The Top 8 Meal Kit Delivery Business Statistics & Trends 2024

The meal kit delivery industry is one of the most innovative businesses that have developed over the past few years. 

It is significantly convenient and allows people to enjoy homemade meals in the easiest way possible.

Not only are meal kit services customizable but your experience is limited only by your imagination. meal kit services represent how technology impacts lifestyle and how convenience has become a great deciding factor in consumer behavior. 

So, without any further delay, let’s examine the top 8 meal kit delivery business statistics and trends of 2024.

Industry Statistics and Growth Projections

Before we see the meal kit delivery trends, let us take a quick look at the industry stats and expected growth.

Market size and revenue forecasts

1. The meal kit delivery business is valued at an approx $5 billion. 
2. It is estimated that the meal kit delivery industry will be $11.6 billion by 2022.

Adoption rates and consumer trends

1. Around 17% of American consumers have subscribed to meal kit delivery services at any point. 
2. Of all the subscribers, around 90% recommended meal kit delivery to other individuals. 
3. Approximately 25% of city individuals have opted for meal kit services, compared to 14% of rural individuals. 
4. Around 26% of the Gen X populace has attempted to opt for meal kit services. 
5. Around 29% of the millennial populace has tried to opt for meal kit services. 

Top 8 Trends Driving the Meal Kit Delivery Industry

1. Sustainability and organic meal kits

Meal kits are far more environmentally friendly than grocery shops. True, meal kits include packaging materials like plastic; however, the packaging has a minor influence on the environmental impact of the meals.

In terms of carbon footprints, emissions from food processing and distribution, agricultural equipment, and fertilizer production outnumber those from packaging used to keep food fresh.

However, many customers continue to demand improvements in packaging, such as fewer plastics, more biodegradable packaging, and insulation created from recycled materials.

The meal kit sector is anticipated to undertake modifications in 2022 to ensure the long-term viability of its services, particularly in terms of packaging and shifting customer opinions.

Many customers are also interested in eating purely organic foods due to current health trends and environmental concerns. Organic foods frequently have a few traits, despite the fact that organic agricultural requirements vary by country. Ecosystem protection, water supply considerations, and biodiversity are among them. Organic ingredients are sometimes difficult to come by at supermarket shops, but meal kit services take care of this problem.

2. Specialized diets and lifestyle options

Many individuals choose meal kits because they make it easier to adhere to a diet, and the meal kit business has noticed this trend. In fact, Blue Apron and Weight Watchers formed limited cooperation in 2019, and other kit services have begun focusing on specific diets.

For example, some meal kit providers offer keto, paleo, or vegetarian meal plans, and during the coming year, more meal kit providers focusing on specialty diets are expected to emerge.

Another trend is adapting to individual lifestyle choices. For example, a vegan lifestyle requires avoiding meat and other animal-based foods, which means preparing meals frequently involves unusual ingredients. Meal kits make it easy to follow a vegan diet while providing a wide range of options. Meal kits also cater to lifestyles that demand quick or easy cooking but don’t require special ingredients.

3. Increased meal options and customization

Meal kit services’ main selling point is the time they save. Instead of figuring out what to eat, finding a recipe, and going to the store, you can just order your meals and have them delivered.

However, most meal kit providers only serve dinner, leaving breakfast and lunch up to the customer, which can cast doubt on the time-saving aspect. As meal kit companies grow, we expect more of them to increase their meal options to offer breakfast, lunch, and dinner.

4. Competitive pricing strategies

Consumer pricing in the meal kit service is becoming more competitive due to improved logistics and automation procedures that reduce operating expenses.

Although meal kit prices have been somewhat costly in the past, companies like EveryPlate and Dinnerly have found ways to reduce expenses and provide more competitive pricing. As many meal kit services struggle to attract and retain clients, partly due to high costs, we can expect more companies to explore strategies to reduce prices for wider appeal.

5. Pre-assembled meal kits and convenience

Convenience is a key selling point for the meal kit industry. Initially, meal kits provided only ingredients and recipes, and customers had to prepare everything themselves. While convenient, this still required time for cooking and cleanup.

