Meal kits make Aussie lives easier

Hello FreshMeal kits have definitely made Aussie lives a lot easier as Hello Fresh, Marley Spoon and Aussie Farmers Direct has entered the food industry, according to Nielsen.

Portioned ingredients and easy to follow instructions allow consumers to skip extensive meal preparation and dive right into creating their meals.

Prepared meals like Lite’n’Easy are even faster while still portion controlled and nutritionally balanced.

Although food boxes and prepared meals represent a small portion of the grocery e-commerce market (1.6% of value sales) and purchased by merely 3 per cent of respondents, these websites are not to be discounted, despite their current market share.

On average, food boxes are purchased every two weeks and online spend per year is $1,084 wherein ready meals are bought three times a month and these shoppers spend $453 per year. They are breaking traditional online grocery barriers. Consumers don’t worry about inspecting the produce before they’re delivered and the service also reaches older demographics who are traditionally slower to online consumer trends.

meal kits

Despite receiving their ingredients and meals for the week, food box and prepared meal
shoppers still purchase main grocery categories in-store. Recognising specific categories that these shoppers need outside the service can help retailers and manufacturers better plan in-
store activities in order to capitalise on this trend. For example, food box buyers over index on purchasing baking ingredients such as flour, cocoa and cooking chocolate, unprocessed and baking nuts, suggesting they enjoy baking from scratch.

According to Nielsen, meal kits in the US were conceived as subscription services and home delivery, but they have come a long way in a relatively short time and they have now developed into a growing in-store option for consumers.

One quarter of American consumers have purchased a meal kit in the last 12 months (12% delivery and 17% in-store), compared to only 1.5 per cent of Australian respondents. There’s a real opportunity for growth locally, and it’s already beginning to be realised by some retailers who now offer one-off food kit dinners in-store.

Perceiving the impact of omni-channel performance and shoppers is critical for future success.
For retailers and manufacturers, understanding consumers, including where they shop and why, is a vital part of knowing which categories to focus assortment on and how to resonate online
with consumers.

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