Food delivery market reaches £11.4bn as a result of the pandemic

By BigHospitality

- Last updated on GMT

Food delivery market reaches £11.4bn as a result of the pandemic

Related tags: Delivery & takeaway, Casual dining, Lumina Intelligence

Food delivery grew by £3.7bn in 2020 to reach £11.4bn - double its 2015 market value - as it benefited from being one of the few routes to market during the pandemic, Lumina Intelligence reports.

During 2020, delivery accounted for £2 in every £10 spent on foodservice, and is expected to drive habitual delivery behaviour beyond the pandemic, according to theLumina’s UK Foodservice Delivery Market Report 2021​ report.

With restrictions easing and restaurants reopening for dine in from 17 May, delivery is expected decline, with Lumina anticipating a drop of 7.6% in 2021 to a value of £10.5bn. However, this is still 37% higher than the delivery market’s 2019 market value.

One in 12 consumers ordered foodservice delivery for the first time during the Coronavirus pandemic, the report reveals.

More than a quarter of consumers increased their usage, and nearly three quarters of current users plan to still order delivery when the lockdown restrictions are lifted.

Not wanting to cook was the key motivating factor for ordering, as consumers grew tired of home cooking through the pandemic, it says

“With dine-in operations closed or heavily restricted over the last 12 months, consumers have turned to foodservice delivery in their droves, including an additional 4.3 million UK adults who ordered foodservice delivery for the first time during the pandemic,” says Blonnie Whist, head of insight at Lumina Intelligence.

“Whilst we expect the playing field to level out now that restrictions are starting to ease, the impact of 2020 is expected to drive habitual delivery behaviour beyond the pandemic.”

Lumina predicts foodservice delivery will be worth £12.6bn in 2024 with consistent, robust growth from 2022 onwards. Independent restaurants and traditional fast-food brands are set to lead this growth, it says.

“In the immediate term, promotions will play a key role in driving volume, as the recession continues to pinch household incomes,” says Whist.

“However, in the longer-term, offering a point of difference and expanding day part coverage will be key growth drivers for operators.”

According to consumer research by Lumina, Uber Eats and Deliveroo grew share of the delivery market, Uber Eats by 5 percentage points (pp) to 11.3% and Deliveroo 0.4pp to 11.0%.

 

Related topics: Trends & Reports, Casual Dining

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