The market for cloud kitchen is expected to grow at a CAGR of around 22.0% from 2020 to 2027 and expected to reach the market value of around US$ 201.1 Bn by 2027.
Cloud Kitchen is otherwise known as a ghost kitchen, dark kitchen, or virtual restaurant. These are usually cooking spaces without a dine-in option or usually catering hubs for online pick-ups. These kitchens have no physical space for dine-in and are entirely dependent on online orders placed through online food aggregators or through websites or mobile applications. Some of the advantages associated with cloud kitchens include low operational cost, low setup and introduction cost, and automation.
The rising demand for on-demand food delivery or online food delivery is primarily driving the market growth. The increasing consumption of prepared snacks and meals particularly in developed and developing economies is further bolstering the market growth. The increasing working hours, as well as the working population in developing economies, are seeking options of delivery for ready meals due to time constraints. Thus, rising demand for ready-to-eat food products particularly among working people of developed countries is additionally propelling the market value.
On the other hand, growing awareness about risks associated with the unhealthy diet from the packaged and ready meal due to high carbs and oil is likely to hinder the growth over the forecast period from 2020 to 2027.
Segment Instance of Global Cloud Kitchen Market Revenue
The various types of cloud kitchens covered in the report scope including independent cloud kitchens, commissary/shared kitchens, and kitchen pods. Independent cloud kitchen is a single brand model that has a single kitchen with no storefront. These have no offline presence or physical store that provides the advantage of overhead cost and operating expenses by removing the facade. These models are getting famous owing to the rising popularity of the online ordering system, advancement in restaurant technology, and high consumer demand for food delivery.
Franchised segment is leading the market with maximum revenue
In 2019, the franchised segment has dominating share and the segment is also estimated to experience the fastest growth with major CAGR during the forecast period from 2020 to 2027. The increasing trend of franchising among the stakeholders owing to the advantages associated with the franchise like less capital requirement and easy expansion of business is additionally supporting the segmental market value. The increasing focus towards the marketing of food franchises in developing and developed economies is further projected to support growth over the forecast period. Commissary (Aggregator) Kitchen refers to the rented empty kitchen space. These are basically many small kitchens operating in one larger kitchen space with multiple brand names at a single time. These are also termed as the kitchen as a service (KaaS) owing to their concept of shared working space.
Asia Pacific is experiencing maximum growth (%) in the Cloud Kitchen market
Asia Pacific is experiencing significant growth in the cloud kitchen market and the region is also projected to dominate the overall cloud kitchen market over the forecast period from 2020 to 2027. The rapid urbanization along with the increasing disposable income and standard of living is boosting the regional market value. The increasing usage of digital applications in the developing economies of the region owing to the affordable cost of data packs is further bolstering the regional market value. The increasing focus of major food franchises in the region is additionally propelling the regional market value. Moreover, North America is having a potential share in the cloud kitchen market of 2019. The region is anticipated to exhibit steady growth (%) over the estimated period.
Key Market Player
The players profiled in the report include Cloud Kitchen, Dahmakan, DoorDash Kitchens, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi, Rebel Foods, Starbucks (Star Kitchen), and Zuul Kitchen.
Market By Type
Independent Cloud Kitchen
Market By Product Type
Market By Nature
Market By Geography
• Rest of Europe
• South Korea
• Rest of Asia-Pacific
• Rest of Latin America
Middle East & Africa
• South Africa
• Rest of Middle East & Africa
The market for cloud kitchen is expected to reach a market value of around US$ 201.1 Bn by 2027.
The cloud kitchen market is expected to grow at a CAGR of around 22.0% from 2020 to 2027.
Franchised is the leading segment by nature in the cloud kitchen market
The rising demand of on-demand food delivery, increasing consumption of prepared snacks and meals particularly in developed and developing economies, and increasing working hours as well as working population in developing economies are seeking options of delivery for ready meals are some of the factors driving the market growth.
Cloud Kitchen, Dahmakan, DoorDash Kitchens, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi, Rebel Foods, Starbucks (Star Kitchen), and Zuul Kitchen are some of the prominent players in the market.
North America held the highest market share in the cloud kitchen market
Asia Pacific is expected to be the fastest growing market over the forecast period