Meal replacement products market is projected to grow at a considerable CAGR of 6.5% during the forecast period (2021-2027). Meal replacement products are enriched with nutrients and minerals, tend to have fewer calories than meals, and can help in cutting down on binge eating. Therefore, the rising prevalence of obesity, diabetes, and cardiovascular diseases across the globe along with rising awareness regarding the health benefits regarding intake of meal replacement products is expected to drive the growth of the global meal replacement products. The significant rise in the intake of convenient food owing to busy and hectic lifestyle is further creating demand of such ready to eat food products. As per a recent survey held by the US Department of Agriculture (USDA) (2018), which included over 15,000 households, demonstrated that nearly 45 cents on each dollar spent for food products at the household was spent for convenience items. Averagely, a greater share of the food dollar was utilized for buying convenience foods by individuals in the Northeast than by people in other regions of the US.

The rising preference of meal replacement bars, shakes, and powders as a healthy alternatives to fast foods is anticipated to offer lucrative opportunities for the players operating in the meal replacement products market. The growing inclination of consumers toward vegan food is anticipated to promote innovation in the meal replacement products market which in turn is anticipated to drive the market growth. Meal replacement products are easy to store and have longer shelf-life. Most of these items are available in the form of bars or shakes that are ready-to-drink, making them easy to transport and eat on the go.

Segmental Outlook  

The meal replacement products Market is segmented on the basis of product type and distribution channel. Based on the product type, the meal replacement products Market is segmented into ready-to-drink products, nutritional bars, powdered products, and others. Based on product type, ready to drink products held considerable share in meal replacement products market in 2020. Easy availability, affordability, and instant energy booster are the key factors contributing towards the high share of ready to drink products in meal replacement products market. Based on distribution channel, the meal replacement products Market is segmented into convenience stores, supermarket/hypermarket, online store, others. 

Online Store to register considerable growth based on Distribution Channel

Based on distribution channel, online stores are anticipated to hold major market share. The rising penetration of internet and smartphones along with rising inclination of customers towards making online shopping owing to its convenience is expected to drive the growth of this market segment.  

Global Meal Replacement Products Market Share by Distribution Channel, 2020 (%)

Regional Outlook 

The global meal replacement products market is further segmented on the basis of geography including North America, Europe, Asia-Pacific and Rest of the World. The US is anticipated to hold major market share in North American meal replacement products market. The considerable presence of health-conscious population and high prevalence of obesity, diabetes, cardiovascular diseases among others is anticipated to make major contribution towards the high share of this country’s market. The increasing focus of manufacturers towards the development of products that meets the nutritional and quality standards of the FDA is anticipated to accelerate the growth of the regional market.

Global Meal Replacement Products Market Growth, by Region 2021-2027

Asia-Pacific is anticipated to register significant growth in the Global Meal Replacement Products

The changing lifestyles and increasing purchasing power of the consumers have been the major factors surging demand for meal replacement products, which is expected to increase at a brisk rate during the forecast period, compared to the last few years. High preference for convenience products, particularly among middle-to-higher-income consumers, due to rising urbanization levels and busier lifestyles, is impacting the eating habits of consumers. With the rise in disposable incomes and busy lifestyles, consumers have been increasingly replacing main meals with more flexible, convenient, and light snacking options for the past few years. Asia-Pacific has been witnessing high growth in GDP rate as compared to other regions, which has influenced the purchasing power of consumers to opt for meal replacement products. The market for convenient meal replacement foods is increasing in developing economies, such as China, India, Bangladesh, and Indonesia. 

Market Players Outlook

Grupo Bimbo, ITC, Ltd., Lamb Weston Holdings, Inc., Lorenz Bahlsen Snack-World Gmbh& Co KG, Mccain Foods, Ltd., Mondelez International, Inc., Nestlé S.A., Oberto Group, Pepsico, Inc.among others, are the major manufacturers of meal replacement products s. These manufacturers are adopting different growth strategies including capacity expansion, mergers and acquisitions, new product launch, and product innovation to remain competitive in the marketplace. Major market players operating in this segment are extending their geographical reach to expand its market share. The establishment of strategic partnerships with major raw material providers of the region to cost saving on new products is likely to drive the growth of this market in the developing countries.

The Report Covers:

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global meal replacement products market. Based on the availability of data, information related to the products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.