Canada Delivery Services and Meal Kits Market Report 2021
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Report Summary
“Demand for delivery services and meal kits exploded in 2020. While the pandemic has led to untold human and economic suffering, the problems wrought by the virus accelerated innovation that’s provided solutions. As the pandemic arguably enters the back end with life hopefully returning to a semblance of normal, the heightened adoption of delivery services and meal kits will have lasting effects.”
– Joel Gregoire, Associate Director for Food & Drink
This Report covers the following areas:
- The impact of COVID-19 on delivery services, online ordering and meal kits.
- Opportunity for growth in the post-pandemic environment based on Canadians’ input.
- The impact of third-party apps in the delivery space.
- Reasons for using and not using delivery services and meal kits.
Table of Contents
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Overview
- What you need to know
- Key issues covered in this Report
- Definition
- What you need to know
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Executive Summary
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- Top takeaways
- Impact of COVID-19 on delivery services and meal kits
- Figure 1: Short-, medium- and longer-term impact of COVID-19 on delivery services and meal kits, January 2021
- Canadians are turning to delivery services more because of the pandemic
- Safety is key…
- …but convenience will keep consumers coming back
- Meal kits help spice things up at mealtimes
- Opportunities and challenges
- Third-party delivery apps are the way of the future for foodservice
- Food quality is the top concern when it comes to ordering groceries online
- Canadians are willing to be ‘flexible’ for quicker service
- Cost is the main barrier to using meal kits
- Meal kits can be a compelling promotional vehicle
- Partnering with restaurant brands can be a way to peak interest in meal kits
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The Market – Key Takeaways
- Delivery services and meal kits benefit from the pandemic
- Hybrid/at-home work arrangements will continue to support at-home cooking
- Delivery is primed for a wave of automation
- Delivery services and meal kits benefit from the pandemic
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Market Factors
- Delivery services and meal kits benefit from the pandemic
- Figure 2: Short-, medium- and longer-term impact of COVID-19 on delivery services and meal kits, January 2021
- Hybrid work arrangements will continue to support at-home cooking
- Fairness matters to Canadians as the ‘gig economy’ develops
- Companies are striving for carbon neutrality
- Figure 3: Maple Leaf Foods is Carbon Neutral Now, November 2019
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- Figure 4: Not Just Little Things, February 2020
- Immigration is fuelling Canada’s population growth…
- Figure 5: Percentage of Canadians who are visible minorities or not visible minorities, by age, 2016
- …and Asia is the primary source
- Figure 6: Distribution of immigrants living in Canada, by region of birth, 1996-2036
- Figure 7: Types of internationally inspired foods consumers have eaten and show interest in trying, July 2019
- Delivery services and meal kits benefit from the pandemic
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Market Opportunities
- Delivery is primed for a wave of automation
- Figure 8: Explore Prime Air by Drone, October 2019
- Figure 9: Gatik Operations with Walmart, May 2020
- ‘Ghost kitchens’ are suited to the current reality
- Figure 10: Ghost Kitchen Brands, September 2019
- Frozen meals can take lessons from meal kits
- Figure 11: M&M Food Market Chicken Masala Kit (Canada), November 2019
- Figure 12: M&M Food Market Chicken Dumplings and Noodles (Canada), September 2019
- Delivery is primed for a wave of automation
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The Consumer – Key Takeaways
- Many Canadians use delivery services
- Canadians cite three main reasons for ordering groceries online
- There are two main reasons for not using online ordering
- Cost is the highest barrier to using meal kits
- Ideas, simplification and planning are the top reasons for using meal kits
- Many Canadians use delivery services
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Delivery Service and Meal-Kit Usage
- Canadians are using delivery services
- Figure 13: Usage of ordering services and meal kits, September 2020
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- Figure 14: Usage of foodservice delivery services, by age, September 2020
- Online ordering’s popularity has grown since the start of the pandemic
- Figure 15: Change in usage of online ordering, delivery services and meal kits compared to before COVID-19, September 2020
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- Figure 16: Increased usage of online ordering and delivery services compared to before COVID-19, by age, September 2020
- Canadians are using delivery services
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Reasons for Using/Not Using Online Grocery Ordering
- Canadians cite three main reasons for ordering groceries online…
- Figure 17: Reasons for grocery shopping online, September 2020
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- Figure 18: Reasons for shopping for groceries online, by age, September 2020
- …and two main reasons for not using online ordering
- Figure 19: Reasons for not shopping for groceries online, September 2020
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- Figure 20: Preferring to see food before buying it as a reason for not shopping for groceries online, by age, September 2020