Recently, pre-assembled meal kits that are ready-to-eat with no prep or cleanup have become more popular. We can anticipate the next generation of meal kits to move further in this direction, eliminating the need for preparation and cooking.

6. Consolidation and acquisitions in the industry

In recent years, the trend of large corporations purchasing smaller meal kit businesses has gained traction. For example, Hello Fresh acquired Chef’s Plate, and Freshly purchased GoReadyMade.

Larger meal kit companies are expanding their operations while simultaneously reducing competition through acquisitions. As meal kit businesses continue to grow and aim to become profitable, mergers and acquisitions are expected to continue.

7. Expanded delivery services and partnerships

Another reason some consumers choose meal kits is the convenience of delivery. Meal kits are beginning to offer extended delivery times, allowing for more flexibility with when meals arrive. Some services are now providing deliveries at different times throughout the day, catering to breakfast, lunch, or dinner.

8. Investment and funding opportunities

Many meal kit companies were initially supported by large investments. However, some businesses, particularly those with niche focuses, are now seeking outside funding.

For instance, Purple Carrot, a plant-based meal kit company, raised $12.8 million, while Sun Basket secured $125 million in outside funding. We expect to see more companies in this space seeking investment to grow and scale their operations.

Challenges Associated With Meal Kit Delivery

To expand their market reach, meal kit providers are now aiming to cooperate with grocery retailers. Customers want to see their meal packages in stores, so this is the case. 

As a result of these issues, meal kit firms are under more pressure to offer cost-effective home deliveries.

Below we have highlighted some key challenges:

1. Maintaining delivery windows

Meal kit delivery providers rely heavily on time. The delivery timetable is affected by traffic congestion, parking, road closures, and vehicle breakdowns, among other things. 

Customers want ready-to-cook meals to arrive within their specified time frames. Meeting delivery timelines while dealing with various on-the-ground restrictions is a major problem.

2. Customer retention challenges

The meal kit delivery business is becoming increasingly crowded, making it difficult for meal kit firms to keep their customers.

Customers’ preferences always shift, making it difficult to retain a stable consumer base. As a result, meal kit providers must be adaptable and responsive to changing consumer preferences.

3. Rising last-mile delivery costs

The expense of last-mile delivery is one of the most significant obstacles for meal kit delivery providers. They must deal with ‘hungry’ clients’ needs.

Increasing the workforce to meet this problem comes at a cost, such as idle expenses, fuel costs, and maintenance costs, among other things.

4. Flexible subscription models

meal kit delivery services must cope with a variety of consumer delivery choices. Some clients may request rush delivery, while others may choose to have their items postponed. 

As a result, meal delivery firms have the issue of responding to personalized delivery demands quickly and swiftly.

Advantages of Entering the Meal Kit Delivery Business

Surely, you may go to the grocery and get all the components for a home-cooked supper. As a result, you may be asking why anyone would sign up for a meal kit service. In general, there are several benefits to using a meal kit service. 

For example, you will be served delectable, varied, and intriguing dinners. There’s less chance that leftover materials will go to waste, and rare or difficult-to-find ingredients are more readily available. 

Due to meal kit services, healthy eating is now an easy option. Finally, for some people, traveling to the supermarket and physically shopping for the necessary items is simply too inconvenient.

Meal Kit Delivery is Now a Must!

Meal kit delivery is becoming increasingly popular. If you plan to open your own meal kit delivery business, then you are on the right track. 

But before you embark on this fabulous journey, ensure you are well-prepared. 

With Upper routing software at your disposal, you can now plan routes for your meal-kit delivery business and optimize them for faster deliveries. Moreover, the software helps plan efficient meal kit routes with multiple locations in just a few clicks. With Upper Route Planner, you can plan routes and get the following benefits:

• Save up to 95% of your planning time
• Serve 40% more customers by optimizing time spent on the road
• Get an eagle-eye view of your delivery operations

Get your free 7 days trial now to see how it is helpful to your business.