Cloud Kitchen Market

Cloud Kitchen Market Is Estimated To Witness High Growth Owing To Growing Demand For Delivery And Takeout Services

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The cloud kitchen market is estimated to be valued at US$ 44.28 Bn in 2023 and is expected to exhibit a US$ 44.28 Bnover the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Cloud kitchens, also known as dark, ghost or virtual kitchens, are delivery/take-out-only kitchen facilities without a storefront. They provide various cuisines in multiple formats to cater the demand of online food ordering customers. Cloud kitchens focus mainly on takeaway and delivery services rather than dining experiences.

Market Dynamics:
Growing demand for delivery and takeout services is a major factor driving growth of the cloud kitchen market. Consumers prefer online food ordering and delivery especially in busy urban areas due to convenience and saving of time. In addition, changing dietary habits and increasing number of working professionals and students who cannot cook daily are fueling the demand for cloud kitchen services. Further, cloud kitchens offer more affordable and economical options for setting up a centralized food preparation unit rather than establishing standalone restaurant outlets which requires high capital investments and operational costs. Cloud kitchens allow restaurant and food businesses to penetrate new markets through low-cost delivery-only operations. However, intense competition among food service providers and high dependency on third-party delivery apps pose challenges for growth of the market.

SWOT Analysis
Strength: Dedicated space only for food preparation saves costs related to dining space, wait staff etc. Centralized kitchens help cater to multiple delivery kitchens/outlets at once. Focus only on food quality and delivery leads to efficient operations.
Weakness: Finding suitable real estate for cloud kitchens in high rent areas can be challenging. Dependence on third party delivery partners leads to lower control and margins. Limited branding opportunities without a physical presence.
Opportunity: Growing demand for food delivery services especially due to COVID pandemic. Expanding into new geographies and customer segments offers scope for business growth. Partnerships with restaurants and delivery companies can boost volumes.
Threats: Competition from large chains and new entrants that may gain scale advantages. Dependency on third party delivery appsexpose businesses to price negotiations and changing policies.

Key Takeaways

The global Cloud Kitchen Market Growth is expected to witness high growth, exhibiting CAGR of 12.% over the forecast period, due to increasing preference for online food delivery services amid rising smartphone penetration and busy lifestyles.

The North America cloud kitchen market holds the major share currently and is expected to continue its dominance over the forecast period owing to growing demand for convenience and presence of major delivery platforms and cloud kitchen operators in the region. The Asia Pacific region is anticipated to grow at the fastest pace during the same period supported by rapid urbanization, rising incomes and expanding internet connectivity in densely populated countries like India and China.

Key players operating in the cloud kitchen market are Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zuul. Kitchen United aims to expand across the United States with its modular micro-kitchen pods that can be deployed quickly. Rebel Foods, the largest virtual kitchen operator in India, has partnered with McDonald’s to prepare the latter’s burgers for delivery.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it