Progressive Grocer

JUN 2016

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10 SOLUTIONS JUNE 2016 DIY dinner Savvy food retailers are putting together grocerant-friendly meal kit programs. BY K AT H Y H AY D EN Wondering if meal kits are an expanding market with a role for grocerants—or just a fash in the pan? It's true that meal kit delivery service sales are still a small piece of the food buying pie. Only 1 percent of U.S. adults—most at the $75,000-plus household income lev- el—have used a meal kit delivery service, suggests Mintel research. A recent report from Technomic put the global meal kit delivery market at $1 billion in 2015, compared with total 2015 U.S. supermarket sales of $649 billion, according to Progressive Grocer research. But the meal kit delivery market also grew faster than any other food- service market in 2015, and Technomic projects it will skyrocket into a multibillion dollar market in the United States during the next decade. Typical meal kits have tended to come with pricey subscription commitments, one-of meals and excessive packaging—and to bypass the supermarket entirely. Tat may be changing, however, as newcomers begin to put their own spins on the meal kit concept and fnd ways to make grocery stores an integral part of their programs.

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