Cloud Kitchen Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type (Independent Cloud Kitchen, Commissary/Shared Kitchen, Kitchen Pods), By Product Type (Food Vs Beverage), By Source of Order (Web Vs Mobile App) By Payment Method (Cash on Delivery, UPI, Card Transaction, Others (Mobile Wallets, Internet Banking, etc.) By Region, Competition
Published Date: October - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Consumer Goods and Retail | Format: Report available in PDF / Excel Format
View Details Download Sample Ask for Discount Request CustomizationCloud Kitchen Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028, Segmented By Type (Independent Cloud Kitchen, Commissary/Shared Kitchen, Kitchen Pods), By Product Type (Food Vs Beverage), By Source of Order (Web Vs Mobile App) By Payment Method (Cash on Delivery, UPI, Card Transaction, Others (Mobile Wallets, Internet Banking, etc.) By Region, Competition
The global cloud kitchen market size was valued at more than USD60 Billion in the year 2022 and is projected to grow at an impressive growth rate of approximately 11% in the forecast year.
Moreover, the increase of the young population with the rise in demand for different cuisines is helping cloud kitchen operators to enhance their menus and reach more consumers around the globe.
According to World Bank, the United States had a smartphone penetration of around 91% in 2021 and is also one of the leading countries in the global cloud kitchen market.
There are majorly three types of cloud kitchensindependent cloud kitchens, commissary/shared kitchens, and kitchen pods. Independent cloud kitchen is operated by a single brand from a single kitchen and does not have a storefront. Commissary/shared kitchens are shared kitchens where multiple brands operate from a single kitchen. They are owned and operated by a third-party company or an entrepreneur instead of a restaurant. Kitchen pods are shipping containers equipped with kitchens. Kitchen pods are practical because they are tailored for efficacy and efficiency, on the one hand.
The development of ghost kitchens is currently being led by third-party services like Uber Eats, Kitchen United, Cloud Kitchens, and Kitopi. But major restaurant brands are also experimenting in this area. McDonald's opened a ghost restaurant in London last year, Bloomin' Brands is testing kitchen-only formats for takeout and delivery orders, and Chick-fil-A is experimenting with kitchen-only locations in Nashville and Louisville, Kentucky, where they will prepare individual and catering orders for DoorDash delivery.
As millions of small restaurants close permanently due to COVID-19 disruption, deep-pocketed chains drive restaurant-driven experimentation in this market. However, this strategy may level the playing field by allowing surviving small players to purchase additional real estate and continue to meet rising delivery demand.
Experts working in the cloud kitchen market said cloud kitchens existed before COVID-19. Still, after the pandemic, the industry started to grow at an increasing rate in the countries like India because restaurants were shut down for many months.
Increasing Investment is Fueling the Market Growth
Another significant player is Kitchen United, which has so far raised USD40 million in fundraising. After financing of USD175 million raised the valuation of the company to USD1.4 billion and Rebel Foods became a unicorn in the year 2021. Rebel Foods has so far raised a total of USD536.5 million in investment throughout its 20 funding rounds.
More Scalability is Fueling the Market Growth
Scalability is one of the main benefits of cloud kitchens. There are few seats found at in conventional restaurants. Again, scaling requires substantial investments. All that is required for cloud kitchens, typically housed in warehouse-style settings, is renting out an additional kitchen block. Because cloud kitchens are typically situated in less expensive areas of a city and only require extra space for the kitchen, not the seating area, it is less expensive to buy equipment and increase square footage even if you can't rent it at your location. This is because traditional restaurants are typically located in more expensive areas of a city.
Lower Set-up Cost Aiding the Market Growth
Initial expenses for cloud kitchens are comparatively low as compared to traditional restaurants. An average cloud kitchen startup costs about USD 6000. It is optional to hire a sizable workforce or acquire an expensive lease. Additionally, one does not require the equipment or other decorations usually associated with a traditional restaurant. As a result, the initial setup expense is far lower than for traditional eateries.
Hygiene Issues is Challenging the Market Growth
The cloud kitchen concept requires a lot of scaling. The problem is that many companies build their kitchens in unhygienic conditions to save money. Although customers prefer not to be served in top-notch restaurants, any chosen kitchen must be sanitary for the food to be edible. There have been numerous reports of people receiving contaminated food on social media. The businesses using shared kitchens are having hygiene issues. For instance, Zomato, an Indian food delivery application and cloud kitchen operator, discovered that kitchens operating with more than ten brands were not receiving positive reviews from their customers because they did not like the food or the way it was packaged.
