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Nielsen: Understanding the Meal Kit Landscape

New York / NY. (nc) For on-the-go consumers with limited time between the end of the workday and dinner time, meal kits offer an alternative to take-out options and researching possible meal recipes. Delivered directly to households or picked up from grocery stores in pre-packed portions, meal kits include portioned ingredients and easy-to-follow instructions, allowing consumers to skip extensive meal prep and dive right into preparing their meals.

According to Nielsen market research, In the U.S. one in four adults has purchased a meal kit, for delivery or in-store, in the last year, and 70 percent continue to buy them after making their first purchase. In addition to saving time from shopping, preparation and cooking, many consumers continue buying meal kits because they offer new and healthy recipes. With 60 percent of Americans using diet to help prevent ailments, the inclusion of fresh foods and easy-to-follow recipes make meal kits a simple option for those looking to manage their health and diets.

While consumers across the shopper spectrum purchase meal kits, certain groups are more interested in them. For example, men are 40 percent more likely to purchase kits than their female counterparts across all generations, while Millennials and Generation X consumers are 321 percent more likely to purchase them than older generations. Busy families with children are also enjoying the convenience and healthy options meal kits have to offer, purchasing them 326 percent more than households without children.

When it comes to meal kits, shoppers have a lot of perceptions that can be instructive for retailers and manufacturers. Eighty-one percent of consumers feel that meal subscription services are healthier than the prepared options at grocery stores. And while many consumers prefer to choose their own produce, 92 percent are satisfied with the quality of produce included in their meal kits, and 91 percent say they’re satisfied with the quality of the meat packaging.

While consumers who purchase meal kits are generally satisfied with the options available to them, retailers have an opportunity to improve their offerings to better meet consumer needs. Almost half (46 percent) of U.S. consumers say they would be more likely to purchase a meal kit if it were less expensive, 86 percent would like the ability to add dessert to their meal kit and 36 percent would like to be able to buy kits in their local grocery store.

For the year ended March 04, 2017, meal kits in U.S. grocery stores generated 80.6 million USD in sales, up 6.7 percent over the previous year. With today’s consumers 12 percent more likely to make impulse purchases in-store and more than one-third looking to purchase meal kits in store, grocery stores have an opportunity to assemble the same meal components at an affordable price to open up this expanding market.