Cloud Kitchen Market Size (2023 -2030)

The global cloud kitchen market size was estimated at US $59.1 billion in 2022 and is estimated to reach the value of US$ 140.17 billion by 2030, poised to grow at a CAGR of 11.4% during the forecast period from 2023 to 2030.

Cloud kitchen is a virtual commercial platform for preparing and delivering a variety of foods, drinks, and cuisine items intended for delivery only. This good delivery ecosystem served as a central pillar for cloud kitchens and is often referred to as 'ghost kitchens'. These delivery-only kitchens are generally owned by a brand or third party working with various brands.  It allows food businesses to optimize and expand delivery or takeout services at a minimal cost compared to conventional outdoor locations, which require physical dine-area and huge capital investment. The cloud kitchen market expands with flexibility for ghost kitchens in various locations, including basements, warehouses, and parking spaces. This flexibility allows for better marketing, reduced administrative hassle, and a larger audience. The high adoption of ghost kitchens due to their numerous benefits further influences the market.

Government policies and ease of business have made it easier to start a cloud kitchen. Organizations train and guide individuals to start their own, boosting the number of small, independent cloud kitchens, particularly in developing countries. The cloud kitchen market has experienced growth due to several factors, including the widespread use of the internet, the rising popularity of smartphones, and the strong backing from food delivery platforms. Moreover, the increasing demand for online food delivery services has forced restaurateurs to start cloud kitchen outlets to serve online customers. The growing use of social media and digital marketing strategies by top market players is contributing to market growth in the food service sector. Thai and Chinese cuisines have gained popularity globally, with a high percentage of young and working populations and rising disposable income. Health benefits-oriented products are also being offered by fast food manufacturers in North America, Europe, Asia-Pacific, and the Middle East. Consumers' preference for pre-cooked meals and reluctance to cook at home contribute to the flourishing of the industry and the growth of the cloud kitchen market.

Global Cloud Kitchen Market Drivers:

Rapid Urbanization has been fuelling the growth of the Global Cloud Kitchen Market.

With increasing connectivity, infrastructure development, and technological advancement in different cities across the world, the high disposable income of people in those cities, hectic lifestyles, and the urge of people to try different new varieties to satisfy their taste buds not only increased the revenue of the market but has also motivated people to have their start-ups in the cloud-kitchen based food business.

The presence of Online Food Platforms has brought Cloud Kitchens to the limelight which has increased its sales which is another important factor contributing to the growth of the Cloud Kitchens Market.

Many online food delivery applications have acted as a link between consumers and Cloud Kitchens which has brought such kitchens into the public eye. These online platforms have exposed Cloud kitchens to its millions of users which has drastically increased its market size making it a very important factor for its growth.

Global Cloud Kitchen Market Challenges:

The high dependability on delivery applications and limited customer varieties as they are accessed through the internet, are the major factors estimated to obstruct the market growth. The cloud kitchen market faces challenges from high carb consumption and high competition from players in 2023-2030.

Global Cloud Kitchen Market Opportunities:

The Global Kitchen Market is projected to offer huge profitable prospects for business as the status of the market looks very promising fostering partnerships, mergers, collaborations, and agreements during the forecasted period. Furthermore, there is a potential to make technological advancements and upgrades to reach out to more people with novel business ideas for a competitive edge in the market by tapping into a profitable outcome.

COVID-19 Impact on the Global Cloud Kitchen Market:

The pandemic positively impacted the Global Cloud Kitchen Market.COVID-19 has restricted dine-in services in restaurants and commercial food establishments globally. As a result, businesses like delivery-optimized restaurants, meal prep companies, caterers, and packaged food producers are shifting to cloud kitchens to maintain business continuity and deliver food without additional overhead. The growing popularity of online food delivery services due to hectic working schedules and the demand for quick, affordable meal options is boosting market growth.

Global Cloud Kitchen Market Recent Developments:

• On December 2, 2021, Poncho Hospitality, the parent company of cloud kitchen startup Box8, rebranded to EatClub Brands on Wednesday after raising $40 million in a round led by Tiger Global.

• On September 14, 2022, The Cloud, a virtual kitchen start-up based in Abu Dhabi's Hub71, secured $10 million in series A funding that it will use to expand operations in the GCC and Europe. The company, which recently opened its regional headquarters in Saudi Arabia, plans to expand to Kuwait next to boost its GCC footprint, with France and Italy as its next target markets in Europe.

• In March 3, 2022, Kitchens@, has merged with Delhi-based Kitchens Centre. The move will make the combined entity the biggest player in the space with more than a thousand cloud kitchens that are spread across twenty cities. With this merger, the combined entity will service over 150 brands across the length and breadth of India.

CLOUD KITCHEN MARKET REPORT COVERAGE:

Global Cloud Kitchen Market Segmentation: By Type

• Independent Cloud Kitchen

•  Commisiory/Shared Kitchen

•  Kitchen Pods

The Independent cloud kitchen segment dominates the market due to global demand for international cuisines like Thai and Chinese food, the rising popularity of the online ordering system, advancements in restaurant technology, and high consumer demand for food delivery which further boosts the growth of the cloud kitchen market. Independent cloud kitchen has a single kitchen and is a single-brand model with no storefront. These have no offline presence or physical store that provides the advantage of overhead cost and operating expenses by removing the façade

Global Cloud Kitchen Market Segmentation: By Product

• Burger/Sandwich

•  Pizza

•  Pasta

•  Chicken

•  Seafood

•  Mexican/Asian

•  Others

The burger/sandwich segment held the largest cloud kitchen market share, accounting for around 25% of the total revenue in 2022, followed by the chicken segment. Gen Z and millennials are responsible for the growth of this segment as they are the major consumers of this food across the globe.

Global Cloud Kitchen Market Segmentation: By Nature

•  Franchised

• Standalone

The franchised segment dominates the cloud kitchen market, with operators investing in popular brands due to consumer preferences for international cuisines and tailored foods. The standalone segment is estimated to grow, and franchising is increasing among stakeholders due to its cost-effectiveness and business expansion benefits. This trend is estimated to continue in the forecast period. The adoption of standalone kitchens as a brand is relatively lower compared to franchise stores, mainly due to the time required for establishment. However, as these standalone kitchens gain recognition as a brand, they attract more affluent customers who seek quality food delivery services, encouraging restaurateurs to choose this approach.

Global Cloud Kitchen Market Segmentation: By Region

•  North America

•  Europe

•  Asia-Pacific

• South America

• Middle East & Africa

North America has dominated the Global Cloud Kitchen Market owing to the well-established market and increasing dependency of consumers on cloud kitchens. However, Asia-Pacific is estimated to grow rapidly during the forecast period. Asia-Pacific region is also estimated to make huge progress in markets as the disposable incomes in the huge populous countries like India and China are increasing.

Global Cloud Kitchen Market Segmentation: Key Players

1. Kitchen United (United States)

2. Rebel Foods (India)

3. Doordash Kitchen (United States)

4. Zuul Kitchen (United States)

5. KEATZ (Germany)

6. Kitopi (UAE)

7. Ghost Kitchen Orlando (United States)

8. Dahmakan (Malaysia)

9. Starbucks (Star Kitchen) (United States/China)

10. Food Haven Technologies Inc. (Spain)