Gen Z is the driving force behind the booming popularity of recipe box delivery services, with around six in 10 young people currently signed up for culinary convenience, new research reveals.
Latest data¹ from money.co.uk savings accounts shows 59% of Brits aged 16-24 are currently subscribed to the likes of Hello Fresh, Simply Cook and Gousto – the three most popular meal kit providers.
Customers are drawn in by pre-portioned ingredients and step-by-step recipes delivered directly to their doorstep that eliminate the need for food shopping and provide a quick and easy solution.
Finance experts at money.co.uk savings accounts have warned that while convenience is key for many, balancing this with responsible spending is vital to avoid a negative impact on savings potential.
According to the research, the booming meal kit trend is being spearheaded by youngsters, with the number of subscribers dramatically dropping off for older generations; just 8% of people aged 55 and up are currently signed up.
The trend is further evidenced among the remaining age demographics, with 20% of people aged 45-54 subscribed, 29% of those aged 35-44, and 46% of Brits in the 25-34 age bracket.
Surprisingly, nearly four in 10 (38%) people say there is no difference between the amount they spend on meal kits per week and what they would alternatively spend on their food shop.
However, a significantly larger 47% say they spend more on meal kits than they would if they went down the traditional route.
According to Lucinda O’Brien, expert at money.co.uk savings accounts, while convenience is increasingly important for young people, it should not be enjoyed at the expense of responsible spending and savings.
She said, “It’s an unfortunate stereotype that some generations spend excessively on things they don’t need and that luxuries such as takeaway coffee and Avocado on toast are the reason for a lack of financial progression.
“In fact, the financial issues impacting young people’s ability to save are far wider, relating to wage growth, inflation and more. While convenience spending isn’t the root of the problem, it is important to understand the impact your spending choices have on your finances in the long run, particularly when it comes to savings.
“Our research into spending on meal kits reveals how adults in the UK, in the search for convenience, are generally spending more than those who are willing to wait.
“So, if you are going to use monthly subscription services, make sure you use every trick in the book to keep the cost low. Many services will give you free trials, and with the number of services out there, you can get months of goods for very little investment.
“It’s also possible to get discounts and premium subscriptions as part of a package through other avenues, such as phone packages, credit card deals and more. All these steps will reduce the amount you spend and free up cash that could otherwise be put in a savings account to earn extra money and used as a buffer against the continuing rising cost of living crisis.”
For more information and guidance on saving, including the best savings rates available today, visit https://www.money.co.uk/savings-accounts.
¹ The research was based on a survey of 2001 respondents, carried out by money.co.uk savings, undertaken in October 2023.
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