Key Topics Cover in this Area:
- Share of Canadians who claim to order groceries and meals from foodservice online and use meal kits.
- Motivations for using and not using online ordering services and meal kits.
- Openness to innovative technology related to delivery such as autonomous vehicles or drones.
- The potential impact of inflation on the growth of these sectors from consumers’ point of view.
- Opportunities to better connect with younger consumers, and with dads.
- Examples of meal kits sold at retail that address premiumization, simplicity and internationally-inspired flavours.
Analysis from an Expert
While the pandemic may have accelerated the usage of online ordering and meal kits, the end of lockdowns does not portend these industries’ demise. A broader share of consumers claim they are ordering groceries online as the ubiquitous adoption of mobile technology enables new behaviours and habits. Although rising prices represent a potential headwind to the growth of online ordering and meal kits, their sheer convenience along with the convergence of different technologies and the formation of new habits suggest further room for growth.”
Joel Gregoire
Associate Director for Food & Drink
Collapse All
-
Overview
- What you need to know
- This Report looks at the following areas:
- Definition
- Delivery services
- What you need to know
-
Executive Summary
-
- Top takeaways
- While providing the ability to order groceries online is important, in-store experiences remain central to success
- Tech and delivery are intertwined, making grocery delivery more than a passing fad for Canadians
- Meal kits have ample room to grow
- Consumer Trends
- More Canadians claim they are shopping for groceries online in this post-pandemic era
- Figure 1: Change in the usage of delivery and pickup services and meal kits, by location, 2023
- Third-party online restaurant delivery services are particularly popular with younger adults
- Figure 2: Usage of delivery and pickup services and meal kits, by age, 2023
- Younger adults are looking for more visually engaging experiences when it comes to meal kit cooking instructions
- Figure 3: Attitudes toward meal kits (% agree), by age, 2023
- Competitive strategies
- Younger adults are more likely to use online services, but an aging population represents a potential opportunity
- Figure 4: Percentage of Canada’s population aged 0-14 and 65+, 1988-2068*
- The better the in-store experience, the less likely consumers are to shop online
- Figure 5: Reasons for not ordering groceries online, 2023
- Convenience and new ideas are the main areas of value for meal kits
- Figure 6: Reasons for using meal kits, 2023
- Market predictions
- High inflation makes Canadians warier of paying extra for convenience
- Figure 7: Canadian year-over-year consumer price index (annualized inflation rate) for all items and food from retail, by month, 2019-23
- Investments in online-ordering infrastructure supports future growth
- Figure 8: Outlook for delivery services and meal kits, 2023-28
- Opportunities
- Looking further out, innovations in autonomy and AI have the potential to drive growth in delivery
- Figure 9: See instant home delivery in action, 2023
- Electrification of vehicles limits the environmental impact of food delivery
- Figure 10: Introducing the Amazon Rivian Van I Amazon News, 2022
- Meal kits elevate at-home meal occasions during economic uncertainty
- Figure 11: Longo’s Garlic Spiced Salmon One-Pan Meal Kit (Canada), 2022
-
-
Market Drivers
- High inflation adds to the spotlight on price being a barrier for delivery and meal kits
- Figure 12: Canadian year-over-year consumer price index (annualized inflation rate) for all items and food from retail, by month, 2019-23
-
- Figure 13: Issues that affect Canadians, 2023
-
- Figure 14: Responses to inflation, 2023
-
- Figure 15: Dollars spent at food services and drinking places in Canada, 2019-23
- Meal kits can be positioned as a low-waste, environmentally-friendly meal solution
- Figure 16: Environmental issues of concern when buying food and drinks in store, 2019 & 2021
-
- Figure 17: Goodfood’s planet-friendly meal kits leave no food waste for racoons, 2023
- Figure 18: Environmental initiatives that resonate when shopping for food and drink (top 3 net), 2021
- Canada’s aging population can provide added opportunity for delivery
- Figure 19: Distribution of Canadian population by age, 2017 vs 2021
- Figure 20: Percentage of Canada’s population aged 0-14 and 65+, 1988-2068*
- High inflation adds to the spotlight on price being a barrier for delivery and meal kits
-
Competitive Strategies and Market Opportunities
- Partnerships are important to the development of online grocery shopping in Canada
- Will the development of advanced AI and autonomous vehicles end the gig-economy?
