Online food delivery in the United Kingdom – statistics & facts
The United Kingdom is home to the third biggest online food delivery market in the world. Ranking behind China and the United States, the food delivery market in the UK was estimated at 48 billion dollars in 2024. The UK is also the cradle of one of the biggest players in the online food delivery industry, London-based Deliveroo. However, as the post-pandemic era became mired in inflationary pressures and global economic slowdown, how did this affect the online food delivery market in the UK, and what does the future hold for the industry?
In Europe, venture capital investment going to food delivery companies decreased from a peak of 6.7 billion U.S. dollars in 2021 to less than 2.5 billion dollars in 2022. In addition, mounting costs incurred during the height of the pandemic were no longer sustainable during the post-pandemic crunch, and many food delivery companies resorted to mass layoffs to cut costs. While the economic outlook is improving and food price inflation is decelerating, consumer sentiment is still treading on the cautious side.
In November 2023, almost 40 percent of UK consumers were worried about paying for food, and this undoubtedly strained demand for online food delivery services. For instance, the number of orders from Just Eat Takeaway.com in the United Kingdom and Ireland decreased from 289 million orders in 2021 to some 245 million orders in 2023.
Nevertheless, shoppers’ expectations for the future may prove too taxing for food delivery platforms to fulfill. In a 2023 survey, approximately 46 percent of UK consumers cited delivery fees as the top criterion when choosing a food delivery platform to order from. In a time when most players in the industry are struggling to turn a profit, keeping delivery fees as low as possible may be a particularly difficult feat to achieve.
Stagflation, layoffs, and recession woes
2022 and 2023 were difficult years for food delivery operators everywhere. Investors once enthusiastic about the lucrative potential of online food delivery became wary of interest rate hikes as global markets battled an impending recession.In Europe, venture capital investment going to food delivery companies decreased from a peak of 6.7 billion U.S. dollars in 2021 to less than 2.5 billion dollars in 2022. In addition, mounting costs incurred during the height of the pandemic were no longer sustainable during the post-pandemic crunch, and many food delivery companies resorted to mass layoffs to cut costs. While the economic outlook is improving and food price inflation is decelerating, consumer sentiment is still treading on the cautious side.
In November 2023, almost 40 percent of UK consumers were worried about paying for food, and this undoubtedly strained demand for online food delivery services. For instance, the number of orders from Just Eat Takeaway.com in the United Kingdom and Ireland decreased from 289 million orders in 2021 to some 245 million orders in 2023.
Consumer demand remains resilient
Despite challenges on the macroeconomic front and pressures from the cost-of-living crisis, the online food delivery market in the UK showed remarkable resilience. As of March 2024, around a fifth of UK shoppers were doing the majority of their food and drink shopping online, a figure only a few digits lower than the pandemic peak of 28 percent in March 2021. Additionally, the United Kingdom had the highest share of shoppers buying fresh food and beverages online in Europe, leading the ranking with a significant margin, at 52 percent versus 45 percent for the Netherlands.Nevertheless, shoppers’ expectations for the future may prove too taxing for food delivery platforms to fulfill. In a 2023 survey, approximately 46 percent of UK consumers cited delivery fees as the top criterion when choosing a food delivery platform to order from. In a time when most players in the industry are struggling to turn a profit, keeping delivery fees as low as possible may be a particularly difficult feat to achieve.
