If we look beyond Snacking and Non-Alcoholic Beverages to include Meals, we can see evidence that Home Meal Delivery is helping to combat the OOH decline.
If we look beyond Snacking and Non-Alcoholic Beverages to include data on Meals, we can see evidence that Home Meal Delivery is helping to combat the OOH decline. Within this expanded scope, Main Meals (lunch and dinner) – both delivered and purchased OOH – account for more than two-thirds of total OOH spend in France, Spain and the UK.
The data shows that the rapid expansion of Home Meal Delivery during COVID-19 lockdowns reduced the negative impact on combined In-Home and OOH spend.
In the UK, for example, total spend only declined 9% in April and May, despite OOH seeing a 76% year-on-year decline. Home Meal Delivery value sales quadrupled in April through to August, predominantly driven by a three-fold increase in shoppers, rather than a rise in consumption. Early signs indicate that this is a habit that will stick, as the level of Home Meal Delivery spend remained consistent even as restrictions eased and OOH spending started to recover.
In Spain, the rapid growth of Home Meal Delivery brought benefits to all types of restaurant that use this type of service to reach consumers. Organised Horeca (quick service restaurants and chains), which has a 35% share of total Home Meal Delivery spend, grew value sales by 170%. Independent Horeca (traditional non-chain bars and restaurants), with a 42% share, grew by 200%. Food-to-go Stores (those selling hot dishes such as roast chicken), which have a 21% share, grew 330%.
With the strong growth of Home Meal Delivery in Europe driven by increased penetration, progress looks set to continue as there are still plenty of shoppers available to convert. Across Brazil, Mexico and Asia the penetration level is generally above 70%, highlighting the opportunities that exist for Europe.
In most Asian markets, Home Meal Delivery is used once a week or more by 20% of people. This shows the growth potential that lies in other markets where there’s room to increase frequency of use.
If we look at penetration by age in established markets versus developing markets, we see a contrasting picture. In China, Home Meal Delivery has a very balanced penetration across all ages, whereas in France it is clearly favoured by the under 24s, where penetration is 27% points higher that of the over 35s. This gives markets where the service is less mature a clear indication of which segments should be targeted in order to drive further growth.
To understand people’s key motivators for ordering Home Meal Delivery, we asked ‘What were the reasons for ordering meals at home before coronavirus?’ with the answers given grouped under ‘enjoyment’ or ‘convenience’.
The responses we classified as being about enjoyment included: ‘To try something new’, ‘I deserved a treat or reward’ or ‘It’s a family routine (favourite moment)’.
On the other hand, ‘Can’t be bothered to cook’, ‘I order meals that I do not know how to cook’, ‘I didn’t have enough food in my fridge’ or ‘Rather stay at home’ were classed as driven by a desire for convenience.
There’s a clear distinction between Asia – where ordering meals for home delivery is already a well-established habit – and the rest of the world. In Asia, across all markets, at least 55% of people state convenience as their reason for using the service, which correlates with the higher penetration and frequency levels in the region.
Enjoyment as the driver is particularly high in Brazil (75%) and Mexico (86%). This is due to the relatively low proportion of heavy users, who order once a week or more: in Brazil most users only order once a month, while in Mexico this is even less frequent.
There’s an opportunity to drive frequency of use in markets such as these by motivating consumers to use Home Meal Delivery during the week. Currently only 33% of occasions take place on weekdays in Mexico, compared to 50% in the UK.
Delivery platforms can drive an increase in mid-week consumption by using information on what consumers prefer to eat, and when, to shape their marketing communications.
Looking more closely at what Mexican consumers order, for example, the food that tops the list is Pizza, followed by Burgers, Tacos and Fried Chicken. When we consider what they eat at home for lunch, however – whether it’s been prepared at home or not – Soups, Rice and Beans are the foods of choice.
How do you feel about meal delivery right now, because of COVID-19?
When we asked this question, across all markets, more than 60% of shoppers said that Home Meal Delivery will never replace going out to a restaurant, despite the convenience. This suggests that some of the short-term growth achieved during lockdown will be at risk, once going out to restaurants becomes routine once again. However, it can also be seen as further confirmation that Home Meal Delivery is seen as a different occasion to going out to eat, and that the habit is here to stay.
