Convenience, quality, and sustainability are the key drivers of the meal kit phenomenon: ready-to-eat meals of all types ordered online. Foreign producers and restaurateurs should not miss this new sales channel to enter the specialty food market in America

The case of Blue Apron and Home Chef

Blue Apron is the most well-known company managing websites for online subscription services delivering ready-to-eat meals in America. To give an idea of the phenomenon, Blue Apron's revenues were projected to reach $1 billion by the end of 2016. The company raised $200 million in funding from investors and venture capitalists and is considering an IPO to go public. Blue Apron ships over 8 million meals per month, with an estimated value of $3 billion.

Home Chef, on the other hand, recently completed a second round of funding worth $40 million with a group of venture capitalists. Home Chef operates three warehouses across the United States and employs 600 people.

Meal kits are available via online subscriptions with daily deliveries

Some websites offer subscriptions for ready-to-eat meals, while others provide the ingredients online. The assortment and variety are vast, catering to everyone's tastes and preferences.

The concept of meal kits is booming in the United States, where ready-made dinners prepared with fresh ingredients are conveniently delivered to customers' homes. Convenience remains the primary driver of this new way of dining in the U.S.

New food trends in America are driven by Millennials

From vegan and vegetarian menus to ethnic and sustainable options, the range of offerings is vast, with approximately 150 companies and websites selling meal kits online. The numbers speak for themselves: the ready-to-eat meal industry in the United States generates $1.5 billion annually and is growing, according to the study "Meal Kits in the US" by Packaged Facts. This growth is largely attributed to the popularity of meal kits among Millennials.

Convenience is the main critical success factor for the home-delivered meal industry. In this case, convenience means saving time—and who has less time than Millennials? Little time remains between work, commuting, and the demands of a social life. Ready-to-eat meals delivered to the doorstep provide an effective solution to this common problem. Like other trends revolutionizing tastes, consumption habits, and food shopping behaviors in the United States, the success of online-ordered, home-delivered meal kits originates from American Millennials.

One interesting aspect of this phenomenon is the ability to include instructions in the packaging, providing recipes and consumption ideas for American consumers in just a few steps. Many young people describe meal kits as a simple way to venture into the world of cooking and learn how to prepare meals. Riding the wave of these new trends in the U.S. food industry, which emphasize sustainability and ingredient quality, the opportunities to capture market share and increase sales are immense.

Blue Apron, a leader in the sector, sells over 8 million meal kits per month and has introduced information within its packaging to highlight the origin of its ingredients and the quality of its suppliers.

For many restaurants in New York, the online subscription meal kit market presents a unique opportunity to expand and increase sales

Meal kits represent an opportunity for everyone: restaurants, producers, and supermarkets. Major U.S. supermarket chains like Kroger and Tyson are rushing to enter the market, as are various restaurants, including New York City's Strip House and Dos Caminos.

The primary weaknesses of this new trend remain price and packaging. According to a study by NPD Group, the production cost of a delivery kit is around $10 compared to $4 for a home-cooked dinner.

Another challenge is reducing the volume of packaging. A possible solution is to use recycled materials or reusable containers to minimize environmental impact. Several major players in the sector, such as Freshly and FreshRealm, have taken this approach.