“Revitalizing Meal Replacement: Huel’s Rise in a Competitive Market”
Meal replacement beverages have been available since the 1950s, and the increasing demand from busy consumers seeking nutritious meals that align with their values is revitalizing this market for the modern age. James McMaster, the CEO of Huel for the past two years, has played a pivotal role in developing a powdered meal replacement brand designed for those with limited time. Founded in 2015, Huel reports a remarkable 150% year-over-year growth and is projected to reach a valuation of $1.25 billion within three years.
“I believe everything fell into place at the right moment,” said Huel founder Julian Hearn in an interview with Food Dive. “Huel offers a straightforward and convenient way to eat while also benefiting your nutrition and saving money. These combined factors are exactly what consumers are looking for.” In just four years, the complete nutrition beverage has announced it has sold 50 million meals globally. McMaster noted that this impressive sales figure is only part of the story; the brand has been profitable from the start, experiencing only “very mild losses” due to its operational methods.
Clearly, the company has tapped into an emerging trend. Huel is now sold directly to consumers in 80 countries, including the U.S., but it faces significant competition. Brands like Soylent, Slimfast, OWYN, and Après are already on store shelves, making the U.S. market quite crowded. Hearn welcomes this competition, stating that it fosters consumer confidence in the category.
The United States is the second-largest market for the British brand, even though it sells just a fraction of the products it produces. Currently, Huel offers only four flavors of its ready-to-drink and powdered beverages in the U.S.: unflavored, berry, vanilla, and chocolate. The chocolate flavor, a recent addition, has quickly become the best-seller since its U.S. launch a few weeks ago. McMaster explained that the limited product selection in the United States is due to federal regulations requiring specific formulations to be labeled as “complete nutrition.” This label is based on U.S. Dietary Guidelines and Recommended Daily Allowances, which include 27 micronutrients—one more than the 26 required by the European Union. Nonetheless, McMaster insists that the products are fundamentally similar. In the U.K., the brand offers a broader range of beverage flavors, along with a power bar and granola cereal. While Huel plans to introduce the bars in the U.S. eventually, it is currently focused on its powdered complete nutrition beverages. McMaster explained that this focus aims to help consumers re-educate themselves about what food can be, emphasizing that Huel considers its beverages as food, plain and simple.
The brand’s desire to reshape the conversation around food also contributes to Huel’s narrow product range. The powdered and ready-to-drink meal replacement beverages contain plant-based ingredients such as oats, pea protein, flaxseed, and brown rice protein, along with a blend of vitamins and minerals. According to the company, these ingredients provide all the essential nutrients required daily, including the recommended amounts of protein, carbohydrates, and fats.
Simultaneously, snacking is becoming a rapidly expanding segment of the food industry. Time-strapped consumers are looking for various ways to obtain their nutrition on the go. Datassential estimates that individuals consume about four to five snack foods daily instead of three sit-down meals. Consequently, the snack market, valued at $89 billion in 2018, is projected to grow at a compound annual growth rate of 6.83% from 2017 to 2021, according to Research and Markets.
While meal replacement competitor Soylent has ventured into the snack sector with products like Soylent Bridge and Soylent Squared snack bars, Huel has opted for a more focused approach with its four global product lines. This strategy allows the company to engage more deeply with its consumer base and adapt products based on feedback. McMaster emphasized that this approach not only ensures profitability but also leads to better products that resonate with consumers.
Hearn stated that Huel does not view itself as a direct competitor to other meal replacement drinks. Instead, Huel competes with convenient ready-to-eat meals available in supermarkets and fast food. To differentiate itself, Hearn noted, “we have an appealing aesthetic and a product that people enjoy.” He also remarked that “we focus on doing our own thing.”
Huel’s “own thing” is its direct-to-consumer model, which emphasizes customer engagement and the creation of meal replacements that cater to those in search of complete nutrition, particularly vegan options free from added sugars, genetically modified ingredients, or soy. With this unique approach, the brand is currently selling over 1.5 million meals monthly, and McMaster indicated that this growth shows no signs of slowing. Importantly, Hueligans, as the brand’s fans are known on social media, do not replace all their meals with these drinks daily.
“We’re not saying, ‘Stop eating,'” McMaster clarified. The concept is simply to replace a meal or two several times a week when life’s demands make it difficult to prepare food. This strategy has broadened Huel’s appeal to a wider audience. McMaster mentioned that Huel’s customers include firefighters, doctors on shift work, photographers on shoots, and college students seeking affordable meal options while on the move.
For those who argue that meal replacements are not a sustainable long-term nutrition solution, McMaster countered that “in most cases, [Huel] is far superior to whatever you’ve been consuming.” He noted that the company’s products are formulated by a team of nutritionists and are targeted toward consumers who would typically opt for less nutritious meals, such as fast food.
Although the product is relatively new in the United States, the company anticipates it will eventually become its primary market. Huel is not actively seeking partnerships with traditional CPG companies to expand its supply chains and distribution; however, McMaster acknowledged, “It’s something we would consider if it could benefit us in the future.”
The future of meal replacement drinks remains uncertain. Much like SlimFast fell out of favor in the early 2000s, current replacement shakes might face a similar fate. That’s why Huel is committed to positioning itself not just as ready-to-drink nutrition but as food. “We’re food that’s better for you, better for the planet, and saves you money, so it’s logical that there will continue to be a market,” McMaster concluded.
In this context, it’s essential to note that for those considering meal replacements like Huel, understanding how to integrate them into a balanced diet can be beneficial. For instance, if someone is interested in incorporating ccm tablets into their routine, knowing how to take them effectively can complement their nutritional strategy, just as meal replacements can fit into a busy lifestyle.
