Cloud Kitchen Global Market Report 2024

Cloud kitchens provide commercial kitchen spaces catering specifically to food businesses for takeout and delivery services.

Cloud kitchens encompass various types, including independent cloud kitchens, commissary or shared kitchens, and kitchen pods. The independent cloud kitchen, resembling the traditional kitchen model, operates as a virtual restaurant facilitating order reception and the delivery of packaged meals. These kitchens cater to a wide array of food types such as burgers, sandwiches, pizzas, pastas, chicken dishes, seafood, Mexican cuisine, Asian delicacies, and more. Cloud kitchens exist in different natures, including franchised setups and standalone operations.

The cloud kitchen market research report is one of a series of new reports from The Business Research Company that provides cloud kitchen market statistics, including cloud kitchen industry global market size, regional shares, competitors with a cloud kitchen market share, detailed cloud kitchen market segments, market trends and opportunities, and any further data you may need to thrive in the cloud kitchen industry. This cloud kitchen market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The cloud kitchen market size has grown strongly in recent years. It will grow from $61.67 billion in 2023 to $67.59 billion in 2024 at a compound annual growth rate (CAGR) of 9.6%. Historical growth was driven by several factors, including urbanization trends, the emergence and popularity of food delivery applications, reduced operational costs in the food industry, the flexibility and scalability of food businesses, opportunities for entrepreneurs, and the globalization of diverse cuisines.

The cloud kitchen market size is expected to see rapid growth in the next few years. It will grow to $103.3 billion in 2028 at a compound annual growth rate (CAGR) of 11.2%. Anticipated growth in the upcoming period is linked to the adoption of contactless dining, the emphasis on sustainable practices in the food industry, the continued growth of e-commerce, increased demand for local and authentic cuisine, a focus on crisis resilience, and supportive regulatory frameworks. Major trends expected in this forecast period encompass collaborations and partnerships within ghost kitchens, the integration of technology for operational efficiency, the emergence of virtual brands and multi-concept kitchens, optimizing menu design for enhanced customer experience, and diversifying delivery channels for wider reach and accessibility.

The surge in smartphone users coupled with a growing demand for online food services is anticipated to be a primary driver propelling the expansion of the cloud kitchen market. The preference for online food services is witnessing an upswing owing to the increasingly hectic lifestyles of individuals and a concurrent rise in disposable incomes. Notably, these factors contribute to the growth of cloud kitchens. As an illustration, in 2021, Oberlo highlighted a global smartphone user count nearing 6.4 billion, denoting a 5.3% annual increase. Projections indicate a continued rise with a smartphone penetration rate expected to reach approximately 53.8% by 2023. Consequently, the escalating population of smartphone users serves as a pivotal force behind the burgeoning growth of the cloud kitchen market.

The burgeoning expansion of food delivery platforms is poised to significantly drive the growth of the cloud kitchen market in the foreseeable future. These platforms, whether online or mobile-based, act as intermediaries connecting users to restaurants and streamlining the process of food ordering and delivery. They play a crucial role in supporting cloud kitchens by serving as virtual marketplaces, enabling broader access to potential customers, and facilitating seamless online orders and deliveries, all without the necessity of physical restaurant spaces. As an illustration, in July 2023, Morgan Stanley, a prominent US-based investment banking firm, highlighted a staggering 50% expansion in the food delivery sector between 2020 and 2021. Projections indicate an anticipated annual revenue growth of 14% by 2028, underscoring the profound impact and increasing reach of food delivery platforms. Consequently, the escalating expansion of these platforms stands as a pivotal driver propelling the growth trajectory of the cloud kitchen market.

Key players within the cloud kitchen market are venturing into new product offerings, such as kitchen coworking spaces, to secure a competitive advantage. These kitchen coworking spaces represent shared culinary facilities that grant food entrepreneurs and industry professionals access to fully equipped kitchens on a flexible rental basis. An exemplary case occurred in March 2023 when Instakitchen, an Italy-based company specializing in kitchen spaces, inaugurated Rome's inaugural kitchen coworking space. This pioneering concept is tailored to empower food entrepreneurs with convenient, ready-to-use kitchen spaces that comply with ASL regulations, aiming to slash initial investment costs by over 80% while expediting time to market. Instakitchen presents rental options spanning daily, monthly, or annual terms, offering spaces ranging from 10 to 40 square meters, catering to a diverse spectrum of food industry professionals encompassing delivery businesses, home chefs, caterers, production labs, startups, consultancy firms, and food influencers. Additionally, this shared kitchen environment fosters a collaborative community by curating workshops, events, and networking opportunities for its members, fostering a dynamic and supportive ecosystem within the shared space.

