The cloud kitchen market has witnessed significant growth in recent years on account of growing preference for online food ordering among individuals. Cloud kitchens or virtual kitchens allow restaurants to prepare food for delivery or take-away orders without maintaining a separate brick and mortar establishment. This helps restaurants to reduce overhead costs and expand their reach to new customers.
The global Cloud Kitchen Market is estimated to be valued at US$ 100.46 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The emergence of online food delivery aggregators has significantly boosted the cloud kitchen market. Major online delivery services such as DoorDash, Swiggy, and Zuul partner with cloud kitchens to expand their portfolio of partner restaurants. This allows customers to choose from a variety of cuisines through a single delivery platform. The online platforms also market and promote the cloud kitchen brands, helping them to gain traction among new customers. Moreover, food aggregators provide operational support including dispatch and delivery services to the cloud kitchens. This partnership enables the kitchens to focus on food preparation while benefiting from the vast customer base and logistics capabilities of the aggregators.
Strength: Cloud kitchens have lower overhead costs compared to traditional kitchens as they do not require dining space. This allows them to offer food at competitive prices.
Weakness: Cloud kitchens have limited brand recognition and visibility compared to traditional restaurants. They heavily rely on partnerships with food delivery platforms for orders.
Opportunity: Rapid growth of online food delivery industry. Increasing preference of customers for online food ordering and pick up options offer huge growth opportunity for cloud kitchens.
Threats: Traditional restaurants are also setting up their own cloud kitchen operations. Strong competition from existing and new players pose threat.
The global cloud kitchen market is expected to witness high growth over the forecast period of 2023 to 2030. The global Cloud Kitchen Market is estimated to be valued at US$ 100.46 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.
Regionally, Asia Pacific dominates the cloud kitchen market currently. Factors such as rising young population, growing urbanization, and increasing use of smart devices for food ordering are driving the growth of cloud kitchen market in Asia Pacific region.
Key players operating in the cloud kitchen market are Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zuul. These players are focusing on expanding their presence by partnering with local restaurants and food outlets to provide more variety of dishes through their platforms.