Meal Kit Delivery Services in the U.S.

Apr 28, 2016
125 Pages - Pub ID: LA5815663
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Meal Kit Delivery Services in the U.S.

Are meal kit delivery services the future of the U.S. food industry, destined to replace both at-home food preparation from store-bought ingredients and the seemingly indelible experience of food store shopping itself, while also cutting into the restaurant business? Some industry participants say so, and while perhaps not quite so starry as this, the future does appear bright. Bridging the space between home-cooked meals and takeout, meal kit delivery services have exploded into a $1.5 billion market in just the past few years and appear on track to at least double that number in the next few years. Meant to solve the perennial problem of “what’s for dinner?”, the 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 2015 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.
Chapter 1: 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
Figure 1-1 6 Consumers Using Food Delivery Services in the Past 30 Days, 2016 (percent of U.S. adults)
Meal Kit Consumers Also Favor RTE Food and Grocery Deliveries
Most Meal Kit Consumers Under Age 45, Have Kids
Meal Kit Users Are Urban, Well-Educated
Other Surveys
Brick Meets Click: How Consumers Are Using Online Grocery
NPD Group on Cooking at Home
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
Chapter 2: 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
Chapter 3: 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
Illustration 3-1 Meme Posted on Facebook
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
Illustration 3-2 Plated’s Road to Discovery Road Trip
An Industry Disrupter
A $1.5 Billion Market and Growing
But Are They Profitable?
Chapter 4: 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
Figure 4-1 Consumers Using Food Delivery Services in the Past 30 Days,2016 (percent of U.S. adults)
Meal Kit Consumers Also Favor RTE Food and Grocery Deliveries
Figure 4-2 Consumers Using Both Prepare-at Home Fresh Meal Kits and Other Food Delivery Services in the Past 30 Days, 2016 (percent of U.S.adults)
Most Pizza and RTE Food Consumers Use Chain Restaurants for Delivery
Table 4-1 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 4-2 Consumers Using Food Delivery Services in the Past 30 Days:By Age Group, 2016 (percent of U.S. adults)
Table 4-3 Consumers Using Food Delivery Services in the Past 30 Days:By Presence of Children by Age, 2016 (percent of U.S. adults)
Table 4-4 Consumers Using Food Delivery Services in the Past 30 Days:By Ethnic Group, 2016 (percent of U.S. adults)
Table 4-5 Consumers Using Food Delivery Services in the Past 30 Days:By Region, 2016 (percent of U.S. adults)
Table 4-6 Consumers Using Food Delivery Services in the Past 30 Days:By Locality (Urban, Suburban/Outer Suburban, Rural), 2016 (percent of U.S. adults)
Table 4-7 Consumers Using Food Delivery Services in the Past 30 Days:By Level of Education, 2016 (percent of U.S. adults)
Table 4-8 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
Chapter 5: 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
Illustration 5-1 Peapod by Barilla
Giant Carlisle Introduces In-Store Meal Kits
Illustration 5-2 Giant Food
Blue Apron, Inc.: The Nation’s Leader
Largest Meal Delivery Kit Service Targets Would-Be Chefs
Efficiency Minimizes Waste, Maximizes Profitability
New Subscription Program Lets Customers “Wine and Dine”
Decreasing Packaging, Increasing Market Penetration
Illustration 5-3 Blue Apron
Chef’d, LLC
Bringing Professional Chefs Into America’s Kitchens
Predictive Analysis Ensures Supply Meets Demand
Wide-Ranging Appeal Spans Demographic Groups
Illustration 5-4 Chef’d
Cooking Simplified
Affordability a Key Appeal
Illustration 5-5 Cooking Simplified
Din Inc.
Recreating Restaurant Meals at Home
Illustration 5-6 Din
Foodstirs Inc.
Baking and Foodcrafting Kits at the Core
Illustration 5-7 Foodstirs
FreshDirect LLC
Online Grocer Delves into Meal Kits
Illustration 5-8 FreshDirect’s FoodKick Taco Bundle
Gobble
“10 Minutes and One Pan”
Illustration 5-9 Gobble
Green Blender
Smoothies Only
Illustration 5-10 Green Blender
Green Chef
Certified Organic Meal Kits
Illustration 5-11 Green Chef
Handpick, Inc
Smart Groceries
Illustration 5-12 Handpick Smart Groceries
HelloFresh USA
Healthy, Tasty, and Jamie Oliver
Illustration 5-13 HelloFresh
Home Chef
Variety, Flexibility, and a Midwest Approach
Illustration 5-14 Home Chef
Hungryroot Inc.
Recipes Let Vegetables “Masquerade as Other Foods”
Illustration 5-15 Hungryroot
Just Add Cooking
Eco-Friendly, New England Regional
Illustration 5-16 Just Add Cooking
Marley Spoon
Competing with “The Weekly Grocery Shop”
Illustration 5-17 Marley Spoon
Munchery
Locally Sourced, Gourmet Meals Cooked by Chefs
Illustration 5-18 Munchery
Pantry
A Meal-Kits-Only Grocery Store
Illustration 5-19 Pantry
PeachDish
Modern Southern Cooking
Illustration 5-20 PeachDish
Plated
A Premium Service for the “Evolved Eater”
Shark Tank Success Story
A Leader in Sustainability
Illustration 5-21 Plated
The Purple Carrot
Plant-Based Vegan Meals
Illustration 5-22 The Purple Carrot
Saffron Fix Inc.
Ethnic Indian Meals
Illustration 5-23 Saffron Fix
Sun Basket
Healthy California Lifestyle
Illustration 5-24 Sun Basket
Terra’s Kitchen LLC
Eco-Friendly Packaging
Illustration 5-25 Terra’s Kitchen
Illustration 5-26 “The Vessel,” FreshRealm’s Cold Food Box
Tyson Foods, Inc.
Mainstream Food Producer Joins the Fray
Illustration 5-27 Tyson Tastemakers
Illustration 5-28 Tyson Ready for Skillet Meal Kits

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