Over the past 12 months, takeaway and delivery accounted for 26% of all UK consumer spending on eating out. The total value of the market reached £17.7 billion.
However, spending declined by £400 million, or 2.2%, compared with the previous year. Almost half of the decline was linked to smaller average order values, while a further 40% resulted from fewer orders.
One of the main reasons is increasing financial pressure on consumers. At present, 80% of UK consumers are very or extremely concerned about the cost of living, eight percentage points more than a year earlier. At the same time, 72% of takeaway customers regard this type of spending as a non-essential luxury that can be cut to save money.
Pork Loses Ground in the Overall Market but Grows Through Apps
Total spending on red meat in the takeaway and delivery segment remained broadly stable, declining by only 0.1% to approximately £4 billion.
At the same time, spending on pork dishes across the overall segment fell by 5.2%. The decline was primarily attributed to lower sales of breakfasts, sandwiches and pizzas.
However, the trend was reversed in the app-based delivery channel. Spending on pork dishes rose by 54.7% year on year, one of the strongest growth rates among the main meat categories. The increase was driven mainly by pork burgers, sandwiches and pizzas.
By comparison, spending on lamb through delivery apps increased by 36.7%, while spending on beef declined by 18%.
Loyal Users Support the Delivery Market
Deliveroo, Uber Eats and Just Eat generated approximately £2.6 billion in takeaway and delivery spending. These services are used by one in five people in the UK.
Total spending through such apps increased by 0.5%. The main driver was not growth in the number of users, but more frequent ordering by existing customers, supported by loyalty programmes and special offers.
Rapid-delivery services are particularly popular among younger consumers. Almost half of Generation Z consumers had ordered groceries through these platforms during the previous four weeks.
Consumers use such services to save time, buy ingredients for a specific meal, avoid visiting a shop or quickly order forgotten items. Half of customers repeatedly return to the same service.
Analysts expect the overall takeaway market to remain under pressure due to the cost-of-living crisis. However, convenience, speed and loyalty programmes are likely to sustain the popularity of delivery apps, where pork and lamb dishes have considerable potential for further growth.
PigUA.info, based on materials from AHDB.org.uk