MEAL REPLACEMENT MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Size and Trends

The Meal Replacement Market is estimated to be valued at USD 14.01 Bn in 2024 and is expected to reach USD 20.52 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

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The meal replacement market is witnessing significant growth due to increasing health consciousness among consumers and busy lifestyle. Consumer preference for healthy, convenient, and nutritious meal options is driving the demand for meal replacement products. Moreover, the ease of preparation and portability of meal replacement foods is further fueling the market growth. Various product launches with innovative flavors and formats and marketing campaigns by leading players to raise awareness about health benefits are also propelling the meal replacement market growth. However, higher prices of meal replacement products compared to regular food items may hamper the market expansion to some extent. Nonetheless, changing work culture and increasing females working population are expected to present lucrative opportunities for the meal replacement market over the coming years.

 Health Conscious Consumers

The growing health and wellness trend has been a major driver propelling the meal replacement market growth in recent years. With the increasing prevalence of obesity and lifestyle diseases, consumers are becoming more conscious about their health and nutritional intake. They want options that are convenient and ensure they are meeting their daily protein, vitamin, mineral and other nutrient requirements without compromising on taste. Meal replacements with balanced macros have emerged as a popular choice as they allow consumers to easily manage their calorie and nutrient consumption. Consumers no longer want to spend a lot of time in the kitchen and are more inclined towards quick, easy to prepare foods that also add health value. Meal replacements address this need perfectly as they are ready-to-eat or only require minimal preparation like adding milk or water. The inclusion of high quality proteins, fibers and other essential vitamins and minerals in meal replacements helps consumers feel full for longer and maintain satiety. This curbs unhealthy snacking and prevents overeating. It has been seen that regular consumption of meal replacements as part of a calorie-controlled diet results in effective and sustainable weight loss. The increased focus on wellness and demand for convenient nutritional solutions has prompted many consumers to incorporate meal replacements in their diet and lifestyle.

Market Concentration and Competitive Landscape

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Rising number of dual income households and hectic schedules have left consumers with little time for proper home cooked meals. People are constantly on the go and prefer portable food and beverage options that do not compromise on taste or nutrition. Meal replacements have emerged as a great solution for time-starved consumers to get balanced nutrition on the fly. The easy, ready-to-consume formats of meal replacements like bars, shakes and snacks allow harried individuals to quickly refuel without much preparation effort. Busy professionals, students and millennial population have increased their uptake of these replacements as they fit perfectly well into their fast-paced routines. Changing work styles like remote working and flexible timings have further boosted the appeal of meal replacements. People may not have access to healthy dining options or time for cooked meals through the day. Meal replacements address this challenge with their compact, fully-packed formats. The variety available allows consumers to choose the types suitable for different times of the day- from hearty breakfasts and filling lunches to pre-and-post workout snacks.

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One of the key challenges faced by the meal replacement market is changing consumer preferences. Younger consumers are more health-conscious and prefer fresh, homemade meals over packaged replacements. This has led to a decline in demand for traditional meal replacement bars and shakes. Additionally, another challenge is intense competition in the healthy food category. Established players experience pricing pressure from private label brands and new startups promoting natural or organic products. Retaining customers and introducing innovative products is difficult given the abundant choice.

Market Opportunities: The growing trend towards grab-and-go, nutritious meals

The growing trend towards grab-and-go, nutritious meals provides a strong foundation. There is demand for portable, easy to consume options suited for busy lifestyles. Further, increasing obesity and chronic diseases are driving the need for portion-controlled, low-calorie diets.

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In terms of Product Type, Powdered Products contributes the 45.6% share of the market owing to their convenience and versatility. Powdered meal replacements offer users an easy way to consume nutritious meals anywhere, without refrigeration or special facilities for preparation. The ability to simply mix powdered products with water makes them ideal for busy lifestyles where prepping meals is difficult. Powdered meal replacements also give users flexibility in terms of portion control and customizing ingredients based on dietary needs and preferences. The micronutrients and macronutrients contained in powdered form can be easily adjusted. This helps address the specific nutrition requirements of different demographic segments like fitness enthusiasts, diet conscious individuals, and the elderly. Furthermore, powdered products have a longer shelf life than other types, reducing food wastage. Overall, the ease of use and adaptability of powdered meal replacements have made them the top choice for people seeking quick, healthy meals on the go. Growing strategic initiatives by the key players is expected to drive the segment growth. For instance in 2022, Max Protein Launched Tastiest Plant Protein Powder in India.

