Global Meal Replacement Products Market Overview

Meal Replacement Products Market size is projected to reach USD 28.78 Billion by 2032 from an estimated USD 13.96 Billion in 2023, growing at a CAGR of 8.37% globally.

A key driver is the increasing demand for convenient and controlled-portion food options. Meal replacements come in a variety of formats, from pre-made shakes and bars to ready-to-eat meals, catering to busy lifestyles and portion control needs. Another significant factor is the growing focus on health and wellness. Meal replacements often boast a balanced nutritional profile, containing essential vitamins, minerals, and protein, all conveniently packaged. This aligns perfectly with a global trend toward healthier eating habits, especially as chronic diseases become a pressing concern. Additionally, time-strapped consumers find meal replacements to be a practical solution for fitting in nutritious meals on the go.

The market also faces some hurdles. While convenience and health are attractive features, some consumers prioritize taste over nutritional value, and meal replacements can sometimes struggle to compete with the sensory satisfaction of a traditional meal. There's also a lingering perception that these products are not a complete dietary solution and may lack essential nutrients for long-term health. Manufacturers are constantly innovating to address these concerns, with a focus on improved taste profiles and formulations that provide a more comprehensive range of nutrients.

Market Dynamics and Factors for the Meal Replacement Products Market

Drivers:

Obesity And Diabetes Are Becoming More Common, And There is a Growing Popularity of Health-Conscious Consumers.

Type 2 diabetes mellitus (T2DM) is becoming more common around the world. T2DM can lead to major complications and even death if not managed properly. Diet modification is one of the most successful early-stage management methods for T2DM, but it requires patient understanding and compliance. As a result, meal replacement (MR) has grown in popularity as a technique for improving glycemic control and weight loss in T2DM patients. Diabetes is becoming more common at the same time as obesity is becoming more common. Those who are overweight or obese and have diabetes and want to lose weight confront numerous obstacles. Several recent studies, however, have shown that weight loss in diabetic individuals can be achieved using a multidisciplinary approach that includes systematic nutritional management and meal replacements (MRs). Because of their nutritional adequacy, nutritionally complete meal replacement has been demonstrated to be beneficial at the commencement of weight loss programs and for weight maintenance. Patients who use this method, however, must regularly monitor their blood glucose levels and may need to change their diabetes medications. Most commercial meal replacement is now enriched with vitamins and minerals to prevent long-term micronutrient deficit, which is prevalent in low-calorie diet regimens. They're also available in a variety of flavors and formats, which adds to their overall acceptability. Meal replacement is typically utilized as an absolute substitute for an agreed-upon amount of meals/snacks to properly commence weight loss. Furthermore, the global meal replacement industry is expected to be driven by rising awareness of healthy lifestyles. Meal replacements are becoming increasingly popular as a handy and easy way to replace regular meals with a nutritional diet.

Restraints:

Meal Replacement Items Are Expensive

Science and technology assist people in identifying foods that will assist them in managing their weight and overall health. Meal replacements are quite expensive, which may operate as a market restraint. The cost of a nutritious meal replacement is higher than the cost of a conventional meal since additional manufacturing techniques are used to boost the nutritional value of the product. The high expense of meal replacement is linked to the high cost of R&D and personalization. Consumers have moved to meal replacement products to boost their overall health as their health issues have grown and their lifestyles have changed. Meal replacement solutions are less cost-effective, which may limit market expansion.

Opportunities:

Convenient And Small-Portion Food is Becoming Increasingly Popular

Americans spend more than half of their food budget on convenience foods, according to the United States Department of Agriculture (USDA), aiming for quick and easy meals. This is driving the market examined by the growing demand for items like protein bars, energy bars, and shakes. Nutrition bars are a handy, practical, and typically healthier option for a fast on-the-go meal or snack. The industry is also driven by the availability of diverse sorts and tastes. As a result, these bars are gaining in popularity, particularly among the working class, youths, hostel dwellers, and bachelors. According to a survey performed by Welch's in 2017, 92 percent of millennials said they had been snacking instead of eating their meals. The research shows a growing customer preference for quick meals, indicating a burgeoning market for healthier, better-for-you meal replacement solutions.

