Meal Kit Delivery Services in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: February 2024
ANZSIC OD5660
Spotlight Report Revenue
$1.1bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
1,979
Businesses
24
Wages
$XXX.Xm
Meal Kit Delivery Services in Australia industry analysis
The Meal Kit Delivery Services industry has exploded thanks to increased health consciousness among consumers, rising disposable incomes and online shopping uptake. The COVID-19 pandemic accelerated growth as consumers turned to meal kits as an alternative to grocery shopping. Meal kits have transitioned from an unexplored niche market to a mainstream affair. However, profitability has been a significant challenge for meal kit providers. Extensive marketing and logistical mandates have been needed to attract new customers and ensure food safety, increasing operating costs. However, revenue is expected to grow at an annualised 17.2% over the five years through 2023-24, to $1.1 billion.
Trends and Insights
- The Meal Kit Delivery Service industry is growing considerably for reasons like COVID-19 lockdowns, consumer health awareness and added convenience. However, intense competition from traditional supermarkets and high operating costs pose significant challenges to profitability.
- Meal kit delivery services are booming, with two-serving plans popular among individuals living alone. However, four-serving plans are declining in popularity due to smaller households.
- New entrants in the Meal Kit Delivery Services industry face high initial expenses and pricing challenges. Advertising is crucial to generating buzz. HelloFresh and Marley Spoon’s established presences complicate gaining clientele due to their economies of scale.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 17.2 % over the past five years, to reach an estimated $1.1bn in 2024.
Trends and Insights
Rising health awareness and online shopping uptake have fuelled demand for meal kit services
- A boom in the meal kit delivery sector has been thanks to rising health awareness and online shopping’s convenience.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Consolidation looms over smaller meal kit providers
- The Meal Kit Delivery Services industry will continue to grow as consumers become comfortable with such services, leading to new players entering the industry.
Biggest companies in the Meal Kit Delivery Services in Australia
There are no companies that hold a large enough market share in the Meal Kit Delivery Services in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Two-serving meal plans, Four-serving meal plans and Beverages. Two-serving meal plans is the largest segment of the Meal Kit Delivery Services in Australia.
Trends and Insights
Two-serving meal plans have met demand from smaller households
- Two-serving meal plans offer convenient, portion-controlled options for individuals or couples. They're specially curated with fresh, seasonal ingredients for smaller households.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Supermarkets and Grocery Stores in Australia
- Fast Food and Takeaway Food Services in Australia
- Prepared Meals Production in Australia
Complementors
- Courier Pick-up and Delivery Services in Australia
- Online Grocery Sales in Australia
International industries
- Meal Kit Delivery Services in the US
- Online Grocery Sales in the US
- Prepared Meal Manufacturing in the UK
- Prepared Meal Manufacturing in Ireland
Table of Contents
About this industry
Industry definition
Companies in the Meal Kit Delivery Services industry supply meal kits, which include pre-measured ingredients and preparation guides. These kits differentiate from prepared meal delivery as they offer an interactive cooking experience for customers.
What's included in this industry?
Two-serving meal plansFour-serving meal plansBeveragesSnacksDesserts Breakfast items Specialty ingredientsCompanies
Purchase this report to view all major companies in this industry.
Related Terms
PREPARED MEALGENETICALLY MODIFIED ORGANISM (GMO)ORGANICIndustry Code
ANZSIC 4512 - Meal Kit Delivery Services in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The Meal Kit Delivery Service industry is growing considerably for reasons like COVID-19 lockdowns, consumer health awareness and added convenience. However, intense competit...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Factors that influence volatility in the industry
- Key success factors for businesses to overcome volatility
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Meal kit delivery services are booming, with two-serving plans popular among individuals living alone. However, four-serving plans are declining in popularity due to smaller ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Purchase this report to unlock analyst insights.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
New entrants in the Meal Kit Delivery Services industry face high initial expenses and pricing challenges. Advertising is crucial to generating buzz. HelloFresh and Marley Sp...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Meal kit delivery services must comply with Food Standards Australia New Zealand regulations. This ensures food safety and accurate ingredient, allergen and nutritional infor...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The major providers’ operations heavily influence the Meal Kit Delivery Services industry's cost structure. The structure varies based on company size, but primarily reflects...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Meal Kit Delivery Services industry in Australia in 2024?
The market size of the Meal Kit Delivery Services industry in Australia is $1.1bn in 2024.
How many businesses are there in the Meal Kit Delivery Services in Australia industry in 2024?
There are 24 businesses in the Meal Kit Delivery Services industry in Australia, which has grown at a CAGR of 5.9 % between 2019 and 2024.
Has the Meal Kit Delivery Services industry in Australia grown or declined over the past 5 years?
The market size of the Meal Kit Delivery Services industry in Australia has been growing at a CAGR of 17.2 % between 2019 and 2024.
What is the forecast growth of the Meal Kit Delivery Services industry in Australia over the next 5 years?
Over the next five years, the Meal Kit Delivery Services industry in Australia is expected to grow.
What does the Meal Kit Delivery Services in Australia include?
Two-serving meal plans and Four-serving meal plans are part of the Meal Kit Delivery Services industry.
How competitive is the Meal Kit Delivery Services industry in Australia?
The level of competition is high and increasing in the Meal Kit Delivery Services industry in Australia.
