Wel­come!

Nearly six years ago, meal kits com­pa­nies took the food scene by storm in the United States.

They looked to be the major dis­rup­tors in how peo­ple choose to pro­cure, pre­pare and eat food.

As Amer­i­can food cul­ture evolves, what we eat, when we eat and how we eat are all open to per­sonal inter­pre­ta­tion.

The crowded space of meal kit com­pa­nies is fac­ing fierce com­pe­ti­tion as meal sub­scribers are select­ing from vast options for con­ve­nience, value and vari­ety.

Gro­cery indus­try “brick and mor­tar” spend­ing rep­re­sents about $650 bil­lion, with a “B”, dol­lars in the U.S. The expe­ri­ence of daily pro­vi­sions can be frus­trat­ing at best with lots of energy devoted to meal plan­ning, gro­cery shop­ping and finally preparation.

No won­der Amer­i­cans love to eat out. Busy lives often dic­tate pri­or­i­ties and activ­i­ties. Cook­ing meals from scratch is both a cre­ative and time con­sum­ing endeavor. That is, until the emer­gence of these numer­ous con­ve­nient kit choices.

Meal kits offer a solu­tion for healthy, fresh, diverse and less processed meals. Por­tion con­trol, no waste and on demand, these cus­tomized meals let us get what we want, when we want it. From vegan to per­for­mance to gourmet, its all there.

Indus­try esti­mates, accord­ing to mar­ket researchers, say that meal kit com­pa­nies sold between $1 bil­lion and $1.5 bil­lion in 2016.

Recent announce­ments have meal kit com­pa­nies part­ner­ing with brick and mor­tar gro­cers.

Pur­ple Car­rot has teamed up with Whole Foods. New rumors pair Blue Apron with Tar­get, Gob­ble with Safe­way and have Plated part­ner­ing with Albert­sons.

Kroger’s has invested in an in-​house pro­gram called Prep + Pared. Not to be out­done, behe­moth Wal­mart launched their own, no sub­scrip­tion, meal kit pro­gram.

The jury is still out on the suc­cess of any of these new iter­a­tions. Bring­ing in the retail com­po­nent means that con­sumers will still rely on shop­ping for the kits.

Price points and orig­i­nal chef inspired meals may dic­tate stay­ing in or din­ing out. Home deliv­ery or point of pur­chase at retail can influ­ence con­sumers.

The USDA is run­ning pilot pro­grams that allow recip­i­ents of SNAP ben­e­fits to buy food online through e-​grocers like Ama­zon Fresh and Fresh Direct. Meal kit com­pa­nies are in line next for SNAP.

Access, scale and prof­itabil­ity all fig­ure into which kits will stick around. Get­ting out of nor­mal meal rou­tines is a big hit so far.

To read the full Mar­ket Report, includ­ing this week’s mar­ket update, see below or click here.