April 15, 2024
China Dark Kitchens Ghost Kitchens Cloud Kitchens Market

The Global China Dark Kitchens Ghost Kitchens Cloud Kitchens Market is Propelled by Rising Demand for Convenient Food Delivery

China dark kitchens allow restaurants to prepare food for delivery and take-out orders without the dining area. This helps restaurant owners to reduce overhead costs and focus only on food preparation and delivery. Dark kitchens enable restaurants to leverage high-volume delivery-centric operations to cater to increased demand for convenient food ordering and delivery.

The global China Dark Kitchens Ghost Kitchens Cloud Kitchens Market Size is estimated to be valued at US$ 5 Billion in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends

Rising demand for convenient food delivery has been a major driver for the growth of dark kitchens in China. Customers preferring home delivery over dine-in are propelling more restaurants to take their operations online-only utilizing cloud kitchen spaces designed only for order fulfillment and delivery. This trend is expected to continue as dependency on delivery apps surge and more consumers adopt the habit of ordering-in. This provides a boost to Chinese cloud kitchen players to scale up their facilities to cater to increasing order volumes from various restaurant brands.

SWOT Analysis
Strength: Dark/ghost/cloud kitchens have lower overhead costs compared to traditional brick-and-mortar restaurants as they don’t require dining areas. This makes their business model more cost-effective.
Weakness: Absence of a physical storefront makes customer acquisition challenging. Dark kitchens rely heavily on third-party delivery platforms/apps for orders which adds to their costs.
Opportunity: Growth of online food delivery in China along with changing dining habits provides an opportunity to scale up. Rising popularity of convenience foods also favors expansion of virtual kitchen models.
Threats: Increased competition from existing restaurants leveraging their brands online. Strict regulations around food safety and hygiene for commercial kitchens.

Key Takeaways

The China dark/ghost/cloud kitchens market is expected to see significant growth over the forecast period. The global China Dark Kitchens Ghost Kitchens Cloud Kitchens Market is estimated to be valued at US$ 5 Billion in 2024 and is expected to exhibit a CAGR of 3.3% over the forecast period 2024-2031.

Regional analysis
China has emerged as one of the largest and fastest growing markets for virtual kitchens globally. Major cities like Beijing, Shanghai, Guangzhou and Shenzhen have witnessed a proliferation of dark kitchens in recent years to cater to the increasing number of food delivery orders. The ease of setting up virtual kitchen spaces coupled with lower rentals has encouraged many caterers and restaurateurs to try out this model.

Key players

Key players operating in the China dark/ghost/cloud kitchens market include Panda selected, Dearbean, Fresh halo, Chowbotics, and China good taste network. Panda selected is one of the largest operators with over 200 kitchen sites across 40 cities in China. Dearbean operates over 100 cloud kitchens while Fresh halo and Chowbotics have rapidly expanded their networks in tier 1 and tier 2 cities through partnerships with local restaurants.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it