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Canada Delivery Services and Meal Kits Market Report

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Delivery Services and Meal Kits market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry and how fast are its rates of growth? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Definition

For the purposes of this Report, Mintel has used the following definition for meal kits:

  • Meal kits include kits that are delivered or can be purchased at retailers/grocery stores. Meal kits include options that require preparation (eg chopping, mixing).

What you need to know

Meal kits are all-in-one meal solutions. They include the ingredients needed with step-by-step instructions to make simple or more complex dishes. The challenge, however, is Canadians view them as expensive.

While third-party forecasts and industry watchers expect meal kits to grow in the coming years, companies looking to take advantage of meal kits’ expected ascendance will need to offer solutions that convey ease as what consumers perceive to be a reasonably-priced level, or offer a more efficient use of ingredients supplementing one’s trips to the grocery store. Canadians’ increasing comfort with online ordering will likely also add fuel to meal kits’ growth, particularly as more start-ups enter the market and existing consumer packaged goods companies and retailers invest in the space.

Expert analysis from a specialist in the field

Written by Joel Gregoire, a leading analyst in the Food & Drink sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

By most accounts, meal kits represent an opportunity for future growth. Nevertheless, hurdles exist. One is cost and another is an increasingly competitive market as more start-ups, retailers, and consumer packaged goods companies enter the space. Recognizing opportunity, there is a push to get a foot-hold in this market. The aim of this Report is to provide guidance on usage, interest, what is appealing, and not appealing about meal kits. Altogether, the consumer feedback collected for this Report helps inform who is more and less likely to use meal kits and, among different groups (eg parents, age groups), what perceptions are they more and less likely to hold towards the format with the aim of helping inform meal kit providers around innovation and positioning. Joel Gregoire
Associate Director

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Table of contents

  1. Overview

    • What you need to know
      • Definition
      • Executive Summary

        • Overview
          • The issues
            • Canadians view meal kits as being expensive
              • Figure 1: Barriers to meal kit usage, May 2018
            • Awareness serves as a barrier to usage
              • Figure 2: What’s appealing about meal kits?, May 2018
            • Meal kits hold less appeal among older Canadians
              • Figure 3: Don’t use meal kits and not interested in trying, by age, May 2018
            • The opportunities
              • Parents more likely to view meal kits as viable solution
                • Figure 4: Meal kit usage, by parental status, May 2018
              • Consumers look to meal kits for speedy solutions in the kitchen
                • Figure 5: Important factors when choosing meal kits, May 2018
              • Involvement with meal kits can enhance skills and connections
                • Figure 6: Meal kits help in involvement with cooking, by parental status, May 2018
              • What it means
              • The Market – What You Need to Know

                • Mobile technology enabling unprecedented opportunity to interact
                  • Immigration fuelling Canada’s population growth
                    • Canadians are more time-pressed
                    • Market Factors

                      • Mobile technology enabling unprecedented opportunity to interact
                        • Figure 7: Mobile and smartphone penetration, by age group, May 2017
                      • Canadians are more time-pressed
                        • Canada’s population is aging
                          • Figure 8: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
                        • Immigration fuelling Canada’s population growth
                          • Figure 9: Top 10 countries of birth of recent immigrants, 2011-16
                      • Key Players – What You Need to Know

                        • Number of meal kit companies growing
                          • Repeat and frequent usage needed for long-term success
                            • Technology offers opportunity for added personalization
                            • What’s Working?

                              • Number of meal kit companies growing
                              • Challenges

                                • Repeat and frequent usage needed for long-term success
                                  • Cost represents the highest barrier to usage
                                  • What’s Next?

