What's Happening?
A recent survey conducted by CNET has revealed that 61% of US adults have never tried meal kits, primarily due to concerns over cost and subscription commitments. Despite the evolution of meal kits since Blue Apron's launch 13 years ago, many consumers remain skeptical. The survey, which included over 2,600 participants, highlighted that over 60% of respondents cited high costs as a deterrent, even though meal kit prices have remained stable amidst rising grocery prices. Additionally, nearly half of the respondents expressed reluctance to commit to another subscription service. In response to these concerns, Blue Apron has eliminated its subscription requirement, allowing customers to order meals a la carte, potentially setting a trend for other meal kit companies.
Why It's Important?
The findings underscore significant barriers to entry for meal kit services in the US market, despite their potential convenience and cost-effectiveness compared to traditional grocery shopping. The reluctance to adopt meal kits due to perceived high costs and subscription commitments suggests that companies in this sector may need to innovate further to attract new customers. The move by Blue Apron to remove subscription requirements could influence industry standards, potentially leading to increased consumer adoption. This shift could impact grocery retailers and the broader food industry, as meal kits offer a competitive alternative to traditional shopping and dining options.
What's Next?
As meal kit companies like Blue Apron adapt their business models to address consumer concerns, other companies may follow suit, potentially leading to a broader industry shift away from mandatory subscriptions. This could result in increased competition among meal kit providers, driving further innovation and potentially lowering costs. Additionally, the industry may see increased marketing efforts to educate consumers on the value and convenience of meal kits, aiming to convert skeptics into subscribers.
