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Cloud Kitchen Industry Overview
The global cloud kitchen market size was valued at USD 51.96 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.4% from 2021 to 2028.
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.
Gather more insights about the market drivers, restrains and growth of the Global Cloud Kitchen Market
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.
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 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.
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Cloud Kitchen Market Segmentation
Grand View Research has segmented the global cloud kitchen market based on type, nature, and region:
Cloud Kitchen Type Outlook (Revenue, USD Million, 2017 - 2028)
- Independent Cloud Kitchen
- Commissary/Shared Kitchen
- Kitchen Pods
Cloud Kitchen Nature Outlook (Revenue, USD Million, 2017 - 2028)
- Franchised
- Standalone
Cloud Kitchen Regional Outlook (Revenue, USD Million, 2017 - 2028)
- North America
- Europe
- Asia Pacific
- Latin America
- MEA
Market Share Insights
- November 2017: Swiggy, an India-based online food aggregator, introduced Swiggy Acces to help restaurants operate delivery-only kitchens across locations where they do not have operations.
Key Companies profiled:
Some of the prominent players operating in the global cloud kitchen market include:
- Dahmakan (Pop Meals)
- DoorDash
- Kitchen United
- Kitopi
- Rebel Foods
- Zuul Kitchens, Inc.
Order a free sample PDF of the Cloud Kitchen Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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