- Figure 21: See instant home delivery in action, 2023
-
- Figure 22: Gatik and Loblaw make history with first fully driverless deployment in Canada, 2022
- Electrification enables delivery services to become more environmentally friendly
- Figure 23: Introducing the Amazon Rivian Van I Amazon News, 2022
- As delivery services propagate, it’s important for foodservice operators to ensure that their in-store guests feel valued
- Meal kits can help elevate eating occasions
- Figure 24: Duso’s Home Chicken & Mushroom Pasta Supreme Chef Meal Kit (Canada), 2023
- Figure 25: Specially Elected Truffle & Porcini Mushroom Macaroni & Cheese (US), 2021
-
- Figure 26: Longo’s Garlic Spiced Salmon One-Pan Meal Kit (Canada), 2022
- Figure 27: Great to Go from market District Shrimp and Grits Meal Kit (US), 2022
-
- Figure 28: Taco Bell Crunchy & Soft Taco Dinner Kit (US), 2021
- Meal kits can provide ultra-simple meal solutions
- Figure 29: Blue Hill Bay Smoked Ahi Tuna Poke Bowl (US), 2021
- Figure 30: Greenfield Natural Meat Co Natural Turkey & Cheese Lunch Kit (Canada), 2022
-
- Figure 31: Bremer Gyro Sandwich Kit (US), 2022
- Meal kits allow consumers to savour foods and flavours from across the globe
- Figure 32: Street Kitchen Sweet & Sour Meal Kit (US), 2023
- Figure 33: Step Tikka Masala Sauce Kit (Canada), 2023
-
- Figure 34: PC President’s Choice Korean Taco Kit (Canada), 2022
- Figure 35: HelloFresh Moo Shu Beef Bowls (US), 2021
-
- Figure 36: Local Crate Thai Chicken Noodle Bowls with Peanut Sauce Meal Kit (US), 2022
- Figure 37: Wicked Foods (Canada), 2021
-
- Figure 38: Rancho Bueno Pollo Asado Taco Kit (US), 2021
- Partnerships are important to the development of online grocery shopping in Canada
-
The Delivery Service and Meal Kit Consumer – Fast Facts
-
-
Usage of Delivery/Pick-up Services and Meal Kits
- Usage of delivery and pickup services remain robust
- Figure 39: Usage of delivery and pickup services and meal kits, 2020 & 2023
-
- Figure 40: How consumers shop for groceries, 2023
- Unsurprisingly, young adults are more likely to use technology to get food
- Figure 41: Usage of delivery and pickup services and meal kits, by age, 2023
-
- Figure 42: Usage of delivery and pickup services and meal kits, mothers vs fathers vs overall, 2023
-
- Figure 43: Usage of third-party online restaurant delivery service, by location, 2023
- Usage of delivery and pickup services remain robust
-
Change in Usage of Online Services and Meal Kits
- Usage of grocery delivery is accelerating
- Figure 44: Change in the usage of delivery and pickup services and meal kits, 2023
-
- Figure 45: Using delivery directly from a restaurant and third-party online restaurant delivery service more often, by generation, 2023
-
- Figure 46: Using delivery services and meal kits more often, mothers vs fathers vs overall, 2023
- Usage of grocery delivery is accelerating
-
Reasons for Ordering Groceries Online
- Ease is the most important reason why consumers shop for groceries online
- Figure 47: Reasons for ordering groceries online, 2023
-
- Figure 48: Reasons for ordering groceries online, by age, 2023
-
- Figure 49: Reasons for ordering groceries online, mothers vs fathers vs overall, 2023
- Ease is the most important reason why consumers shop for groceries online
-
Reasons for Not Ordering Groceries Online
- Skepticism over quality and an affinity for grocery shopping in-store are the main barriers to online adoption
-
- Figure 50: Reasons for not ordering groceries online, 2023
-
- Figure 51: “I prefer to see my food before buying it” as a reasons for not ordering groceries online, by age, 2023
- Skepticism over quality and an affinity for grocery shopping in-store are the main barriers to online adoption
-
Attitudes toward Online Grocery Ordering
- While most Canadians believe online grocery shopping is here to stay, costs are a hurdle to growth
- Figure 52: Attitudes toward online grocer shopping, 2023
-
- Figure 53: Attitudes toward online grocer shopping (% agree), by age, 2023
-
- Figure 54: Attitudes toward online grocer shopping, South Asian and Chinese consumers vs overall, 2023
- While most Canadians believe online grocery shopping is here to stay, costs are a hurdle to growth
-
Reasons for Using Meal Kits
- Convenience and ideas for meals are meal kits’ main value propositions
-
- Figure 55: Reasons for using meal kits, 2023
- Convenience and ideas for meals are meal kits’ main value propositions
-
Reasons for Not Using Meal Kits
- Price is by far the biggest impediment to using meal kits
-
- Figure 56: Reasons for not using meal kits, 2023
- Beyond price, the importance of different barriers varies
- Figure 57: Reasons for not using meal kits, by age, 2023
-
- Figure 58: Reasons for not using meal kits, mothers vs fathers vs overall, 2023
-
- Figure 59: Reasons for not using meal kits, by location, 2023
- Price is by far the biggest impediment to using meal kits
-
Attitudes toward Meal Kits
