Home cooking isn’t on the daily to-do list of most millennials, according to Business Insider. A recent 82-page report from investment banking company UBS, entitled “Is the Kitchen Dead?,” estimates that by 2030, online food delivery could be as much as 10% of the total foodservices market, a predicted value of $365 billion in market share, up from $35 billion today.
UBS describes new delivery apps as the “game-changer” in foodservice. With the convenience of online apps, consumers can order directly from restaurants that didn’t previously offer delivery. This opens up the market to more players and gives consumers far more options.
The report notes that millennials are three times more likely to order in than their parents because they like the convenience of food delivery. UBS speculates that if drones and robots become part of the equation, ordering costs could decrease to such an extent that ordering in would be less expensive than in-home cooking. This could negatively impact U.S. food producers, such as General Mills and Kraft Heinz, which sell ingredients for making meals at home.
Numerous chains, including McDonald's, Chipotle and Panera, are embracing the phenomenon. Last month, Chipotle announced that delivery sales jumped 667% after the company inked a deal with DoorDash delivery service in April.
In contrast, other current studies indicate that consumers, including millennials, are spending more time at home and actually are cooking as part of the growing trend to prepare and eat healthy foods.