Meal Replacement Products Market Size, Share & Trends Analysis Report By Product Type (Ready-to-drink Products, Nutritional Bars, Powdered Supplements, Other Product Types), By Distribution Channel (Convenience Stores, Supermarkets/Hypermarkets, Specialty Stores, Online Stores, Other Distribution Channels) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2033

Meal Replacement Products Market Size

The global meal replacement products market size was valued at USD 17.75 billion in 2023. It is projected to reach from USD 19.22 billion by 2024 to USD 36.27 billion by 2033, growing at a CAGR of 8.26% during the forecast period (2024-2032).

A pre-packaged, calorie-restricted food item known as a meal replacement product serves as a stand-in for a whole-food meal. The most popular forms of meal replacement items on the market include ready-to-eat foods, shakes, bars, and powders. They are full of vital vitamins, minerals, lipids, proteins, fiber, and complex carbs that help to replace poor or high-calorie meals and stifle subsequent food cravings. Additionally, these goods come in a huge selection of flavors, including vanilla, strawberry, chocolate, blueberry, and orange. Meal replacement foods are therefore viewed as a valuable alternative to a balanced, low-calorie meal that can be had whenever it is convenient.

Meal Replacement Products Market Growth Factors

Rising demand for convenient and small-portion meal

Americans spend more than half of their food expenditure on convenient foods, looking for quick and short meals, according to the United States Department of Agriculture (USDA). The global meal replacement products market is further driven by the demand for goods, including protein bars, energy bars, and shakes. The portable, practical, and frequently better nutrition bars provide a quick, on-the-go meal or an immediate consumption option. Another factor influencing the market is the accessibility of different varieties and flavors. As a result, these bars are rapidly gaining popularity, especially among the working class, young people, hostel residents, and bachelors. For overweight or obese adults with diabetes, meal replacement shakes and nutrition bars are convenient and effective weight loss strategies.

Consumers managing special diets strive for meal replacements

Consumers are closely monitoring their regular diets and nutrition consumption due to the rising rates of obesity and diabetes, and they are gravitating more and more toward meal replacement items. Countless businesses worldwide focus on providing customized meals, like shakes and drinks, for persons prepared to abandon their typical diets to lose weight effectively.

• For instance, Herbalife, a US-based corporation, offers meal replacement shakes and dietary supplements through its programs Quickstart, Advanced, and Ultimate to assist people in losing weight. As a result, many consumers searching for efficient diet programs to lose weight or boost their metabolism choose such plans, subsequently assisting in the market's expansion. The trend is most pronounced in the industrialized regions of North America and Europe, where issues like obesity and diabetes are influencing consumers. According to the Centers for Disease Control and Prevention, 88 million Americans aged 18 or older have prediabetes. Thus, there is a high demand for health and nutrition screenings across the country.

Meal Replacement Products Market Restraining Factors

Highly priced meal replacement products

One of the main barriers to the market is the poor pricing performance of meal replacement products compared to conventional offerings. Meal replacement solutions are more expensive than a typical meal since they contain premium functional nutrients. Consumers are always drawn to experimenting with new cuisines and fashions, which significantly impacts sales and market shares. Additionally, nutrition bars and supplement powders are expensive, with significantly fewer product options than ready meals, baked pastries, candy bars, and other confectionery items. Protein bar profit margins can reach 40–50% compared to only 20–30% for other packaged foods, and ingredient costs only account for 25% of the Price. Due to the perceived health benefits, people in industrialized nations do not mind paying higher rates for snack bars. As a result, price sensitivity is decreasing in industrialized nations. Price is still a problem for the market for snack bars in developing nations and economies with weak fundamentals.

Meal Replacement Products Market Opportunities

Rising demand for convenient and small-portion food

The United States Department of Agriculture (USDA) reports that Americans spend more than half of their food budget on quick and easy meals. The meal replacement products market is further fueled by the rise in demand for protein bars, energy bars, and smoothies. Nutrition bars provide a portable, practical, and frequently healthier option for a quick meal or rapid consumption. Another factor influencing the market is the accessibility of different varieties and flavors. As a result, these bars are rapidly gaining popularity, especially among the working class, young people, hostel residents, and bachelors.

Regional Insights

Asia-pacific is a dominant region with a 9.92% market share

Asia-Pacific is the most significant shareholder in the global meal replacement products market and is expected to grow at a CAGR of 9.92% during the forecast period. The food business is evolving quickly in developing nations like China. To improve their revenues and market shares, international players are moving into the nation and increased their presence in the market. With rising living standards, China's food consumption patterns have undergone a tremendous shift. The demand for meal replacement bars and powders in the food business has increased due to the weight management trend, making China the Asia-Pacific region's biggest market for these goods. Meal replacement solutions are getting a lot of interest from food and beverage firms and investors as China's overweight population rises. Young individuals make up most of the country's working population and make up a sizable portion of the meal replacement industry in India because they rarely have time for conventional cooking, given their busy schedules. Meal replacements, such as RTD beverages or nutritional bars convenient to consume at work or on the go, are becoming increasingly popular with Indian customers.

