The UK’s foodservice delivery sector is expected to grow 5.3% in 2022, new insight has found.
According to the Lumina Intelligence UK Foodservice Delivery Market Report 2022, the UK foodservice delivery market is forecast to grow by £0.7bn in 2022, to a value of £13.3bn.
This 5.3% rise follows strong growth of 6.5% in 2021. In total, the report forecasts total market growth between 2019-2022 to be £5.7bn.
Lumina expects the UK foodservice delivery market to reach £14.6bn in 2025, predicting robust growth of 3.2% per year from 2022-2025.
From an aggregator perspective, the top three delivery aggregators – Just Eat, Uber Eats and Deliveroo – hold a combined share of 69.9% of all foodservice delivery occasions. Just Eat has grown its share of foodservice delivery occasions to account for over 1 in 3 (36%) in 2022.
From a brand perspective, the top five foodservice delivery brands – Domino’s, McDonald’s, KFC, Papa John’s and Pizza Hut Delivery - comprise of just under one third (29%) of the delivery market in terms of share.
The report found that 12% of UK adults order foodservice delivery at least once per week, with this peaking at 15% during the third lockdown period. Penetration has remained around 12% from June 2021 to January 2022, despite restrictions easing and dine in reopening.
Familiarity, as a reason for choosing a particular establishment to order foodservice deliver from, is key, accounting for 38% of occasions. However, whilst familiarity is the top need in foodservice delivery, its importance has declined by -4ppts year-on-year, as consumers show more willingness to try somewhere different. ‘It’s good value for money’ has risen by +2ppts to be only 3ppts behind familiarity as the pandemic and rise in cost of living puts a strain on consumer finances.
Blonnie Whist, insight director at Lumina Intelligence said: “After two years of on-off restrictions across the UK eating and drinking out market, the use of foodservice delivery has become habitual to consumers, with no sign of demand waning over the coming years. As a result, it is no longer an either/or scenario for operators, but a necessity in order to recover from the effects of the pandemic swiftly. This is evident in our forecasts that suggest delivery’s share of the total eating out market will grow each year over the next three years. However, consumers are becoming more demanding and adventurous. Healthier options, sustainable packaging and a wider coverage across day parts other than dinner are all areas that will be key to growth for operators.”