At least one-third of U.S. adults have used a meal kit delivery service, with industry revenue estimated to top $10 billion by 2020. But gains in the meal kit delivery industry pose a challenge for traditional grocers. People aren’t consuming more food now that meal kit delivery services have arrived—they’re just shopping for it in a different way, and that has some grocers worried about the future of their industry…
…Despite impressive sales, data from InMoment shows that just 10% of U.S. consumers say they find meal kit delivery services “highly valuable.” Partnering with supermarket chains gives companies like HelloFresh, and others, the opportunity to reach an entirely new group of consumers—a necessary component to any long-term growth strategy.
Thoughts: The biggest obstacle that meal kits face is that consumers do not want or trust fresh produce and meat coming to the house. They are not going to risk dinner plans being ruined by items they would not themselves select in store. The sweet spot right now if for meal kits to center themselves in the grocery setting. It also allows consumers the freedom to add to the kit with center store or perimeter items to personalize and impress.