Is Cost Curbing Consumer Appetite for Meal Delivery Kits?

Price holds back some shoppers

Author: Rimma Kats

July 18, 2017

The meal-kit delivery space is heating up, but not everyone is rushing to whip up summer vegetable tartines that come in a box—especially if the box comes with a hefty price tag.

Meal-kit delivery choices are growing fast, with options for practically every taste. But there's a key reason stopping some consumers from subscribing to one of the many programs out there, and that’s price.

According to July 2017 research from Morning Consult, nearly six in 10 US internet users who haven’t subscribed to a meal-kit delivery service said the cost of these kits deterred them from trying it out.

Respondents cited other reasons for not trying out the service, such as the recipes featured just didn’t speak to them, and it would take too much time to prepare the dishes. But price was by far the most common concern.

Just as the meal-kit delivery options out there vary, so do their prices.

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Blue Apron, for example, charges consumers $59.94 per week for a two-person plan, which includes three recipes. That amounts to $9.99 per person per meal.  The company also has a family plan, where consumers can choose from either two recipes per week or four—each serving four people. They cost $71.92 or $143.84 a week, respectively. That works out to $8.99 a serving.

Purple Carrot, a plant-based service, features similar meal plans, but for a heftier price tag. Consumers can choose a one- or two-person plan that features three meals for $68 per week, or $11.33 per plate. The company also offers a family plan, but unlike Blue Apron, it only comes with one option. Consumers can get two meals each week, which serve up to four people. That amounts to $74 a week, or $9.25 per plate.

Price aside, there has been growing appetite for meal delivery kits, particularly among millennials.

Data from Acosta Sales & Marketing found that 60% of US grocery buyers ages 18 to 25 have tried a meal delivery kit like Blue Apron, HelloFresh or Plated—which makes sense given that like many other digital services out there, meal delivery kits were first adopted by millennials.

Photo credit: Carissa Gan on Unsplash