Supermarket Perimeter - January 2019 - 13

37%
How meal kits ﬁt
One of the biggest benefactors of the supermarket
convenience trend has undoubtedly been the meal kit
industry. But is the age of meal kits on the wane?
Since market research ﬁrm Packaged Facts estimated ﬁve years ago that meal kits had become a fast
growing billion-dollar business in the U.S., both growth
and expectations have tempered. Now, while Packaged
Facts still predicts the industry will continue its expansion through 2023, the ﬁrm says it will happen at rates
much slower than previously anticipated.
"The meal kit market is highly dynamic and prone
to ﬂuctuations, with the top meal kit providers falling in
and out of favor since their introduction in the past few
years," says David Sprinkle, Packaged Facts' research
director. "Further complicating things, market expansion
is expected to be much more reliant on alternative purchase venues than the traditional subscription delivery
model due in part to the convenience and ﬂexibility of
online shopping."
Online shopping has normalized the act of ordering
fresh food from a computer or phone, but the on-demand nature of shopping online has consumers expecting more and more levels of convenience.
Furthermore, signing up for subscription services

also pushes consumers further away from ultimate convenience, even if that seems counterintuitive. According
to Packaged Facts, the subscriptions most meal kit delivery services provide often clash with the on-demand
mentality of potential customers.
"These challenges demand that meal kit companies
tweak their business models and ﬁnd alternative ways
to reach customers, as the potential market for meal kits
as a product is much larger than the interest in meal kit
delivery services as they currently exist," Sprinkle says.
So how can retailers react accordingly? Packaged
Facts' report predicts that future growth will require pivoting business models to retain current customers and
reach new shoppers as subscription meal kit delivery
services mature rapidly. Online orders from a grocery
store website or app, as well as instore sales may fare
much better than a subscription service.
New Seasons, for example, has found success with
its meal kit program, which includes a partnership with
a local chef - Michelin star holder Matt Lightner - and
focuses on Paciﬁc Northwest ingredients and ﬂavors.
It's the marriage of convenience, high-quality food
and differentiation. "They offer a unique option for the
convenience-minded customer, which differentiates us
in the market," Kauder says.

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JANUARY 2019 - 13

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Supermarket Perimeter - January 2019

Table of Contents for the Digital Edition of Supermarket Perimeter - January 2019

