Takeaway deliveries set to become £5bn market

Hummingbird Bakery partnered with Deliveroo
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Takeaway deliveries – serviced by businesses such as Deliveroo, Just Eat, HungryHouse and UberEats – are tipped to soar by 17% in the next two years.

Britain’s foodservice industry is being transformed by the rise of food delivery services, according to retail analysts The NPD Group.

Aggregator businesses such as Deliveroo and Just Eat have levelled the playing field and enabled smaller independent operators to compete more effectively with the bigger foodservice chains, said NPD.

Bakeries are embracing the opportunity. Greggs has teamed up with UberEats to trial a home delivery service in Newcastle, while businesses including Hummingbird Bakery and Maître Choux have partnered with Deliveroo.

Over the past decade, the takeaway delivery market has grown 73%, from £2.4bn a year to £4.2bn as of February 2018. It is set to be worth close to £5bn annually by 2020.

NPD also found that pizza delivery was not growing as quickly as the takeaway delivery market, with pizza’s share dropping three percentage points year on year. Burgers, meanwhile, had accounted for 60% more deliveries in 2017 than in 2016.

“Delivery is a big hit with consumers – thanks to the aggregators, they now have a very large choice of restaurants at their fingertips,” said NPD foodservice head Cyril Lavenant.

He added that delivery services were a good marketing platform for independent operators that cannot afford to spend on advertising.

“Phone apps and websites also make it easier for consumers to order full meals from a variety of cuisines. It’s all there at the click of a button,” said Lavenant. “Whatever way you look at it, takeaway delivery is definitely changing the shape of Britain’s foodservice industry.”

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