The UK eating out market is expected to grow by 33.4% in 2021, to reach a value of £63.6bn, according to a new report by Lumina Intelligence.

Its UK Eating Out Market Report 2021 also predicts that the market will make a full recovery, and exceed its pre-pandemic value, by the end of 2022, when it is set to reach £91.9bn.

The sub-segment with the quickest anticipated turnaround is retail, travel and leisure (+41.1% to £16.0bn), with on-the-go and relatively low-ticket channels well placed for takeaway operations and recessionary trading.

While hotels, pubs and restaurants – the largest sub-segment of the total market by value and number of outlets – is expected to recover to two thirds of its 2019 value this year (+32.1% to £44.8bn), as restrictions continue to constrain its recovery.

Blonnie Whist, Insight Director at Lumina Intelligence said: “With all restrictions on the hospitality sector set to end in June, attention now turns to market recovery. In the interim, we will see slight polarisation between channels, with on-the-go and relatively low-ticket solutions well placed to continue to capitalise on demand for takeaway, as well as combat any recessionary trading.

“Hotels, pubs and restaurants are set for a slower recovery, as prolonged restrictions on indoor dining and limited travel hamper 2021 trading. However, between 2022-24 there is a £3.1bn growth prize for operators to target. Managed, branded and franchised pubs are set to be the biggest beneficiaries of this, with growth of £663m expected.”

The Lumina Intelligence UK Eating Out Market Report 2021 is the definitive report on the sector, covering the market and competitive landscape, consumer attitudes and behaviours and future outlook. Find out more about the report here.