North america is the fastest growing region

North America is expected to grow at a CAGR of 9.92%, generating USD 9,860.51 million during the forecast period. Most Americans prefer nutritional bars and ready-to-drink items to sate their hunger without eating a meal. Various consumers are drawn to meal replacement items like drinks because of their versatility and portability. Additionally, the availability of appropriate retail locations for convenient foods gives them an advantage over other snacks in terms of planned and impulsive purchases. In order to keep their market share, businesses are continually developing new items. For instance, Soylent, a well-known meal replacement manufacturer in the United States, introduced a strawberry four-pack drink to provide customers with new products and encourage brand interaction. The Canadian Food Inspection Agency (CFIA) prohibited the drinks made by the Soylent company because they did not adhere to the standards for meal replacement products. Soylent relaunched its meal replacement products, including drinks and powder, in 2019 while abiding by all applicable laws. Customers are more likely to purchase these products because they are highly controlled by strict scrutiny.

Lifestyle problems are on the rise as a result of the rising rates of obesity among German youth. These factors have increased the need for replacement because more people in the nation focus on items that help them control their weight and lower their risk of contracting these diseases. Due to its natural profile and related label claims, formulations have seen a considerable increase in sales on the German market. The organic and vegan meal replacement beverages from Bertrand, a German company, contain high-quality proteins extracted from oats, rice, almonds, and walnuts. Social media, lifestyle blogs, and active media like television have improved consumers' access to nutrition and health information in the UK. Additionally, businesses are boosting their spending on marketing and new product development, which boosts the nation's demand for meal replacement items like nutrition bars and powdered supplements. Exante, XLS Nutrition, KeeDiet, SlimFast, Holland & Barrett, Huel, and Purition are a few of the major companies dominating the British meal replacement market, in addition to others.

The key factor influencing the growth of meal replacement products in Brazil is likely to continue to be the growing interest in health and wellness. This aspect is driving nutritional bar sales in the nation since Brazilians prefer to eat snacks that are not just low in added sugar but also clearly beneficial to their health. Therefore, the trend toward high-protein diets and sports nutrition may continue to support the impressive increase in meal replacement product sales during the projection period in the protein bar industry. The rising acceptance of high-end premium snacking options, particularly among the wealthy class, is another factor driving the Argentine meal replacement market. Additionally, nutritional bars will keep gaining ground in the nation's popular packaged food and meal replacement markets. Bodybuilders are anticipated to assist growth, as will rising usage among regular consumers.

Segmental Analysis

By product type

Based on product type, the global market is bifurcated into ready-to-drink products, nutritional bars, powdered supplements, and other product types. The nutritional bars segment is the highest contributor to the market and is expected to grow at a CAGR of 8.05% during the forecast period. Nutritional bars are meal substitutes with a high nutrient profile. Global sales of edible bars are thought to be primarily driven by consumer demand for quick and wholesome meal alternatives. Additionally, consumers choose meal replacements that adhere to their dietary choices, such as those that contain organic, kosher-certified, fat-free, and gluten-free ingredients. For instance, SANS has a selection of meal replacement bars that are soy, gluten, dairy, and sugar-free. Like this, PROBAR introduced a new line of plant-based meal replacement products called PROBAR living, which includes wholesome, fresh bars loaded with live probiotics. Additionally, several well-known businesses engage in considerable innovation to meet the sector's needs and maintain their competitiveness in the market.

The meal replacement shakes used in pre-surgery diets and weight loss management is significant drivers of the ready-to-drink products category because they may replace high-fat and high-calorie meals with controlled calories. A 200 or 300-calorie meal replacement shake also offers both the macronutrients and the micronutrients generally found in a 500 to 800-calorie meal, unlike protein shakes or fruit and vegetable juices. The availability of novel components in the meal replacement ready-to-drink industry, such as herbal and botanical products, is anticipated to increase the market's overall size. Additionally, industry participants are vying for consumer-specific categories like lactose-free and vegan products. For instance, Bear Squeeze sells vegan, paleo, and keto-friendly plant-based meal replacement drinks. Fitness enthusiasts and athletes also use ready-to-drink meal replacement solutions more frequently because they eliminate the waiting time and difficulty mixing protein powder with a preferred liquid.

By distribution channels analysis

Based on the distribution channels, the global market is bifurcated into convenience stores, supermarkets/hypermarkets, specialty stores, online stores, and other distribution channels. The supermarkets/hypermarkets segment owns the highest market share and is expected to grow at a CAGR of 9.48% during the forecast period. Supermarkets and hypermarkets have consistently held a commanding advantage in the market for meal replacement items. These channels have the added advantage of influencing the consumer's decision to buy from the wide range of goods on the market thanks to their close vicinity, particularly in major cities and metropolitan areas. Additionally, supermarkets and hypermarkets have gained market share due to the widespread retail visibility of meal replacement items. The growth of numerous supermarkets and hypermarkets in underserved nations like Saudi Arabia, Nigeria, and many others is causing a surge in the channel's sales of meal replacements.

Dedicated high-end experiential shopping spaces called specialty retail outlets offer a wide range of meal replacement options. Additionally, specialty gourmet stores witnessed a faster portfolio growth of meal replacement goods from condition-specific forms to generic ones than any other traditional retailing channel, indicating solid sales of the market-researched products via such distribution channels. Specialty merchants frequently carry meal replacement items that adhere to the strictest production and quality standards. As a result, these products are marketed to core customers who are highly brand- and quality-conscious. Specialty meal replacement goods, such as RTDs, powder supplements, gummies, and others frequently unavailable to mainstream merchants, are known to be offered by specialized retailers and web stores. These channels allow customers to make purchases based on origin and quality.

Recent Developments

• March 2022- Glanbia Nutritionals launched novel protein solutions for extruded snacks, cereals, and inclusions by drawing on decades of experience in protein and bar formulation.
• September 2022- Entrepreneur-led health and wellness company Amway celebrated 20 years of the company’s XS™ Energy Drink and Sports Nutrition brand.