According to Cognitive Market Research, the global meal kit market size will be USD 21425.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 16.20% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 8570.24 million in 2024 and will grow at a compound annual growth rate (CAGR) of 14.4% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 6427.68 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 4927.89 million in 2024 and will grow at a compound annual growth rate (CAGR) of 18.2% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 1071.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.6% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 428.51 million in 2024 and will grow at a compound annual growth rate (CAGR) of 15.9% from 2024 to 2031.
The online sale category is the fastest growing segment of the meal kit industry

Market Dynamics of Meal Kit Market

Key Drivers for Meal Kit Market

Increased Urbanization and Hectic Lifestyles to Boost Market Growth

The market for meal kits is expanding due to the development in development and hectic lives. The growth of cities is the system by which cities expand, and an increasing proportion of people move into urban regions. People's growing sophistication, increasing disposable income, and shifting priorities present unique possibilities for icy meal kits. This is because hectic schedules are driving up demand for quick pre-meals, and frozen meal kits are appealing due to their reasonable price and nutritional upsides. Thus, hectic lives and increased urbanization are fueling the meal kit industry's expansion. For instance, the world's top meal kit provider, HelloFresh SE ("HelloFresh"), is officially starting offering its products in Ireland. A significant turning point in HelloFresh's worldwide growth plan has been reached with the company's entry into its 18th geography. With this introduction, HelloFresh will be able to reach even more clients worldwide and increase its entire accessible industry.

Growing Public Awareness about Health and Wellness to Drive Market Growth

The market is mostly driven by the increased emphasis on wellbeing and good health. Meal kits are becoming more and more popular as customers place more importance on wellness, fitness, and special dietary needs. A growing number of people are looking for quick and wholesome meal alternatives as they realize how important it is to maintain good eating habits. Meal kits provide an easy approach to cooking meals that are customized to each person's dietary requirements and health objectives while also providing access to fresh, premium products. It is anticipated that the demand for meal kit delivery services will continue to be high as consumers who are concerned about their health look for methods to make their diets better.

Restraint Factor for the Meal Kit Market

Growing Rivalry from Multipurpose Gadgets, Will Limit Market Growth

One of the biggest challenges for meal kit providers is maintaining the flavor and appearance of nourishment, as well as the quality and uniformity of components. As meal kit businesses expand their business processes to accommodate increasing customer demand, it becomes more difficult to maintain strict guidelines for the obtaining, processing, and storage space of components. The number of various variables can affect the quality and uniformity of ingredients, including sourcing from several vendors, preserving freshness throughout shipping, and limited availability of specific components.

Impact of Covid-19 on the Meal Kit Market

Due to the COVID-19 epidemic, the market had a wonderful chance to expand because the majority of lodgings, eateries, and dining establishments were closed worldwide. Because people were worried about their health, they began to concentrate more on eating a balanced diet and boosting their defenses. This led to a sharp rise in the number of individuals searching for quick and nutritious meal alternatives for themselves. This demand was satisfied by meal kit activities,...

The online meal kit delivery market experienced significant growth from 2019 to 2024, driven by increasing consumer demand for convenience, healthy eating options, and reduced food waste. The market's expansion is fueled by several key factors including busy lifestyles, rising disposable incomes in key demographics, and the growing popularity of home cooking with a focus on healthier and more diverse meals. Technological advancements, such as sophisticated meal planning apps and efficient delivery networks, have also contributed to market growth. While precise market sizing figures are unavailable, a reasonable estimate suggests a 2025 market value of approximately $15 billion based on reported growth rates in the sector and current market reports from similar industries. Assuming a conservative Compound Annual Growth Rate (CAGR) of 10% post-2025, this would lead to a substantial expansion in the coming years. However, challenges remain. Competition is intense, with numerous established players and new entrants vying for market share. Maintaining profitability in a sector characterized by high delivery and ingredient costs poses a continuous challenge for companies. Furthermore, potential limitations may include fluctuating ingredient prices and the need for robust cold-chain logistics to guarantee fresh produce delivery. Future success will hinge on companies' ability to innovate with meal options, personalize offerings, enhance customer experiences, and optimize their supply chains for increased efficiency and sustainability. Segmentation within the market is also significant, with specialized offerings targeting specific dietary needs (vegan, vegetarian, keto, etc.) and various price points, allowing for a niche approach for different customer groups. Companies are likely to increasingly focus on subscription models and loyalty programs to maintain customer retention, which has proven to be a crucial aspect of success.

