Boom time for meal-kit delivery services during a quarantine: one-stop blog for industry updates and market opportunity

Boom time for meal-kit delivery services during a quarantine: one-stop blog for industry updates and market opportunity

A large part of the world is in a state of lockdown to contain the transmission of a novel coronavirus. As a result of this, shelves of local supermarket and warehouse stores are mostly empty and so are refrigerator shelves in the house. Food delivery industries, be it restaurant meals, groceries, or meal kits has seen a huge surge in demand

Gousto, a London-based meal-kit service has raised a £33 million funding round led by Perwyn, BGF, MMC Ventures and health influencer Joe Wicks amidst coronavirus outbreak. The company said the money is going to be used in the AI engine by which consumers will get more personalized recommendations of what to cook and eat and also in the backend tech used to optimize its own logistics and other operations. Gousto was founded in 2012 and raised approx £133M funding over the last eight years. 

Business model and market of meal-kit delivery business:

Meal kit services deliver people fresh ingredients to prepare chef-quality recipes at their doorstep. The meal-kit is a pre-packaged box that contains easy-to-follow steps and cooking tips to prepare a meal.

According to AMA, the Global Offline Meal Kit Delivery Service market is expected to see a growth rate of 4.53% and may see a market size of USD2.27 Billion by 2024.

The USA is the key market for this industry. Almost 56% of the meal-kit delivery market growth is expected to originate from North America during the forecast period.

This report predicts that the market growth by the non-vegetarian segment will be less than the growth of the market by the vegetarian segment. 

Customer-centric marketing strategies will drive the market growth at a CAGR of over 18% during the forecast period.

Market drivers of online meal-kit delivery services are: 

  • Working urban  population
  • Sedentary lifestyle
  • GenZ or millennials
  • Growing incomes

Market drivers of online meal-kit delivery services are


Here are some points you should keep in mind before you go mainstream to stand against the competition: 

  • Automation in every aspect of meal kit delivery from selecting items to payment to delivery is most important to make the customer experience more efficient and convenient than traditional supermarket shopping.

  • Try to make the cost of transportation cheaper for consumers than to travel to a store to purchase it by themselves. 
  • Customization is also very important as decision-making of what goes into a meal for consumers by themselves at supermarkets becomes very tough so they find the app as an escape for that. 
  • Make a platform where consumers can mix and match ingredients otherwise they somehow lose interest in your platform.
  • Create communication facilities in your platform like call or messaging to guide the people who don’t know how to cook at all.
  • Categorize recipes by lifestyle and diet choices to accommodate all kinds of people.
  • Taking recipes via a recipe score and using those analytics to improve operations will definitely increase customer satisfaction and ensure the growth of the business. 

How can Coruscate help to develop meal-kit delivery services app?

Coruscate is the top mobile app development company and has successfully delivered many food delivery projects so far. We have a team of  100+ hardworking and experienced developers, business experts, legal advisors who can help you set up a business from scratch and after that. Contact us now to get more information related to the meal-kit delivery industry. Personalized quotes and app demo for your business idea can also be possible.

A basic chart for P2P payments app development cost is as follows:

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