Meal kits market in Europe - statistics & facts
Food convenience solutions are conquering the world, and Europe is no exception. One important market in the food e-commerce landscape is meal kit delivery. Meal kits, otherwise known as recipe boxes, food boxes, or food subscription boxes, are made up of recipes and accompanying ingredients. They are usually home delivered on a subscription basis. Over the past decade, the meal kit market has grown significantly, reaching a global market value of 15.5 billion U.S. dollars in 2022, up from four billion U.S. dollars in 2017. The main catalyst for this explosive growth was the COVID-19 pandemic, during which consumers looked for meal solutions without having to leave their homes. Naturally, meal kit companies profited, just like the restaurant delivery market and upcoming Q-commerce services.
The recent meal kit delivery boom inspired many new, mostly local food box start-ups, while it also led to major profits for industry pioneers. As of 2023, the meal kits market seems to have reached maturity, and one company has come out as a clear winner: HelloFresh. The Berlin-based company was one of the first to operate in the recipe box delivery market and has expanded into many other countries since its founding in 2011. In Europe, HelloFresh is the only major publicly traded company in this industry. This leading position becomes apparent when looking at market shares. In many European countries, HelloFresh has an estimated market share of more than 80 percent. In Italy and Luxembourg, HelloFresh even controls 95 percent of the meal kits market.
There are signs that the massive meal kits market growth may be coming to a halt. HelloFresh’s quarterly figures give a good indication of the market state, and the latest data is cause for concern. In the last quarter of 2022, HelloFresh had 7.1 million active subscribers, down from 7.2 million in 2021. The company’s main competitor in the U.S., Blue Apron, has even been facing customer losses since 2016. The same goes for Marley Spoon, another big player in Europe.
One way to achieve growth is to align the food boxes with consumer food priorities. Data shows that European consumers are highly interested in organic and local foods. Similarly, the plant-based and vegetarian/vegan food trend appears to be far from over. If meal kit companies can keep up with current food trends, they may be able to establish themselves more firmly in the dynamic and highly competitive food e-commerce market.
The dominance of HelloFresh
The recent meal kit delivery boom inspired many new, mostly local food box start-ups, while it also led to major profits for industry pioneers. As of 2023, the meal kits market seems to have reached maturity, and one company has come out as a clear winner: HelloFresh. The Berlin-based company was one of the first to operate in the recipe box delivery market and has expanded into many other countries since its founding in 2011. In Europe, HelloFresh is the only major publicly traded company in this industry. This leading position becomes apparent when looking at market shares. In many European countries, HelloFresh has an estimated market share of more than 80 percent. In Italy and Luxembourg, HelloFresh even controls 95 percent of the meal kits market.
What does the future hold for meal kits?
There are signs that the massive meal kits market growth may be coming to a halt. HelloFresh’s quarterly figures give a good indication of the market state, and the latest data is cause for concern. In the last quarter of 2022, HelloFresh had 7.1 million active subscribers, down from 7.2 million in 2021. The company’s main competitor in the U.S., Blue Apron, has even been facing customer losses since 2016. The same goes for Marley Spoon, another big player in Europe.
One way to achieve growth is to align the food boxes with consumer food priorities. Data shows that European consumers are highly interested in organic and local foods. Similarly, the plant-based and vegetarian/vegan food trend appears to be far from over. If meal kit companies can keep up with current food trends, they may be able to establish themselves more firmly in the dynamic and highly competitive food e-commerce market.