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Market Segmentation
The global cloud kitchen market is segmented based on type, product type, source of order, payment method, region, and competitional landscape. Based on type, the market is further fragmented into independent cloud kitchens, commissary/shared kitchens, and kitchen pods. Based on product type, the market is segmented into food and beverage. Regarding the source of order, the market is divided into web and mobile apps. And in terms of payment methods, the market is segmented into cash on delivery, UPI, card transaction, and others (wallet payment, internet banking, etc.). The market analysis also studies the regional segmentation which are North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
North America accounted for a significant market share of the global cloud kitchen market by region in 2021, owing to the adoption of established and innovative technologies by the region's food suppliers. However, due to the region's growing young population and shifting consumer tastes, the market in Asia-Pacific is anticipated to experience the highest CAGR during the forecast period.
In terms of payment methods, card payment is registering a significant growth rate as card transactions have been governed for many years by international or regional compliance standards as well as by consumer protections issued by payment processors, such as those upheld by American Express, Mastercard, and Visa. This has contributed to cards' popularity as online payment methods.
Additionally, given some of their extra features, credit cards are slightly more preferred in Western markets than debit cards. For instance, some consumers are encouraged to use credit cards in order to participate in the bank's reward programmes. Spending on credit cards affects the user's credit score and provides additional incentive to choose them as an online payment method in the US, more so than in other countries.
Company Profiles
Pop meals (formerly Dahmakan), DoorDash, Kitchen United, Kitopi, Rebel Foods, Starbucks Coffee Company, Ghost Kitchen Orlando, Cloud Kitchens, Swiggy, Zomato
Recent Developments
To increase their presence, many companies are acquiring companies that are cloud kitchen operators. For instance, Kitchen United has recently received a ghost kitchen developer, Zuul, a New-York based virtual kitchen operator. The expansion of Kitchen United's ghost kitchen network in New York City will be aided by this company's initial acquisition.
In addition, a lot of companies are spending money on AI to run their cloud kitchens effectively. For instance, in 2021 Rebel Food made an investment in Microsoft's AI technologies to continuously monitor and audit its kitchens' adherence to SOPs and hygiene standards. They have adopted Jarvis, an AI-based video analysis tool created by Microsoft Azure partner Staqu that continuously checks kitchens for health and safety violations. The company's approach to leveraging AI is distinctive, it focuses on customer retention.
| Attribute | Details |
| Base Year | 2022 |
| Historical Years | 2018 – 2021 |
| Estimated Year | 2023 |
| Forecast Period | 2024 – 2028 |
| Quantitative Units | Revenue in USD Billion and CAGR for 2018-2021 and 2023E-2028F |
| Report Coverage | Revenue forecast, company share, competitive landscape, growth factors, and trends |
| Segments Covered | By TypeBy Product TypeBy Source of OrderBy Payment MethodBy Region |
| Regional Scope | North America, Europe, Asia-Pacific, Middle East & Africa and South America |
| Country Scope | United States, Canada, Mexico, Germany, France, United Kingdom, Italy, Spain, Netherland, Switzerland, China, India, Japan, South Korea, Australia, New Zealand, Thailand, Saudi Arabia, UAE, South Africa, Qatar, Kuwait, Brazil, Argentina, Colombia |
| Key Companies Profiled | Pop meals (formerly Dahmakan), DoorDash, Kitchen United, Kitopi, Rebel Foods, Starbucks Coffee Company, Ghost Kitchen Orlando, Cloud Kitchens, Swiggy, Zomato, etc. |
| Customization Scope | 10% free report customization with purchase. Addition or alteration to country, regional & segment scope. |
| Pricing and Purchase Options | Avail of customized purchase options to meet your exact research needs. Explore purchase options |
| Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
Report Scope
In this report, the global cloud kitchens market has been segmented into the following categories, in addition to the industry trends which have also been detailed below
- Cloud Kitchen Market, By Type
- Independent Cloud Kitchen
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- Cloud Kitchen Market, By Product Type
- Food
- Beverage
- Cloud Kitchen Market, By Source of Order
- Cash on Delivery
- UPI
- Card Transaction
- Others
- Cloud Kitchen Market, By Region
- North America
- The United States
- Canada
- Mexico
- Europe
- France
- Germany
- United Kingdom
- Italy
- Spain
- Netherland
- Switzerland
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- New Zealand
- Thailand
- Middle East & Africa
- Saudi Arabia
- South Africa
- UAE
- Qatar
- Kuwait
- South America
- Brazil
- Argentina
- Colombia
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