Cloud Kitchen Market Size
The Global Cloud Kitchen Market size reached USD 56.7 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 122.5 billion by 2031. The market is expected to exhibit a CAGR of 10.1% during the forecast period 2024-2031. Online meal delivery platforms are used by cloud kitchen-based restaurants, which frequently operate out of commissary or commercial kitchens.
Reputable companies like Kitchen United, Cloud Kitchen, Reef and others have emerged to streamline meal delivery orders and fulfill food fulfillment orders. The cloud kitchen market offers several benefits, including making it easier to execute to-go orders and allowing restaurants to run more than one brand from a single kitchen.
Restaurant owners can operate only with kitchen staff and delivery personnel in a cloud kitchen, which enables them to change their menu items and product mix more quickly than they can in a physical location. The cloud kitchen market growth has been fueled by increased demand for online meal delivery, rising consumer disposable income and rising levels of literacy.
Market Summary
| Metrics | Details |
| CAGR | 10.9% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Nature, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
The Demand for Digital Ordering Solutions is Driving the Market Growth
The cloud kitchen market growth has been driven by the increasing need for digital ordering solutions as a result of technological advancements. Restaurants are utilizing cutting-edge methods to gather consumer data to analyze and update their menu based on customer demand, replace menu items with better margin options and boost their profit margins. The restaurant's "cloud kitchen" largely manages online orders, which is driving the market growth.
The National Institute of Health reports that during the previous five years, the growth rate for online food ordering and restaurant delivery has been over 20%. Online food delivery rates are anticipated to increase to more than $220 billion by 2025, while predictions vary by location. This equals almost 40% of all restaurant sales.
The Globalization Across the World is Driving the Market Growth.
The world is now closer together as a result of globalization. The main sources of information on other cultures include the internet, television programs, magazines, and newspapers. People develop an appetite for trying different foods as they learn more about them. New cuisines are therefore in demand as a result, which is driving the cloud kitchen market growth during the forecast period of 2024-2031.
Globally, popular cuisines like Chinese and Thai food have achieved enormous success. The food service industry has experienced substantial demand in recent years and is predicted to develop exponentially as a result of the large proportion of young people who are working and an increase in disposable money.
Food offerings with a focus on health advantages are constantly being promoted by fast food chains to consumers in North America, Europe, Asia-Pacific and Middle Eastern nations. The desire for various kinds of international cuisine, including pizza and hamburgers, has significantly increased across the Asia-Pacific region. As a result, these elements fuel the expansion of the cloud kitchen market.
Market Segment Analysis
The global cloud kitchen market is segmented based on type, nature and region.
In the Global Market of Cloud Kitchen, the Independent Cloud Kitchen Holds the Largest Market Share.
The global cloud kitchen market has been segmented by type into independent cloud kitchen, multi-brand cloud kitchen, hybrid cloud kitchen and others. The independent cloud kitchen segment held the largest cloud kitchen market share of about 56.6% in 2022 in the cloud kitchen market analysis report.
The term "independent cloud kitchen" refers to a business model that is independent in terms of accepting orders and delivering prepared meals, hence the title "classic cloud kitchen." It comprises a single brand that cooks its meals in the kitchen in response to Internet orders, which has raised consumer preferences.
The growing demand for Internet food delivery services and the COVID-19 outbreak has caused independent cloud kitchens to expand. As cloud kitchen offers better expansion opportunities, 67% of restaurant owners want to open one, according to Limetray. These elements boost the cloud kitchen paradigm by expanding food sales through online services.
Market Geographical Share
North America Held the Largest Share in the Cloud Kitchen Market.
The North American cloud kitchen market held the largest market share of 45.4% in 2022 in the cloud kitchen market analysis. due to the rising demand for ready-to-eat food and the many methods that big nations like the United States and Canada are ordering food via the internet, phone, and mobile apps. Better customer service is provided by the cloud kitchen, which lowers the possibility of error.
