HelloFresh SE is a meal-kit-providing German multinational company. Jessica Nilsson, Thomas Griesel, and Dominick Richter founded the meal-kit company in 2011. The company is operating its business in various countries across the globe. Today, we’ll discuss the PESTLE analysis of HelloFresh; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting HelloFresh
Some of the main political factors in the HelloFresh PESTLE analysis are as follows;
I-Government Regulations
The food, ingredients, meals, and health safety government regulations are very strict and tight in many countries. The objective of strict health and food safety regulations is to protect the health and interest of the consuming customer market. However, HelloFresh needs to comply with the food and ingredient safety regulations of different countries.
II-Trade Policies
HelloFresh sources food ingredients and raw materials from various regions, states, and countries. That’s where the role of government trade policies comes into play, and they are highly dependent on the German diplomatic relationship and foreign policy with the other food-sourcing countries. Better country relationships would smooth the trade among companies in various countries.
III-Political Stability
A stable political environment plays a key role in the growth of businesses and companies. In case of political turmoil, roadblocks, procession, and other violent activities, they make it difficult for HelloFresh to deliver the food and ingredient meal-kit to the customers on time.
Economic Factors Affecting HelloFresh
Some of the main economic factors in the HelloFresh PESTLE analysis are as follows;
I-Economic Downturn
The global economy has been going through an economic recession for the past few years. When people have lost their jobs and employment opportunities, they would have limited disposable income. It compels them to tighten their expenses and cut down all other additional costs. As a result, it reduces the sale of all businesses and companies including the meal-fit brand HelloFresh.
II-Ingredient and Supplies Cost
We are aware that HelloFresh procures raw materials and ingredients from various regions and countries. The cost of raw supplies and ingredients keeps changing due to various factors like fuel price, currency exchange rate, labor cost, delays, and other service charges. A small change in price would negatively impact the business operations, sales, and revenue of HelloFresh.
III-Additional Services
In order to provide additional services like customized recopies, menus, and ingredients, HelloFresh incurs a significant amount of additional cost and expenses. They help the company to retain the large customer market, earn the trust and confidence of customers, and gain a competitive edge.
Social Factors Impacting HelloFresh
Some of the main social factors in the HelloFresh PESTEL analysis are as follows;
I-Customer Needs and Preferences
The needs and preferences of the customer market keep changing due to multiple factors. For instance, they used to prefer fast food items, and now they want organic, sugar-free, and healthy diets. HelloFresh should pay heed to the growing customer market trends and offer them the same relevant products accordingly.
II-Organic Food
HelloFresh offers organic food ingredients that are healthy and relevant to the dietary requirements of the customer’s market. The consumer market has become highly cautious about the food they’re eating and putting into their bodies. They don’t want to eat and consume such food that is not in the long term, and that’s why they’re making conscious choices.
III-Customized Meal Plan
In order to attract and retain customer interest, HelloFresh offers customized meal plan options and customized recipes based on cultural and regional differences. It is because people prefer different types of spices and food recipes in different regions and cultures, and the company offers them customized and personalized meal plans relevant to their interests and demands.
Technological Factors Affecting HelloFresh
Some of the main technological factors in the HelloFresh PESTEL analysis are as follows;
I-Advanced Technology
HelloFresh employs the latest and advanced technology to develop its online and web platform to connect and engage with its target customers. The meal kit brand makes sure that its platforms are active and online whenever customers try to log in.
II-Online Subscription
HelloFresh follows the online subscription-based model, where the company charges a specific amount of fee from the users to provide food ingredients and menu services per month. Customers could avail company’s services and offer payment to the brand.
Legal Factors Impacting HelloFresh
Some of the main legal factors in the HelloFresh PESTEL analysis are as follows;
Regulatory Compliance
HelloFresh should comply with the food safety and health regulations of different countries. They comprise food and dietary requirements, organic food ingredients, healthy and nutrient-rich food, and others. Regulatory compliance would help the food ingredients and meal kit-providing brand to smoothly perform its operations without any disruption and delays.
Environmental Factors Affecting HelloFresh
Some of the main environmental factors in the HelloFresh PESTEL analysis are as follows;
Environmental Sustainability
HelloFresh has made a strong commitment to environmental sustainability. It comprises organic food ingredients, biodegradable packaging, recycling, employing renewable sources of energy, and others. Eco-friendly and sustainability initiatives would help the company to comply with environmental sustainability trends.
Conclusion: HelloFresh PESTLE Analysis |PESTEL Analysis of HelloFresh |External Environmental Analysis of HelloFresh | Strategic Analysis of HelloFresh
After an in-depth study of the pestle analysis of HelloFresh; we have realized that HelloFresh is the world’s leading meal kit-providing German brand. If you are learning about the HelloFresh PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