Market Segmentation

Segmentation Analysis for Meal Replacement Products Market:

By Product, the powdered product segment is anticipated to register the major meal replacement market share over the forecast period. Powder products' convenience of storage and fast-paced lifestyles are projected to promote this segment's growth. With the powder packets, the manufacturers also include a free glass shaker. The availability of a wide range of flavors is expected to attract more customers who are concerned with weight loss and living a healthy lifestyle. In addition, meal replacement powders are popular because of their convenience and ease of use. Meal replacement powders are mixed into shakes and taken with water or low-calorie milk. In the future years, the increased acceptance of meal replacement powder as part of weight management will generate a good market outlook.

By Distribution Channel, the offline segment is anticipated to dominate the meal replacement market over the forecast period. Due to the presence of various formats of offline stores such as supermarkets & hypermarkets, convenience stores, specialty stores, many gym owners also sell major meal replacement products in gyms, which are anticipated to turn the demand for the offline segment in the meal replacement market.

Regional Analysis for Meal Replacement Products Market:

The meal replacement products market has seen significant growth in recent years, driven by increasing consumer demand for convenient and nutritionally balanced food options. These products, which include shakes, bars, and powders, offer a quick and easy solution for individuals with busy lifestyles who seek to maintain their health and wellness goals. The market's expansion is fueled by a growing awareness of the importance of balanced nutrition, rising health consciousness, and the increasing prevalence of lifestyle-related diseases such as obesity and diabetes. Additionally, advancements in food technology and product formulations have improved the taste and nutritional profile of meal replacement products, making them more appealing to a broader consumer base.

North America dominates the meal replacement products market, a dominance attributed to several factors. The region's high disposable income and fast-paced lifestyle have led to a greater adoption of convenient food solutions. Moreover, the strong presence of key market players, coupled with extensive marketing and promotional activities, has significantly boosted product visibility and consumer acceptance. In North America, there is also a growing trend towards health and fitness, which has propelled the demand for meal replacements as a viable alternative to traditional meals. Furthermore, the region's robust retail infrastructure, including online and offline channels, ensures widespread product availability and accessibility to consumers.

Players Covered in Meal Replacement Products Market are:

• Nestlé
• Soylent
• Abbott
• Herbalife International of America Inc.
• SlimFast
• Blue Diamond Growers
• Glanbia plc.
• General Mills Inc.
• Orgain Inc.
• Bob’s Red Mill Natural Foods
• Healthy 'N Fit International Inc.
• Kellogg NA Co.
• Encore
• PepsiCo
• Labrada.com
• Vega
• ICONIC Protein
• United States Nutrition Inc.
• MET-Rx Substrate Technology Inc.
• WorldPantry.com Inc.
• CytoSport Inc.
• OWYN
• PREMIER NUTRITION CORPORATION and other major players.

Key Industry Developments in Meal Replacement Products Market

• IN June 2022 - CTRL, the fast-growing meal replacement brand, has launched its new Meal On-The-Go Bars, marking its expansion into functional foods. The launch follows a successful friends and family funding round featuring investments from esports organization LoudGG and content creators Jimmy Here and Crispy Concords. The capital will be utilized to enhance the retail footprint, increase visibility, and expand product lines, reflecting the brand's commitment to healthier alternatives for the gaming, streaming, and digital creator community.
• In June 2021, Arla Foods Ingredients has introduced a new concept that emphasizes the versatility of whey and milk protein ingredients in the creation of on-trend meal replacements. Meal replacements have become more popular as people move away from crash diets and toward more comprehensive methods to weight loss. Over the last 10 years, the global market for such items, which include protein bars, powder shakes, and RTD beverages, has risen at a CAGR of 7%, with one in every four people now eating them at least once a week.
• In January 2020, Nestlé has declared a partnership with Burcon and Merit, two key players in the development and production of high-quality plant proteins. This collaboration will enable Nestlé to further fuel the development of nutritious and great-tasting plant-based meat and dairy substitutes with a good environmental footprint.