Meal kit purchases in Canada have doubled since 2014, with customers pressed for time or acting on a whim most likely to buy them, says a report from NPD Group. Three out of five of those customers are male.
The meal kit industry in Canada – represented by services such as Chefs Plate, Goodfood and Hello Fresh – has roughly doubled since 2014 and is expected to exceed $400 million in the next year, the report said.
“The meal kit category has been a true emerging and disruptive segment,” according to NPD’s industry advisor, Robert Carter. “The awareness of meal kits and the adoption rate of usage continues to grow as Canadians seek more convenient meal solutions and this is driving the overall growth of this segment,” Carter said.
According to the report, 13 per cent of Canadians have used meal kits at some point and 11 per cent have used meal kits in the past year. Amongst non-users, interest in meal kits is growing, with 42 per cent of Canadians claiming that they have an interest in trying a meal kit.
Convenience is the key purchase motivator. 67 per cent of current users feel their life is hectic and rushed compared to 42 per cent of non-users. Meal kit users are twice as likely to cite convenience as an important purchase factor. Furthermore, households with children have been earlier adopter of meal kits, with 20 per cent having tried them at least once. The industry also seems to be capitalizing on spontaneity, as 58 per cent of users decide to purchase a meal kits the same day.
Interestingly, three out of five current meal kit users are male. Male users also expressed intention to use a meal kit service more frequently in the next six months when compared to female user. The male user is also a more consistent user, with 68 per cent of those using a meal kit in the past year still currently using a service, versus only 48 per cent of women.
Current users are highly satisfied with meal kit services, with over 91 per cent indicating that they were very or extremely satisfied with their meal kit. When it comes to lapsed users, the highest reason users were no longer using the meal kit service was due to the perception of the kits being too expensive with half of lapsed users expressing this as a key reason for no longer using meal kit services.
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