Food delivery now a ‘must have' for millennials and families, NPD says

The research firm says their need and desire for convenience continues to grow.

From what was ‘nice to have’, The NPD Group says food delivery in Australia is now a ‘must have’.

Their latest research indicates that the service now occupies 4% of the whole foodservice industry in terms of spend, equivalent to AUD$1.6 billion.

NPD says the results of their survey revealed that its growth is mostly driven by millennials and families, along with the rise of technologies such as mobile ordering and third-party delivery apps.

“The use of aggregators is on the rise and this is resulting in independent outlets experiencing growth, as well as the non-traditional players such as the burger category,” says Gimantha Jayasinghe, NPD Deputy Managing Director – Asia Pacific.

The key part of the burger category’s growth is the improvement of deal-based occasions and the option of the meal combo. As for pizza in QSRs, it has raised its traffic to 75%, largely driven by the millenial age group with 44% followed by families with 38%. Millennials also accounted for 53% of overall industry growth.

“Foodservice operators seeking to increase and maintain their market share should carefully consider delivery as a ‘need to have’ to attract millennials and families, who are responsible for driving the growth in this sector. Having a delivery option really has become a consumer expectation, as their need and desire for convenience continues to grow,” Jayasinghe stated.

He also said that the millenials are currently “growing in the ‘need’ state of ‘restaurant explorer’,” and that their spending style is different from the previous generation.

“We know that it is convenience that consumers are on the lookout for when they seek out restaurants to visit and having a delivery option only serves to heighten that feeling of ultimate convenience. This is an area of the industry that will continue to experience substantial growth.”

(Photo credit: Menulog)