HelloFresh, the German meal kit delivery giant, has reported a severe sales downturn as consumer appetite for its products wanes sharply in the post-pandemic era. The company's total orders slumped by 12% last year compared with 2024, with the number of meals delivered tumbling by more than 100 million.
Financial Freefall and Strategic Shifts
Revenue at HelloFresh fell by over 11% during 2025, a decline the company attributes to "various uncertainties in the macroeconomic environment" and a deliberate strategy to focus on a smaller, more profitable customer base. This marks a dramatic reversal from the Covid lockdown boom, when HelloFresh and competitors like Gousto and Mindful Chef experienced explosive growth as people confined to their homes sought convenient meal solutions.
Share Price Collapse and Market Retreat
The Berlin-based firm's market value has collapsed spectacularly in recent years. Its share price has plummeted 93% since its 2021 peak, dropping another 8% in early trading this Wednesday. Turnover last year reached €6.8 billion, far short of the €10 billion (£8.6 billion) revenue projection it once held for 2025.
Consumers are increasingly turning away from convenience meals amid persistent cost-of-living pressures, forcing HelloFresh into a significant savings drive. This included 900 job cuts in the UK last year with the closure of a delivery site in Nuneaton, and the shuttering of other delivery centres across Europe. Employee numbers fell from nearly 21,800 to 19,000 by year's end.
Geographic Contraction and Future Forecasts
The company has also retreated from several European markets, pulling out of Spain and Italy entirely. HelloFresh stated that "those markets do not currently offer a clear path to the scale and sustainable profitability" required for continued operation.
Looking ahead, HelloFresh anticipates further challenges, forecasting an additional revenue decline of up to 6% in 2026. This projection follows manufacturing problems in the United States, its largest market, where sales fell by almost 17% due to production bottlenecks and "meal quality issues negatively affecting customer retention."
Leadership Perspective on Changing Consumer Habits
Chief Executive Dominik Richter acknowledged the shifting landscape, stating: "Over the past year, we have seen consumer behaviour shifting decisively toward 'eating real food' ... The debate is no longer simply about convenience, it is about the quality of what is convenient. Customers raise the bar constantly – and so must we."
The company also cited high interest rates and former US President Donald Trump's trade tariffs as factors making customers more cautious with their spending. This perfect storm of post-pandemic normalization, economic pressures, and operational challenges has left HelloFresh struggling to maintain the momentum it enjoyed during its lockdown-era heyday.
