Meal Replacement Products Market Analysis and Segment Forecasts to 2025
The global meal replacement products market size is expected to reach USD 25.02 billion by 2025, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 6.5% during the forecast period. Rising demand for healthy and nutritious food is anticipated to fuel the growth. High prevalence of obesity, diabetes, and cardiovascular diseases among others is expected to drive consumer awareness regarding weight loss and weight management diets, which in turn, will prompt the use of meal replacement products.
Meal replacement powder accounted for largest market share owing to rapid adoption of by health conscious consumers in developed countries from North America and Europe. High consumer awareness regarding the advantages of meal replacement products is expected to bode well for the overall product demand. Ease of handling and consumption is expected drive the demand for meal replacement powder in the forthcoming years. The manufactures are investing in production of ready-to-drink meal replacement products owing to the rising popularity of energy drinks.
Offline distribution channel held the largest market share in 2018. Significant presence of some of the leading product manufacturers in countries such as U.S. and Germany is projected to fuel the demand for meal replacement products. Factors such as access to internet and promotional activities by leading manufacturers are expected to further drive the growth.
North America held the largest market share in 2018 due to high prevalence of obesity and associated disorders in U.S. Increasing hectic lifestyle is anticipated drive the demand for time-saving alternatives for regular meals, which in turn is projected to fuel the regional market. Strict regulations related to food nutrition are projected to drive the growth of the market in North America as well as Europe. Asia Pacific, on the other hand, is expected to witness the fastest growth over the forecast period due to increasing awareness regarding meal replacement products among millennials in countries such as China and India.
Key market players engage in business partnerships, mergers and acquisitions, and product innovation to capture greater market share. In April 2019, Soylent, one of the major manufacturers of meal replacement products signed an agreement with Walmart. Under this agreement, Soylent will roll out five of its ready-to-drink meal replacement drinks in 4,378 Walmart stores in U.S.