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.

Growth Factors:

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

Report Coverage

Details

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

Base Year

2021

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.

Type Insights

Based on the type, the independent kitchen segment dominated the global cloud kitchen market, garnering a market share of around 60% in 2020. The rapid increase in the number of standalone brands across the globe that serves the customers through a single location. The growing preferences of the customers to order food from the online food delivery apps owing to the associated conveniences with it has significantly boosted the growth of this segment. The growing demand among the customers for the international cuisines and fast food through online delivery channels is expected to sustain the dominance of this segment throughout the forecast period.

On the other hand, the commissary/shared kitchen segment is estimated to grow at a CAGR of 13% during the forecast period. The growing popularity of the shared kitchen concept among the restaurateurs and the food service providers has fueled the growth of the commissary/shared kitchen segment. Moreover, the restaurant owners are renting out their extra spaces to the food service providers to earn extra income, which is fueling the growth of the shared kitchen segment.

Nature Insights

Franchised segment has generated a revenue share of more than 60% and dominated the global cloud kitchen market in 2020. The rapid growth in the online food delivery apps has offered a huge growth opportunity to the cloud kitchen brands that has fostered the growth of the franchised segment. The increasing penetration of the popular franchises, especially in the developing regions has fostered the growth of this segment. Furthermore, the franchisor extends its support, training, and marketing activities to the franchisee that favors that establishment of the franchise at many locations and hence supports the segment’s growth across the globe.

The standalone is expected to be the fastest-growing segment during the forecast period. The minimum investment, higher profitability, and ease of operations has significantly boosted the growth of the standalone cloud kitchens across the globe. Moreover, the support from the food delivery providers has supplemented the growth of this segment.

Regional Insights

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
  • Keatz
  • Kitopi
  • Ghost Kitchen Orlando
  • Dahmakan
  • 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:

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

By Solutions

  • Order Management
  • Brand Management
  • Inventory Management
  • Customer Experience Management
  • Marketing Management
  • Reporting & Analytics
  • Others

By Geography

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • United Kingdom
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • 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

Report Detail

  • Report Code:6428
  • No. of Pages:150+
  • Format:PDF/PPT/Excel

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