The UK food delivery market reached USD 8.5 Billion in 2024 and is projected to reach USD 19.7 Billion by 2033, growing at a CAGR of 9.80% during the forecast period 2025-2033. Expansion is fueled by rising partnerships between retailers and delivery platforms improving offerings and convenience. Additionally, innovations in delivery logistics are enhancing speed and reliability, meeting consumer demand for rapid, accessible food delivery. 

Study Assumption Years

  • Base Year: 2024

  • Historical Years: 2019-2024

  • Forecast Period: 2025-2033

UK Food Delivery Market Key Takeaways

  • The UK food delivery market size was USD 8.5 Billion in 2024, with a forecast to reach USD 19.7 Billion by 2033, expanding at a CAGR of 9.80% during 2025-2033.

  • Increasing collaborations between retailers and delivery platforms are enhancing product offerings and user convenience.

  • Strategic partnerships help companies extend reach without building their own delivery infrastructure, optimizing operational efficiency.

  • Technological innovations such as drones, autonomous vehicles, AI, and machine learning are improving delivery logistics and operational effectiveness.

  • Growing consumer preference for speedy and convenient online food ordering is driving market growth.

  • The UK logistics market is also expanding, expected to reach USD 860.3 Billion by 2032, reflecting broader sectoral innovations.

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Market Growth Factors

The UK food delivery market is experiencing robust growth driven by increasing partnerships and collaborations between retailers and delivery platforms. These strategic alliances improve service offerings and customer convenience by enabling more efficient resource, technology, and logistics sharing. A notable example is the March 2023 partnership between Sainsbury and Just Eat, facilitating rapid delivery from 175 locations and boosting sales significantly. Such collaborations enable market players to expand reach without substantial investment in proprietary delivery infrastructure, which remains critical as consumer behaviour shifts towards online shopping and on-demand services.

Advancements in delivery logistics substantially propel market growth. Technologies like drones circumvent traditional traffic routes to improve delivery times, while autonomous vehicles facilitate round-the-clock deliveries without limitations. Additionally, cutting-edge applications of artificial intelligence and machine learning optimize route planning and operational effectiveness by analyzing real-time traffic data and historical delivery patterns. These innovations reduce costs and enhance delivery capacity, enabling services to scale efficiently and meet increasing demand for speed and convenience.

The evolving preferences of consumers prioritizing rapid and convenient food delivery are underpinning market expansion. Companies employing predictive analytics to tailor offerings based on past orders, delivery times, and customer feedback are better positioned to satisfy specific needs. Moreover, the wider UK logistics market's growth, forecasted to reach USD 860.3 Billion by 2032 with a 6% CAGR, highlights the overall emphasis on technological adoption and operational efficiency in the sector, directly benefiting the food delivery industry.

Market Segmentation

Business Model Insights:

  • Order Focused

  • Logistics Based

  • Full-Service

The report segments the market into order focused, logistics based, and full-service business models, detailing each category's role in the food delivery ecosystem.

Order Type Insights:

  • Online

  • Offline

Market analysis includes order types, distinguishing between online and offline orders to capture consumer purchasing patterns.

Payment Method Insights:

  • Online Payment

  • Cash on Delivery

This segmentation details preference patterns for payment methods, considering online payment options and cash on delivery setups.

Platform Type Insights:

  • Mobile Applications

  • Websites

  • Others

Platforms are categorized into mobile applications, websites, and others, reflecting diverse customer interaction modes with food delivery services.

Regional Insights

London and other major regions such as South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others have been analyzed comprehensively. Specific market shares or CAGR values by region are not provided. The detailed regional review highlights the geographic diversity and market penetration across the UK.

Recent Developments & News

In September 2024, HelloFresh partnered with Just Eat to initiate a 12-week rapid delivery trial in Newcastle and Hackney, allowing customers to order eight HelloFresh recipes quickly via the online food delivery platform. Earlier in January 2024, Stuart, the last-mile delivery specialist, collaborated with Deliverect, an operations and order management platform, to enhance restaurant delivery services through integrated technology, improving operational efficiency and service quality.

Key Players

  • Sainsbury

  • Just Eat

  • HelloFresh

  • Stuart

  • Deliverect

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