One stock well-placed to help solve a global food puzzle

By 2050, the global population of 10 billion is projected to require 70% more food than it needed in 2012​

In this wire, we offer a deep dive into HelloFresh, a company that has not only transformed the at-home dining experience but is also helping to combat food waste, and is well placed to maintain its leadership in 14 markets globally, with its largest business in the US, followed by the UK, Australia and Germany.

The coming food crisis

According to the UN, one-third of food that is produced for human consumption is lost or wasted globally​

The wealthy waste more than the poor. Consumers begin throwing out food when their spending hits about $6.70/day. Consequently, the combined cost of the social, economic and environmental impact amount to $2.5 trillion annually​

The WHO estimates that 80% of premature heart disease cases, strokes and incidences of type-2 diabetes, as well as 40% of cancers, could be avoided if major risk factors for non-communicable diseases, such as unhealthy diets, were eliminated​

The concentration and distribution of food insecurity by severity differ greatly across the regions of the world.

In response to the global food crisis, consumers are looking for solutions. They are searching for new ways to grow food, experimenting with alternative foods such as plant-based protein, and holding companies accountable for their environmental impact. 

A four-step transformative pathway 

In this way, we are witnessing a transformation in the way that consumers conceptualize and interact with food. We identify four key forces facilitating this change in consumer preferences.

Why HelloFresh?

HelloFresh addresses the changes in consumer preferences outlined above through its innovative meal-kit solution.

Founded in Berlin in 2012, HelloFresh has become the global leader in the meal-kit delivery market today. Catering to 5.3 million active customers as of 1Q21, HelloFresh provides fresh, healthy, and convenient meal kits to your doorstep. 

By providing step-by-step instructions and portioned ingredients, HelloFresh has transformed the at-home dining experience and is helping to combat food waste. The company operates in 14 markets globally, with its largest business in the US, followed by the UK, Australia and Germany.

As the largest meal-kit player globally, HelloFresh is well-positioned to take advantage of a huge total addressable market (TAM), with low and expanding penetration.

HelloFresh estimates that its TAM is approximately 135 million households whilst current penetration is only 3-4% today. Important macro trends should support growth and innovation in the meal-kit segment over the long-term. 

These include the digitalization of food ordering, consumer demand for healthier meals, and the need for more sustainable food solutions. In this context, it is expected that the meal-kit market can grow >100% over the next 5 to 6 years

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