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UK Food Delivery Market Size

The food delivery market has experienced significant growth in recent years, driven by advancements in technology and evolving consumer preferences for convenience and variety.

In the United Kingdom, this industry reached an estimated £10 billion in 2022, accounting for 4.65% of the global food delivery market.

uk food delivery market

UK vs Global vs Us Food Delivery Market Size

  • In 2022, the UK food delivery market was valued at £10 billion.
  • Comparatively, the global food delivery market size reached £215 billion the same year.
  • The US market alone accounted for £50 billion in 2022.
  • The UK held a 4.65% share of the global food delivery market in 2022.
  • Meanwhile, the US commanded a 23.26% share.
  • The UK food delivery market experienced a 7% annual growth rate in 2022.
  • Globally, the market grew by 9% during the same period.
  • The US market saw an 8% annual growth rate in 2022.

UK Foodservice Market by Type of Restaurant

  • 28% quick service restaurants, 38% full-service restaurants, 31% cafes and bars, 2% street food

Here is how to global chart looks like:

food service market type
Chart by deloitte.com

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Global Food Delivery Trends

  • In 2019, the global worth of Italian cuisine reached €236 billion, reflecting a growth of over 6% from €209 billion in 2017.
  • Italian cuisine accounts for 18% of the worldwide full-service restaurant market.
  • Italian cuisine’s value is greater in China (29%) and the US (24%) than in Italy (16%) itself.
  • US and Brazil are the top countries in terms of Italian cuisine penetration overseas, both at 28%.
  • In the leading 5 European nations (including the UK), European cuisines make up 44% of the foodservice market.
  • With a market share of over 30% Italian cuisine dominates the European cuisines landscape and is projected to grow further.
  • Authentic Italian products hold enormous potential.
  • The value of such products is nearly triple that of Italian food exports.

Food Delivery Trends in the UK

  • A 27% increase has been observed in food service delivery users ordering lunch to spend time with their partners.

This trend presents an opportunity to target couples working from home by offering lunchtime deals for two.

What The Big Brands Are Doing

  • Pub and bar delivery availability experienced a 25% increase YoY, with nearly half of brands now offering this service.
  • Contemporary fast food brands, like Five Guys and Tortilla, have joined forces with Deliveroo Editions.
  • Other examples include Vintage Inns, Ember Inns, O’Neill’s, Chef & Brewer, and Farmhouse Inns, which all saw a 25% increase in delivery availability.
  • McDonald’s has experimented with a new concept to accommodate increased delivery volumes without affecting the dine-in experience.
  • In November 2021, McDonald’s piloted the “Convenience of the Future” model, which: Provides a separate entrance and waiting area for delivery drivers. Reduces disruptions to customers by keeping couriers away from dining areas.
  • Wagamama introduced BOX, a lunchtime delivery concept designed for remote and office workers in 2 cities: London and Leeds.
  • On-demand groceries contributed to around 11% of Deliveroo’s revenue in the first half of its financial year, up from 9% the previous year.
  • Deliveroo reported full-year revenues of nearly £2 billion for the year ending December 31, 2022, marking a 13.8% increase from the previous year.
  • The company’s pre-loss stood at £230.6 million, which is an improvement from the £281.8 million loss reported a year earlier.

What UK Customers Want

  • 53% of respondents try to buy healthier snack items, such as reduced sugar or lower-calorie options.
  • 50% find calorie information on menus useful.
  • 48% are attempting to reduce their meat consumption.
  • 46% appreciate menus offering lower-calorie versions of signature dishes.
  • 44% are trying to cut down on their alcohol consumption.
  • 39% feel motivated to exercise and maintain a balanced diet

Latest Statistics (Updated in January 2024)

  • UK rapid delivery companies are experiencing a reduction in riders and warehouse closures.
  • Major player Gorillas has retreated from five UK towns and cities, leading to a downsized workforce.
  • Getir, an on-demand grocer, has placed some UK stores in “hibernation” and trimmed its employee count.
  • Zapp, a London-based competitor, has slashed its workforce by 10% and exited Bristol, Cambridge, and Manchester.
  • As delivery discounts wane, on-demand grocery app downloads and usage have declined.
  • Low profit margins on food items, typically ranging from 1-5%, make it difficult for firms to become profitable.
  • To reduce expenses and showcase a route to profitability, some rapid delivery firms are resorting to gig economy riders.

UK Food Delivery Market

Tthe food delivery market has experienced significant growth in recent years, with the UK market demonstrating remarkable progress.

This report highlighted key trends, including the rise of delivery services for pubs and bars, innovative delivery concepts, and an increased focus on health-conscious options.

Additionally, it emphasized the continued popularity of Italian cuisine worldwide and the growing presence of on-demand grocery services within the food delivery sector.

Businesses within the food delivery market need to stay updated on these trends and adapt accordingly to capitalize on the opportunities they present.

By catering to the evolving preferences and needs of consumers, companies can successfully navigate the competitive landscape and ensure a sustainable future in the thriving food delivery market.