Global Cloud Kitchen Market Gathered around USD 57 Billion in 2021 and Predicted to Grow with a CAGR of ~13% During 2022-2030; Market to Grow on the back of Rising Prevalence of Online Food Delivery Services and Erratic Work Schedules

Key Companies Covered in the Global Cloud Kitchen Market Research Report by Kenneth Research include Pop Meals (Dahmakan), Kitchen United, Rebel Foods, DoorDash, Zuul, Keatz, Kitopi, CloudKitchens, and others.

New York, Aug. 02, 2022 (GLOBE NEWSWIRE) -- Bogota, Colombian roads (53%) were the 3rd most crowded in the world in 2020, behind Mumbai in India (53%) and Moscow roads in Russia (54%) topped the list of most congested roads worldwide in 2020. It must be stressful to travel in a car when the roads become more congested. In addition to that, as there are 6.648 billion smartphone users worldwide in 2022, 83.72 percent of the world population is expected to be smartphone owners. In total, 7.26 billion people worldwide i.e., 91.54 percent of the world’s population own smart and feature phones. The demand for cloud kitchens is anticipated to rise on account of expanding smartphone adoption and increasingly congested highways which is further predicted to propel the global cloud kitchen market.

In the recent research titled Global Cloud Kitchen Market, Kenneth Research provided a brief overview of market elements including growth drivers, restraint factors, current market trends, and potential for future growth. The influence of COVID-19 and its effects on end-users are both thoroughly examined in the market research report, which covers the forecast period, i.e., 2022-2030. In addition, the research study examines the product portfolios and the market expansion plans of the principal competitors.
United Nations estimates that there are 1.2 billion youth or 16% of the world’s population are between the ages of 15 and 24. The number of young people is anticipated to increase by 7 % to around 1.3 billion by 2030. Also, the employment-to-population ratio was expected to be 55.9% in 2022. The demand for cloud kitchens grows in tandem with the proportion of young people, smartphone users, and young workers, as well as with the number of traffic jams and clogged roadways. By 2027, around 600 million users are expected to opt for online food delivery in India whereas, in the U.S., it is expected to be around 2.18 million users.

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The global cloud kitchen market accumulated around USD 57 billion in 2021 and is expected to grow at a CAGR of ~13% during the forecast period. Cloud kitchens, also known as ghost, virtual, dark, and commissary kitchens are establishments that make food that is only available for online ordering and delivery. As there is no need to pay exorbitant rent, purchase real estate, invest in interior design, or pay more labor charges, cloud kitchens are more cost-effective. They are also more adaptable and more efficient owing to the concept of having several brands under one roof. Moreover, according to the World Bank statistics, 57 percent of the total population worldwide belongs to an urban population in 2021 where cloud kitchen is predicted to be more in demand and hence the growth of the global cloud kitchen market.  Furthermore, as part of its growth goal to build a network of the top domestic, regional, and international brands, Dubai-based managed cloud kitchen platform Kitopi invested USD 415 million and is estimated to invest around USD 1 billion in a number of regional food and beverage organizations in October 2021.

The global cloud kitchen market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa region. On account of the significant popularity of cloud kitchens in the region, the Asia Pacific region is anticipated to hold the greatest share of the market by expanding at the fastest rate over the forecast period. Additionally, growing disposable income and an increase in the use of online food delivery services are fueling the growth of the market in the region. As of July 2020, China had more than 8000 cloud kitchens making it the nation with the most. In addition to that, a pleasant or rather positive experience of ordering food from a virtual restaurant or ghost kitchen was reported by roughly 50% of respondents in China on account of their quick delivery services. Furthermore, in October 2021, Rebel Foods collaborated with food and grocery delivery service Foodpanda to enhance the reach of its offerings in Southeast Asian nations such as Singapore, Thailand, Malaysia, Bangladesh, Hong Kong, and the Philippines. The rise in the number of cloud kitchens is predicted to enhance the growth of the market in the region.

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On the other hand, the market in the North American region is predicted to experience noteworthy growth over the forecast period. The pandemic spurred a 70 % increase in food delivery in 2020 which led to almost 1550 cloud kitchens in the United States. In addition to that, 35% of Americans prefer to place at least two weekly online food orders. Moreover, the initial investment for ghost kitchens is less compared to conventional restaurants. The start-up cost for cloud kitchens is expected to be around USD 25,000 to USD 30,000. The market in the region is anticipated to enhance as a result of the increase of cloud kitchens, increased consumer interest in online delivery, and the low cost of doing business.

The study further incorporates Y-O-Y Growth, demand & supply and forecasts future opportunities in North America (U.S., Canada), Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC [Finland, Sweden, Norway, Denmark], Poland, Turkey, Russia, Rest of Europe), Latin America (Brazil, Mexico, Argentina, Rest of Latin America), Asia Pacific(China, India, Japan, South Korea, Indonesia, Singapore, Malaysia, Australia, New Zealand, Rest of Asia Pacific), Middle East and Africa ( Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of the Middle East and Africa.

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The global cloud kitchen market is segmented by type into independent cloud kitchen, commissary/shared cloud kitchen, and kitchen pods. Owing to the consumer preference for a specific kind of cuisine and a heavy reliance on third-party or online meal delivery services, the independent cloud kitchen is predicted to have the highest share of the market. In 2025, the Gross Merchandise Value (GMV) of cloud kitchens in India will be around USD2.5 billion. The GMV of cloud kitchen rose dramatically from around USD 190 million in 2018 to USD 450 million in 2019. Independent cloud kitchens are looking to launch a food business from home which has a delivery-only system, one brand, and one kitchen with low investment. As there is no dining area and no front-of-the-house staff is needed, the initial investment is low for independent cloud kitchens. In 2020, at the beginning of the COVID-19 pandemic, 8% of operators in the U.S., built cloud or virtual kitchens. Also, every year, the typical American household spends USD 3,000 on dining out. Additionally, when choosing a restaurant to eat at, 70% of customers prefer food quality above all other considerations. In addition to that, customers who frequent their favorite eateries have a 15% brand loyalty. The expansion of the segment is anticipated to be accelerated by the rising number of cloud kitchens and customer preference for a certain brand, cuisine, or level of food quality.

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The global cloud kitchen market is further segmented by nature into franchised, and standalone. Amongst these, the franchised segment has a significant share of the growth of the market during the forecast period. In 2020, the total number of food franchises was estimated to be around 220,000 in the United States. In addition, daily almost 55 million Americans prefer fast food. Furthermore, fast food restaurants were predicted to continue their growth at a 2% yearly rate in 2020. As the expansion of the fast food franchises is further expected to fuel the demand for the growth of the segment.

Some of the prominent industry leaders in the global cloud kitchen market that are included in our report are Pop Meals (Dahmakan), Kitchen United, Rebel Foods, DoorDash, Zuul, Keatz, Kitopi, CloudKitchens, and others.

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