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- Figure 21: “I don’t want to pay a delivery/pick-up fee”, those worried about personal financial situation a year from now vs overall, September 2020
- Canadians cite three main reasons for ordering groceries online…
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General Attitudes towards Online Ordering
- Most Canadians trust the food delivered to be of high quality
- Figure 22: “I trust that the fresh food (eg produce, meat) delivered from grocery stores is high-quality” (% agree), Chinese Canadians vs South Asians vs overall population, September 2020
- Fathers and young men are most open to flexible delivery/pickup solutions
- Figure 23: Openness to flexible online ordering solutions from grocery stores (% agree), men 18-34 vs women 18-34, September 2020
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- Figure 24: Openness to flexible online ordering solutions from grocery stores (% agree), by parental status, September 2020
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- Figure 25: “I would be willing to pick up grocery orders at ‘odd’ hours (eg in the middle of the night) if my orders were fulfilled more quickly” (% agree), by location, September 2020
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- Figure 26: Openness to flexible online ordering solutions from grocery stores (% agree), students vs non-students, September 2020
- Most Canadians trust the food delivered to be of high quality
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Reasons for Using and Not Using Meal Kits
- Cost is the highest barrier to using meal kits
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- Figure 27: Reasons for not using meal kits, September 2020
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- Figure 28: “Too expensive” as a reason for not using meal kits, by age, September 2020
- Need to educate non-consumers on the benefits meal kits provide
- Figure 29: “Portions are too small” as a reason for not using meal kits, by number of children in household, September 2020
- Ideas, simplification and planning are the top reasons for using meal kits
- Figure 30: Reasons for using meal kits, September 2020
- Cost is the highest barrier to using meal kits
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Areas of Interest in Meal Kits
- Meal kits can help promote new products
- Figure 31: Interest in meal kits, September 2020
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- Figure 32: Interested in meal kits with “trial samples of new products as a bonus to meals”, by gender and age, September 2020
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- Figure 33: Interested in meal kits with “trial samples of new products as a bonus to meals”, Chinese Canadians vs overall population, September 2020
- Canadians’ craving for new meal ideas is an opportunity for grocers
- Figure 34: “I would buy meal kits available for purchase at grocery stores” (% agree), by age, September 2020
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- Figure 35: HelloFresh Vietnamese Chicken Bowl (US), October 2020
- Foodservice partnerships can peak interest
- Figure 36: Interested in meal kits with “recipes created by well-known chefs”, by age, September 2020
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- Figure 37: Interest in meal kits with “recipes created by well-known chefs”, Chinese Canadians vs overall population, September 2020
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- Figure 38: Wok Fried Lobster with Chinese Lobster Sauce by MasterChef Eric, December 2020
- For some, meal kits need not just be for dinner
- Figure 39: Interested in “breakfast meal kits”, by age, September 2020
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- Figure 40: Interested in “breakfast meal kits”, by parental status, September 2020
- Figure 41: Interested in “breakfast meal kits”, students vs non-students, September 2020
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- Figure 42: CRAVE Bacon & Egg Scramble with Cheddar Cheese (Canada), May 2019
- Figure 43: CRAVE Chorizo Egg Scramble with Goat Cheese (Canada), May 2019
- Parents express interest in ‘kid-friendly’ meal kits
- Figure 44: Interest in “kid-friendly dishes”, by parental status, September 2020
- Diet-friendly meal kits appeal to a niche segment
- Figure 45: Interested in meal kits by diet type, by age, September 2020
- Meal kits can help promote new products
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General Attitudes towards Meal Kits
- COVID-19 has incentivized trial of meal kits for many
- Figure 46: Attitudes around using meal kits and cooking at home (% agree), September 2020
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- Figure 47: Attitudes around using meal kits and cooking at home (% agree), men vs women 18-34 years old, September 2020
- Consumers are split when it comes to meal kits meeting their expectations
- Figure 48: Satisfaction with and perception of quality towards meal kits, September 2020
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- Figure 49: “Meal kits typically offer better quality ingredients than what’s available in grocery stores” (% agree), overall population vs meal-kit users, September 2020
- COVID-19 has incentivized trial of meal kits for many
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Appendix – Data Sources and Abbreviations
- Data sources
- Consumer survey data
- Consumer qualitative research
- Mintel Trend Drivers
- Abbreviations and terms
- Data sources
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