According to the Lumina Intelligence UK Foodservice Delivery Market Report 2022, delivery has been able to successfully maintain new customers brought into the channel throughout the pandemic, with 12% of UK adults ordering delivery at least once per week.
Last year, the market saw strong growth of 6.5%, bringing the total value of the market to £12.6bn; and is forecast to grow by a further 5.3% in 2022, holding a 12.2% share of the total UK eating out market.
In total, the report forecasts foodservice delivery market growth to be £5.7bn between 2019 and 2022. And by the middle of the decade, the market value is expected to total £14.6bn, with robust growth of 3.2% per year from 2022 to 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 more than one in three (36%) in 2022.
Meanwhile, 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. McDonald’s and KFC have doubled their shares of the delivery market from 2019-2022, to 8% and 4%, respectively.
“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," says Blonnie Whist, insight director at Lumina Intelligence.
“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."