You may have become rather familiar with meal kit subscription companies in recent years. They market convenience and creativity to culinary enthusiasts as well as regular homeowners looking for a quick and easy dish. While consumer demand is increasing, some costly business models are starting to cause challenges for those that are leading in the industry.

Which Meal Kit Models?

This trend is primarily being seen with frozen and refrigerated meal kit companies. Some meal kit services have simply had to shut down, while some of them have decided to preemptively close up shop. In most cases, these companies have been running their own distribution lines, complete with fleets of trucks. This leads the business models themselves to most likely be the problem, not necessarily the customers’ need themselves. 

Blue Apron, for instance, announced in December that it was laying off about 10% of its corporate staff and looking to dramatically reduce its expenses, intending to shave $50 million off its annual spending. In addition, HelloFresh removed its business from Japan within a year of operating in the country. Economic challenges are making it more difficult for meal companies to achieve broader meal delivery success.

How Do The Customers Feel?

Despite these struggles, demand for meal kits is actually on the rise! Albeit, a majority of customers that are looking for these types of solutions have been committed to them through the pandemic and remained steadfast after the pandemic. Further bouts of inflation are only solidifying a dependency on these services. Essentially, meal kit companies that utilize fresh food requiring freezing or refrigeration are finding it harder to attract new customers.

This is because consumers are cutting back on spending on food-related splurges and instead investing in food-related longevity. Research highlights that 78% of restaurant customers are eating at home rather than ordering from restaurants. Market trends are also highlighting the possibility that the meal kit space will become dominated by shelf-stable goods while chilled meal kits will be available as non-subscription options for purchase at supermarkets.

What Does This Mean For My Business?

Shepherd Foods is an excellent resource for business owners who want to tap into the rising popularity of meal kits. As a high-quality freeze dried food manufacturer, Shepherd Foods offers co-manufacturing and co-packing services to help you offer nutritious, natural, and shelf-stable meal options that can cater to various dietary needs. With the meal kit industry facing several challenges, such as costly business models, shipping expenses, and increased competition, Shepherd Foods’ services are a cost-effective solution. 

With our help, you can offer your customers a range of freeze dried meat, fruit, and vegetable options that are easy to ship and can be customized to fit various tastes and dietary restrictions. The shelf-stable nature of high quality freeze dried products makes them suitable for supplying your consumers with superior meal kit options. Give us a call today at (800) 497-8321 for more information about how you can increase the success of your business.

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