Understanding the Food Delivery Service Categories

RTE foods are those that require little to no preparation before consumption. These are often fully cooked and packaged items that can be consumed directly or with minimal reheating. 

Key Features of RTE Foods: 

• Convenience: Perfect for on-the-go consumers or those with busy schedules. 
• Minimal Preparation: Requires no additional steps apart from heating (if needed). 
• Examples: Pre-packaged sandwiches, salads, canned soups, and microwaveable meals. 

RTC foods include meal kits or prepared ingredients that require additional steps, such as cooking or reheating, before they are ready for consumption. 

Key Features of RTC Foods: 

• Freshness: Typically includes fresh, pre-measured, and pre-portioned ingredients. 
• Customization: Allows users to personalize their meals while retaining control over the cooking process. 
• Examples: Meal kits, partially prepared food items (e.g., peeled, trimmed, or washed vegetables), and raw proteins like marinated meats. 

What Are Meal Kits? 

Meal kits are subscription-based services that deliver recipes and all the necessary ingredients directly to the consumer’s doorstep. These kits are predominantly fresh, pre-portioned, and designed to reduce the burden of meal planning and grocery shopping. 

Why Are Meal Kits Popular? 

1. Convenience: Simplifies the cooking process by eliminating the need for meal planning and ingredient sourcing. 
2. Culinary Exploration: Enables consumers to experiment with new recipes and gourmet dishes in their own kitchens. 
3. Cost-Effectiveness: Offers restaurant-quality meals without the additional expense of dining out. 

In 2021, the cook-and-eat (RTC) segment dominated the meal kit service market, contributing to 60.7% of the total revenue [6]. 

Factors Driving RTC Popularity: 

• Appeal to Younger Demographics: The experience of preparing gourmet-style, home-cooked meals resonates strongly with millennials and Gen Z. 
• Cost Savings: Allows users to recreate chef-inspired dishes at home without paying restaurant prices. 
• Flexibility: Provides an opportunity to learn new recipes and techniques while controlling ingredient quality.