2020 will be an unforgettable year for several reasons; one worth celebrating is the rise our resiliency. Due to the global pandemic, people around the world are adjusting their lifestyles to meet changing demands. Online shopping, remote working and home schooling are new demands placed on many of us, which means our plates are fuller than ever. As consumers become increasingly time-starved and convenience-seeking, they have vigorously sought out alternatives to cooking at home or ordering take-out. Also because of COVID-19, countless restaurants across the U.S. have indefinitely closed their doors – as a result, many people are also learning to cook more meals at home. While the restaurant industry is struggling, the U.S. meal kit delivery services market is on the rise.

There are three distinct market segments going up against the traditional restaurant industry. Those three segments, the meal-kit, the third-party delivery and the prepared “heat-to-eat” meal models, differ vastly from one another. The meal-kit business is extremely capital intensive and experiences high operating and supply chain costs due to the need to maintain strategically located distribution centers necessary to accommodate timely delivery of fresh, uncooked foods. The third-party online delivery platforms offer access to restaurants via a single online portal. By logging on to a website or mobile app, consumers can quickly compare menus, prices and reviews from peers. As consumers become increasingly time-starved and convenience-seeking, they have vigorously sought out alternatives to cooking at home or ordering take-out. While meal-kit providers and third-party restaurant delivery services have garnered the most attention with significant investment and growth over the past five years, prepared meal delivery services have begun to proliferate into the market.

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