How to make meal kits work

Article originally published in Canadian Grocer. 

By Carman Allison

FOR ON-THE-GO CONSUMERS with limited time, meal kits offer an alternative to take-out and having to come up with dinner solutions. Delivered directly to households or picked up at grocery stores, meal kits include portioned ingredients and easy-to-follow instructions.

In Canada, the meal kit market is still in its infancy. In fact, only 4% of households have purchased a meal kit in the past 12 months, compared to 25% of U.S. consumers. While 4% may seem small, it’s worth noting that 80% of Canadian households that have purchased a meal kit have continued making purchases after their initial trial period. The reason Canadian households are purchasing meal kits? Consumers are overwhelmingly looking to save time, whether it be on meal planning, meal prep or grocery shopping. Meal kits are a convenience item for today’s hectic lifestyles.

Meal kits present a clear opportunity to attract new customers. For example, 63% of consumers would consider purchasing a meal kit if they were less expensive. In addition, 30% would like to buy meal kits at their local grocery store, which creates a substantial opportunity for retailers in Canada to assemble the same meal components at an affordable price.

Canadians’ desire for a healthier lifestyle creates another growth opportunity for meal kits: Consider that 65% of consumers say eating healthy is a vital part of their lives, however, 64% agree that eating right presents a challenge. Meal solutions that offer better-for-you ingredients can help consumers conquer their nutrition conundrum and achieve their health goals. In fact, 54% of Canadians say they are willing to pay more for food and drinks that do not contain any undesirable ingredients.

So, who is the meal kit consumer? While Canadians across the shopper spectrum purchase meal kits, younger, higher-income families with children seem more attracted to the ease and convenience of meal kits.

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