Cloud Kitchen Market

Global Cloud Kitchen Market:

The global cloud kitchen market size reached US$ 71.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach a value of US$ 170.0 Billion by 2032 exhibiting a growth rate (CAGR) of 9.86% during 2024-2032. The market is primarily driven by the emerging trend of co-working kitchen spaces, the development of subscription models, and the integration of robotics and artificial intelligence (AI) for various tasks, such as cooking, cleaning, and packing.

Cloud Kitchen Market Analysis:

• Major Market Drivers: The proliferation of several food delivery apps, including Uber Eats, DoorDash, and Grubhub, has propelled the consumer demand for convenient dining options, which is among the key factors driving the cloud kitchen market. Moreover, the incorporation of data analytics and technology by the leading operators to optimize operations, streamline delivery logistics, and personalize the customer experience is also catalyzing the cloud kitchen industry globally.
• Key Market Trends: The rising creation of virtual restaurant brands that can experiment with niche cuisines, trendy food concepts, or specific dietary preferences without the necessity for a physical storefront is acting as a significant growth-inducing factor. Additionally, the extensive utilization of eco-friendly packaging materials and locally grown ingredients by the leading manufacturers, owing to the increasing consumer awareness towards the prevalent environmental issues, is positively influencing the cloud kitchen market statistics.
• Competitive Landscape: Some of the major market players in the cloud kitchen industry include CloudKitchens, DoorDash Inc., Kitchen United, Kitopi Catering Services LLC, Lightspeed Commerce Inc., PAR Technology Corporation, POSist Technologies Private Limited, Rebel Foods, Starbucks Coffee Company, Swiggy Platform, Toast Inc., among many others.
• Geographical Trends: As per the cloud kitchen market statistics by IMARC, Asia Pacific accounted for the largest share in the cloud kitchen market outlook, owing to the emerging trend of urbanization, the rising middle class, and the inflating disposable income levels of individuals. Besides this, the increasing adoption of smartphones and mobile apps has bolstered the need for various food delivery platforms, which is also stimulating the cloud kitchen market growth in the region.
• Challenges and Opportunities: The setting up of a fully equipped kitchen and the rising need for advanced technological infrastructures still require a major initial investment. Additionally, traffic congestion, delays, and unforeseen weather conditions can pose challenges for food deliveries. However, the extensive utilization of inventory management systems and predictive analytics to minimize waste, streamline processes, and improve profitability presents significant growth opportunities for market players.
   

Cloud Kitchen Market Trends:

The Increasing Penetration of Online Food Delivery Platforms

The growing popularity of online food delivery platforms across the globe to provide consumers with innovative cuisines and eateries through their smartphones is positively influencing the cloud kitchen industry. Moreover, the emerging trend of customization in menus and the introduction of seasonal specials to cater to diverse individual tastes and preferences are also catalyzing the market growth. For instance, as per the report published by Zomato, the Indian food delivery platforms had over 80 million monthly active users and have set targets of reaching 200 million over the next few years. Additionally, the increasing internet penetration and the development of simplified e-banking systems are anticipated to propel the cloud kitchen market outlook significantly.

Rapid Urbanization and Lifestyle Changes

The emerging trend of urbanization, the increasing working population, and the hectic schedules of individuals are propelling the demand for ready-to-eat (RTE) food options, which is primarily driving the market growth. In addition to this, the development of advanced cloud kitchens that offer a convenient dining experience to consumers is positively influencing the global market. For instance, Arabic REEF Technologies, a United States-based operator of delivery kitchens, logistics, and proximity hubs, announced plans to launch cloud kitchens for its network of restaurants and brands in the Middle East and North Africa. Moreover, the ease of getting meals delivered in record time and at a reasonable price has elevated the number of orders placed online, which is further augmenting the market growth.

