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AGENDA Online Market Online Consumer Building Programs Retail Responds
US Online Meal Kit Sales, Billions +210% $1.5B 2016 2017(est.) Source: Packaged Facts
$799B +4.3% $669B +3% $4.7B +210% US Sales, Billions Sources: NRA (2017 data); Packaged Facts; Progressive Grocer (2016 data)
US Online Meal Kit Sales, Billions Source: Packaged Facts $25B $11.6B $1.5B $4.7B 2016 2017(est.) 2022(est.) 2026(est.)
Source: Packaged Facts
Almost 75% of consumers are aware of online meal kits Sources: Hartman; Packaged Facts but less than 20% are active users.
For those that do buy meal kits online,80% are still purchasing after one month. The retention rate drops to 50% after six months Source: Cardlytics via CNBC.com and to less than 30% after one year.
Too expensive $79B Too time consuming Food quality not worth the price Disliked packaging waste Restaurant trips interfered with usage Source: Hartman
90% of users would recommend kit delivery to their friends 81% feel meal kits are healthier than prepared foods 46% would buy kits if they were less expensive 36% indicate a desire to buy kits at local grocery stores Source: Packaged Facts; Nielsen
Online Consumer
60% 40% meal kit subscribers Sources: Hartman; Packaged Facts
Source: Packaged Facts meal kit subscribers
Source: Packaged Facts
Source: Packaged Facts
Source: Packaged Facts
Source: Packaged Facts In the last 12 months, where have you shopped for groceries and fresh foods?
Why meal kits? Save planning & shopping time Short prep, cook times Great way to try new recipes Healthy Less food waste Fun Source: Packaged Facts; Nielsen
When did we last eat that dish? Is there already a meal plan in place? Do I have all the ingredients? How much energy do I have? How much mess will it make? Is everyone hungry? Do I have time/energy to figure out what to make? What time should we eat? How hungry am I? What do we have? What will the kids eat? What do we want? Are there any budget concerns? What can I do to save time? Is it healthy enough? What s for dinner tonight??? What else is going on? What does my partner like? Are we all eating together? Will I feel appreciated? Do I have time/energy to stop at the store? Do we have wine & chocolate? Should we eat at home, go out, or get delivery? How much work is it to make? How much time do I have?
Source: Nielsen
BUILDING the PROGRAM
Scalable & specific Meals for two, meals for more Offer options with specific dietary focus-vegan, gluten free, kid friendly Instagram-worthy culinary appeal Globally inspired dishes that offer approachable new and exotic flavors Colorful dishes that inspire purchases and social media sharing Prep time & cooking methods product
Online kits average 30-40 minutes prep product
Online kits tend to use stovetop and oven cooking methods and require two separate pots or pans for cooking. product
Value Take focus off of the dollar ring Quantify value- time, quality, fun, culinary appeal Encourage comparison to foodservice Profitability Be thoughtful about ingredient composition Balanced assortment price
Display locations Grab & go for quick checkout Near prepared foods, meat, seafood Who owns the program? Make it ours Set clearly defined expectations Online marketplace placement
Menu copy Descriptive and delicious Clarity & correctness of instructions In-depth testing with real people Tasting is believing Cooking demonstrations can also highlight easy prep Big picture thinking promotion
When did we last eat that dish? Is there already a meal plan in place? Do I have all the ingredients? How much energy do I have? How much mess will it make? Is everyone hungry? Do I have time/energy to figure out what to make? What time should we eat? How hungry am I? What do we have? What will the kids eat? What do we want? Are there any budget concerns? What can I do to save time? Is it healthy enough? What s for dinner tonight??? What else is going on? What does my partner like? Are we all eating together? Will I feel appreciated? Do I have time/energy to stop at the store? Do we have wine & chocolate? Should we eat at home, go out, or get delivery? How much work is it to make? How much time do I have?
Source: Nielsen
RETAIL RESPONDS
KITS CURATED DISPLAY MIX & MATCH READY TO COOK
kits
kits
kits
curated display
kits
kits
kits
kits
mix & match
ready to cook
meal solutions
mix & match
curated display
ready to cook
kits
branded partnerships
local partnerships
Meal kits aren't a silver bullet - they re just one part of a plan to provide comprehensive meal solutions Focus on options that are right for you and your customers Top-notch fresh programs are the starting point