HelloFresh Faces Steep Sales Decline as Meal Kit Demand Wanes
HelloFresh, the German food delivery giant, has reported a significant downturn in sales, with total orders slumping by 12% last year compared to 2024. The number of meals delivered by the company tumbled by more than 100 million, highlighting a dramatic shift in consumer behavior away from the pandemic-era meal kit craze.
Revenue Falls and Job Cuts Follow Pandemic Boom
The company's revenue fell by over 11% during 2025, a stark contrast to the rapid growth experienced during Covid lockdowns. HelloFresh and competitors like Gousto and Mindful Chef saw explosive demand when people were confined to their homes, with HelloFresh once projecting revenues of €10 billion (£8.6 billion) by 2025. However, last year's turnover came in at just €6.8 billion, reflecting a sharp market correction.
In response to the slump, HelloFresh implemented a savings drive in 2024, leading to 900 job cuts in the UK with the closure of a delivery site in Nuneaton. The company also exited markets in Spain and Italy, citing a lack of clear path to sustainable profitability. Employee numbers dropped from nearly 21,800 to 19,000 by the end of last year.
Share Price Collapse and Economic Pressures
HelloFresh's share price has plummeted by 93% since its 2021 peak, with an additional 8% drop in early trading recently. The decline is attributed to consumers turning away from convenience meals amid cost of living pressures and a deliberate company strategy to target a smaller, more profitable customer base.
The company cited "various uncertainties in the macroeconomic environment" as factors contributing to the sales slump. High interest rates and trade tariffs, including those associated with Donald Trump's policies, have made customers more cautious, according to HelloFresh.
US Market Struggles and Future Outlook
In the United States, HelloFresh's largest market, the company suffered an even sharper revenue fall of almost 17%. Manufacturing bottlenecks and meal quality issues negatively affected customer retention, exacerbating the decline.
Looking ahead, HelloFresh expects a further revenue decrease of up to 6% in 2026. Chief Executive Dominik Richter noted that consumer behavior is shifting decisively toward "eating real food," with customers increasingly prioritizing quality over mere convenience.
The meal kit industry, once buoyed by lockdown necessities, now faces a challenging landscape as economic realities and changing consumer preferences reshape the food delivery sector.
