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Please provide data on the "pre-package" and ready-to-eat food segment of the subscription box industry in terms of customer needs and point points, as well as any readily-available demographic/psychographic data.
Hi! Thank you for your question on the ready-to-eat subscription food box industry. The most useful sources I found to answer your request were Nielsen, Packaged Facts, and Specialty Food. In short, consumers subscribe to prepackaged box deliveries for the convenience and health aspect. Many subscription food box services target millennials; however, college students are a growing demographic in this industry. Additionally, men are 40% more likely to purchase meal kits than women. Below, you will find a deep dive of my findings.
OVERVIEW
Approximately 25% of Americans has purchased a meal kit in the last year. Of these, 38% purchased prepackaged, freshly cooked, heat and eat kits, while 31% purchased prepackaged ready to eat kits.
CONSUMER PAIN POINTS
Consumers in today's society have many demands when it comes to making purchases. With regards to meals, they want convenient, healthy, eco-friendly options. Additionally, meal planning is a major pain point for consumers. Subscription boxes offer fresh, less-processed foods and snacks, and eliminate the hassle of having to plan or shop for groceries.
Consumers do not like the process of having to replenish the same product over and over, even food. Subscription boxes provide this service on a reliable basis, eliminating this hassle for consumers.
Millennials, who are a major target audience for subscription boxes, do not like to "adult," or feel compelled to engage in routine, adult responsibility. For this population, subscription food box services fulfill the need of someone else researching and shopping for superior products.
DEMOGRAPHICS
A Nielsen survey reports millennials and Generation X consumers being 321% more likely to purchase meal kits than older generations. Also, busy families who have children take advantage of the convenience and health factor offered by subscription food boxes, as they are 326% more likely to subscribe than families with no children. With regards to gender, males across all generations are 40% more likely to purchase meal kits than females.
As stated above, millennials are a prime target audience for subscription food boxes. General Mills reports targeting female millennials with their Nibblr Snacking Service. Graze, the #10 most popular subscription box overall, and the #1 most popular ready-to-eat subscription food box, also has a target audience of millennials. However, the company does report the fastest growing demographic is suburban mothers, challenging the perception the organization focuses on young office workers.
College students are a growing demographic in the subscription food box industry. It is often difficult for this population to maintain healthy eating habits, given the chaotic schedule and constant temptations of unhealthy options. As a result, food box subscriptions are gaining popularity, as they offer healthy alternatives in a convenient manner. Chef'd offers Spoon University Meal Plan, catering specifically to this demographic. Kits are ready-to-eat and require no cooking, and are delivered to university housing according to the student's schedule.
CHALLENGES
Despite the numerous benefits of subscription food boxes, many challenges still exist. A major drawback for many people is the price. The average in-home meal costs $4 per person, while having a meal kit delivered costs approximately $10 per person. This price may not be feasible for larger families or those on a tight budget.
Another drawback is excessive packaging. As mentioned previously, consumers are more conscious than ever of being environmentally friendly, and the packaging accompanying delivered meals and snacks can be wasteful. Freshly, which provides pre-cooked, heat-and-eat meals has begun using recycled denim insulation to keep food fresh and cool, eliminating the more wasteful Styrofoam. Fresh Realm, also a provider of ready-to-eat meals, cuts down on waste by delivering food in reusable, returnable vessels.
There are some additional statistics subscription food box services should consider. According to the Nielsen survey, 46% of consumers in the United States are deterred from making a purchase because of price. Additionally, 86% of consumers reported wanting the option of adding a desert to the meal kit. Finally, 36% of consumers stated they would like to be able to have access to these kits in their local grocery store.
CONCLUSION
To wrap it up, many consumers utilize subscription food box services to meet the needs of convenience, health, and environmental friendliness. Men are more likely than women to buy meal kits, and millennials are a major target audience, although college students and suburban mothers are a growing demographic.
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