April 14, 2024
Prepared Meal Delivery Market

Prepared Meal Delivery Market Set to Register High Growth of 11% Driven by Rising Demand for Ready-to-Eat Meals

The prepared meal delivery market involves companies that offer subscription services for ready-to-eat meal kits. The meal kits include fresh ingredients and recipes for home cooking. Customers can choose from a variety of recipes on the company’s website or mobile application and the pre-portioned ingredients are then delivered directly to their doorstep. Prepared meal kits have gained immense popularity as they offer convenience and variety without the hassle of grocery shopping or laborious cooking. The Global Prepared Meal Delivery Market is estimated to be valued at US$ 23.85 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the prepared meal delivery market are Hello Fresh, Blue Apron, Home Chef, Marley Spoon, Sun Basket, Abel & Cole, Riverford, Gousto, Quitoque, Kochhaus, Middagsfrid, Allerhandebox, Chefmarket, Kochzauber, Fresh Fitness Food, Mindful Chef, Fresh N Lean, CookUnity, Pete’s Real Food, Mosaic Foods. Key players are focusing on expanding their offering to plant-based meals to cater to the rising vegan and vegetarian consumer base. The market players are also introducing lower priced meal kits and family-sized portions to increase their customer base.

The key opportunities in the Prepared Meal Delivery Market Growth include expanding delivery areas and days to reach a wider set of customers. Investing in specialized meals for calorie and health-conscious consumers as well as kids meals provides further opportunities. Advancements in predictive analytics by companies can help offer more personalized meal recommendations and recipes to their customers.

Technological advancements such as IoT enable connected devices and refrigerators to track inventory and trigger automatic re-orders. Advancements in mobile apps allow customers to customize portions, diets and receive personalized recommendations. Use of blockchain can help increase supply chain transparency. Advancements in AI and machine learning are helping companies better understand customer purchase patterns and behaviors to improve user experience.

Market Drivers
The primary driver for the growth of the prepared meal delivery market is the rising preference for ready meals and the convenience factor associated with such services. High participation of women in the workforce has further boosted the demand for easy to cook meals. Increasing health consciousness and focus on nutrition is also driving many consumers to prepared meal kits rather than frequenttakeouts. Rising single-person households also contribute to the popularity of small portioned prepared meals. Busy lifestyles coupled with increasing disposable income is expected to accelerate the demand over the forecast period.

Current Challenges in Prepared Meal Delivery Market

The prepared meal delivery industry faces several challenges that hamper its growth. One of the major challenges is high operating costs associated with maintaining the freshness of ingredients, packaging, and logistics of delivering ready-to-cook meals on time. The preparation and delivery of freshly cooked meals within a stipulated time also poses operational issues. Adapting menus to cater to the diverse preferences of customers spread across various geographies is another challenge. High customer acquisition and retention costs also impact the industry’s profitability. Dependence on a narrow selection of suppliers for seasonal ingredients exposes the industry to supply chain risks. Stringent food safety and hygiene regulations further increase compliance costs.

SWOT Analysis
Strength: Ability to provide fresh and nutritious meals according to changing dietary preferences. Convenience of ready-to-cook meals saves time for busy consumers.
Weakness: Higher costs of operations compared to retail grocery. Dependence on few ingredient suppliers increases supply chain risks.
Opportunity: Growing health consciousness and changing food habits offer scope for menu innovation. Increase in single person households and working professionals drives demand.
Threats: Entry of retail giants may intensify competition. Disruptions during pandemics affect delivery operations. Switch to cooking at home impacts customer retention.

Geographical Regions
North America currently accounts for the largest share in the global prepared meal delivery market in terms of value. This is due to the busy lifestyles and increased affordability in countries like the U.S. and Canada. Europe is another major region driven by the health-conscious populace and popularity of home-delivered services in countries such as Germany, France and UK. The rising young working population is fueling the Asia Pacific market led by India and China.

The fastest growing regional market for prepared meal delivery is expected to be Asia Pacific between 2024-2031. This growth will be supported by expanding middle-class demographic, growing influence of Western food culture and increasing number of nuclear families in developing countries like India, Indonesia and Vietnam.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it