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Meal Kit Delivery Services in the U.S., 2nd Edition covers online meal kit delivery services, defined as companies that offer and deliver to consumers’ doors (or arrange for delivery of) a box or bag of fresh ingredients for one or more meals, along with a step-by-step recipe with photos showing how to cook each meal at home. The everything-in-a-box kits promise convenience by eliminating the need to plan meals, find recipes, and shop for groceries. Ingredients are portioned in just the right quantities for the recipe, and sometimes even prepped (pre-cut, marinated, packaged with pre-cooked sauce components, etc.) to speed and ease consumers’ time spent in the kitchen.
The report examines:
the competitive environment among the several leading meal kit delivery services;
several of the new, up-and-coming entries in the category;
and meal kit delivery services that failed.
In addition—and of equal, if not greater importance—the report examines the competitive environment in which meal kit delivery services must strive for consumer attention. This includes a review of the various other methods by which consumers can obtain at home meals from both the retail grocery and foodservice channels. As described in Chapter Two, A Rapidly Evolving Market Environment, meal kit delivery services are one element with an increasingly complex “omnichannel” food delivery universe. Emphasis is given to the way in which the relatively new development of the meal kit delivery service category has impacted the other categories.
Executive Summary
Overview
Scope of Report
Report Methodology
Meal Kit Delivery Services at $4.65 billion in 2017
Meal Kit Delivery Services Projected at $11.6 billion by 2022
Meal Kit Delivery Services and the Food Industry
Food Industry Reactions to Meal Kit Delivery Services
Consumers: Convenience and Meal Solutions
17% of Adults Receive Delivery Service Fresh Meal Kits
90% of Fresh Meal Kit Delivery Subscribers Would Recommend This Service to Friends
Millennial, Urban, and Natural Foods Skew to Customer Base
Market Participation Opportunities
Fresh Fields for Food Suppliers
Working the Learning to Cook Curve
To Niche or Not to Niche
Working the Clock and the Calendar
Celebrity Tie-Ins
Organizational Tie-Ins
Tie-Ins with Hospitality Industry
Establishing External Rewards Programs
Getting Ahead of the Curve (or Back to the Future) on Eco-Friendly Packaging
Meal Kit Providers and Packaged Food Companies as Frenemies
Market Overview
Key Points
Disrupting the Food Industry
A Niche but Critical Challenge to the Grocery Industry
The Online Grocery Revolution
Challenging Foodservice as Well as Groceries
The Heart of the Matter: How Food Gets to the Consumer
Meal Kits One Option Among Many
Everything Old Is New Again
Two Way Challenge to Meal Kits
Meal Kit Delivery Services at the High End
Why Meal Kits?
Meal Kit Delivery Services and the Triple Haters
Table Consumer Food Delivery Likes and Dislikes
How Meal Kit Delivery Services Work
Subscription Plans Most Common
No Subscription Option
Competing on Price
The Attractions of Meal Kit Delivery Services
The Downside of Meal Kit Delivery Services
The Market
A $5 Billion Market?
Market Projection
Table Blue Apron Revenue Growth
Table Estimated and Projected Sales of Fresh Food Meal Kit Delivery Services: 2016, 2017, and 2022 (in billions of dollars and percentage change)
The Amazon Factor
Can Success Lead to Obsolescence?
Future Directions for Meal Kit Delivery Services
What Didn't Work
Blue Apron, Amazon, and Instacart
Blue Apron's IPO
Significance for Category as a Whole
Should Blue Apron Be Acquired?
