Cloud Kitchen Market (By Type: Independent, Commissary/Shared Kitchen, Kitchen Pods; By Nature: Standalone, Franchised; By Product: Burger/Sandwich, Pizza/Pasta, Chicken, Seafood, Mexican/Asian Food, Others; By Deployment Types: Web, Mobile) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2022 – 2030
The global cloud kitchen market size was estimated at US$ 57.31 billion in 2021 and is expected to hit US$ 139.45 billion by 2030, poised to grow at a CAGR of 10.4% during the forecast period 2022 to 2030.
Increasing consumer preference for online food services over dining experiences is one of the major factors contributing to the market growth. Amid the COVID-19 pandemic, when dine-in facilities were shut as a precautionary measure to stop the spread of the virus, online food ordering and delivery services gained popularity among consumers. The rising demand for online food delivery services has encouraged several restaurateurs have opened cloud kitchen outlets to serve customers and generate orders.
The COVID-19 pandemic brought several challenges before the food industry. Dine-in businesses, which contribute to nearly two-thirds of the food industry, were severely affected and faced intense financial crunch because of the lack of regular customer orders. Moreover, varying degrees of lockdowns and related restrictions in several countries globally have helped the food delivery service model gain increased prominence. As cloud kitchens work entirely on the delivery-only model, restaurateurs could easily continue their businesses and serve customers efficiently.
Cloud kitchens, often referred to as virtual or ghost kitchens, are much more affordable to run compared to conventional kitchens in dine-in restaurants; ghost kitchens do not require dine-in facilities or account for costs related to property and location. Cloud kitchens also have comparatively higher profit margins than dine-in restaurants. The flexibility of operating ghost kitchens from any location, ranging from parking spaces and warehouses to basements, is another key factor adding to the popularity of cloud kitchens. Owing to the large range of benefits, along with the rising real-estate costs and competition among dine-in restaurants, entrepreneurs and restaurateurs are expected to increasingly adopt ghost kitchens in the near future.
Report Scope of the Cloud Kitchen Market
|Market Size by 2030||USD 139.45 Billion|
|Growth Rate from 2022 to 2030||
CAGR of 10.4%
|Largest Market||Asia Pacific|
|Fastest Growing Market||North America|
|Forecast Period||2022 to 2030|
|Segments Covered||Type, Deployment Types, Solutions, Product, Nature, Geography|
|Companies Mentioned||Kitchen United, Rebel Foods, DoorDash Kitchen, Zuul Kitchen, Keatz, Kitopi, Ghost Kitchen Orlando, Dahmakan, Starbucks (Star Kitchen), Cloud Kitchen|
Furthermore, the rising demand for digital ordering solutions favors market growth. Individual ghost kitchens with their online ordering solutions are also witnessing increased adoption. A dedicated online ordering solution drives consumers directly to the business and reduces aggregator’s commission, which could account for anywhere around one-fifth of the overall cloud kitchen costs. Advancements in technology are also helping restaurateurs to operate more efficiently and increase their profit margins. For instance, restaurateurs could use advanced tools to derive consumer insights to analyze and update their menu based on popularity and replace items with a higher margin item.
Food entrepreneurs and operators that test new offerings and offer creative foods prefer ghost kitchens to test and identify foods before presenting them to guests or consumers. Furthermore, ghost kitchens allow businesses the opportunity to serve customers directly without the pressure of additional costs and the constantly rising real-estate prices. Moreover, restaurants with the sole purpose of delivering foods targeted to specific customers can operate under more than one brand from the same kitchen, allowing them to make the most of their ingredients and reduce additional raw material costs.
The independent cloud kitchen segment held the largest revenue share in 2020, accounting for around 60% of the overall market. The trend is expected to continue over the forecast period, thanks to the rising number of standalone brands serving customers from a single location. Independent cloud kitchens primarily target consumers that prefer a single cuisine type and largely depend on third-party channels for delivery. The increasing consumer preference for international cuisines, fast foods, and online ordering is expected to drive the growth of the segment.
The commissary/shared kitchen segment is expected to register a CAGR exceeding 13.0% over the forecast period. The increasing popularity of the shared kitchen concept among restaurateurs and its several benefits contribute to the rise in the number of commissary kitchens. Restaurants are increasingly renting out their kitchen spaces to different food service providers as an additional source of income. Moreover, a rise in the number of food trucks and caterers that use storage space and free time slots of restaurant facilities is expected to drive the segment growth.
The franchised segment dominated the cloud kitchen market in 2020, accounting for more than 60% of the revenue share. The growing number of franchised restaurants across the globe is driving the growth of the segment over the forecast period. The popularity of international cuisines and tailored foods among consumers is encouraging operators to invest in popular brands. Furthermore, establishing such restaurants involves fewer risks as the franchisor provides training and support ranging from supplies and equipment to staff training and marketing. Thus, benefits such as the minimal risk involved in establishing a cloud kitchen and gaining a considerable profit share are expected to drive the growth of the segment.
The standalone segment is expected to register a significant CAGR over the forecast period. This growth can be attributed to the minimum investment involved, ensuring complete control over kitchen operations. Establishing standalone kitchens as a brand requires time and therefore adoption is less in comparison to franchise stores. However, on establishing as a brand, the increase in affluent customers demanding quality food delivery services is encouraging restaurateurs to opt for standalone kitchens. This is expected to drive the growth of the segment over the forecast period.
The popularity of cloud kitchens is more prominent in the Asia Pacific region, which accounted for more than 60% of the global market in 2020. The increasing trend of cloud kitchens across countries such as China and India is driving the regional market. Rising disposable incomes and the increased adoption of smartphone applications among millennials are key factors leading to the rise in online food delivery services. Additionally, the demand for online food delivery services increased during the COVID-19 pandemic when dine-in restaurants were closed, which led to the establishment of several cloud kitchens in the region, resulting in regional market growth.
North America is expected to register a CAGR of around 10% over the forecast period. Factors such as the increasing buying power of consumers, access to several digital touchpoints, and a rise in demand for fast foods are favoring the development of ghost kitchens in the region. Furthermore, increasing awareness about the benefits of cloud kitchens among operators is encouraging several franchised store outlets and aggregators to establish cloud or ghost kitchens.
Some of the prominent players in the Cloud Kitchen Market include:
- Kitchen United
- Rebel Foods
- DoorDash Kitchen
- Zuul Kitchen
- Ghost Kitchen Orlando
- Starbucks (Star Kitchen)
- Cloud Kitchen
Segments Covered in the Report
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:
- Commissary/Shared Kitchen
- Kitchen Pods
- Mexican/Asian Food
By Deployment Types
- Order Management
- Brand Management
- Inventory Management
- Customer Experience Management
- Marketing Management
- Reporting & Analytics
- United Kingdom
- Rest of Europe
- Southeast Asia
- Rest of Asia Pacific
- Rest of Latin America
Middle East & Africa (MEA)
- North Africa
- South Africa
- Rest of Middle East & Africa
Key Points Covered in Cloud Kitchen Market Study:
- Growth of Cloud Kitchen in 2022
- Market Estimates and Forecasts (2017-2030)
- Brand Share and Market Share Analysis
- Key Drivers and Restraints Shaping Market Growth
- Segment-wise, Country-wise, and Region-wise Analysis
- Competition Mapping and Benchmarking
- Recommendation on Key Winning Strategies
- COVID-19 Impact on Demand for Cloud Kitchen and How to Navigate
- Key Product Innovations and Regulatory Climate
- Cloud Kitchen Consumption Analysis
- Cloud Kitchen Production Analysis
- Cloud Kitchen and Management