Meal kit delivery services include meal kits containing pre-portioned ingredients and instructions consumers use to cook at home. Healthier eating habits and the growing popularity of e-commerce spurred sales. While revenue increased rapidly, COVID-19 became the catalyst for success as consumers ordered meal kits as an alternative to grocery shopping. It also paved the way for mass advertising via social media platforms, radio, podcasts and other entertainment outlets. This form of marketing remains strong, offering extra avenues of growth through an expanding market. Revenue grew at a CAGR of 22.4% to $8.7 billion over the past five years, including a 2.8% bump in 2024 alone. Many customers work in technology-related fields with high-income levels, allowing them to trade off extra food expenses solely for convenience. However, with new companies entering the marketplace, meal kit distributors must entice new consumers with discounts to stay ahead of the curve. While this may attract customers, companies must pay these costs, lowering the average profit. Even so, significant companies like Hello Fresh have dominated a large chunk of the market, leading to rising profitability. Inflationary concerns have led some lower-income consumers to return to in-person grocery shopping, as meal kit costs have gotten too high. E-commerce retailers like Walmart, Target and Amazon have also begun delivering food and with already established brand familiarity, some consumers will turn to them instead. Rising interest rates in the US are pressuring the meal kit delivery industry by increasing borrowing costs and reducing profit. This financial strain, exacerbated by consumers’ reduced discretionary spending due to higher credit card and mortgage payments, prompts companies to cut costs and seek greater efficiencies. To remain competitive, businesses innovate to retain and attract customers in a challenging economic environment. Smaller meal kit distributors that don't generate profit may be forced to exit or risk being acquired. Higher-income consumers will keep their subscriptions intact since meal kits are often convenient. Meal kit delivery services revenue will expand at a CAGR of 2.4% to $9.8 billion through the end of 2029.

The Meal Kit Delivery Services industry has exploded thanks to increased health consciousness among consumers, rising disposable incomes and online shopping uptake. The COVID-19 pandemic accelerated growth as consumers turned to meal kits as an alternative to grocery shopping. Meal kits have transitioned from an unexplored niche market to a mainstream affair. However, profitability has been a significant challenge for meal kit providers. Extensive marketing and logistical mandates have been needed to attract new customers and ensure food safety, increasing operating costs. However, revenue is expected to grow at an annualised 17.2% over the five years through 2023-24, to $1.1 billion. Meal kit providers have faced tough competition, especially from big-box retailers and ready-meal delivery services. Supermarkets have been enhancing their online services and introducing meal kits and ready meals. Easing lockdown measures and rising inflation have led consumers back to dining out and in-store shopping instead of using meal kit subscriptions. Revenue is anticipated to grow 4.0% in 2023-24 as momentum slows. Smaller companies have also struggled to compete with established brands’ competitive pricing. The industry is set to continue growing over the coming years, despite shifts in the competitive landscape. Traditional supermarkets and grocery stores will increasingly offer meal kits and ready-made meals and enhance their online shopping experiences. Their emphasis on providing cost-effective, diversified options will intensify competition. Furthermore, as inflation weakens and consumers feel more comfortable dining out again, a potential decline in subscriptions will hinder providers’ expansion and prompt consolidation. However, meal kit providers will look to expand their product offerings and customisability to maintain their appeal. Technological advancements and eco-friendly practices will play significant roles in sustaining demand in the coming years. Revenue is projected to rise at an annualised 5.3% over the five years through 2028-29, to reach $1.4 billion.