The food box market - France

1.2 The exponential growth of the global market

The global market for boxed meals, which includes the delivery of self-cooked ingredients or ready-made meals that only need to be reheated, is estimated to be worth $**.** billion in ****. It should continue to grow at a very strong pace in the years ahead, with an estimated CAGR of **.*% over the period ****-****. [***] This gives us the following estimates:

Global market for home-delivered boxed meals World, ****-****, in billions of dollars Source: ****

The trend towards "home-cooked" meals has made boxed meals particularly popular among generations Y and Z. Market growth has been driven by the health crisis and the inability to visit restaurants, but also by the growing trend towards healthier meals and maintaining a balanced diet. Healthier, boxed meals to prepare or reheat are also a more economical alternative to restaurant delivery or click & collect services. Companies such as Blue Apron and HelloFresh reported strong sales growth during the pandemic, with HelloFresh, for example, seeing a **% annual increase in sales.

Within the meal kit market, there are two distinct segments: reheatable meals on the one hand, and self-cooked meals on the other.

Do-it-yourself meals account for the majority, with around **.*% of market sales, a market dominance that is unlikely to be ...

1.3 The French market

According to Touteslesbox.fr, France's leading box media, by **** there will be *** different boxes in France, with ***,*** monthly box subscribers. In ****, this figure was only ***,***; the study thus estimates a **% growth in the number of box subscribers (***) on the national market between **** and ****. If we estimate the average price of a box at €** per month[***], we can then estimate the national market at €*** million in sales per year.

Within this market, Louraco Research & Consulting estimates the share of food boxes at around **.*%, behind beauty boxes. The market would thus represent just over ** million euros annually. By comparison, beauty boxes are worth around *** million euros. They were the first box segment to develop, and still have the most extensive offer on the market today. Companies positioned in this segment continue to show great growth potential; Biotyfull, delivering boxes of beauty products made in France, has thus observed growth of *,***% over the period ****-****, and is thus **th in the Les Echos x Statista ranking of Growth Champions **** in the retail sector.[***]

French box market by category France, ****, in millions of euros Source: ****

However, other markets such as food, wine and children's products also represent strong potential. According to boxraiser, in France in ...

2.1 Consumer profile

Today, the primary targets of food boxes are women and young people. By ****, women will account for three-quarters of home delivery box customers. While the niche market of boxes for men is a segment with potential that could benefit from further development, food boxes are not affected by the need to personalize products by gender.

Profile of box subscribers, by gender France, ****, in % Source: ****

As for **-** year-olds, they account for half of all customers, which can be explained by their greater affinity for digital and the influence of social networks to which they are more subject than other older generations. Brands rely heavily on the marketing and communication offered by ambassadors, who are often influencers on the networks. It should be stressed, however, that the target is not very young consumers, who do not have sufficient purchasing power for this service. [***]

Profile of box subscribers, by age group France, ****, in % Source: ****

The majority of box consumers are also urban dwellers ; more than a third live in the Ile-de-France region. This can be explained by the fact that food boxes are aimed at young working people who lack time and access to seasonal, quality produce. Most of them live in urban ...

2.2 Consumer purchasing behavior

Box consumption highlights

Sales of food boxes are affected by a certain cyclicality from one year to the next. Over the course of the year, they peak at the beginning of the year, when consumers make new resolutions to eat better, for example, and at the end of the summer vacations. As Clément Chanéac, co-founder of start-up Les Commis, which offers responsible food boxes of seasonal produce, points out in Les Echos Start in January ****: "We hammer home the point all year round that we need to eat healthily, but in January and September, it resonates more with our prospects, who are returning to good habits." The startup also reports * times more subscribers in January **** than in November ****, and **% more baskets delivered.

Interest in Google search "box alimentaires France, ****-****, in Source: ****

Interest in food boxes also increased during the Covid-** period, particularly during the confinements. This period logically saw an increase in delivery services, and at the same time the French also wanted to cook healthy products at home to maintain a certain balance. Interest in boxed foods began in mid-March ****, then picked up again towards the end of **** and the beginning of ****, with the second containment but ...

2.3 Boxed food market trends

To ensure a box's success at launch, its theme and value proposition need to be clearly defined, so as to stand out easily in consumers' minds. A number of trends are emerging on the market: apero products, delicatessen products, regional products, fresh and natural ingredients for cooking, eco-responsible packaging, and so on.

Organic, vegetarian and vegan products

As the proportion of the population that is vegetarian, vegan or simply flexitarian grows, so does the vegetarian or vegan segment of the food market. This includes boxed foods, as evidenced by the success of players developing in this segment. One example is Rutabago, which features ***% organic products and **% vegetarian or vegan recipes. By ****, the startup had **,*** subscribers and attracted the attention of another player in the sector, Les Commis, who decided to acquire it and thus become the market leader in recipe baskets with **,*** subscribers.

Rutabago sales France, ****-****, in Source: ****

Quality and seasonal products

Another trend that goes hand in hand with the demand for home-cooked meals is that of quality, even local, products. More and more French people want to consume seasonal products, and move away from the unsustainable model of over-consumption, which is partly symbolized by food products available all ...

