UK Food Delivery Market

UK Food Delivery Market Overview:

The UK food delivery market size reached USD 8.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 19.7 Billion by 2033, exhibiting a growth rate (CAGR) of 9.80% during 2025-2033. The UK food delivery market share is expanding, driven by increasing partnerships and collaborations between retailers and delivery platforms, which are enhancing product offerings and improving user experience, along with advancements in delivery logistics owing to the growing preference for speed and convenience.

UK Food Delivery Market Trends:

Increasing Partnerships and Collaborations

The growing number of partnerships between retailers and food product ordering platforms is offering a favorable UK food delivery market outlook. For instance, in March 2023, Sainsbury, a UK-based supermarket company, teamed up with the food delivery app, Just Eat to enable rapid delivery from 175 locations in the country. This collaboration allowed people to order their groceries directly to their homes and contribute to a notable increase in sales, showcasing the growing trend of partnerships in the market. Strategic alliances between retailers and delivery platforms are changing the food delivery landscape, enhancing service offerings and improving customer convenience. These firms are leveraging the strengths of supermarkets and restaurants to expand their reach without the need to develop their own delivery infrastructure. This is also encouraging better operational efficiencies, which allows companies to share resources, technology, and logistics. As individuals are shifting towards online shopping and on-demand services, these partnerships are becoming essential for maintaining competitiveness and increasing sales.

Advancements in Delivery Logistics

Innovations in delivery systems are enhancing efficiency and reliability, which is propelling the UK food delivery market growth. Organizations are integrating technologies like drones and autonomous vehicles to transform service delivery. Drones are supporting rapid transportation by circumventing traditional traffic routes, which is improving delivery times. In line with this, autonomous vehicles that allow companies to easily navigate city streets are facilitating round-the-clock delivery options without limitations. This technology is streamlining logistics, reducing operational costs, and increasing delivery capacity, enabling services to scale more effectively. Moreover, advanced technologies, such as machine learning (ML) and artificial intelligence (AI), are augmenting route planning and operational effectiveness. These systems analyze real-time data to identify the most efficient routes and adapt dynamically to traffic conditions, thereby minimizing delays. Companies are also utilizing predictive analysis for analyzing past orders, delivery times, and customer feedback, to tailor their offerings as per specific needs. As the market is evolving, these innovative delivery logistics solutions are encouraging companies to meet the increasing demands of individuals prioritizing speed and convenience. According to the IMARC Group’s report, the UK logistics market is set to reach USD 860.3 Billion by 2032, showcasing a growth rate (CAGR) of 6% during 2024-2032. This anticipation highlights the critical role of innovations in the sector, as organizations leveraging new technologies will be better positioned to respond to evolving market dynamics in the country.

UK Food Delivery Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on business model, order type, payment method, and platform type.

Business Model Insights:

• Order Focused
• Logistics Based
• Full-Service

The report has provided a detailed breakup and analysis of the market based on the business models. This includes order focused, logistics based, and full-service.

Order Type Insights:

• Online
• Offline

A detailed breakup and analysis of the market based on the order types have also been provided in the report. This includes online and offline.

Payment Method Insights:

• Online Payment
• Cash on Delivery

The report has provided a detailed breakup and analysis of the market based on the payment methods. This includes online payment and cash on delivery.

Platform Type Insights:

• Mobile Applications
• Websites
• Others

A detailed breakup and analysis of the market based on the platform types have also been provided in the report. This includes mobile applications, websites, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Food Delivery Market News:

• In September 2024, HelloFresh partnered with Just Eat to launch a 12-week rapid delivery trial, allowing users in Newcastle and Hackney to order eight HelloFresh recipes quickly and conveniently through the popular online food delivery portal in the UK.
• In January 2024, Stuart, the well-known last-mile delivery solutions specialist, teamed up with Deliverect, the prominent operations and order management platform, to enhance restaurant delivery offerings through integrated technology for improved efficiency and service quality.

UK Food Delivery Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK food delivery market performed so far and how will it perform in the coming years?
• What is the breakup of the UK food delivery market on the basis of business model?
• What is the breakup of the UK food delivery market on the basis of order type?
• What is the breakup of the UK food delivery market on the basis of payment method?
• What is the breakup of the UK food delivery market on the basis of platform type?
• What are the various stages in the value chain of the UK food delivery market? 
• What are the key driving factors and challenges in the UK food delivery market?
• What is the structure of the UK food delivery market and who are the key players?
• What is the degree of competition in the UK food delivery market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK food delivery market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK food delivery market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK food delivery industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.