Analysis from the Agriculture and Horticulture Development Board (AHDB) has found that spend in the red meat category on delivery apps has risen despite decline of wider takeaway and delivery market.
The body found that while the wider takeaway and delivery market is under pressure, delivery apps are “proving more resilient”, with spending rising and red meat categories performing particularly strongly among engaged users.
The takeaway and delivery market accounts for 26% of all ‘out-of-home’ spending, worth £17.7 billion over the past year, according to data from Worldpanel by Numerator. However, Numerator also said the sector has lost £400 million in spend, representing a year-on-year decline of 2.2%.
AHDB analysis found that the reduction was driven by smaller basket sizes, fewer takeaways overall and some consumers leaving the market behind altogether. Rising cost-of-living pressures continue to influence purchasing decisions, with 80% of consumers now ‘extremely or very concerned’ about the cost of living, up 8% on last year when looking at data from Sparkminds. Market intelligence agency Mintel found that 72% of takeaway users now view it as a luxury purchase.
However, AHDB stated that red meat was showing promise within the sector.
Platforms such as Deliveroo, Uber Eats and Just Eat generated £2.6 billion in takeaway and delivery spending over the past year, said Numerator. One in five consumers in Great Britain now uses these apps, with loyalty schemes encouraging regular engagement and repeat purchasing. Spending through delivery apps increased by 0.5% year-on-year.
“As delivery channels continue to evolve, lamb and pork are well placed to benefit from the growing role of apps in both takeaway and retail purchasing.”
Emma Wantling, AHDB
According to AHDB, lamb and pork are benefiting strongly from this trend, with spending through delivery apps growing faster than the overall market, highlighting an opportunity for the red meat sector to capitalise on changing consumer behaviours and evolving meal occasions.
Lamb spending through delivery apps increased by 36.7% year-on-year, Numerator observed, outpacing growth across the wider takeaway and delivery market. Pork is also seeing strong growth through delivery apps, with spending rising 54.7% year-on-year. Burgers, sandwiches and pizzas continue to underpin performance within the category.
Emma Wantling, retail & consumer insight manager, commented: “The findings demonstrate the importance of understanding how consumers are adapting their purchasing habits in response to economic pressures and changing expectations around convenience.
“As delivery channels continue to evolve, lamb and pork are well placed to benefit from the growing role of apps in both takeaway and retail purchasing, helping to create new occasions for consumption and support future category growth.”
AHDB said the research also identifies growing crossover between takeaway and grocery purchasing; shoppers using delivery apps for takeaways are increasingly adding grocery items to their baskets, creating further opportunities for retailers and suppliers of red meat products.
With younger consumers increasingly using digital platforms for both meals and grocery shopping, app-based ordering is expected to play an increasingly important role in shaping future food purchasing habits and creating new opportunities for red meat categories.