3.1 Key market players

The food box market is a market with many players, including a large number of start-ups. Competition is fierce, with many players entering and exiting the market, which means that in reality few really manage to make their mark over the long term. In total, less than **% of the box market exceeds **,*** subscribers, and only **.*% attract more than **,*** visits to their site per month. This is reflected in the size of the company and the number of employees: only *% of companies have more than ** employees, and more than three-quarters (***) have fewer than *.

Box distribution by number of subscribers France, ****, in Source: ****

Boxes by number of employees France, ****, in Source: ****

The market can be divided into two types of players and boxes:

"meal kit" boxes, made up of ingredients to be cooked using a recipe that may also be supplied in the box: Hello Fresh, Gousto, Marley Spoon, Rutabago, Les Commis, Ready-made meals" boxes, with ready-made meals prếts in * to * minutes: La Brigade de Véro, Kitchen Daily, Dietbon, Qilibri, Cheef, Tasting product boxes, dedicated to the direct discovery of new products: Gourmibox, Degusta Box, Boit'Apero, La Boîte du Fromager, Le Coq Gourmet, Fédération Française de ...

3.2 Challenges in food box production and distribution

Production

In the case of box sales, one of the challenges is that the vast majority of operations are concentrated at a certain time of the month, often at the beginning of the month. Numerous resources are mobilized over a short period of time (***), but not for the rest of the month. However, as the study points out, recourse to short contracts is not a solution in view of market tensions, and companies would be forced to pool their logistics resources with other activities. [***]

Sales

In the box market, most sales take place online. Many brands use intermediary platforms to sell their boxes. The two major players in the French market for the creation of box sites are Ziqy, based on Prestashop, and BoxRaiser, a bespoke solution. [***]

Platforms used by box brands France, ****, as % of total Source: ****

Delivery

The production and distribution of food boxes face a number of challenges, first and foremost linked to a major factor in box success: product delivery. Delivery has to be fast and on time. As the Sia Partners study points out, this may even require box warehouses to be adapted in size and location to facilitate delivery. Amazon, for example, had to invest in ...

3.3 The food box value chain

4.1 Products

As the box market is a new one in which differentiation is a key factor for success, a very wide range of products has been developed over the last ten years. Boxed food products include :

prepared meals (***) cooking ingredient boxes (***) gourmet food boxes (***) charcuterie & sausage boxes (***) cheese boxes (***) tasting boxes (***)

And on the sweet side :

chocolate boxes (***) pastry boxes (***) candy boxes (***)

4.2 Prices

Box pricing is a key criterion for success. It has to bear the cost of the additional service offered by having a box with pre-selected products delivered to your home, but at the same time be sufficiently advantageous so that the consumer doesn't feel he's paying more for products he could have bought himself.at the same time, it has to be sufficiently attractive so that consumers don't feel they're paying more for products they could have bought themselves, and also compensate for the possibility that some products may not be to their liking.

Generally speaking, prices on the food box market vary between €** and €** per month on average, the offer being very diverse and prices varying according to the subscription formulas chosen, which differ according to the commitment (***), or the number of meals included. Here's a sample of the offers and prices of different boxes according to the Box Az website :

For lunch boxes, the offers are structured differently, but can still be compared:

4.3 Supply trends

Differentiating products

In a market where there are so many players that few manage to reach and exceed the **,***-subscriber mark, each new start-up has to come up with a real point of differentiation in order to gain a foothold. As the range of products and services becomes ever more extensive, it becomes increasingly difficult to come up with a point of differentiation and disrupt the market. Thus, the market includes food boxes :

with BocoBox, you can make your own jars: delivery of jars, ingredients, recipes and guidance through to sterilization specializing in a particular region: Be Stroh with products from Alsace, the Corsican Box promoting Corsican products, the Bourriche Normande discovering Norman gastronomy, or even the Tokyo Snack Box specializing in Japanese snack products with a chili pepper theme, such as Box Hot & Spicy, which delivers products from around the world that have chili peppers in common specializing in raclette or fondue for lovers of mountain cheeses, such as those offered by Bernard Mure-Ravaud, Meilleur Ouvrier de France...

An extended "slimming" / "dietetic meals" offer

In the particular segment of packed lunches (***), the reasons identified behind consumer demand are often the desire to eat better, with foods that are often less ...

5.1 Regulations

The food box sector is subject to strict food safety and packaging regulations. In particular, sanitary standards require that perishable foodstuffs be maintained at conservation temperatures throughout the entire transport process. [***] Several types of equipment can be used for transport:

refrigerated container refrigerated container isothermal container heat containers

Storage temperatures for perishable products of animal origin are specified by the decree of December **, ****, and those for products of plant origin by the decree of October *, ****.

Good hygiene practices for marketed foodstuffs are set out in Regulation ***/**** of April **, ****.

The use of ingredients containing allergens must be mentioned.(***)

6.1 Segmentation

As the food box market is made up of many small players, many of them do not publish their financial data. We do, however, have the following data:

• HelloFresh
• Rutabago
• La Brigade de Vero
• Seazon - FoodChéri
• Gourmibox
• Genadia
• QuiToque