, be prepared to face a lot of competition and strive to stand out.