- Food inflation makes meal kits a harder sell
- Figure 60: Attitudes toward meal kits, 2023
- Younger adults are more likely to want tech incorporated into their meal kit experience
- Figure 61: Attitudes toward meal kits (% agree), by age, 2023
-
- Figure 62: Attitudes toward meal kits (% agree), Chinese Canadians vs South Asians vs overall, 2023
-
- Figure 63: Attitudes toward meal kits (% agree), mothers vs fathers vs overall, 2023
- Food inflation makes meal kits a harder sell
-
Reasons for Using Restaurant Delivery Services
- Restaurant delivery’s success is based the rise of smart phones
- Figure 64: Reasons for using restaurant delivery services, 2023
- Younger adults are more likely to point to ease, variety and rewards as usage drivers
- Figure 65: Reasons for using restaurant delivery services, by age, 2023
-
- Figure 66: Reasons for using restaurant delivery services, mothers vs father vs overall, 2023
- Restaurant delivery’s success is based the rise of smart phones
-
Reasons for Not Using Restaurant Delivery Services
- Price is clearly the biggest barrier for restaurant delivery
- Figure 67: Reasons for not using restaurant delivery services, 2023
-
- Figure 68: Reasons for not using restaurant delivery services, by age, 2023
- Price is clearly the biggest barrier for restaurant delivery
-
Attitudes toward Online Ordering from Restaurants
- Without well-developed online platforms takeout programs are likely to suffer
- Figure 69: Attitudes toward online ordering from restaurants, 2023
-
- Figure 70: Taco Bell Instagram post, 2022
- If online ordering isn’t made easy, money is being left on the table
- Figure 71: Attitudes toward online ordering from restaurants (% agree), by age, 2023
-
- Figure 72: Attitudes toward online ordering from restaurants (% agree), mothers vs fathers vs overall, 2023
- Without well-developed online platforms takeout programs are likely to suffer
-
Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Data sources
Market Intelligence Made Easier With Mintel
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
- Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
- Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
- Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
- Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.
What goes into a Mintel Market Intelligence Report?
Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.
The Four Pillars of Our Research
We use a combination of four main research methods when creating our reports, each adding a valuable perspective:
- Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
- Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
- Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
- Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.
Bringing It All Together
Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.
Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
€ 4400 (Excl.Tax)
-
Download today with instant access
Pay via credit card or invoice (net 30 payment terms)
-
Multiple formats provided
We send a PDF, Powerpoint and Excel Databook straight to your inbox. An interactive version of the report is also available on our online platform
-
Interactive databook included
Focus on the data that matters most to you with a customisable databook avaliable on our platform
-
Save up to 20% when you purchase multiple reports
Discount automatically applied in basket
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn moreTrusted by global industry leaders
We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.
Mintel gives us all that. It’s a great brand and one that is trusted by clients.
Marie Stafford, European Director, The Innovation Group, VML
Mintel helps us when we want to know something quickly – it provides fast answers to our questions. If we need to get a view of what’s going on in a particular market it’s very useful.
When carrying out background research, I find Mintel an excellent starting point.
The fact that it covers so many markets is a big plus for me– instead of having to buy specialist products in each area we are interested in, especially when we only require a brief view on a particular market, we can go to Mintel for help as a one-stop shop. I find Mintel a useful and valuable resource.
Ben Zeidler, Director - Research and Analytics, Tenth Wave
At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.
Alana Gavin, VP Research and Insights, Jackman
One of the biggest challenges we face is the need to get smart on a business or category real quick.
We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.
We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.
Jeff White, Business Development Director, Deutsch
We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.
As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.
We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.
Andrew Neeson, Market Intelligence Manager, VocaLink
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn more
