The Global Cloud Kitchen Market size is expected to reach $118.5 billion by 2027, rising at a market growth of 13.5% CAGR during the forecast period. Cloud kitchens, also known as ghost kitchens or virtual kitchens, refer to the delivery only kitchens that are owned by any brand or third party that are collaboratively working with different brands. These kitchens have reasonable cost of operations in comparison to traditional kitchens in dine-in restaurants. This type of kitchen does not need any dine-in spaces and account for costs associated with property & location.
In addition, cloud kitchens also have relatively high profit margins than any other dine-in restaurant. Cloud kitchens offer more flexibility in operations from any location including parking spaces, warehouses, and even basements, which are contributing to the increasing popularity of cloud kitchens across the globe. There is a wide range of benefits offered by these kitchens coupled with the increasing real-estate costs and competition amongst dine-in restaurants, which are further motivating entrepreneurs and restaurateurs to adopt the concept of cloud kitchens in the coming years.
Furthermore, the growing population of youngsters across the world and the shifting taste preference of the customers have fueled the demand for online food delivery. Additionally, rising disposable income and the hectic life schedule of the consumers are among the key factors spurring the trend of ordering food from online mode. In addition, increasing literacy rate, surge in use of smartphones, and better access to the internet are some of the factors making online food ordering easier. At present, food restaurants are collaborating with online food service sites like FoodPanda for their food delivery and also to boost their sales.
The outbreak of the global COVID-19 pandemic has impacted various sections of society. The food industry has witnessed numerous challenges due to the pandemic. The dine-in restaurants that make the two-thirds of the food industry were negatively affected and faced huge financial losses due to the imposed restrictions like lockdown. In addition, the imposed lockdown in various nations across the globe has supported the food delivery service model to gain more momentum in the industry.
Since the cloud kitchens operate wholly on the delivery-only model, restaurant owners can easily carry on their businesses and better serve their customers. The demand for cloud kitchens around the world has increased due to the pandemic as food delivery was allowed even throughout complete lockdowns. The consumer preference has also changed from dine-in to food delivery, which is bolstering the growth of the cloud kitchen market.
With the introduction of various food delivery apps, the concept of online food delivery has gained more momentum. Customers are preferring food delivery over dine-in, which is supporting the growth of the cloud kitchen market in the coming years. In addition, these food delivery apps are motivating restaurant owners to shift to cloud kitchens from traditional kitchen locations. The rising internet penetration and high adoption of smartphones among the customers are also promoting restaurant owners to opt for cloud kitchens rather than establishing a conventional kitchen facility.
Establishing a traditional restaurant facility with proper infrastructure at a location is very expensive as the prices of real estate or properties are regularly increasing in the market. Additionally, the huge cost is incurred in the making and maintenance of the infrastructure of the restaurant, which can be reduced by opting for cloud kitchens. Cloud kitchens also help in eradicating the expensive part of opening a physical restaurant such as decorations, dinnerware, and branded signage.
As everything goes online in the cloud kitchen concept, customers do not interact directly with the restaurant and lack the establishment of a connection among them. Some of the factors that connect a person with a restaurant are personal attachment, beautiful ambiance, and interaction with the restaurant staff. These factors motivate the customers to visit the restaurant again and make a personal bond with the staff, which further augments the sales of the restaurants.
Based on Nature, the market is segmented into Franchised and Standalone. The standalone segment is projected to procure a substantial growth rate during the forecast period. It is due to the low investment required, allowing total control over kitchen operations. Opening standalone kitchens as a brand need more time and hence, the adoption of these kitchens is less as compared to franchise stores.
Based on Type, the market is segmented into Independent Cloud Kitchen, Commissary/Shared Kitchen and Kitchen Pods. The independent cloud kitchen segment dominated the market with the maximum revenue share in 2020. This segment is anticipated to continue this trend during the forecast period due to the increasing number of standalone brands that serve customers from one location. In addition, independent cloud kitchens mainly focus on consumers that prefer one cuisine type and majorly depend on third-party channels for food delivery.
| Report Attribute | Details |
|---|---|
| Market size value in 2020 | USD 49.7 Billion |
| Market size forecast in 2027 | USD 118.5 Billion |
| Base Year | 2020 |
| Historical Period | 2017 to 2019 |
| Forecast Period | 2021 to 2027 |
| Revenue Growth Rate | CAGR of 13.5% from 2021 to 2027 |
| Number of Pages | 147 |
| Number of Tables | 254 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling |
| Segments covered | Nature, Type, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The Asia Pacific emerged as the leading region in the cloud kitchen market with the maximum market share in 2020. The growing trend of cloud kitchens across emerging nations like China and India is propelling the growth of the regional market. The increasing disposable incomes of the consumers and the high adoption of smartphone applications by the millennials are among the major factors surging the demand for online food delivery services.
Free Valuable Insights: Global Cloud Kitchen Market size to reach USD 118.5 Billion by 2027
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Starbucks Coffee Company is the major forerunners in the Cloud Kitchen Market. Companies such as DoorDash, Inc., Rebel Foods, Kitopi, Kitchen United are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Starbucks Coffee Company, DoorDash, Inc., Ghost Kitchen Orlando, Swiggy (Bundl Technologies Pvt. Ltd.), Zuul Kitchens, Rebel Foods, Kitopi, Kitchen United, Pop Meals (Dahmakan), and CloudKitchens.
By Nature
By Type
By Geography
The global cloud kitchen market size is expected to reach $118.5 billion by 2027.
Reduction in the overall cost of running a restaurant are driving the market in coming years, however, absence of customer interaction limited the growth of the market.
Starbucks Coffee Company, DoorDash, Inc., Ghost Kitchen Orlando, Swiggy (Bundl Technologies Pvt. Ltd.), Zuul Kitchens, Rebel Foods, Kitopi, Kitchen United, Pop Meals (Dahmakan), and CloudKitchens.
The expected CAGR of the cloud kitchen market is 13.5% from 2021 to 2027.
Yes, The franchised segment acquired the highest revenue share in the cloud kitchen market in 2020. The rising number of franchised restaurants around the world is fueling the growth of the segment during the forecast period.
The franchised segment acquired the highest revenue share in the cloud kitchen market in 2020. The rising number of franchised restaurants around the world is fueling the growth of the segment during the forecast period.
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