Major players within the cloud kitchen market are strategically forming partnerships to foster innovation and fortify their positions in the industry. These collaborations and partnerships are instrumental in propelling business growth by broadening market reach, streamlining operations, stimulating innovation, and elevating customer experiences through shared resources, expertise, and joint promotional endeavors. A pertinent example occurred in July 2022 when My Cloud Kitchen, an India-based company specializing in cloud kitchen solutions, forged a partnership with NVA Foods Private Limited, another India-based food and beverage company. Their collaboration aimed to incubate and provide consultation services to cloud kitchen startups in Bangalore, marked by the launch of a $1.23 million fund dedicated to investing in multi-brand, multi-cuisine home delivery models. Leveraging their collective strengths in brand establishment, vendor collaborations, menu optimization, inventory management, staff recruitment, culinary training, and marketing, this joint venture sought to empower budding food entrepreneurs by offering comprehensive consulting support, thereby simplifying and making food entrepreneurship more accessible and cost-effective. This strategic alliance aimed to nurture the growth of cloud kitchen startups by offering extensive guidance and support across various operational facets.

In October 2021, Kitchen United, a prominent US-based company, completed the acquisition of Zuul for an undisclosed sum. This strategic acquisition is anticipated to fortify the platform and facilitate the expansion of Kitchen United's network, particularly bolstering its presence in New York. Zuul, also based in the US, specializes in developing services and products aimed at supporting virtual food hall businesses. Kitchen United's acquisition of Zuul signifies a move to enhance its capabilities and offerings within the virtual food hall sector, positioning the company for accelerated growth and advancement within the New York market.

Major companies operating in the cloud kitchen market report are Zuul Kitchen, Swiggy Platform Private Limited, Uber Technologies Inc., Taster Inc., Starbucks Corporation, DoorDash Inc., Reef Technology Inc., Toast Inc., Grubhub Inc., Deliveroo Holdings PLC, Foodpanda Pte. Ltd., Foodpanda, Pop Meals, Zomato Ltd., Lightspeed Commerce Inc., Fat Brands Inc., PAR Technology Corporation, Olo Inc., Posist Technologies Pvt. Ltd., Rebel Foods Inc., Kitopi Catering Services LLC, Just Eat Takeaway.com N.V., CloudKitchens Inc., Cloudbeds Inc., Xenial Inc., Kitchen United, Farm to Fork Meals, Sweetheart Kitchen Inc., Keatz Inc., Ghost Kitchen Orlando LLC

Asia-Pacific was the largest region in the cloud kitchen market in 2023 and is also expected to be the fastest-growing region in the forecast period. The regions covered in the cloud kitchen market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the cloud kitchen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The cloud kitchen market includes revenues earned by entities by providing food delivery services, accepting online orders, payment processing services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Cloud Kitchen Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on cloud kitchen market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

Reasons to Purchase

• Gain a truly global perspective with the most comprehensive report available on this market covering 50+ geographies.
• Understand how the market has been affected by the coronavirus and how it is responding as the impact of the virus abates.
• Assess the Russia - Ukraine war's impact on agriculture, energy and mineral commodity supply and its direct and indirect impact on the market.
• Measure the impact of high global inflation on market growth.
• Create regional and country strategies on the basis of local data and analysis.
• Identify growth segments for investment.
• Outperform competitors using forecast data and the drivers and trends shaping the market.
• Understand customers based on the latest market shares.
• Benchmark performance against key competitors.
• Suitable for supporting your internal and external presentations with reliable high quality data and analysis
• Report will be updated with the latest data and delivered to you within 3-5 working days of order along with an Excel data sheet for easy data extraction and analysis.
• All data from the report will also be delivered in an excel dashboard format.

Where is the largest and fastest growing market for cloud kitchen ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The cloud kitchen market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Independent Cloud Kitchen; Commissary Or Shared Kitchen; Kitchenpods
• 2) By Food Type: Burger And Sandwich; Pizza And Pasta; Chicken; Seafood; Mexican And Asian Food; Other Types
• 3) By Nature: Franchised; Standalone
• Companies Mentioned: Zuul Kitchen; Swiggy Platform Private Limited; Uber Technologies Inc.; Taster Inc.; Starbucks Corporation
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.