Advancements in Technology and Data Analytics

As per the cloud kitchen market overview, the continuous advancements in technology and data analytics to optimize operations, improve delivery services, and personalize customer experience are significantly driving the market growth. Besides this, the integration of advanced technologies, such as artificial intelligence (AI) with food delivery apps and online ordering platforms for real-time tracking to improve efficiency and enhance individual experience is also stimulating the cloud kitchen industry. For instance, Swiggy entered into a partnership with Garuda Aerospace to deliver groceries with the help of drones in the city of Bengaluru in the Indian state of Karnataka and the Delhi-NCR region.

Cloud Kitchen Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, product type, and nature.

Breakup by Type:

• Independent Cloud Kitchen
• Commissary/Shared Kitchen
• Kitchen Pods
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes independent cloud kitchens, commissary/shared kitchen, and kitchen pods. According to the report, independent cloud kitchens represented the largest segment. These facilities allow for centralized kitchen operations to streamline food production, optimize workflows, and reduce overhead costs by efficiently utilizing space, equipment, and resources. For example, kitchen rental platform Kitchen United raised $50 million in funding. Other prominent cloud kitchen companies like CloudKitchens, Rebel Foods and Kitopi have also raised sizable funding rounds.

Breakup by Product Type:

• Burger and Sandwich
• Pizza and Pasta
• Chicken
• Seafood
• Mexican and Asian Food
• Others
   

The report has provided a detailed breakup and analysis of the market based on the product type. This includes burger and sandwich, pizza and pasta, chicken, seafood, Mexican and Asian food, and other. According to the report, burger and sandwiches accounted for the largest market segment. Burgers and sandwiches refer to versatile dishes that can be customized according to the various dietary preferences of individuals. Additionally, burgers and sandwiches are globally loved food items, making them a popular choice for food deliveries. For instance, KFC had 335 restaurants with several franchisee owners, whereas Jubilant FoodWorks Limited is the franchisee of Domino's Pizza in India, with 1,300 stores.

Breakup by Nature:

• Franchised
• Standalone
   

The report has provided a detailed breakup and analysis of the market based on nature. This includes franchised and standalone. According to the report, franchised accounted for the largest market share. Franchised virtual restaurants benefit from the established brand and loyal customer base of the parent franchise. Moreover, franchisees have information regarding the purchasing power, resources, and economies of scale of the parent network. For instance, Delhi-based SMART CHEF has announced their expansion plan via franchising its cloud-kitchen business in association with Franchise India – Asia’s largest franchise solution company.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share, owing to the increasing population, the inflating disposable income levels, and the busy lifestyles of individuals. Moreover, the emerging trend of cloud kitchens across countries, such as India and China, is also catalyzing the regional market. For instance, Jubilant Foodworks announced its near-medium-term outlook. The company planned to open 250 stores for Domino's in India in the next 12-18 months with a capital investment of INR 900 crore.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis, such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant, has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the major market players in the Cloud Kitchen industry include CloudKitchens, DoorDash Inc., Kitchen United, Kitopi Catering Services LLC, Lightspeed Commerce Inc., PAR Technology Corporation, POSist Technologies Private Limited, Rebel Foods, Starbucks Coffee Company, Swiggy Platform, Toast Inc., among many others.

Cloud Kitchen Market News:

• March 2022: Eat Takeaway.com, Europe's largest online food ordering service delivery, entered into a partnership with McDonald's to expand delivery.
• July 2023: Rebel Foods entered the Saudi Arabian market by opening two cloud kitchens in Riyadh. It is also planning to establish 60 internet restaurants in the city within the next year.
• January 2024: ITC is set to extend its cloud kitchen venture with plans to penetrate markets in Mumbai, Delhi, and Kolkata. The business model entails a central kitchen and multiple satellite kitchens, aligning with the preferences of delivery platforms like Swiggy and Zomato, which prefer kitchens every 2.5-3 km.

Cloud Kitchen Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the cloud kitchen market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global cloud kitchen market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the cloud kitchen industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.