Market Overview

The UK food delivery market size reached USD 8.5 Billion in 2024 and is expected to grow to USD 19.7 Billion by 2033, registering a CAGR of 9.80% during the forecast period 2025-2033. This growth is driven by increasing partnerships between retailers and delivery platforms enhancing product offerings and innovations in delivery logistics meeting the rising demand for speed and convenience.  

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

UK Food Delivery Market Key Takeaways

• The market size was USD 8.5 Billion in 2024, with a growth rate of 9.80% CAGR anticipated over 2025-2033.
• Increasing partnerships between retailers and food delivery platforms, such as the collaboration between Sainsbury and Just Eat in 2023, are improving consumer convenience and expanding market reach.
• Innovations in logistics including drones, autonomous vehicles, AI, and machine learning are enhancing delivery efficiency and operational scalability.
• The sector is shifting towards online shopping and on-demand services, making strategic alliances essential to competitiveness and growth.
• The UK logistics market supporting this sector is forecasted to reach USD 860.3 Billion by 2032, growing at a CAGR of 6%.

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Market Growth Factors

Partnerships and collaborations between food retailers plus food delivery service providers drive the growth of the UK food delivery market. In March 2023, the supermarket chain Sainsbury worked with Just Eat to ensure delivery from 175 stores in the UK. Sales and user experience also improved as a result of the partnership, which came to be considered game changing to the market, as supermarkets and restaurants shared logistics and technology resources that could help them scale without delivery infrastructure.

Technological advancements in delivery logistics are influencing the market as companies employing technology such as drones and autonomous cars can avoid traffic congestion and have a 24-hour delivery service available. Another application of ML and AI is helping route optimization through real-time intelligence and forecasts to reduce delivery delays, e.g. by reducing operational expenses, increasing delivery capability, planning a better optimized route, predicting delays, and personalizing offers according to customers' previous purchase history.

Furthermore, the logistics market in the UK, which is also one of the broad segments of the food delivery market, is expected to grow at a CAGR of 6% to reach a market value of USD 860.3 Billion. Thus, logistics innovations are key components inside the food delivery market. Firms that adopt, leverage, and benefit when they use new technology will be better placed to respond when the competitive environment and wider consumer requirements shift to demand speed, convenience, and reliability, suggesting the UK food delivery market may prosper.

Market Segmentation

• Business Model:
• Order Focused
• Logistics Based
• Full-Service
• Order Type:
• Online
• Offline
• Payment Method:
• Online Payment
• Cash on Delivery
• Platform Type:
• Mobile Applications
• Websites
• Others

Each segment includes detailed analysis and forecasts for 2025-2033, illustrating market dynamics and consumer preferences.

Regional Insights

The report provides a comprehensive analysis of major regional markets including London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others. While no specific dominant region's market share or CAGR is explicitly stated, these regions collectively form the core UK market landscape considered in forecasts and analyses.

Recent Developments & News

In September 2024, HelloFresh partnered with Just Eat to initiate a 12-week rapid delivery trial enabling users in Newcastle and Hackney to order eight HelloFresh recipes quickly through the popular UK online food delivery portal. In January 2024, Stuart, a last-mile delivery solutions specialist, partnered with Deliverect, a leading operations and order management platform, to improve restaurant delivery efficiency and service quality through integrated technology.

Key Players

• Sainsbury
• Just Eat
• HelloFresh
• Stuart
• Deliverect

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