Market Insights Digital Online Food Delivery Grocery Delivery

Meal Kit Delivery - Australia & Oceania

Australia & Oceania

The Meal Kit Delivery market in Australia & Oceania is projected to reach a revenue of US$1.42bn in 2024.
This is expected to show an annual growth rate (CAGR 2024-2028) of 9.61%, resulting in a projected market volume of US$2.05bn by 2028.
By 2028, the number of users in this market is expected to amount to 2.3m users.
The user penetration rate, which is the proportion of users in the population, is projected to be 4.4% in 2024 and is expected to increase to 5.3% by 2028.
The average revenue per user (ARPU) is expected to be US$0.77k in this market.
In comparison to other countries, in the United States is expected to generate the highest revenue in the Meal Kit Delivery market, with an estimated amount of US$5,645.00m in 2024.
Among the countries in Australia & Oceania, in New Zealand is projected to have the highest user penetration rate of 7.8% in the Meal Kit Delivery market.
Australia's meal kit delivery market is thriving, as consumers embrace the convenience and variety of pre-packaged, chef-designed meals.

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Analyst Opinion

The Meal Kits market has been an up-and-coming service due to the convenience with most markets dominated by one player, HelloFresh. As a niche market, the customer churn is high, and the customer lifetime value does not always cover the acquisition cost.

Nevertheless, the United States leads all the markets, it is even worth more than half of the revenue generated by HelloFresh. South Korea shows the strongest growth. In 2021, more than 70 percent of South Korean adults were aware of meal kits. Among women the awareness was even higher, exceeding 80 percent. In Europe, the craze has not yet gained traction but shows promise. Sustainability is a big trend in the market as meal kits have less of a carbon footprint than grocery stores.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.