Consumer Appetite for Healthy and On-demand Food Fuels Boom in Delivery Spending

Latest figures from Cardlytics show the rise of meal kit providers has begun to nibble away at supermarkets and restaurants across the UK

London – 30 November 2016 New data released today, based on the spending behaviour of more than 5.8 million bank customers, reveals an explosion in appetite for on-demand food this year, as the popularity of recipe kit and takeaway delivery services continues to surge.

Spending on meal kit services, such as HelloFresh and Gousto, leapt by 64.6% in the first half of 2016 compared to the same period last year, while the volume of orders increased by 47.6%. This comes as providers rapidly expand across the country, leading to a significant spike in spending outside of London, as consumers find new ways to cook from scratch. 

Meanwhile, spending on takeaway delivery services, such as Deliveroo and Just Eat, followed a similar pattern, with an increase of 46% over the same time period.

The rise of these two emerging categories is having an impact on the rest of the food industry.

The findings suggest that demand for healthy meal kit deliveries has taken a small, yet notable bite out of supermarket sales. While overall spending on groceries continues to rise, albeit at a considerably slower pace since 2014, grocery spending among meal kit users actually fell by 2.8% in the first six months of 2016, compared to the same time period last year.

The on-demand phenomenon in fresh ingredients is also affecting casual dining. The data shows that customers using meal kit delivery services spent 2.2% less on eating out in the first six months of 2016, compared to the same period in 2015.

In contrast, the Cardlytics analysis shows that takeaway delivery users increased their spending in supermarkets and casual dining establishments. Among this group, there was an increase of 9.2% in grocery spend and a boost of 12.3% in casual dining spend in the first half of 2016, compared to the first half of 2015.

Peter Gleason, President of International Operations at Cardlytics, said: “It’s clear that today’s consumers are increasingly concerned about the freshness of food, ingredients and labels. But, above all, people are craving convenience.

“As new entrants invest heavily in strengthening on-demand propositions, it’s evident they are beginning to establish themselves as serious contenders to supermarkets and restaurants across the country. This presents a huge opportunity, both for established food retailers and new entrants that recognise the importance of adapting to their customers’ habits to build loyalty.”

Notes to editors

  • The overall figures are based on the spending data of more than 5.6 million active accounts of UK bank consumers.
  • Meal-kit findings are based on 13,000 customers who used Hello Fresh, Gousto or Abel and Cole.
  • Delivery findings are based on 183,000 customers that used Deliveroo, Just Eat or Hungryhouse.
  • The data tracked spending and trips between 2014 and 2016, on a H1 basis.

About Cardlytics

Cardlytics uses purchase-based intelligence to make marketing more relevant and measurable. We partner with major financial institutions – including Bank of America and Santander – to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, Chicago and San Francisco. Learn more at www.cardlytics.com.

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