Unlocking Growth In Meal Kits

Unlocking Growth In Meal Kits

Meet The HelloFresh And Marley Spoon Shopper

Meal kits contain pre-portioned ingredients and recipe instructions for a complete meal, that shoppers prepare and cook themselves. Meal kits are a small category with big potential. During the past eight months, the number of Australian households who have made a HelloFresh and Marley Spoon purchase was 1.5% of total households (around 150,000 households). However, if the Australian market follows the trend of the U.S., this could represent one million Australian homes buying meal kits in the next 12 months – significantly impacting the traditional and online grocery retail market.

Understanding who this meal kit shopper is and their reasons for choosing this emerging consumption model is key to unlocking future opportunities for both retailers and brands.


HelloFresh and Marley Spoon customers tend to be affluent shoppers, with nearly eight-in-ten (77%) having a higher affluence than Australian shoppers.

When looking at households who purchase HelloFresh and Marley Spoon, a number of key differences are evident when compared with the broader household population. First, HelloFresh and Marley Spoon customers are more likely to be younger shoppers, (primary household shopper aged less than 45 years old). Second, when looking at life stage, they are more likely to be families and young transitionals. More than 6-in-10 (64%) of HelloFresh and Marley Spoon primary shoppers are less than 45 years old.


But what makes HelloFresh and Marley Spoon shoppers so unique? Their customers are very loyal and are willing to spend for the convenience and healthy delivery of their groceries to their front door.

HelloFresh and Marley Spoon customers are high spenders, less likely to shop in-store, heavy fresh-produce focused customers and have a high repurchase rate

Meal kit shoppers are also high spend shoppers. Over the past eight months, HelloFresh and Marley Spoon customers spent on average $78 per purchase, which is $28 more than the average supermarket total spend. For retailers, meal kits could be used as a potential to increase basket sizes, as shoppers are demonstrating a willingness to pay more for convenience. For example, Woolworths recently launched the ‘Ready-to-Create-Bag’, a new initiative to offer a convenient solution to customers who want to cook from scratch without the hassle of shopping for all the ingredients. And recently, Coles launched a convenient fresh offering, ‘combo boxes’, which contains a mixture of fruits and vegetables, eliminating the need for shoppers to choose healthy ingredients.

HelloFresh and Marley Spoon customers shop less frequently in bricks and mortar supermarkets than the average shopper (-11%). If meal kits continue to grow and start to hit supermarket shopping occasions, it has the potential to impact one of the most important retailer success metrics, in-store traffic. Manufacturers should consider partnering with retailers in order to ride the wave of online meal kit consumer adoption, as they have a large online grocery customer base and are constantly innovating their offering.

HelloFresh and Marley Spoon are attracting heavy fresh produce shoppers. With a strategy focused on delicious, healthy meals planned for the customer, their offering resonates with these shoppers.  Considering fresh produce is around 40% of total grocery spend, manufacturers and retailers should also consider the role of fresh as part of their offering.

“There are clear benefits of scale as the business develops. HelloFresh’s expanding customer base allows us to further invest in our supply chain, technology platform, and strike more beneficial arrangements with suppliers. For example, HelloFresh negotiates directly with local, fresh producers to reduce the time from ‘ground to table’. Such investment together with customer feedback and insights allows continuous process and product improvement. And as we grow we see the compounding effect of more customers making more referrals which means faster growth, more insight lead optimisation, and greater marketing efficiencies.” Tom Rutledge, CEO and Founder of HelloFresh, Australia

More than 65% of HelloFresh and Marley Spoon buyers have made a repeat purchase. These two companies have a lot of loyalty and customer satisfaction, when compared to the benchmark for other grocery product launches, where a 40+% repeat purchase rate is considered healthy.  

“Meal kits have changed the way in which consumers think about their meals by providing a wide range of affordable, healthy choices straight to their kitchens. Marley Spoon’s ‘source-to-order’ retail model is friendly to the environment by avoiding the inevitable waste of perishable items that is seen with traditional ‘source to stock’ retail models .” Fabian Siegel CEO and Founder, Marley Spoon

Meal kits tick a lot of boxes for Australian shoppers, as they resonate through their convenience of delivery to the front door, healthy eating through their fresh ingredients, reduction of food waste and portion control. Meal kits are a powerful source of growth for retailers and manufacturers. Harnessing this will help businesses be part of the success in this growing online grocery landscape.  Nielsen knows e-commerce. If you would like to find out more, hit the contact us button.