[K-Food Hidden Hero] "50% of Customers Repurchase... Subscription Era for Meal Kits Too"

⑤ Lee Myung-hee hy R&BD Division Product Development Center Multi-Product Team Leader
New Delivery via Refrigerated Distribution Network
Safety Verified through Microbial Testing

[Asia Economy Reporter Lim Hye-seon] The domestic meal kit market has grown 20-fold in three years. The market penetration rate is around 10%, meaning that 1 out of 10 consumers has experienced meal kits. hy’s fresh convenience food brand ‘It’s On’ boasts a repurchase rate of 50%, a key indicator of product satisfaction. In fact, half of the customers who tried the meal kits made a repeat purchase within a month.

"The Subscription Era of Meal Kits"

Lee Myung-hee, head of the multi-product team at hy R&BD Division’s Product Development Center (photo, 43), in charge of product development, said on the 14th, "The reasons why hy It’s On meal kits are loved by customers include subscription delivery service, taste, and reliability," adding, "Through the subscription delivery service, customers can receive fresh meal kit products at their desired time and place with just one order." Lee joined hy in 2007 as part of the dairy research team and has worked at hy for 14 years.

The reason hy chose meal kits is due to its brand slogan emphasizing freshness and its nationwide refrigerated distribution network based on press managers. Particular attention has been paid to hygiene and safety. At hy Central Research Institute’s product development team, not only do they develop products that suit popular tastes based on verification by internal and external sensory inspection panels, but they also consider verifying the safety of ingredients an important part of the development process and a differentiation strategy.

Lee explained, "Since most meal kits consist of fresh ingredients, thorough microbial testing is necessary for safety," adding, "hy Central Research Institute is the first corporate-affiliated research institute in the food industry and has conducted research on bacteria for nearly 50 years. They repeatedly conduct microbial tests by exposing developed prototypes to different temperatures to verify safety." She continued, "We aim for a state where the product can be consumed for at least a week beyond its own expiration date, and we also have an internal organization called the Quality Safety Center."

Beef Bone Broth Budae Jjigae

More Delicious Than Famous Restaurants: Popularity of Beef Bone Army Stew

The top-selling It’s On meal kit product is Beef Bone Army Stew. Since its launch in 2019, about 30,000 units of Beef Bone Army Stew have been sold annually, accounting for 18.5% of total meal kit sales. Lee introduced, "Beef Bone Army Stew is a product that boasts a satisfying taste and quality comparable to famous restaurants, with a beef bone broth base and generous amounts of plump sausages and army stew toppings." The main customer base is women in their 40s. The proportion of customers in their 40s and 50s increased from 55% in 2018 to 60% last year. Particularly, reflecting the social trend of more men cooking, the proportion of male customers rose from 23% in 2018 to 28% last year.

Lee predicted that as online purchases and experience with meal kits expand due to the prolonged COVID-19 pandemic, the meal kit market will continue to grow.