November, 2018: Adroit Market Research launched a study titled, “US Meal Kit Market Size 2017 By Plan (2-Person Plan, Family Plan), By Region (South, West, Northeast, Midwest) and Forecast 2018 to 2025”. The study covers the US meal kit market value for a period ranging in between 2015 to 2025, where 2015 to 2017 imply the historical value with forecast between 2018 and 2025. The US meal kit market report also includes company profiles and qualitative insights of the market such as value chain, mergers and acquisitions, restrains and drivers.
The US meal kit market size is projected to reach USD 14.20 billion by 2025 growing at an aggressive CAGR during the forecast period. The factors such as entry of new meal kit delivery services, increase in customer base, easy availability of all the ingredients and recipe of how to make the food are driving the market further. Moreover, meal kits are offering customers easy and convenient way of cooking food in less time due to which the demand for it is further increasing.
As the US meal kit market share is growing many new players are entering into the market. In March 2018, Walmart announced it will expand its meal kits availability to 2000 more stores with existing 250 stores giving a tough competition to Blue Apron and Hello Fresh. Additionally the companies are getting funds from the venture capitals to grow their meal kit business which is again boosting the market further. For instance, in the year 2016, US meal kit deliver services has raised more than USD 650 million through venture capital funding. Further, Blue Apron has raised USD 193 million in equity funding.
The South zone dominated the overall US meal kit market share by occupying 34.1% share in 2017. As this region has major population and highest number of states including Florida, Washington D.C., Texas, Georgia, Delaware and others. As a strategic step the companies has majorly invested in this region for marketing and advertisement purposes to capture more and more customers. For instance, in the year 2017, Blue Apron has reinvested its 18% of net revenue from 2016 for marketing and advertisement purposes in order to increase their customer base. The company has witnessed a growth rate of 66.5% in two years, from 1.3 million customers in 2015 to 3.6 million customers in 2017.
As of 2017, The US meal kit market share is occupied by top five players that includes Blue Apron, HelloFresh, Home Chef, Sun Basket, and Plated. However, as the industry witnessed an exponential growth in recent years many domestic and big players including Walmart and AmzonFresh entered into the market. At present there are more than 150 players in the US meal kit market due to which it has become more competitive and companies are coming up with different strategies to sustain in the coming years. For instance, in July 2017, Amazon acquired Whole Foods and started selling meal kit packages throughout the US via AmazonFresh website. As Whole Foods is a brick and mortar, it found Amazon as a medium to expand its reach and presence into the US meal kit market.
The top players in the US meal kit market are Blue Apron, HelloFresh, Home Chef, Sun Basket, Plated, AmazonFresh, Veestro, Green Chef, PeachDish and Gobble Inc.
Key segments of the US meal kit market
Plan Overview, 2015-2025 (USD million)
- 2-Person Plan
- Family Plan
Regional Overview, 2015-2025 (USD million)