CLOUD KITCHEN MARKET ANALYSIS

The global cloud kitchen market size was valued at US$ 39.54 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 12.4% from 2023 to 2030. The cloud kitchen market is witnessing strong growth on the account of booming food delivery business, increasing globalization, and rising consumer preference for continental and fast food. Moreover, increasing disposable income of consumer coupled with the growing penetration of internet is are major factors expected to propel market growth.

Global Cloud Kitchen Market: Regional Insights

Based on geography, the global cloud kitchen market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, North America is expected to dominate the global cloud kitchen market over the forecast period owing to the increasing expenditure on premium quality food products, growing purchasing power of consumers, and increasing demand for fast food. Moreover, improved lifestyle of consumers and early adoption of advanced technology are also increase the sale of cloud kitchen products in this region.

Europe is another prominent cloud kitchen market. The market witnessing strong growth across countries such as the Germany, UK, France, Italy, Spain, and rest of Europe. Investors in the region are focusing towards leveraging new technology, due to which Europe has witnessed a transitional shift in recent years. Furthermore, the cloud kitchen producers in Europe are creating apps and kiosks to capture information of the customers and restaurants to offer both personalized and reliable experience to the customers.

Figure 1. Global Cloud Kitchen Market, By Region, 2023

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Global Cloud Kitchen Market Drivers:

Growing demand for international cuisine to augment market growth

Increasing globalization and growing number of working populations are contributing to the demand for international cuisines. Moreover, the cloud kitchen market is also growing rapidly due to the surge in demand for high-quality food delivery services from hungry millennials who are willing to pay premium prices. Furthermore, the technology is also evolving, with new services being offered to streamline the management of various deliveries through multiple platforms, and to optimize production workflows for faster delivery of food.

Increasing demand for online food delivery to propel market growth

Online food delivery allows customers to order prepared meals or ingredients from restaurants via apps and have them delivered to their homes. Food is usually delivered by third-party delivery services that integrate with restaurants’ own app or website. Online food delivery service market is playing very important role in the overall development of cloud kitchen market.

Global Cloud Kitchen Market Opportunities:

Increasing investment by key players in the cloud kitchen market is expected to present lucrative market opportunities. For instance, In September 2022, A Manila-headquartered startup - CloudEats, which operates cloud kitchens across the Philippines and Vietnam, has raised a $7 Billion Series A extension led by Nordstar to accelerate the digitization of food service in Southeast Asia. The startup plans to penetrate farther into Southeast Asian countries such as Thailand, Malaysia and Indonesia in 2023.

Other factors that are expected to offer profitable market opportunities are rising consumer preference for online food ordering and fast food delivery, growing disposable income of individuals, and changing lifestyles. Additionally, the rising number of smartphone users is also propelling the growth of this market. Furthermore, the emergence of new technology and innovations in the field of kitchen automation and robotics is helping the cloud kitchen market to flourish.

Global Cloud Kitchen Market Trends:

Growing trend of social media market

Since there has been rise in number of users on various social media sites due to growing internet penetration.  Most of the key players in the cloud kitchen market are focusing on promoting their products and services on social media platforms. Hence, growing use of social media marketing is projected to stimulate the growth of cloud kitchen market.

Independent cloud kitchen is a recent trend

Growing number of brand serving customer from a single location is expected to uplift the market growth. Moreover, growing consumer preferences for international cuisines, online ordering, and fast foods further is expected to fuel market growth.

Global Cloud Kitchen Market Restraints:

Health issues associated with the consumption of fast is expected to hinder market growth

A key challenge for the growth of cloud kitchens is ensuring that the prepared food meets health and safety standards. This needs a comprehensive food safety management system and adherence to strict hygiene rules and regulations. This factor is expected to hamper the market growth.

Competition from dining and quick service restaurant (QSRs) is projected to restrict market growth

The rise in number of dining and QSR such as McDonald, Subway, KFC, Pizza Hut, Starbucks, Restaurant Brands International, and Dunkin Donut are one of the key factors that restrict the growth of the cloud kitchen market. Moreover, this quick service restaurant has global presence due to which smaller cloud kitchen are unable to compete with these giants.                  

Figure 2. Global Cloud Kitchen Market, By Type, 2023

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Global Cloud Kitchen Market Segmentation:

The global cloud kitchen market report is segmented into type, product type, nature, and region

Based on type, the market is segmented into Independent Cloud Kitchen, Commissary/Shared Kitchen, and KitchenPods. Out of which, Independent Cloud Kitchen is expected to dominate the global market over the forecast period and this is attributed to the growing preferences for fast foods, international cuisines, and online ordering among consumers

Commissary/Shared Kitchen segment is also expected to witness significant growth in the near future and this is owing to the growing awareness regarding the benefits of shared kitchen concept among restaurants.

Based on product type, the market is segmented into Burger/Sandwich, Pizza/Pasta, Chicken, Seafood, Mexican/Asian Food, and Others. Out of which, Burger/Sandwich is expected to dominate the global market over the forecast period and this is attributed to the conveince and ease of availability. Moreover, the preparation time of burger is less, which makes them quite popular among the consumers.

Pizza/Pasta segment is also expected to witness significant growth in the near future and this is owing to the growing demand for pizza /pasta among millennial.

Based on nature, the market is segmented into Franchised and Standalone. Out of which, Franchised is expected to dominate the global market over the forecast period and this is attributed to the fact that franchising involves less risk as franchisor offer training and support ranging from equipment and supplies to marketing and training staff.

Standalone segment is also expected to witness significant growth in the near future. Standalone involves less investment and ensure complete control over kitchen.

Global Cloud Kitchen Market: Key Developments

In June 2020, Smoothie King announced a new and exclusive partnership with DoorDash to allow customers to order the brand’s 83 blends through DoorDash’s website or app for delivery or pick-up. The brand also announced a “Try Me Free” promotion that will give the new Smoothie King customers that order through DoorDash $0 delivery fees on orders of $15 or more. Additionally, the brand will also join DoorDash’s subscription service, DashPass. This service offers members unlimited, $0 delivery fees from participating restaurants on orders of $12 or more for a monthly fee of $9.99.

In June 2020, Pittsburgh food bank partnered with DoorDash to help get fresh produce to those in need.

In April 2019, Wingstop launched delivery in the company’s hometown of Dallas, Texas. The launch is part of a 2019 national rollout with on-demand platform DoorDash.

In October 2019, DoorDash opened its first commissary kitchen DoorDash Kitchens, in Redwood City.

Global Cloud Kitchen Market: Key Companies Insights

The global cloud kitchen market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global cloud kitchen market are Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zuul

*Definition: The cloud kitchen is a kitchen space that does not have a dining room and is entirely dependent on online orders placed through a website or mobile app.