Recently we shared how meal boxes are on the fast track for sales growth, you can read about it here. I am not a cook and I do not like grocery shopping, so a few weeks ago I decided to check out HelloFresh and order a subscription and see for myself what was contributing to the excitement and energy behind this emerging trend. I don’t like to shop and I wanted the convenience of having pre-planned meal solutions delivered to my home once a week so I could hardly wait for my first delivery.
I can truly say after several weeks of delicious meals, my husband and I are hooked. The recipes are idiot-proof, providing step-by-step instructions that even include pictures. The ingredients are healthy and fresh and the meal prep is typically around 30 minutes. Most importantly this has saved us so much time not having to pre-plan our meals and shop as much and as often for groceries.
And yes, there is a cost savings. We spend less since we’re not buying as much take-out as we used to and we’re not wasting food. I’ve even lost a few pounds. So now I clearly understand what has propelled the meteoric rise of HelloFresh, Blue Apron, Plated and other meal kit subscription services.
This “ready to cook” meal delivery craze is also evolving into a marketplace of start-ups with new market entries like Snap Kitchen, Munchery, Sprig, KitchenFix and HungeryRoot that offer even more speclized meal services as companies seek to provide key niche items and/or more localized services in select urban markets.
Bottom line is that the meal kits are clearly resonating with key consumers which Plated refers to as the “evolved eater”. According to Plated’s proprietary research, this is a 31 million strong segment of the American population that cares deeply about the quality of their food and has enough disposable income to invest in eating well.
Most importantly, there is an opportunity for brands to better understand how to not only be included, but featured in the box. In addition, these services provide a great vehicle to introduce new products directly to consumers. It will be interesting to see if this rapid growth continues and if consumers continue to order these services. HelloFresh estimates that the “fresh food-at-home” market will grow from $1 billion in 2015 to $8 billion by 2020.
Written by Heidi McIntyre
Managing Partner
Heidi@FullTiltMarketing.net
