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Strong alcohol proposition key to targeting 65+ in food delivery services

Published:  15 March, 2022

Over the last 24 months, food and drinks deliveries became one of the only routes to market for operators across the UK, which continues to grow despite coronavirus restrictions easing. 

With new habits engrained into everyday lives, the upward trajectory of the channel is showing no signs of slowing, making it a key growth opportunity in 2022 and beyond.

According to Lumina intelligence, the UK foodservice delivery market is forecast to grow +5.3% in 2022, to a value of £13.3 billion, as demand for delivery shows no signs of waning following the removal of coronavirus restrictions.

However, drinks-only occasions in foodservice delivery are down -2ppts year-on-year. Instead, a higher proportion (+4ppts) of orders include a combination of food and drink as consumers increase their order value to justify delivery fees. 

Whilst only 8% of foodservice delivery occasions include alcohol, this rises to over a fifth (22%) of 65 and overs. As these consumers are likely to have more disposable income and are the most likely to order delivery habitually, investing in a strong alcohol proposition will be valuable. Including food and drink pairing ideas is one way to add value to the customer experience.

Blonnie Whist – insight director at Lumina Intelligence, said: “Alcoholic drinks are included in 8% of foodservice delivery orders, which is reflective of the high penetration of fast-food operators that offer the service. 

“Whilst delivery usage remains popular amongst younger consumers; older demographics are more likely to purchase alcohol for delivery. Over a fifth (22%) of foodservice delivery occasions by those aged 65+ include alcoholic drinks.”

Non-alcoholic drinks hold the majority share of drinks consumed via foodservice delivery, reflecting the high penetration of fast-food operators in the channel who regularly offer soft drinks in meal deals.

This increase reinforces the importance of including end-of-order calls to action to encourage users to complete their meal with a drink.

Whist added:“Drinks-only occasions in foodservice delivery have declined; however, we have seen an increase in orders that include both food and drinks. This is likely driven by consumers increasing order values to justify delivery fees. This reinforces the importance of including end-of-order call to actions to encourage users to complete their meal with a drink.”

Source: Lumina Intelligence Eating and Drinking Out Panel, data collected 12 WE 24/01/21 and 12 WE 23/01/22