Monash Business School, Marketing: Meal Kit Industry Analysis Report

This report provides an analysis of the Australian meal kit industry, examining its structure and performance. The report begins with an industry overview, highlighting the steady growth of the meal kit market due to changing consumer lifestyles and the desire for convenience. It identifies key players such as HelloFresh and Marley Spoon, noting their market share and customer demographics, including affluence and age. The analysis then delves into the product life cycle, positioning the industry in its introductory phase and highlighting growth potential, particularly in the Asia Pacific region. The report also includes references to support the findings. The report gives insights into the industry's competitive landscape and future prospects. The report covers the industry's major players, product life cycle, and market trends.

Marketing Insights

Table of Contents
INDUSTRY STRUCTURE AND PERFORMANCE.....................................................................1
Industry Overview.......................................................................................................................1
Meal Kit Industry Players............................................................................................................2
Product Life Cycle.......................................................................................................................3
REFERENCES................................................................................................................................4

INDUSTRY STRUCTURE AND PERFORMANCE
Industry Overview
Australian Meal Kit industry has been gaining steady growth in the country. Since, lives
of people are becoming busy every day; preparation of food is hectic as they want to spend
quality time with their families as well. Guaranteed supplies of key inputs are provided by
companies which are desirable as per needs of consumers (Farouk et.al, 2019). Consumers are
focusing on reducing their food preparation time and spend available time with their near and
dear ones. Meal Kits contain pre-portioned ingredients and instructions to recipe that shoppers
can prepare with ease. The number of Australian households have increase who have made
HelloFresh and Marley Spoon purchases reached to 1.5 % of total homes (somewhere around
150,000 homes). This means that leading firms in Meal Kit industry are HelloFresh and Marley
Spooners with adequate share.
Figure 1: Household Affluence
Source: Sena. 2018
The data reveals that both firms customers are affluent shoppers having 77 % higher
affluene than Australian shoppers. It can be analysed that there are differences between
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Australian customers and customers of these two firms. The customers of HelloFresh and Marley
Spoon are younger people having age less than 45 years.
Figure 2: Household Life Stages
Source: Sena. 2018
On the other hand, in relation to life stages, they are likely to be young transitionals and
families. In relation to this, majority of 64 % of Marley Spoon and HelloFresh shoppers are less
than 45 years of age. The data clarifies that young transitionals with less 45 age are attracting to
companies. The customers of these firms are willing to spend for the convenience and healthy
delivery of their groceries at their doorstep. This implies that Meal Kit market is growing at rapid
rate.
Meal Kit Industry Players
It can be analysed that there are around 35 meal kit delivery companies which shows
good growth in sector and potential to grow even further (Guerrera. 2019). However, major
players are HelloFresh, Marley Spoon, Pepper Leaf, The Cook’s Grocer, Dinnerly, Tastebox,
Dinner Twist etc. Pepper Leaf is an Australian brand offering variety of options at affordable
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price. However, HelloFresh with its commendable marketing campaign holds good market share.
It offers locally sourced, seasonal ingredients in proper quantities helping in reducing food waste
in household. The pricing range is around $11.66 on average meal price for 2-4 number of
people. It offers free delivery as well. Marley Spoon, German-based company holds 35 % of
market share or revenues in Australia which shows it is beating certain bigger names in Meal Kit
industry of Australia (Hogan. 2019).
Product Life Cycle
The product life cycles consist of various stages such as introductory phase, growth,
maturity and decline. Since, Meal Kit industry is introduced recently in the market and growing
at good speed, it can be said that industry is still in its introductory stage as people are not fully
aware about the same in Australia (Rivera & Azapagic, 2019). It is also analysed that Australia
comes in Asia Pacific region where it is estimated that market will grow at CAGR of 13 % from
2017 to 2025. In the financial year 2018, more than 180,000 households of Australia have
ordered meal kits which shows growth in couple of years.
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REFERENCES
Farouk, M. M., Wu, G., Frost, D. A., Staincliffe, M., & Knowles, S. O. (2019). Factors Affecting
the Digestibility of Beef and Consequences for Designing Meat-Centric Meals. Journal of
Food Quality, 2019.
Guerrera. 2019 Best meal delivery and meal kit service [Online] Available Through: <
https://www.finder.com.au/best-meal-delivery>
Rivera, X. C. S., & Azapagic, A. (2019). Life cycle environmental impacts of ready-made meals
considering different cuisines and recipes. Science of the Total Environment, 660, 1168-
1181.
Hogan. 2019 Meal kit industry reshaping the future of food [Online] Available Through:
<https://insidefmcg.com.au/2019/02/21/meal-kit-industry-reshaping-the-future-of-food/>
Sena. 2018 UNLOCKING GROWTH IN MEAL KITS [Online] Available Through: <
https://www.nielsen.com/au/en/insights/article/2018/unlocking-growth-in-meal-kits/>
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