Meal kits have emerged as one of the hottest topics among food and beverage executives. That’s because in the past few years, more than 150 companies have jumped into the meal kit game in the U.S. Industry leaders include Blue Apron, Plated, Home Chef and HelloFresh, followed by a long line of specialized and regional players.
But while the industry is experiencing explosive growth — and, in the process, garnering a lot of attention — its poor economics mean a shakeout is likely.
This Executive Insights examines multiple factors affecting the evolving the meal kit industry, including:
- Despite rapid growth, ample runway remains
- Fragmentation and competition abound
- High churn is hurting existing brands
- Profits remain elusive
- High consolidation on the horizon
- Sleeping giants remain a looming threat