Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Ups and downs for an upstart industry
- Pandemic provides a short-term boost
- Impact of COVID-19 on meal kits
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on meal kits, October 2020
- Re-emergence
- Pandemic continues to fuel short-term spike
- A make-or-break opportunity to drive loyalty
- Recovery
- Reframe value
- Make kits more social
- Make easy an easier option
Market Overview
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- Ups and downs for an upstart industry
- Pandemic provides a short-term boost…
- …and an opportunity to bolster long-term loyalty
- Financial data from top competitors traces category’s uneven performance
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- Figure 2: Select quarterly financial metrics: Blue Apron, Q1 2018-Q2 2020
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- Figure 3: Select quarterly financial metrics: HelloFresh US, Q1 2018-Q2 2020
- Impact of COVID-19 on meal kits
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- Figure 4: Short-, medium- and long-term impact of COVID-19 on meal kits, October 2020
- Re-emergence
- Recovery
- COVID-19: US context
Market Factors
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- Concern about exposure keeps shoppers online, benefiting meal kits
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- Figure 5: Coronavirus exposure and lifestyle disruption concerns – any worried, March-October 2020
- Desire to limit time in-store benefits kits, both online and in-store
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- Figure 6: Coronavirus lifestyle changes – Online shopping, April-October 2020
- Consumers remain hesitant about eating in restaurants
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- Figure 7: Comfort level with restaurant/bar patronage – Very or somewhat comfortable, July-October 2020
- Growth of online grocery both a threat to and an opportunity for meal kits
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- Figure 8: Total US online sales and forecast of groceries*, at current prices, 2015-25
Market Opportunities
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- Make meal kits more social
- Go local
- Offer more customizability
- Make easy an easier option
- Reframe the value of premium meals
Competitive Strategies
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- Overriding emphasis on convenience and discounts
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- Figure 9: Select meal kit service online ads, 2020
- Lower discounts for more differentiated offerings
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- Figure 10: Select meal kit service online ads, 2020
- ShopRite concept could represent evolution of meal kits in-store
The Consumer – Key Takeaways
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- Current usage rates are low
- Enthusiasm for cooking a key meal kit ingredient
- Meal kit experience holds potential for differentiation
- Exceeding expectations key to overcoming cost barrier
- Category’s best users especially focused on cuisine and meal selection
- Enthusiastic cooks don’t want too many shortcuts
- Breaking reliance on discounts a key challenge for meal kit marketers
Meal Kit Usage and Interest
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- Current usage rates are low, but many consumers express interest
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- Figure 11: Meal kit usage and interest, June 2020
- Usage falls sharply among older adults
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- Figure 12: Meal kit usage and interest – Any current use, by age, June 2020
- Enthusiasm for cooking a key meal kit ingredient
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- Figure 13: Meal kit usage and interest – Any current use, by cooking enthusiasm and cooking skills, June 2020
Reasons for Using Meal Kits
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- While time-savings is a given, experience holds potential for differentiation
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- Figure 14: Reasons for using meal kits, June 2020
- Experiential factors especially motivating to younger consumers
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- Figure 15: Reasons for using meal kits, by age, June 2020
- Enthusiastic cooks drawn to meal kits for wider array of reasons
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- Figure 16: Reasons for using meal kits, by cooking enthusiasm, June 2020
Reasons for Not Using Meal Kits
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- Cost remains a key barrier to use
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- Figure 17: Reasons for not using meal kits, June 2020
- Exceeding expectations key to overcoming cost barrier
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- Figure 18: Reasons for not using meal kits, by previous usage, June 2020
Meal Kit Selection Criteria
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- Better selection could help to shift attention away from price
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- Figure 19: Meal kit selection criteria, June 2020
- Category’s best users especially focused on cuisine and meal selection
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- Figure 20: Meal kit selection criteria, by cooking enthusiasm, June 2020
Desired Improvements and Innovations
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- Customizable meal kits appeal to both users and non-users
- Meal kits for one hold appeal among current kit users
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- Figure 21: Desired improvements and innovations in meal kits, by current or previous usage, June 2020
- Enthusiastic cooks don’t want too many shortcuts
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- Figure 22: Desired improvements and innovations in meal kits, by cooking enthusiasm, June 2020
Attitudes toward Meal Kits
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- Breaking reliance on discounts a key challenge for meal kit marketers
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- Figure 23: Attitudes toward meal kits related to value, by current or previous usage, June 2020
- Opportunity to elevate the social aspects of the meal kit experience
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- Figure 24: Attitudes toward social aspects of meal kits, by current or previous usage, June 2020
- Leverage enthusiastic cooks’ deeper engagement in the meal kit process
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- Figure 25: Attitudes toward meal kits, by cooking enthusiasm, June 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
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