 Insights, By Distribution Channel: A One-Stop Shopping Destination

Hypermarkets/supermarkets contribute the 41.2% share to the meal replacement market distribution channel due their ability to offer a one-stop shopping destination. These large retail outlets stock a wide variety of grocery and household items under one roof. For busy consumers, hypermarkets/supermarkets eliminate the need to visit multiple stores, saving valuable time. They also provide enhanced visibility and easy accessibility to meal replacement options amidst their diverse product lines. The massive shelf space allows supermarkets to stock popular meal replacement brands and flavors. Aggressive promotional activities, combo discounts and loyalty programs further encourage buyers. Many locations also offer nutritious prepared foods, so customers can quickly purchase both groceries as well as ready meals during their visits. The long business hours of hypermarkets/supermarkets also fit into most people's schedules. Their strategic community locations combined with convenient parking facilities and accessibility via public transport have created a habit of grocery shopping among local residents.

Regional Insights

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North America has remained the dominant region in the global meal replacement market over the past decade with 42.1%. The large size of the population in countries like the United States and Canada along with high disposable incomes have made the region highly lucrative for meal replacement brands. There is also a growing health and wellness trend among consumers in North America who want options to follow healthy diets easily without much effort. This has further supported the demand for meal replacement products like bars, shakes and snacks. Another key factor for North America's dominance is the strong presence of global leaders in the industry. Major players based in the U.S. like Nestle, Abbott and Herbalife Nutrition have established wide supply networks and consumer reach within the region through modern retail channels as well as e-commerce platforms. This has enabled them to cater to the demands of health-conscious consumers across different cities and communities. The pricing of meal replacement options has also been competitive in North America, encouraging more people to opt for them regularly or occasionally.

The Asia Pacific region has emerged as the fastest growing market for meal replacements in recent times, primarily driven by countries like India, China, Japan and Australia. Rapid urbanization, busy lifestyles and increasing health awareness among younger consumers have boosted the popularity of meal replacement products in Asia Pacific. Moreover, the growing working women population also favors convenient meals that can be prepared in minutes. Asian countries like India have also seen sizable investments by global players to tap into this high potential market. Domestic companies are also introducing innovative offerings tailored to local tastes. For instance, Indian brands offer protein-rich meal replacement shakes and snacks flavored with spices preferred locally. The expanding middle-class in Asia Pacific presents an enormous customer base for meal replacements in the coming years. Similarly, free trade agreements are improving import and export opportunities within the region.

Market Report Scope

Key Developments

• In August 2023, Barebells Functional Foods LLC, a Sweden-based company that manufactures protein-filled snack bars, launched banana caramel soft protein bars in the U.S.
• In December 2022, Smart for Life Launched its Greens First Protein Bars
• In 2022, Nourish Organics launched its new and elevated Nutrition Bars 2.0 with new packaging
• In March 2022, Southern Charm Nutrition's recent establishment in downtown Fairmont. Offering a unique selection of loaded tea and coffee bombs, as well as full meal replacement shakes, the store provides a diverse range of options for patrons seeking both Flavor and nutrition. Notably, all their shakes contain 17 to 24 grams of protein, are under 270 calories, and come in an extensive array of flavors
• In November 2022, Levana Nourishment's launched new line of plant-based meal replacement shakes which includes vanilla bean, mixed berry, and cocoa-coffee flavors offers a diverse range of options

*Definition: The meal replacement market offers products that are designed to replace one or two daily meals. These meal replacement products typically come in powdered form contained in packets or bars that are high in protein and fiber and lower in sugars compared to regular meals. They aim to provide balanced nutrition to support weight management or general well-being. Popular meal replacement options include protein bars, meal replacement shakes, and high protein breakfast options that can be easily prepared or consumed on-the-go as a convenient alternative to traditional meal preparation.

Market Segmentation

•  Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Nutritional Bars
  • Powdered Products
  • Ready-to-drink Products
  • Other Product Types
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Convenience Stores
  • Hypermarkets/Supermarkets
  • Specialty Stores
  • Online Retailers
  • Other Distribution Channels
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Abbott Laboratories
  • Amway
  • Atkins
  • Blue Diamond Growers
  • General Mills
  • Glanbia Plc
  • Herbalife Nutrition
  • Huel
  • Kellogg Co.
  • Nestle
  • Nu Skin Enterprises, Inc.
  • Slimfast
  • Soylent
  • Unilever
  • Usana Health Sciences Inc.
  • Wild Oats Markets.
  • Zoic Pharmaceuticals
  • Laboratoire PYC
  • Bariatrix Europe
  • Kisan Products