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Ghost kitchens, also known as cloud kitchens or dark kitchens, refer to commercial kitchen spaces that prepare food specifically for delivery and takeaway with little to no dining area. They allow restaurants to expand their reach and cater to more customers without the heavy investments associated with opening new physical restaurants.
The global Ghost Kitchen Market is estimated to be valued at US$ 70.37 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 growing demand for delivery and takeaway food options has been a key driver for the growth of ghost kitchens. More consumers now prefer having food delivered to their homes or offices rather than dine out at restaurants. This has made ghost kitchen models an attractive option for restaurants as they allow them to focus solely on food production and delivery logistics without maintaining dining spaces. Ghost kitchens have significantly lower start-up and overhead costs compared to traditional restaurants. This has encouraged many new food brands and businesses to set up ghost kitchens to cater to the growing delivery demand. The trend is expected to continue gaining traction over the forecast period with more restaurants adopting hybrid models that combine both physical and cloud kitchen operations.
SWOT Analysis
Strength: Ghost kitchens allow restaurants to expand to new markets at a lower cost compared traditional brick and mortar restaurants as they don’t require expensive retail spaces. They also allow restaurants to expand their delivery zones.
Weakness: Ghost kitchens lack the physical presence and foot traffic of traditional restaurants which can impact brand awareness among new customers. They also face higher dependence on third-party delivery platforms.
Opportunity: Increasing demand for delivery and take-out food driven by busy lifestyles and pandemic induced changes in consumer behavior presents an opportunity for ghost kitchens to scale up rapidly. Growth of third party delivery platforms also provides increased access to customers.
Threats: Entry of new players can increase competition. Reliance on third party delivery platforms also subjects ghost kitchens to commission fees and charges by these platforms. Changing consumer preferences towards casual dining experiences post pandemic is also a threat.
Key players: Key players operating in the ghost kitchen market are CloudKitchens, Kitchen United, REEF Technology, Virtual Kitchen Co., Zuul Kitchens, Deliveroo Editions, Kitopi, DoorDash Kitchens, Grubhub/Seamless, Swiggy Access, Uber Eats Kitchens, Rebel Foods, Ghost Kitchen Brands, JustKitchen, and Keatz. Among these, market leaders like CloudKitchens, Kitchen United and REEF Technology are focused on expanding across major global markets through partnerships and new virtual kitchen launches. Smaller regional players are also entering this high growth space through franchising and delivery partnerships.
Regional analysis: North America accounts for the largest share of the global ghost kitchen market currently due to high demand for food delivery services. Asia Pacific region is expected to witness fastest growth due to rising middle class population, growing digital penetration and emergence of new online food delivery platforms in countries like India and China. Countries like India and Indonesia are projected to dominate the Asia Pacific ghost kitchen market owing to rapid expansion of hybrid and dark kitchen brands.
Key Takeaways
The global Ghost Kitchen Market is expected to witness high growth over the forecast period driven by growing demand for convenience food and pandemic induced changes favoring delivery models.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