The use of kiosks by various kitchen manufacturers, mostly in the U.S. and Canada region, is the result of technological improvements. Robotics and machines are increasingly being used in the food business due to the fast rate of adoption of new technology as well as the cost and quality of food. The outlets essentially function as a cloud kitchen, with traditional restaurants being replaced by online takeaways and delivery, which is driving the market growth in the region.
Cloud Kitchen Companies
The major global players in the market include Zomato, Rebel Foods, Kitchen United, Kitopi, KEATZ, Starbucks, Ghost Kitchen Orlando, Zuul Kitchen, Doordash Kitchen and Dahmakan.
COVID-19 Impact on Cloud Kitchen Market
Global Recession/Ukraine-Russia War/COVID-19 and Artificial Intelligence Impact Analysis:
Covid-19 Impact:
Every industry was affected by COVID-19, but the food and beverage (F&B) sector was one of the hardest hits. But as time went on, virtually every industry discovered ways to deal with the pandemic.
To compensate for the losses sustained during the previous two years due to the lockdowns, the F&B business also developed new strategies. The F&B business announced that "Cloud kitchen" will be their primary tool in the fight against COVID-19. Because of this, the popularity of cloud kitchens has skyrocketed in India. The pandemic couldn't stop us from ordering our favorite meal because Indians are known for their love of eating. This inspired a lot of restaurants to start cloud kitchens.
RedSeer Management Consulting estimates that the market for cloud kitchens in India would grow from $400 million in 2019 to $2 billion in 2024. Not just that, but by 2023, the market for cloud kitchens is projected to grow to $1.05 billion. To profit from the craze, food aggregators are making aggressive investments in cloud kitchens.
AI Impact:
The assistance of AI and ML is providing the cloud kitchen with the framework for becoming more successful and brilliantly reorganizing its operations. Technology is advancing quickly in the twenty-first century. Numerous practical innovations and cutting-edge, innovative technologies have helped us better understand the world. AI is one such innovation. Everything these days is built on AI and restaurant owners are the newest to adopt this booming technology.
The technology behind online meal delivery companies has long been excellent, but as more people choose to eat at home, cloud kitchens are becoming more popular and AI is only increasing their profitability. AI aids cloud kitchens in selecting the appropriate cuisines, determining the menu mix, controlling inventories and handling client feedback. The way restaurants operate has greatly benefited from machine learning.
Key Developments
- In August 2022, after successfully launch of its cloud kitchen in Bengaluru, Living Foods, a start-up located in Bengaluru that first focused on the production and distribution of fresh food products like leafy greens and also plans to open two kitchens that will serve ten locations in Mumbai.
- In July 2022, My Cloud Kitchen partnered with NVA Foods to launch a $1.23 million corpus and provide cloud kitchen business incubation and consulting services in Bangalore. The joint venture will make use of its skills, including internal brand development, vendor relationships, menu engineering, inventory management, hiring staff, culinary training, marketing and so on.
- In February 2023, Bigspoon, a prominent Cloud Kitchen start-up, along with Mouni Roy, a celebrity investor, today unveiled The Pizza People, a neo-pizza brand that will operate in 15 cities with 35 locations. As Bigspoon uses its extensive cloud kitchen network across Tier-1 and Tier-2 cities, The Pizza People is India's largest pizza brand launch in a single day. 35 locations opened in 15 cities during the initial phase of the launch, including Pune, Ahmedabad, Delhi NCR, Hyderabad, Surat and Indore.
Why Purchase the Report?
- To visualize the global cloud kitchen market segmentation based on type, nature, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities in the market by analyzing trends and co-development.
- Excel data sheet with numerous data points of cloud kitchen market-level with all segments.
- The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
- Product mapping is available as Excel consists of key products of all the major market players.
The Global Cloud Kitchen Market Report Would Provide Approximately 93 Tables, 109 Figures and 190 Pages.
Target Audience 2024
- Manufacturers / Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
