Embracing the Future: Our perspective on the Dynamic World of Food Delivery by Paco López Rodríguez
The food delivery sector is witnessing a tectonic shift, driven by changing customer demographics and technological advancements. As we navigate through the post-pandemic world, the shifting sands of customer demographics have revolutionised the way food reaches our tables. At pleez, we're laser-focused on these evolving patterns, crafting strategies that resonate with restaurant partners.
Gone are the days when food delivery was limited to the traditional phone order from your local pizzeria or the chinese restaurant just around the corner, with long menus with no pictures or descriptions to help us make up our minds about dinner. Today, the digital transformation has introduced a buffet of options.
The global market for food delivery stands at an amazing valuation of €83 billion, with an estimated annual growth rate of 3.5% over the next five years. Aggregators and new-delivery players are the new heavyweights, changing the dynamics with a user-friendly digital interface and easier choices.
Our world is more connected than ever, and the food delivery sector exemplifies this global network with a market value that’s nothing short of impressive. Particularly in urban hubs like Madrid, where the fusion of tech and tradition beckons a new era of food delivery. We’re watching – and influencing – every shift.
But… Who is ordering?
There's a significant growth in meal delivery, with new buyers added globally, and 31% of all food occasions in 2022 involving delivery. But who are they?
Demographics are shifting towards younger, tech-savvy consumers who demand convenience. Heavy buyers, predominantly aged between 25-34, are increasingly urban and from higher-income backgrounds. Insightfully, 75% of them are swayed by direct discounts or loyalty schemes, and an overwhelming 66% order via restaurant aggregators.
Also, data from previous studies have been uncovering a tapestry of regional preferences: while Latin America and Asia lean towards delivery, Europe maintains its love affair with traditional dining.
The Role of Aggregators in Shaping the Market
Aggregators are not just convenient; they are a revolution. In Asia, their usage soared above 80% among meal delivery buyers, emphasising the demand for an efficient, one-click service experience. This trend is mirrored globally, with 50% of customers hunting for discounts through aggregators, highlighting the need for competitive pricing strategies. This topic deserves an isolated blogpost though…
How is the future coming?
While the pandemic sparked a surge in delivery services, the trend shows no sign of slowing down. Quick Service Restaurants (QSRs) are particularly thriving, with a 21% revenue uplift in Western Europe from pre-pandemic levels.
In London, the rise in QSRs mirrors the city's ever-quickening pulse, with consumers choosing substantial meals over snacks, indicative of a populace that values time as much as taste. Across the Iberian Peninsula, from Lisbon to Madrid, we’re seeing a robust recovery in the foodservice sector, with on-premises dining making a comeback, yet delivery services continue to carve out significant market share.
What’s our take on all of this?
As we chart a course through the rapidly changing landscape of food delivery, it's clear that adaptability and data-driven insights - and understanding what this data/insights are trying to tell us about our market and consumers behaviours - are key to making the right decisions. By understanding and responding to the nuanced needs of different demographics and regional preferences, we help you tailor your offerings to not just satisfy but delight your customers, ensuring that our partners, both big and small, can confidently sail through these uncharted waters.
This is why at pleez we are determined to have local teams deployed in every geography we are at, so we can get the flavour around what is happening in every city like Madrid, Lisbon, Barcelona or London.