Food to go market worth more than £48.2bn

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The out of home food market was worth more than £48.2bn in 2024. Image: Getty (Getty Images)

The out-of-home food market was worth more than £48.2bn in the past year, fuelled by increased commuter spending post COVID and cost-conscious lunchtime shoppers, according to research by the Agriculture and Horticulture Development Board (AHDB).

Latest figures from Kantar revealed that British consumers spent more than £48.2bn on food in the out of home market in the 52 weeks ended 9 June 2024 – and increase of 14% year-on-year (YOY).

By 2028, the food-to-go (F2G) is expected to grow in value by almost 40% on 2019 levels. While value growth has been driven by inflation over the last few years, volume growth in 2024 is expected to continue and be a key driver of performance in 2025.

The dramatic change in commuter habits since the COVID-19 pandemic has also played a role in driving up the value of out-of-home meal occasions.

Commuter spend

Those who commute just one or two days a week are seeking indulgence when they do eat out, spending up to 18% more per trip than other commuter groups (Kantar Out-of-home, 52w/e 24 December 2023).

Lunch was the go-to meal for consumers, with 71% of shoppers purchasing food for this occasion in the first quarter of 2024 (IGD research).  

The AHDB found that lunch was well suited for food-to-go, often associated with lower spend than other meal occasions. Meal deals were a big deal when it came to on-the-go lunches, particularly for consumers looking to stick to a budget.

While the meal deal remained the king of out-of-home meal occasions, businesses were advised to think outside of the box if they wish to attract a broader range of clientele.

AHDB retail and consumer insight analyst Charlotte Forkes-Rees said: “It’s important for foodservice providers to demonstrate that food-to-go can mean more than just a meal deal, and we’re seeing quick service restaurants joining the lunch time food-to-go meal occasion, and more and more retailers offering hot options, premium item upgrades and less traditional meal options. 

Target markets

“Currently, food-to-go is more likely to be purchased by an older consumer (aged 55+), potentially due to increased disposable income meaning they are able to indulge in on-the-go meals more regularly. To tempt in younger demographics, retailers could target new product releases with food trends and flavours that may appeal to broader demographics and the younger generations.”

In the 12 weeks ended 9 June 2024, there were 92.2 million food-to-go meal occasions that contained beef, lamb and pork – an increase of almost 24% year-on-year, with pork accounting for almost three-quarters of this growth.

Sandwiches accounted for 41% of all pork-based food-to-go purchases, while pasties proved to be a popular food-to-go option for beef, accounting for almost 13% of volumes purchased (Kantar Out-of-home).

Meanwhile, reduced demand from retail and takeaways sparked a decline in total beef volumes in 2023, according to the Agriculture and Horticulture Development Board’s (AHDB’s) annual beef market outlook.

Food to go market: At a glance

  • Consumer spend on out of home meal accasions: £48.2bn (52 w/e 9 June 2024)
  • Predicted to grow 40% on 2019 levels by 2019
  • 71% of shoppers purchase food out of home for lunch
  • Commuter who travel 1-2 days a week spend 18% more on food to go
  • 92.2 million food-to-go meal occasions contained beef, lamb and pork (12 w/e 9 June 2024)