Supermarket Perimeter - January 2019
Editor's Note - More of a good thing
Contents
The wire
Ready to run
YOUTH MOVEMENT
From passion to profits
Bakery - Natural ingredients
Pastries
Deli - Seasonal merchandising
Snacking cheeses
Meat & Poultry: Dietary callouts
Flavor enhancers
Produce: Brand power
Leafy greens
Seafood: Sustainable gains
Food safety - Equipment innovations
Commissary Insider
FOOD SAFETY - FACILITY DESIGN
PRODUCT CATEGORY SPOTLIGHT - SANDWICHES
PACKAGING - SINGLE-SERVE PACKAGING
R&D - CLEANING AND SANITIZING
Product Showcase
Advertisers
Fresh takes
Supermarket Perimeter - January 2019 - Supermarket Perimeter - January 2019
Supermarket Perimeter - January 2019 - Supermarket Perimeter - January 2019
Supermarket Perimeter - January 2019 - 2
Supermarket Perimeter - January 2019 - Editor's Note - More of a good thing
Supermarket Perimeter - January 2019 - Contents
Supermarket Perimeter - January 2019 - 5
Supermarket Perimeter - January 2019 - The wire
Supermarket Perimeter - January 2019 - 7
Supermarket Perimeter - January 2019 - 8
Supermarket Perimeter - January 2019 - 9
Supermarket Perimeter - January 2019 - 10
Supermarket Perimeter - January 2019 - Ready to run
Supermarket Perimeter - January 2019 - 12
Supermarket Perimeter - January 2019 - 13
Supermarket Perimeter - January 2019 - YOUTH MOVEMENT
Supermarket Perimeter - January 2019 - 15
Supermarket Perimeter - January 2019 - 16
Supermarket Perimeter - January 2019 - 17
Supermarket Perimeter - January 2019 - 18
Supermarket Perimeter - January 2019 - 19
Supermarket Perimeter - January 2019 - From passion to profits
Supermarket Perimeter - January 2019 - 21
Supermarket Perimeter - January 2019 - 22
Supermarket Perimeter - January 2019 - 23
Supermarket Perimeter - January 2019 - Bakery - Natural ingredients
Supermarket Perimeter - January 2019 - 25
Supermarket Perimeter - January 2019 - 26
Supermarket Perimeter - January 2019 - 27
Supermarket Perimeter - January 2019 - Pastries
Supermarket Perimeter - January 2019 - 29
Supermarket Perimeter - January 2019 - 30
Supermarket Perimeter - January 2019 - 31
Supermarket Perimeter - January 2019 - Deli - Seasonal merchandising
Supermarket Perimeter - January 2019 - 33
Supermarket Perimeter - January 2019 - 34
Supermarket Perimeter - January 2019 - 35
Supermarket Perimeter - January 2019 - Snacking cheeses
Supermarket Perimeter - January 2019 - 37
Supermarket Perimeter - January 2019 - 38
Supermarket Perimeter - January 2019 - 39
Supermarket Perimeter - January 2019 - Meat & Poultry: Dietary callouts
Supermarket Perimeter - January 2019 - 41
Supermarket Perimeter - January 2019 - 42
Supermarket Perimeter - January 2019 - 43
Supermarket Perimeter - January 2019 - Flavor enhancers
Supermarket Perimeter - January 2019 - 45
Supermarket Perimeter - January 2019 - 46
Supermarket Perimeter - January 2019 - 47
Supermarket Perimeter - January 2019 - Produce: Brand power
Supermarket Perimeter - January 2019 - 49
Supermarket Perimeter - January 2019 - 50
Supermarket Perimeter - January 2019 - 51
Supermarket Perimeter - January 2019 - Leafy greens
Supermarket Perimeter - January 2019 - 53
Supermarket Perimeter - January 2019 - 54
Supermarket Perimeter - January 2019 - 55
Supermarket Perimeter - January 2019 - Seafood: Sustainable gains
Supermarket Perimeter - January 2019 - 57
Supermarket Perimeter - January 2019 - 58
Supermarket Perimeter - January 2019 - 59
Supermarket Perimeter - January 2019 - Food safety - Equipment innovations
Supermarket Perimeter - January 2019 - 61
Supermarket Perimeter - January 2019 - 62
Supermarket Perimeter - January 2019 - 63
Supermarket Perimeter - January 2019 - 64
Supermarket Perimeter - January 2019 - FOOD SAFETY - FACILITY DESIGN
Supermarket Perimeter - January 2019 - 66
Supermarket Perimeter - January 2019 - 67
Supermarket Perimeter - January 2019 - PRODUCT CATEGORY SPOTLIGHT - SANDWICHES
Supermarket Perimeter - January 2019 - 69
Supermarket Perimeter - January 2019 - 70
Supermarket Perimeter - January 2019 - 71
Supermarket Perimeter - January 2019 - PACKAGING - SINGLE-SERVE PACKAGING
Supermarket Perimeter - January 2019 - 73
Supermarket Perimeter - January 2019 - 74
Supermarket Perimeter - January 2019 - 75
Supermarket Perimeter - January 2019 - R&D - CLEANING AND SANITIZING
Supermarket Perimeter - January 2019 - 77
Supermarket Perimeter - January 2019 - 78
Supermarket Perimeter - January 2019 - 79
Supermarket Perimeter - January 2019 - Product Showcase
Supermarket Perimeter - January 2019 - Advertisers
Supermarket Perimeter - January 2019 - Fresh takes
Supermarket Perimeter - January 2019 - 83
Supermarket Perimeter - January 2019 - 84
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