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Meal Kit Delivery Services in the U.S.
Meant to solve the perennial problem of “what’s for dinner?”, meal kit delivery services offer consumers a convenient way to cook at home without having to do the meal planning and grocery shopping. Online portals let consumers order meals ahead from picture menus showing gorgeous photos of the finished dish, and the services deliver the pre-measured fresh ingredients along with recipes to their doorstep to help them cook chef-quality meals at home. Marketers are aiming for—and finding—a “sweet spot” with consumers who do not have the time, inclination, or know-how to shop for individual ingredients, navigate a recipe, and cook from scratch, yet do not want to eat yet another heat-and-eat prepared meal, order takeout food, or dine out. No wonder then that participants across the entire food spectrum—from grocery home delivery services like Peapod and FreshDirect, to packaged foods marketers like Barilla, to meal-kits-only grocery store Pantry—are climbing aboard the burgeoning meal kits bandwagon.
Scope and Methodology
Packaged Facts’ first-edition report, Meal Kit Delivery Services in the U.S., opens with an Overview chapter presenting a thorough introduction to this new and exciting business, exploring its history, the changing eating trends that are making it viable, how meal kit delivery services work, and attractions and criticisms of these services. The next chapter, The Consumer, concentrates primarily on analyzing data from a proprietary Packaged Facts National Consumer Survey conducted in February 2016 that delves into the scope and demographics of users of meal kit delivery services. Next, “The Marketers” profiles more than two dozen competitors and their strategies, including Ahold USA, Blue Apron, Chef’d, Cooking Simplified, Din, Foodstirs, FreshDirect, Gobble, Green Blender, Green Chef, Handpick, HelloFresh, Home Chef, Hungryroot, Just Add Cooking, Markey Spoon, Munchery, Pantry, PeachDish, Plated, The Purple Carrot, Saffron Fix, Sun Basket, Terra’s Kitchen, and Tyson Foods. The closing chapter, Trends & Opportunities, springboards off the past and current state of the market to explore the future of this market.
In addition to the Packaged Facts consumer survey, primary research for Meal Kit Delivery Services in the U.S. includes telephone and email interviews with executives at meal kit delivery services, with secondary research encompassing more than 300 articles in consumer and industry publications, websites, and blogs, as well as other reports by Packaged Facts, along with websites and literature from individual meal kit marketers.
Executive Summary
Overview
Scope of Report
Report Methodology
Why Meal Kits?
How Meal Kit Delivery Services Work
The Attractions of Meal Kit Delivery Services
An Industry Disrupter
A $1.5 Billion Market and Growing
Trends and Opportunities
Projecting the Future
Are Meal Kit Delivery Services Ripe for Mergers, Acquisitions, and IPOs?
Opportunities for Regionals, Unique Marketing Angles, Retailers, and CPG Brands
The Consumer
Half of All Consumers Use Food Delivery Services
Other Surveys
The Marketers
More than 150 Meal Kit Delivery Services in the USA
Ahold's Take on Meal Kits
Blue Apron Targets Would-Be Chefs
Chef'd Is Bringing Professional Chefs Into America's Kitchens
Affordability a Key Appeal of Cooking Simplified
Din Recreates Restaurant Meals at Home
Foodstirs: Baking and Foodcrafting Kits at the Core
Trends and Opportunities
Key Points
Projecting the Future
Are Meal Kit Delivery Services Ripe for Mergers, Acquisitions, and IPOs?
Opportunities for Regionals, Unique Marketing Angles, Retailers, and CPG Brands
Celebrity Chefs
Targeting Singles, Empty Nesters, Ethnic Groups
Overview
Scope of Report
Report Methodology
Why Meal Kits?
Changing Eating Trends
Started in Sweden
How Meal Kit Delivery Services Work
But Are Meal Kits Really Cooking?
The Attractions of Meal Kit Delivery Services
Saves Time and Stress of Shopping and Meal Planning
Freshness a Huge Selling Point
No Food Is Wasted
Teaches Cooking Skills
Almost Foolproof
Promotes Discovery and Introduces Variety
Makes Exotic Ingredients Available Everywhere
Lets Consumers Create a Gourmet Meal at Home
Cost-Effective, Healthier Alternative to Takeout and Eating Out
Fun to Do
Brings People Together
Promotes Portion Control and Caters to Special Diets
The Criticisms
It's Like Paint-by-Numbers
Too Expensive for Most People
Something Intangible Is Lost
Too Much Packaging/Environmentally Unsound
Do Not Eliminate Grocery Shopping Entirely
What? No leftovers?
Too Much Work
Too Much Cleanup
Target Market
Marketing Meal Kits Through Celebrity Chefs and Co-Branding
Marketing, from Word-of-Mouth to National TV
An Industry Disrupter
A $1.5 Billion Market and Growing
The Consumer
Key Points
Demographic Targets
Marketers Target Professionals, Busy Families, and Millennial Urbanites
Packaged Facts Consumer Survey
Half of All Consumers Use Food Delivery Services
Meal Kit Consumers Also Favor RTE Food and Grocery Deliveries
Most Pizza and RTE Food Consumers Use Chain Restaurants for Delivery
Table Consumers Using Food Delivery Services in the Past 30 Days, 2016 (percent of U.S. adults)
Most Meal Kit Consumers Under Age 45
A Whopping 79% of Meal Kit Consumers Have Kids at Home
Hispanics and Blacks Prime for Targeting
One Out of Three Meal Kit Consumers Lives in the West
Nearly Two Out of Three Meal Kit Users Are Urban
Meal Kit Users Well-Educated
Meal Kit Delivery Use Increases Along with Income
Table Consumers Using Food Delivery Services in the Past 30 Days: By Age Group, 2016 (percent of U.S. adults)
Table Consumers Using Food Delivery Services in the Past 30 Days: By Presence of Children by Age, 2016 (percent of U.S. adults)
Table Consumers Using Food Delivery Services in the Past 30 Days: By Ethnic Group, 2016 (percent of U.S. adults)
Table Consumers Using Food Delivery Services in the Past 30 Days: By Region, 2016 (percent of U.S. adults)
Table Consumers Using Food Delivery Services in the Past 30 Days: By Locality (Urban, Suburban/Outer Suburban, Rural), 2016 (percent of U.S. adults)
Table Consumers Using Food Delivery Services in the Past 30 Days: By Level of Education, 2016 (percent of U.S. adults)
Table Consumers Using Food Delivery Services in the Past 30 Days: By Household Income, 2016 (percent of U.S. adults)
Other Surveys
Brick Meets Click: How Consumers Are Using Online Grocery
NPD Group on Cooking at Home
The Marketers
Key Points
More than 150 Meal Kit Delivery Services in the USA
Ahold USA
A Supermarket Chain's Take on Meal Kits
Peapod Teams Up with Barilla to Develop Meal Kits
Giant Carlisle Introduces In-Store Meal Kits
Blue Apron, Inc.: The Nation's Leader
Largest Meal Delivery Kit Service Targets Would-Be Chefs