The Marley Spoon AG (ASX: MMM) share price rallied today despite no announcements from the company. Potentially, investors might be absorbing a recent research report that forecasts a peachy future for the global meal kit delivery market.
The German-based meal kit company's shares finished the session 8.98% higher at $2.67.
Marley Spoon shares lift amid beefed-up estimates
Despite market research and consulting company Renub Research publishing its analysis of the meal kit market late last month, the forecasts have been widely shared across financial news over the past couple of days. The report, titled 'Meal Kit Market Global Forecast by Country, Type, Ordering Method (Online, Offline), Category (Vegetarian, Non-Vegetarian), Company Analysis', offered a deep dive into the industry.
The crux of Renub's analysis is that COVID-19 has provided a substantial tailwind for the meal kit industry. With restaurants and some supermarkets forced to close, consumers have been increasingly turning to delivered meal kits to satisfy their culinary desires.
In essence, the report outlines an expectation the convenience phenomena in meal preparation will continue to grow. It found the global meal kit market was estimated to be worth US$8.4 billion in 2020. However, this is forecast to reach US$20.1 billion by 2027.
Those estimates certainly look appealing for companies operating within the space. An expanding market means greater potential for revenue growth. This must be music to the ears of shareholders.
Meal kit roundup
Marley Spoon isn't the only company looking to take advantage of this potentially growing trend. Other dominant competitors in the industry include internationally listed companies HelloFresh and Blue Apron Holdings Inc.
HelloFresh recorded more than 1.3 million shoppers in the first few months of lockdowns. According to Similarweb, HelloFresh received a total of 9.81 million website visits in May. Marley Spoon, on the other hand, recorded 1.04 million visits.
For reference, the ASX-listed Marley Spoon has a market capitalisation that's roughly 3% of HelloFresh's. However, that hasn't stopped the Marley Spoon share price from soaring 147% in the past 12 months.
