The delivery market within the food industry has experienced an exponential amount of growth over the last couple of years. With a new Lumina Intelligence report (2022) acknowledging the use of delivery as ‘habitual to consumers’ . This growth can be attributed to busy lifestyles, urbanization, digitalization, and the desire for a wide variety of culinary options. However, the food delivery space is also largely influenced by the operational challenges faced by restaurants, with approximately 60% of restaurants failing within their first year of operation, and 80% don't survive beyond five years . These multifaceted factors collectively contribute to the food delivery market's status as a rapidly evolving and highly-uncertain industry.
Monitoring the newly opened and closed digital storefronts on the food delivery platforms holds significant importance for food and beverage brands. By maintaining a keen awareness within the industry, brands can identify newly established outlets, offering potential collaboration opportunities for the distribution of their products. Simultaneously, an monitoring the cessation of operations at certain digital storefronts, leading to the discontinuation of their product sales, is essential for tracking a brand's market performance.
Furthermore, it is crucial to acknowledge that restaurants do not readily alter their menu offerings, making it imperative to identify those new ventures amenable to forging fresh partnerships. Brands that fail to monitor and adapt to this changing landscape risk losing market share and relevance in the industry.
In this article, we undertake an analysis of the changes occurring in the food delivery sector in both the UK and Australia. Our examination focuses on the shifts in the digital storefront base within the dominant platforms in this industry. By leveraging Dashmote’s data, we found alarming trends of 2023 food delivery that can help your food and beverage brands to maintain their competitive edge in the market.
The UK is one of the biggest markets for food delivery, with Lumina Intelligence stating that 12% of UK adults order delivery at least once per week . The projected revenue in the Online Food Delivery market in the UK is expected to experience an annual growth rate (CAGR 2023-2027) of 12.12% and reach US$40.64bn in 2023 . The market is contestable although dominated by a small number of firms such as Just Eat, Uber Eats and Deliveroo. According to a global consumer survey conducted in the country in 2022, 69% of respondents used Just Eat within the past 12 months. Meanwhile, 48% of respondents used Deliveroo and Uber Eats .
According to Dashmote’s data, 3.9% of the digital storefronts in the UK closed during Q2. Specifically, Uber Eats saw 6.3% of its digital storefronts shutter in Q3 2023, while Deliveroo faced a 2.1% closure rate.
During the same period, it's noteworthy that the rate of newly opened digital storefronts exceeded that of closures, indicating a net growth in the food delivery market. In Q2, 5.2% of digital storefronts were opened alongside the 96.1% of existing ones, underscoring the expansion of the market. If you require precise information regarding the specific storefronts that have opened or closed, please do not hesitate to email us at email@example.com.
Revenue in the Australian food delivery market is expected to show an annual growth rate (CAGR 2023-2027) of 6.61%, resulting in a projected market volume of US$2.70bn by 2027. With over 20 online food ordering and delivery platforms in Australia, the market remains a highly competitive space. Several well-known players such as Deliveroo and Foodora have already left the Australian market. Today, DoorDash, Menulog, and UberEats are considered as the most popular food delivery platforms in Australia .Dashmote’s data reveals that in Q2, 3.3% of digital storefronts on Uber Eats closed, with 95.6% still in operation. Notably, the rate of newly opened digital storefronts stands at 7.7%, which is more than twice the rate of closures. This data emphasizes the swift growth of the Australian food delivery market.
Dashmote is dedicated to assisting enterprises in overcoming obstacles and achieving success in the digital market space. As the foremost provider of big data and AI analytics solutions in the food and beverage (F&B) sector, we enable companies to make informed strategic choices by offering thorough analysis and invaluable insights into the food delivery market and F&B trends. Interested in taking your online business to the next level? Feel free to reach out to our team at firstname.lastname@example.org. Together, we can establish a robust online footprint for your Food & Beverage enterprise.
If you find this article valuable, you may also be interested to check out more of our blog articles on Uber Eats.
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