According to HIM’s UK Food to Go Market Report, the sector is predicted to grow by £0.5bn in the next three years. Consumers with little time and low budgets have been driving the convenience sector for some time now – with the channel reaping the rewards by meeting demand, and offering speed, value, and well ‘convenience’. In turn, the sector has continued to grow, and currently accounts for 44% of all eating out occasions.
So do you have a product that could benefit from the sectors recent boom? And how can you make the most of exploiting this ever-developing channel? HIM! research reveals that breakfast and dinner visits in convenience for food to go occasions have increased in frequency by 5.8% over the past 12 months. And lunch time remains the most popular time for consumers to purchase a food-to-go product, accounting for 23% of all visits. Can you ‘fit’ these occasions? Or offer a real USP to the channel?
The opportunity doesn’t end there. Industry analysts are suggesting that convenience stores, and convenience products, could be perfectly placed to plug a gap in the foodservice delivery market.
Speaking at the Future of Convenience conference, Harriet Williams, senior client services manager at market analyst MCA, said: “Ninety-three percent of foodservice delivery orders include a main meal, but only 26% of people will order a soft drink to go with it, and only 10% an alcoholic beverage. The opportunity is still there for retailers to plug those gaps, and convenience retailers are very well placed to meet that occasion. Retailers should look to hit those categories that are not as prevalent in delivery – soft drinks, alcohol or different food options.”
The foodservice delivery market is being driven by new consumers, who are looking for convenience in every way. Almost half (48%) of delivery spend is, perhaps unsurprisingly, from those aged 18-24. With the growing popularity of dining out at home, be it with JustEat, UberEats or Deliveroo, there’s a real gap in the market for convenience deliveries. Experts estimate that the channel will be worth £9.8bn in 2021, following its 13% growth in 2018, compared to a rise of just 1.5% in the eating-out market as a whole.
Have a new food to go product or service that you think will have a huge impact on the market?
If you are interested in learning more about small business marketing for your food or drink brand, please email firstname.lastname@example.org for more information on how our Elevation Marketing programme for SME’s in the food and drink industry could help you!
SOURCES: CONVENIENCESTORE.CO.UK, HIM!, TALKINGRETAIL.COM