The meal kit industry in Canada has roughly doubled since 2014 and is expected to exceed $400 million in the next year as the segment continues to experience dramatic growth. Services like Chefs Plate, Goodfood, and Hello Fresh offer hectic households another option for solving the nightly dinner dilemma.
“The meal kit category has been a true emerging and disruptive segment” according to NPD’s Industry Advisor, Robert Carter. “The awareness of meal kits and the adoption rate of usage continues to grow as Canadians seek more convenient meal solutions and this is driving the overall growth of this segment” observes Carter.
According to a recent report by The NPD Group, 13 per cent of Canadians have used meal kits at some point and 11 per cent have used meal kits in the past year. Amongst non-users, interest in meal kits is growing, with 42 per cent of Canadians claiming that they have an interest in trying a meal kit.
What’s Driving Adoption?
When it comes to meal kit users, convenience is the key purchase motivator. 67 per cent of current users feel their life is hectic and rushed compared to 42 per cent of non-users. Meal kit users are twice as likely to cite convenience as an important purchase factor. Furthermore, households with children have been earlier adopter of meal kits, with 20 per cent having tried them at least once. The industry also seems to be capitalizing on spontaneity, as 58 per cent of users decide to purchase a meal kits the same day.
Meal Kits Appeal Strongly to Men
Interestingly, 3 out of 5 current meal kit users (62 per cent) are male. While 38 per cent are female. Furthermore, male users also expressed intention to use a meal kit service more frequently in the next 6 months when compared to female user (48 per cent vs. 39 per cent). The male user is also a more consistent user, with 68 per cent of those using a meal kit in the past year still currently using a service, vs. only 48 per cent of women.
Users Are Highly Satisfied
Current users are highly satisfied with meal kit services, with over 91 per cent indicating that they were very or extremely satisfied with their meal kit. When it comes to lapsed users, the highest reason users were no longer using the meal kit service was due to the perception of the kits being too expensive with 52 per cent expressing this as a key reason for no longer using meal kit services.
Source: The NPD Group / Thinking Inside the Box: Uncovering Meal Kit Delivery Services