Prepared Meal Delivery Market set to soar on increasing demand for convenience foods

Author : vaishnavi cmi | Published On : 22 May 2024

The prepared meal delivery market has gained tremendous popularity over the past few years owing to increasing demand for convenience foods. People nowadays lead busy lifestyles and prefer ready-to-eat meals rather than spending time in the kitchen. Prepared meal delivery services provide convenience by delivering freshly prepared meals right at customers' doorsteps on a weekly or monthly subscription basis. The meals are designed and customized by expert chefs keeping in mind customers' preferences of recipes, cuisines, diet, and flavors. This removes the hassle of grocery shopping, meal planning and cooking from customers' busy schedules. The prepared meals are healthy, nutritious and help people adopt a balanced diet without making much effort.

The Global Prepared Meal Delivery Market is estimated to be valued at US$ 10.92 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. Hello Fresh accounted for the highest share in 2020 owing to its variety of healthy recipes and quick meal solutions.

Growing health consciousness and awareness about the benefits of consuming fresh and nutritious Prepared Meal Delivery Market Demand has boosted the demand for prepared meal delivery services. People prefer customizing their diets and getting personalized nutrition planning through these meal kits. Rising disposable income levels further encourage the adoption of convenience meal solutions.

Technological innovations have enabled prepared meal delivery companies to improve their supply chain efficiencies, online ordering platforms, and delivery systems. Use of technologies like artificial intelligence, cloud computing and big data analytics help players optimize operations and tailor food recommendation per customer needs and preferences.

Market Trends

- Increased focus on healthy and organic meals: There is high demand for clean label, gluten-free, keto-friendly, plant-based and organic recipe options. Players are expanding their portfolio of health-centric dishes made from locally sourced ingredients.

- Sustainable packaging: Companies are investing in eco-friendly, recyclable and compostable packaging materials to reduce environmental footprint. Some offer packaging-free options with reusable kitchen kits as well.

Market Opportunities

- Growing popularity of meal kit subscriptions among younger consumers is a major opportunity. New personalized offerings catering to tastes of millennials and Gen Z can boost customer acquisitions.

- Geographic expansion plans in emerging markets like Asia Pacific and Latin America provide scope for higher revenues. Favorable demographic trends and rising health awareness in these regions present lucrative growth prospects.

Impact of COVID-19 on Prepared Meal Delivery Market Growth

The outbreak of COVID-19 pandemic had resulted in lockdowns and restrictions across the world. This led to changes in consumer food habits and increased adoption of online food delivery solutions. People avoided dining out and turned to online platforms to order ready-to-eat meals. This boosted the prepared meal delivery market in a big way. This alternative emerged as a safe and contactless option compared to restaurant dining or grocery shopping. During lockdowns, consumers relied heavily on prepared meal kits and delivery services to fulfill their daily nutritional requirements while staying indoors.

As a result of rising demand, players in this market expanded their service areas and added new menu options to attract more customers. Post-pandemic, while on-premise dining has resumed, the market has sustained higher growth levels compared to pre-COVID times. The stigma of virus transmission through restaurants and convenience of online ordering has led to continued preference for prepared meals among many consumers. However, inflationary pressures and higher costs are a challenge. Companies need to focus on menu innovation, competitive pricing and promotional offers to sustain this growth in the long run.

Geographical Concentration of Value in Prepared Meal Delivery Market

In terms of value, North America holds the largest share of the prepared meal delivery market currently. This is because of high disposable incomes, busy consumer lifestyles and high internet penetration in countries like United States and Canada. Online food delivery platforms emerged early in this region and became popular due to convenience. Busy urban consumers with less time for cooking turned to prepared meal kits featuring balanced recipes for their daily nutrition needs. Europe is another major regional market, fuelled by growing health consciousness. Countries like UK, Germany, France, Italy have witnessed significant demand over the years.

Fastest Growing Regional Market for Prepared Meal Delivery

The Asia Pacific region is poised to grow at the fastest pace in the prepared meal delivery market during the forecast period. This is backed by improving living standards, rising number of nuclear families, growing internet penetration and increasing influence of western food culture. In particular, India and China represent huge opportunities. With young working populations and exponential digital adoption, online meal ordering is gaining traction in these developing nations. Companies offering customized nutritious and budget-friendly solutions stand to benefit the most from this burgeoning demand. Localization of offerings, tailored packaging and effective distribution infrastructure will be critical success factors in Asia Pacific market.

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