Global Food Box Service Market Analysis and Global Forecast 2022-2030

Market Overview

Food Box Service market size is projected to reach approximately USD 25.7 billion by 2030, at a CAGR of 6.1% from 2022 to 2030. Food box services are an innovative idea in the food and grocery industry that provide customers with pre-portioned, fresh ingredients. These boxes are a meal prep system where people can buy ready-made meals that are individually packaged and make their own cooking experience convenient. There are various food boxes to choose from, depending on how you want your weekly meals to look. All options include fresh recipes that are hand-selected by a certified chef, just like grocery shopping. Food Box Services can also be called Meal Kit deliveries or Subscriptions boxes

COVID-19 Impact Analysis

The COVID-19 pandemic harmed the market for Food Box services. The devastating COVID-19 pandemic led to restaurants, eateries, and hotels being unable to operate. With this opportunity there came the need for new businesses like meal kit delivery services. Especially now that people are more concerned with their well-being, they’re looking for healthy and easy recipes. An increasing number of them are opting for a diet that will increase their immunity and help them stay balanced. Furthermore, key players in the market have seen a surge in sales during this pandemic as opposed to previous years such as 2019.

Food Box Service Market Dynamics

The growth in the market can be attributed to the increasing demand for healthier, convenient food options, rising disposable income, and urbanization. Pricing, on the other hand, is one of the major constraints for the market.

Drivers

⮚     The lightning speed of Urbanization in this Fast-Pace World

There has been a trend, particularly in developing countries, of moving to cities and this creates a greater demand for affordable food options. Food box services can provide you with the convenience and affordability that are needed. Spending time at home and eating what you cooked or ordered is becoming more popular than going to a restaurant. Boomers and Millennials are increasingly choosing this option when given the choice, saving money on meals of course but also enjoying their private time at home. Less people are also making visits to restaurants and instead choose to at home. One of the reasons for this shift is that two major demographics-the Boomers and Millennials-have different views and attitudes towards the way of life. As home-cooked food consumption is on the rise and takeout has often become prohibitively expensive, independent delivery services have managed to grow in popularity among generations  Gen Y and Z. The reason for their ever-increasing preference is the obvious economical advantage they offer.

Restraint:

• Food Box Services are Priced Comparatively higher than the Alternatives

Food box services are facing challenges because they are not always the best option for their customers. Food box services often cost more than customers would pay to grocery shop for themselves. The price of a typical food box service ranges from $20-$50 per month, and while this may seem affordable to some, it is still not within the budget for many households. One of the main ways to reduce the cost of a food box service is by reducing the number of food items that are being delivered. For instance, Market Basket, which offers a monthly subscription for its customers, includes a pantry box with just six items in it as opposed to having over 20 items in one delivery. By doing so they have been able to reduce their cost per delivery by 20%, and have also brought in new customers that would have otherwise gone elsewhere.

Opportunity:

• Innovations in Products to Retain the Market

Companies are focusing on innovating products and new offerings to combat the challenges they face, such as low customer retention rates and marketing costs being high. Blue Apron has been releasing add-ons to help with this. For example, they have released appetizers, side dishes, and other items that can be used in a meal prepped by them. Sun Basket has taken up food delivery and branding, while Freshly has lowered the carbs and introduced premium meals. Expanding the brand’s reach geographically is also a way to contend with other well-known brands in this field.

Food Box Service Market Segment Overview

By Type

Based on the Type, the market is segmented based on Meal and Baking Products. The Meal segment is anticipated to account for the large market share because this is due to the significant rise in disposable income and health-conscious population. In addition to this, customers can choose from several box types, including vegetarian and vegan options. This is a delivery service that sends pre-portioned food items to customers so that they don’t need to spend time cooking. This type of service offers the convenience of allowing customers to eat whenever they want.

By Application

Based on Industry, the market has been divided into Residential and Commercial. The Commercial segment is  expected to hold the largest market share. Food box services provide a convenient and time-saving solution to satisfy various requirements such as catering for office meetings and weddings.

Global Food Box Service Market Share, by Segmentation

Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America is projected to dominate the use of the Food Box Service market followed by the Asia-Pacific and Europe regions.

North America Market

North America dominates the global market for the Food Box Service industry. This region is expected to maintain this position during the forecast period due to its high awareness of food security among consumers, rising adoption of packaged foods and the increasing demand for on-the-go options. Additionally, the presence of a large number of meal kit delivery companies such as Blue Apron Holdings Inc.; Plated; and Chef’d is also contributing to growth in this regional market space

Asia-Pacific Market

Asia-Pacific is the fastest-growing region with developing economies such as Singapore, China, and India driving this growth. The region is seeing an increase in time-poor consumers which has been pushing up demand for these delivery services. COVID-19 has also increased the interest in home-cooked food and is fuelling a corresponding increase in demand for the Food Box Services. Australia, Japan, China and various other Pacific countries are leading the market for vegetarian and vegan meal kits.

Competitive Landscape

The market comprises tier-1, tier-2, and local players. With their wide product portfolios, tier-1 and tier-2 players have a global reach. Because of their strategic innovations and broad regional presence, companies such as Chef’d, LLC, Green Chef, HelloFresh, Home Chef, Marley Spoon, and PeachDish lead the global Food Box Service business. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as growth, product releases, and alliances.

Prominent Players:

• PeachDish
• Gousto
• Simply Cook
• HelloFresh
• Home Chef
• Mindful Chef
• Marley Spoon
• Gobble
• Riverford
• Abel and Cole
• Green Chef
• Farmison
• Chef’d, LLC

In November 2020, HelloFresh acquired Factor 75, LLC for $ 277 million. The acquisition was carried out in order to strengthen HelloFresh’s position in the U.S. market, as well as increase the number of consumers across the States.

Scope of the Report

Global Food Box Service Market, by Type

• Meal
• Baking Products

Global Food Box Service Market, by Application

• Residential
• Commerical

Global Food Box Service Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Rest of the World

 

Parameters	Indicators
Market Size	2030: USD 25.7 Billion
CAGR	6.1% CAGR (2022-2030)
Base year	2021
Forecast Period	2022-2030
Historical Data	2020
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Application
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Chef’d, LLC, Gobble, Gousto, Green Chef, HelloFresh, Home Chef, Marley Spoon, PeachDish, Abel & Cole, Simply Cook, Mindful Chef, Farmison
Key Market Opportunities	Innovations in Products to Retain the Market
Key Market Drivers	The lightning speed of Urbanization in this Fast-Pace World

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Food Box Service market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Food Box Service market historical market size for the year 2020, and forecast from 2021 to 2028
• Food Box Service market share analysis at each product level
• Competitor analysis with a detailed insight into its product segment, financial strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Food Box Service market affected by the pandemic
• To provide a detailed insight on the major companies operating in the market. The profiling will include the financial health of the company past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.