Retailers are losing sales to foodservice delivery says report

Retailers are losing sales to foodservice delivery as consumers increasingly opt for the easier option over home cooking.

According to research from MCA Insight – the research insight agency across the foodservice and eating out sectors – 54% of consumers either agree or strongly agree that foodservice delivery makes them less likely to cook at home.

The insight, from MCA’s UK Foodservice Delivery Market Report 2019/20, was conducted through over 4,500 online consumer surveys and analysis of MCA’s market sizing and company tracking. The results look at the key trends affecting the market, the competitive landscape, the changing needs of consumers and the outlook for future development.

The report highlights that the foodservice delivery market has grown 18% to £8.4bn in 2019 and the proportion of UK adults using foodservice delivery at least every 2-3 months is up 4% to 30.1 million active users, with the average consumer ordering delivery on average 2.35 times each month, up 9%.

Blonnie Walsh, Head of Insight at MCA & HIM says, “Foodservice delivery continues to grow at a significant rate, emphasising its position as a disruptive force to the grocery retail sector.”

“With strong growth forecast for the next three years, foodservice delivery is showing no sign of slowing. With delivery having a significant impact on consumer decision making, this highlights a significant challenge to convenience stores and supermarkets.”

“It is vital that retailers clearly demonstrate the quality of their range and the value it offers in order to better inspire shoppers to cook at home.”