                                    • Offering meal kits both on and off-line needed to reach potential
                                      • Looking outside of dinner with snack kits
                                        • Figure 10: Correspondence map – Relationship between types of snacks eaten and dayparts, July 2016
                                        • Figure 11: What is SnackNation? – Healthy Snack Delivers for the Best Office Culture, October 2017
                                      • Technology offers opportunity for added personalization
                                      • The Consumer – What You Need to Know

                                        • A fifth of Canadians report having used meal kits
                                          • Meal kits help alleviate the burden of meal planning
                                            • Cost is the main barrier to meal kit usage
                                              • Involvement can enhance skills and connections
                                                • Parents are more engaged with meal kits
                                                • Meal Kit Usage and Interest

                                                  • A fifth of Canadians report having used meal kits
                                                    • Figure 12: Meal kit usage and intent, May 2018
                                                  • In-store solutions remain the go-to option
                                                    • Figure 13: Where meal kits are purchased, May 2018
                                                    • Figure 14: Introducing Handpick's Smart Groceries!, August 2015
                                                  • Half of consumers purchase meal kits more than one per month
                                                    • Figure 15: How often meal kits are purchased, May 2018
                                                • Usage Drivers

                                                  • Convenience is central to meal kit usage, particularly among older consumers
                                                    • Figure 16: What’s appealing about meal kits?, May 2018
                                                    • Figure 17: Percent who find easier meal preparation appealing in meal kits, by age group, May 2018
                                                  • Meal kits help alleviate the burden of meal planning
                                                    • Figure 18: Percent who agree meal kits make planning easier, by parental status, May 2018
                                                  • Health-related position holds more appeal to younger consumers
                                                    • Figure 19: Percent who agree food in meal kits is often healthy, by age, May 2018
                                                    • Figure 20: Considerations that are more or less important versus previous years, March 2018
                                                  • Exploring new meal ideas through meal kits holds greater appeal for women
                                                    • Figure 21: Percent who find “new meal ideas” appealing about meal kits, by gender, May 2018
                                                    • Figure 22: Cooking Made Easy with Chefs Plate, December 2017
                                                • Barriers

                                                  • Cost is the main barrier to meal kit usage
                                                    • Figure 23: Barriers to meal kit usage, May 2018
                                                    • Figure 24: Percent who agree “food meal kits help me buy only the foods I need”, by age, May 2018
                                                  • Building awareness is key to driving usage
                                                    • Figure 25: Lack of awareness as a barrier to meal kit usage, May 2018
                                                  • Lack of awareness may subdue other concerns around meal kits
                                                    • Figure 26: Secondary barriers to meal kit usage, May 2018
                                                  • Over-65s prove a more challenging consumer segment of meal kits
                                                    • Figure 27: Non-interest in meal kits, by age, May 2018
                                                    • Figure 28: Statements related to meal kits (% agree), over-65s vs overall, May 2018
                                                • Opportunities

                                                  • Involvement can enhance skills and connections
                                                    • Figure 29: Meal kits help in involvement with cooking, by parental status, May 2018
                                                    • Figure 30: Teach - Uncle Ben’s, January 2017
                                                  • Meal kits value is in part related waste reduction
                                                    • Figure 31: Meal kits include too much packaging and help by only foods needed (% agree), by parental status, May 2018
                                                    • Figure 32: Flashfood introduction, May 2016
                                                  • Speed in the kitchen resonates with meal kit consumers
                                                    • Figure 33: Important factors when choosing meal kits, May 2018
                                                    • Figure 34: TURF analysis – Factors, May 2018
                                                • Consumer Groups

                                                  • Parents are more engaged with meal kits
                                                    • Figure 35: Meal kit usage by parental status, May 2018
                                                    • Figure 36: Agreement with select statements, by parental status May 2018
                                                  • Younger, more affluent consumers represent the core opportunity for meal kits
                                                    • Figure 37: Meal kit usage and intent, by age, May 2018
                                                    • Figure 38: Meal kit purchase from store vs deliver, by age, May 2018
                                                    • Figure 39: Meal kit purchase from store vs deliver, by age, May 2018
                                                • Appendix – Data Sources and Abbreviations

                                                  • Data sources
                                                    • Consumer survey data
                                                      • Consumer qualitative research
                                                        • Correspondence analysis
                                                          • TURF Analysis
                                                            • Abbreviations and terms
                                                              • Abbreviations