Home delivery growing ten times fast than eating out market – NPD research reveals

Home delivery growing ten times fast than eating out market – NPD research reveals
The growth of third-party delivery companies like Deliveroo has driven home deliveries, NPD revealed
02/03/2017 - 10:37
The NPD Group has revealed that the home delivery channel in Britain is growing ten times faster than the eating out market.

The global information company found that delivery is worth 50% more than in 2008, and increased 10% to 599 million visits in 2016 compared to the previous year.

Evening meals account for 65% of aggregator deliveries, but NPD found that breakfast and lunch present opportunities for expansion with the two markets accounting for just 5% and 11%, respectively. 

Cyril Lavenant, foodservice director UK at the NPD Group, said: “We believe delivery will keep growing. The aggregators will surely view the current low level of penetration at breakfast and lunch as irresistible market opportunities.

“How soon will it be until we go beyond getting a basic takeaway breakfast on the way to work and opt instead for a fancy breakfast delivered to our workplace on a work day or even order a breakfast to our home when we are not working?

“By the end of 2020, the value of the delivery channel could grow by nearly 50% to reach £5.3 billion. This is based on a likely faster rate of 10% growth in 2017 and the same amount in each of 2018, 2019 and 2020.” 

Growth of third-party delivery companies, or aggregators, such as Deliveroo, Hungry House and UberEATS has even encouraged pubs to start offering delivery. Pubs increased delivery visits by 59% in 2016, according to NPD.

NPD also revealed that the 18-24 age group has become a major source of demand accounting for 15% of aggregator delivery visits compared to 9% of total out of home visits.

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