Online Food Delivery

The projected revenue in the Online Food Delivery market in the United Kingdom is expected to reach US$44.76bn in 2024.
The market is projected to experience an annual growth rate (CAGR 2024-2029) of 7.33%, resulting in a projected market volume of US$63.75bn by 2029.
In the Grocery Delivery market, there is an expected revenue growth of 17.0% in 2025.0.
The projected market volume for Grocery Delivery in the United Kingdom is US$26.79bn in 2024.
In global comparison, China is anticipated to generate the highest revenue in the Online Food Delivery market, with US$450.50bn in 2024.
The average revenue per user (ARPU) in the Grocery Delivery market in the United Kingdom is projected to be US$1.06k in 2024.
In the Meal Delivery market, the number of users is expected to reach 42.0m users by 2029.
The user penetration rate in the Meal Delivery market in the United Kingdom will be at 54.0% in 2024.
It is important to note that these figures specifically pertain to the Online Food Delivery market in the United Kingdom.
The United Kingdom's online food delivery market is experiencing a surge in demand due to the convenience and safety it offers amidst the COVID-19 pandemic.

Definition:

Online Food Delivery refers to the intersection of ordering groceries and prepared meals online. Orders are typically placed through an app or website and delivery times vary.

Structure:

The Online Food Delivery market contains the user and revenue development of two different delivery service solutions: (1) Meal Delivery and (2) Grocery Delivery. Included are services that deliver prepared meals and food ordered online for direct consumption (Meal Delivery) and non-prepared food and beverage products, household, and personal care products (Grocery Delivery). Meal delivery includes the delivery of meals carried out directly by restaurants (Restaurant Delivery) and online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves (Platform Delivery). Grocery Delivery consists of fresh, nonprepared products delivered from supermarkets or retailers where delivery is scheduled (Retail Delivery), Delivery that is under 3 hours and operates dark stores or own warehouses (Quick Commerce), and prepared fresh ingredients to be prepared at home, typically offered through a subscription service (Meal Kit Delivery).

Additional Information:

Revenue figures are the gross merchandise value (GMV), defined as the total sales dollar value for merchandise/food sold through the Online Food Delivery marketplace. User and revenue figures represent B2C services.

Meals and groceries ordered online that are directly delivered by the restaurant, retailer, or platform no matter if ordered via a platform (e.g. Delivery Hero, Instacart) or a restaurant/retailer website (e.g. Domino's, Walmart.com)
Online meal and grocery order and delivery both carried out by a platform (e.g. Deliveroo, Grab, Flink)

Phone orders
Click & collect Grocery orders
Ready-to-eat meals

The Online Food Delivery market in United Kingdom has seen significant growth in recent years, with a variety of factors contributing to its success.

Customer preferences: One of the main reasons for the growth of the Online Food Delivery market in United Kingdom is the increasing demand for convenience. As people lead increasingly busy lives, they are looking for ways to save time and make their lives easier. Online Food Delivery services provide a quick and easy way to get food delivered straight to their door, without the hassle of cooking or going out to a restaurant. In addition, the rise of technology has made it easier than ever to order food online, with many platforms offering user-friendly interfaces and convenient payment options.

Trends in the market: One trend that has emerged in the Online Food Delivery market in United Kingdom is the increasing popularity of healthy food options. As people become more health-conscious, they are looking for ways to eat nutritious food without sacrificing convenience. Many Online Food Delivery platforms now offer healthy meal options, catering to this growing demand. Another trend is the rise of plant-based food options, as more people adopt a vegan or vegetarian lifestyle.

Local special circumstances: The Online Food Delivery market in United Kingdom is unique in that it is home to a large number of traditional food options, such as fish and chips and Sunday roast. However, this has not stopped the market from embracing new trends and innovations. In fact, many traditional restaurants have partnered with Online Food Delivery platforms to offer their food to a wider audience. This has helped to boost the popularity of these traditional dishes, while also introducing them to a new generation of consumers.

Underlying macroeconomic factors: The growth of the Online Food Delivery market in United Kingdom can also be attributed to underlying macroeconomic factors. For example, the rise of the gig economy has made it easier for people to work flexible hours, including as delivery drivers for Online Food Delivery platforms. In addition, the increasing popularity of smartphones and mobile devices has made it easier for people to order food online, regardless of their location. Finally, the COVID-19 pandemic has accelerated the growth of the Online Food Delivery market in United Kingdom, as more people are staying at home and relying on delivery services for their meals.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Ecommerce market, in a PDF format.