Meal Kit Options Outstrip Demand

Meal kits might be more buzz than “BAM!” according to research from The NPD Group, which reports that trial remains a relatively low 3 percent of the adult (18 years and older) U.S. population.

On the upside, subscribers like the time savings of not having to choose a recipe, purchase necessary ingredients and partial prep, according to NPD Group’s study, Thinking Inside the Box: A Fresh Look at Meal Kit Delivery Services. Young adults in particular appreciate the freshness of ingredients. Those using meal kits are generally satisfied and about two-thirds report they are extremely or very satisfied.

On the downside, price is proving a barrier to adoption, as meals price out as more comparable to a restaurant meal – $10 – than traditional home-made options, which cost an average of $4.

Opportunities for continued growth include marketing that speaks directly to the needs that meal kits satisfy, including healthy, portion-controlled meals, and the top rated kit traits from users, such as convenience and new taste experiences.

There are also opportunities for grocery retailers to curate meal kits, either as a whole kit, such as the Fresh in :30 by Market District kits, or as a kiosk that provides substitutions and some pre-prep.