Blue Apron Acquires BN Ranch
Impact of Blue Apron IPO on Amazon/Whole Foods
Impact of Blue Apron IPO on Instacart
Amazon and Whole Foods
Whole Foods Tests Purple Carrot, Salted, and Its Own Branded Meal Kits
Impact on Grocery Industry
Impact of Amazon/Whole Foods Deal on Blue Apron
Impact of Amazon-Whole Foods Deal on Instacart
Instacart's Expanding Presence
Table Instacart's Partner's and Distribution Range
Impact of Instacart Expansion on Amazon/Whole Foods
Impact of Instacart Expansion on Blue Apron
Investment Support for Meal Kit Competitors
Social Media a Key Marketing Platform
Current Developments Among Meal Kit Delivery Services
Blue Apron
Chef'd
Green Chef
HelloFresh
Home Chef
Martha & Marley Spoon
PeachDish
Plated
Purple Carrot
Sun Basket
Terra's Kitchen LLC
Up and Coming Meal Kit Delivery Services
BurgaBox
Farmhouse Delivery Supper Club
Feastive
Foodstirs
Gobble
Good Eggs
Handpick
Kitchen Table
One Potato
Thai Direct
Meal Kits Impact on Food Industry
Key Points
The Food Industry Responds
Meal Kits from Retail and Online Groceries
Kroger Enters Meal Kit Competition
Publix Offering Meal Kits
Giant Eagle Includes Meal Kits Among Many Options
Table Giant Eagle/Market District Meal Solutions
Hy-Vee Offers Chef in a Box
Coborn's Expands Meal Kit Program
Gelson's Offers Salted Interactive Meal Kits
Peapod's Expanding Meal Kit Offerings
Meal Kits and Grocery Manufacturers
Did Meal Kit Convenience Spur Click and Collect?
Meal Kits Push Convenience in Convenience Stores
Meal Kits and Foodservice
Meal Kits and "Ready-To-Eat" Home Delivery
Meal Kits Impact Other Consumer Categories
The Consumer
Key Points
Food and Meal Delivery
Half of Adults Have Ready-to-Eat Food Delivered, Mostly from Chain Restaurants
One-Third Have Had Grocery, Meal Kit, or Diet Management Prepared Meals Delivered
Amazon Role in Food and Grocery Delivery
One-Fifth of Amazon Prime Users Are AmazonFresh Customers
Food and Grocery Is the #2 Subscribe-and-Save Category
Table Usage Rates for Amazon Grocery Delivery Services, 2017 (percent of U.S. adults
Meals at Home
Meal Kit Subscribers Cook More, Not Less
Home Meals Remain Most Often Prepared from Scratch
Table How Meals at Home Are Prepared or Procured, by Frequency, 2017 (percent of U.S. adults)
Awareness and Use of Meal Kits
One-Third of Adults Have Purchased Fresh Food Meal Kits, Broadly Defined
73% Awareness of Meal Kit Delivery Services Is Primary Due to Aggressive Advertising
Time, Effort, and Expense the Top Reasons for Quitting Meal Kit Delivery Service
Time Saving, Quality and Variety of Options, and Enjoyment Are Most Important Features of Meal Kit Delivery Services
Nine out of 10 Subscribers Would Recommend Meal Kit Delivery Services
Table Level of Agreement with Statement: "I Would Recommend Meal Kit Delivery Service to my Friends," 2017 (percent of current meal kit service subscribers)
The Fresh Meal Kit Delivery Service Subscriber
Demographic Profile of the Meal Kit Services Subscriber Trends Markedly Upscale
Table Demographic Characteristics of Fresh Meal Kit Delivery Service Subscribers, 2017 (index)
Meal Kit Subscribers Are Heavy Users of Online Shopping Services
Table Online Ordering and Purchasing Activity: All Adults vs. Current Meal Kit Delivery Service Subscribers, 2017 (percent and index)
Table Demographic Characteristics of AmazonFresh Users, 2017 (index)
Meal Kit Subscribers Are More Diet Conscious
Table Level of Agreement with Statement: "I Follow a Special Diet for Health and Wellness," 2017 (percent of U.S. adults vs. current meal kit service subscribers)
Meal Kit Subscribers Favor Natural Food and Specialty Stores for Grocery Shopping
Quality, Organics, and To-Go Options Are Desirable in a Grocery Store
In Product Selection, Meal Kit Subscribers Favor Local, Natural, Animal-Friendly
Table Level of Agreement with Statement: "I Buy Fresh, Natural Ingredients for Cooking," 2017
Table Level of Agreement with Statement: "I Prefer Using Local Cooking Ingredients," 2017
Table Level of Agreement with Statement: "I Look for Specific Nutritional Ingredients in the Foods I Eat," 2017 (percent of U.S. adults vs. current meal kit service subscribers)
Table Level of Agreement with Statement: "I Prefer to Buy Packaged Food or Beverage Groceries from
Table Level of Agreement with Statement: "I Prefer to Buy Packaged Food or Beverage Groceries from Specialty/Natural Companies Rather than from Large Food Companies," 2017