May 22, 2024

The global ghost kitchen market is estimated to Propelled by rise of delivery-only kitchens

Ghost kitchens have emerged as shared commercial kitchen spaces dedicated to the preparation of food for delivery and take-away orders placed through food delivery apps and websites, without any storefront or in-house dining. With rising demand for delivery-only food orders, especially since the onset of the COVID-19 pandemic, ghost kitchens allow restaurants to operate profitably even without the overheads associated with maintaining a dine-in space.

The global Ghost Kitchen Market is estimated to be valued at US$ 70.37 billion 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:

Rise of delivery-only kitchens: The ghost kitchen market has witnessed significant growth due to the rise of delivery-only kitchens that prepare food strictly for delivery. These kitchens help restaurants expand their reach without requiring expensive dining infrastructure. With increasing preference for delivered food among time-strapped consumers, the demand for delivery-only kitchens is expected to surge further in the coming years, thus propelling the growth of the global ghost kitchen market. While offering convenience, ghost kitchens help restaurants cut overhead costs, improve profit margins, and operate more efficiently. The rapid growth of the delivery-focused business model is a major trend driving the ghost kitchen market.

Key players operating in the ghost kitchen market include CloudKitchens, Kitchen United, REEF Technology, Virtual Kitchen Co., and Zuul Kitchens among others. Ghost kitchen firms are actively expanding their presence through partnerships with new restaurant brands and delivery platforms. For example, CloudKitchens launched over 30 warehouse locations in the United States and invested in regional operators to grow its portfolio of partner restaurants. REEF Technology acquired Kitchen United this year combine their real estate and operating expertise.

SWOT Analysis

Strength: Ghost kitchens offer lower overhead costs compared to traditional restaurants as they do not require a physical storefront or dining space. This enables operators to prepare food at lower costs.

Weakness: Ghost kitchens lack the dine-in experience that attracts some customers to traditional restaurants. They also face difficulties in branding and marketing with no storefront presence.

Opportunity: The growth of food delivery apps and online orders has increased demand for delivery and take-out meals. This growing market presents an opportunity for ghost kitchen operators to fulfill such demand in a more cost-effective manner.

Threats: Traditional restaurants can enter the delivery-only market by launching their own ghost kitchen locations, bringing competition. Regulations regarding licensing and safety standards for commercial kitchens without a physical storefront also pose operational threats.

Key Takeaways

The global Ghost Kitchen Market is expected to witness high growth over the forecast period supported by increasing demand for delivery and take-out meals. The global ghost kitchen market is estimated to be valued at US$ 70.37 billion in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

Regional analysis indicates North America currently dominates the market attributed to high adoption of online food delivery apps in countries like the United States. Europe and Asia Pacific also offer lucrative opportunities for market expansion with growing preference for convenience food in countries like India, China and UK.

*Note:

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