New report, with data from a multiyear independent study, reveals the latest developments in the EU food delivery industry post-pandemic. The results suggest that restaurants, food delivery platforms and grocery delivery services should remain focused on improving the customer experience in order to build on gradual growth for the European market.

“2022 Food Delivery Trends”, a new white paper, the global market leader in the mobile living industry, presents the latest market research for food delivery before, during and after the peak of the Covid-19 pandemic. Leveraging data from an independent study by Stockholm agency Food & Friends’, the report focuses on data collected in 2021 and 2022 from over 1,000 local Swedes about their habits and attitudes around meals, both inside and outside the home.

Key take aways from the white paper:

Unexpected Market Changes Challenge Profitability Across the Food & Grocery Delivery Industry

The pandemic, which saw a dramatic rise in the number of food delivery services and business, significantly changed food and grocery delivery trends as well as consumer habits. Yet as parts of Europe began to ‘re-open’, with sweeping restrictions lifted for indoor dining, the report demonstrates an overall decline in consumer demand which has impacted the rate of market growth.

• Total amount of respondents that have ordered food home decreased from 62% in 2021 to 56% in 2022.
• Of those, who ordered food delivery to their homes at least once per month, dropped from 37% in May 2021 to 29% in May 2022.

Other factors potentially impacting this decrease include a general struggle for companies to find profitable business models, staff layoffs and staffing shortages (a global concern across industries), less venture capital funding available along with several mergers, consolidations and new partnerships - creating unstable market conditions - as well new legislations that affect gig-workers.

Potential Market Growth Remains Promising, Especially with Millennials and Gen Z

Despite a range of economic challenges and lifestyle changes in the post-pandemic landscape, the study suggests that the market for food delivery will continue to increase with an expected average growth rate of 5.1% from 2023-2027.

Additional report findings that support this trend include:

• Food delivery has increased from 2021 to 2022 in the 15-34 yrs. demographic, while 35+ demographic is ordering less.

New Consumer Expectations Place Pressure on Food and Grocery Delivery Services

Report data also reveals that consumers have overall higher expectations from restaurants and food delivery platforms than prior to the pandemic. The overall decline in consumer demand for delivery challenges restaurants to improve customer service for delivery orders in order to regain profitability.

• Warm food that is delivered cold is the biggest concern for all age groups with 44% of 15-24 yrs. respondents and 40% of 25-34 yrs. respondents citing this as a particular complaint.
• 30% of survey respondents would order more often if the food had not been shaken or had a pleasant appearance.

Based on the study results, the largest current customer base for food delivery (15-34 yrs.) also has the highest complaints about the way their food is delivered, so these issues must be addressed strategically.

“The pandemic greatly altered our access to restaurant-quality food and groceries,” comments Eva Karlsson. “This study underscores that in this current post-pandemic landscape, with the return of indoor dining, there is very little margin for dissatisfied customers.”

To help restaurateurs, ghost kitchens, and last mile delivery platforms better meet these new expectations, Eteria has developed a sophisticated, software delivery solution. Visual Tracker is a delivery app that has been designed to preserve the quality and temperature of food or other perishables seamlessly throughout the delivery process. It guarantees a better customer experience and offers these businesses an opportunity to build trust and brand loyalty.

Visual Tracker aims to secure the bridge from the restaurant to the table without compromising the food quality. Read more here.

“We believe that insights on evolving consumer demands is an invaluable asset for all players in this competitive food delivery market,” continues Karlsson. “With the data and market analysis from this white paper, restaurants and online food delivery platforms should feel better equipped to invest and improve the overall customer delivery experience.”