Delivery Services and Meal Kits - Canada - July 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Canadians view meal kits as being expensive
Figure 1: Barriers to meal kit usage, May 2018
Awareness serves as a barrier to usage
Figure 2: What’s appealing about meal kits?, May 2018
Meal kits hold less appeal among older Canadians
Figure 3: Don’t use meal kits and not interested in trying, by age, May 2018
The opportunities
Parents more likely to view meal kits as viable solution
Figure 4: Meal kit usage, by parental status, May 2018
Consumers look to meal kits for speedy solutions in the kitchen
Figure 5: Important factors when choosing meal kits, May 2018
Involvement with meal kits can enhance skills and connections
Figure 6: Meal kits help in involvement with cooking, by parental status, May 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Mobile technology enabling unprecedented opportunity to interact
Immigration fuelling Canada’s population growth
Canadians are more time-pressed
MARKET FACTORS 
Mobile technology enabling unprecedented opportunity to interact
Figure 7: Mobile and smartphone penetration, by age group, May 2017
Canadians are more time-pressed
Canada’s population is aging
Figure 8: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
Immigration fuelling Canada’s population growth
Figure 9: Top 10 countries of birth of recent immigrants, 2011-16
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Number of meal kit companies growing
Repeat and frequent usage needed for long-term success
Technology offers opportunity for added personalization
WHAT’S WORKING?
Number of meal kit companies growing
CHALLENGES
Repeat and frequent usage needed for long-term success
Cost represents the highest barrier to usage
WHAT’S NEXT?
Offering meal kits both on and off-line needed to reach potential
Looking outside of dinner with snack kits
Figure 10: Correspondence map – Relationship between types of snacks eaten and dayparts, July 2016
Figure 11: What is SnackNation? – Healthy Snack Delivers for the Best Office Culture, October 2017
Technology offers opportunity for added personalization
THE CONSUMER – WHAT YOU NEED TO KNOW 
A fifth of Canadians report having used meal kits
Meal kits help alleviate the burden of meal planning
Cost is the main barrier to meal kit usage
Involvement can enhance skills and connections
Parents are more engaged with meal kits
MEAL KIT USAGE AND INTEREST
A fifth of Canadians report having used meal kits
Figure 12: Meal kit usage and intent, May 2018
In-store solutions remain the go-to option
Figure 13: Where meal kits are purchased, May 2018
Figure 14: Introducing Handpick's Smart Groceries!, August 2015
Half of consumers purchase meal kits more than one per month
Figure 15: How often meal kits are purchased, May 2018
USAGE DRIVERS
Convenience is central to meal kit usage, particularly among older consumers
Figure 16: What’s appealing about meal kits?, May 2018
Figure 17: Percent who find easier meal preparation appealing in meal kits, by age group, May 2018
Meal kits help alleviate the burden of meal planning
Figure 18: Percent who agree meal kits make planning easier, by parental status, May 2018
Health-related position holds more appeal to younger consumers
Figure 19: Percent who agree food in meal kits is often healthy, by age, May 2018
Figure 20: Considerations that are more or less important versus previous years, March 2018
Exploring new meal ideas through meal kits holds greater appeal for women
Figure 21: Percent who find “new meal ideas” appealing about meal kits, by gender, May 2018
Figure 22: Cooking Made Easy with Chefs Plate, December 2017
BARRIERS
Cost is the main barrier to meal kit usage
Figure 23: Barriers to meal kit usage, May 2018
Figure 24: Percent who agree “food meal kits help me buy only the foods I need”, by age, May 2018
Building awareness is key to driving usage
Figure 25: Lack of awareness as a barrier to meal kit usage, May 2018
Lack of awareness may subdue other concerns around meal kits
Figure 26: Secondary barriers to meal kit usage, May 2018
Over-65s prove a more challenging consumer segment of meal kits
Figure 27: Non-interest in meal kits, by age, May 2018
Figure 28: Statements related to meal kits (% agree), over-65s vs overall, May 2018
OPPORTUNITIES
Involvement can enhance skills and connections
Figure 29: Meal kits help in involvement with cooking, by parental status, May 2018
Figure 30: Teach - Uncle Ben’s, January 2017
Meal kits value is in part related waste reduction
Figure 31: Meal kits include too much packaging and help by only foods needed (% agree), by parental status, May 2018
Figure 32: Flashfood introduction, May 2016
Speed in the kitchen resonates with meal kit consumers
Figure 33: Important factors when choosing meal kits, May 2018
Figure 34: TURF analysis – Factors, May 2018
CONSUMER GROUPS
Parents are more engaged with meal kits
Figure 35: Meal kit usage by parental status, May 2018
Figure 36: Agreement with select statements, by parental status May 2018
Younger, more affluent consumers represent the core opportunity for meal kits
Figure 37: Meal kit usage and intent, by age, May 2018
Figure 38: Meal kit purchase from store vs deliver, by age, May 2018
Figure 39: Meal kit purchase from store vs deliver, by age, May 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Correspondence analysis
TURF Analysis
Abbreviations and terms
Abbreviations