The UK foodservice delivery market saw growth of 48.1% in 2020, reaching £11.4bn in the process, according to a report.
However, it foresees it declining by 7.6% in 2021 to a value of £10.5bn with the return of the full hospitality, although this will still be 37% higher than its 2019 market value.
Lumina Intelligence’s UK Foodservice Delivery Market Report 2021 explains how the industry doubled its 2015 market value due to it benfiting from being one of the few routes to market available through the height of the pandemic restrictions.
However, it foresees it declining by 7.6% in 2021 to a value of £10.5bn with the return of the full hospitality.37% higher than its 2019 market value.
Blonnie Whist, head of Insight at Lumina Intelligence said, “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 4.3m UK adults who ordered foodservice delivery for the first time during the pandemic.”
“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. By 2024, the UK foodservice delivery market will have grown a further 10%, highlighting a significant opportunity. Independent restaurants and traditional fast food brands are set to lead this growth. In the immediate term, promotions will play a key role in driving volume, as the recession continues to pinch household incomes. However, in the longer-term,offering a point of difference and expanding day part coverage will be key growth drivers for operators.”