Photo: Blue Apron
While Blue Apron, HelloFresh and others are gaining buzz, only three percent of the U.S. adult population have tried a meal kit delivery service within the last year, according to a NPD Group study.
But the study details opportunities for growth. Saving time is the primary reason given for using meal kits, which deliver pre-measured ingredients along with a recipe to guide the making of home meals. Beyond making dinner easier to prepare, the kits add variety to meal planning, finds NPD’s study. Young adults in particular are drawn to the freshness of ingredients and overall experience.
Those using meal kits are generally satisfied — two out of three kit users say they are extremely or very satisfied — but price may be a barrier for continued use and adoption by others. While the average cost per in-home dinner meal is $4, the average cost per person for a meal kit is $10, about the cost of a budget restaurant meal, according to the study.
“The outlook for meal kits is uncertain since they’re still in their infancy stages and gaining trial among consumers,” said Darren Seifer, NPD Group’s food and beverage analyst, in a press release. For meal kit providers, the big opportunity is “to market around the reasons their customers are satisfied,” he said. More manufacturers could also launch kits and foodservice operators can “leverage their ability to provide on demand delivery and meal variety.”
Meal kit retailers are taking aggressive steps to encourage trial. Blue Apron is offering $50 off the first offer, equal to five meals.
The NPD report comes in an environment in which funding for on-demand delivery startups is more challenging due to a cooler IPO market and lack of scale. Other popular kit players are Plated, Purple Carrot and Peach Dish, but a new option arrives every day.
Boston Burger Company last week launched BurgaBox, which includes all the ingredients to make the “The Hot Mess,” “The Sophie” and its other signature burgers. The restaurant’s press release reads, “Consider this your cheat day in a box.”
- Buzz About Meal Kit Delivery Services May Be Greater Than Adoption At This Point, Reports NPD Group – The NPD Group
- Getting to the How and Why of Meal Kit Delivery Services – The NPD Group (sub. required)
- Meal-Kit Maker Blue Apron Said to Hold Preliminary Talks on IPO – Bloomberg
- Some food delivery apps starved for funding – CNBC
- Boston Burger Company Is Launching a Meal-Kit Subscription for Your Cheat Days – BostInno
- Are delivery start-ups in trouble? – RetailWire