Cloud Kitchen Market

SKU: DMFB2501 | Last Updated On: Oct 27 2022 | Available Formats

> Cloud Kitchen Market Expected to reach a high CAGR of 10.89% By 2029: DataM Intelligence

Global Cloud Kitchen Market is segmented By Type (Commissary/Shared kitchen, Independent Cloud Kitchen, Kitchen Pods), By Offerings (Solutions, Services, Platform), By Deployment Type (Web, Mobile), By End-users (Residential, Commercial Space, Hospitality, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

 

Cloud Kitchen Market is expected to grow at a high CAGR of 10.89% during the forecasting period (2022-2029).

Cloud Kitchen Market - Strategic Insights

Metrics

Details

Market CAGR

 10.89%

Segments Covered

By Type, By Offerings, By Deployment Type, By End-users, and By Region

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, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Cloud kitchen provides licensed commercial food production facilities and allows to accommodate orders without added overhead or hassle. Cloud kitchen-based restaurants uses online food delivery platforms that are often operated out of commercial or commissary kitchen. For making food delivery orders more seamless and fulfilling food fulfilling orders notable brands such as CloudKitchens, Kitchen United, Reef and others have popped up. Cloud kitchens provides several advantages such as it makes simple to execute on to-go orders and along with that restaurant can operate more than one brand from a kitchen. Cloud kitchens allow restaurateurs to change menu items and product mix quicker than can be done in a physical location and operate solely with kitchen staff and delivery personnel. Rise in consumers disposable income, rise in literacy, rising demand for online food delivery has driven the growth of the cloud kitchen market.

Market Dynamics:

Rising demand for digital ordering solution

The rising demand for digital ordering solutions owing to the technological advancements have driven the demand for the market growth. Restaurants are using advanced tools to derive consumer insights to analyze and update their menu based on popularity and replace items with a higher margin item and increasing the profit margins of the restaurants. The cloud kitchen is a restaurant that primarily handles the digital orders. These restaurants rely on orders coming through their own website as these are based on delivery only business model. Owing to all these factors these restaurants allow to diversify and expand their customer base. Nowadays, the manufacturers are launching nutrient-rich convenience foods using organic ingredients with high shelf life offered by the restaurants nowadays, which is expected to fuel the sales of cloud kitchen in the market.

Moreover, with the increasing customer acceptance, the cloud kitchen market has a healthy growth rate during the forecast period, complemented by an increase in selling points, deeper penetration by organized retail players, and increased freezer space in retail channels. Consumers' busy lifestyles and changing eating habits offer several opportunities for cloud kitchen worldwide.

Market Segmentation:

Independent cloud kitchen segment accounted for the highest share in global cloud kitchen market

Independent cloud kitchen is a business model which is self-reliant in terms of receiving orders and delivering packed meals due to which it is called as classic cloud kitchen. It consists of a single brand which prepares its food in a kitchen according to the orders that it receives online which has increased the consumer preferences. Rising demand for online food delivery services and the outbreak of COVID-19 has resulted in the growth of independent cloud kitchen. According to the limetray, 67% of the restaurant owners wants to open cloud kitchen as it offers better expansion opportunities. These factors increase the sales of food through online services thus increasing the cloud kitchen model.

Geographical Penetration:

North America is the dominating region during the forecast period

North America is projected to be the dominating region due to the increasing demand for ready-to-eat and numerous ways of ordering food through online, telephone and mobile apps from major countries such as the United States and Canada. The cloud kitchen offers better customer service and hence minimizes the chances of error. The technological advancements have resulted in the adoption of kiosks by the several kitchen manufacturers predominantly in the U.S and Canada region. The high adoption rate of new technologies along with the quality and affordability in the food industry have propelled the usage of robotics and machine. The outlets are only available for online deliveries and take-outs instead of physical eateries which is basically the concept of cloud kitchen. According to the National Restaurant Association consumer trend 2020, 52% of customers believe that ordering takeaway or delivery meals are essential to their way of life which has impacted the market growth rate positively.

Competitive Landscape:

There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players are Zomato, Starbucks, Kitopi, Keatz, Ghost Kitchen Orlando, Zuul Kitchen, Doordash Kitchen, Rebel Foods, Kitchen United, among others. Some of the major key players invested in expanding their business. For instance, in October 2020, Berco in China launched three new cloud kitchen brands focusing on innovative double-layered and eco-friendly packaging following the COVID-19 social distancing. More and more startups in the developing countries such as Indian startups are investing in the cloud kitchen concepts such as “Tokarii” is the latest cloud kitchen. In 2019, Coffee giant “Starbucks” in collaboration with Hubbub launched the cup fund and further explored cloud kitchen in China. In addition, to test out the efficiency of the cloud kitchen with their delivery service Starbucks Delivers team is partnering with Starbucks China’s delivery partner Alibaba and their Hema supermarkets. In September 2021, the Himalayan Kitchen “Yeti” is foraying into the cloud kitchen segment with the launch of its 2 cloud kitchens in the metropolitan city of Mumbai as there was a massive surge in consumers seeking high-quality specialty cuisine delivered to their homes. These cloud kitchens operated from two hotspots in Mumbai namely “Khar” and “Powai” that offered their food with biodegradable packaging.

COVID-19 Impact:

Positive impact on the global cloud kitchen market

During the COVID-19 pandemic, most people worked from home, and due to government restrictions, hotels and restaurants were closed, which moved consumers to buy food online and which positively impacted the cloud kitchen market. According to the National Restaurant Association, the restaurant sector lost an estimated $25 billion in revenue and more than 3 million jobs during the first 22 days of March 2020 but demand for cloud kitchens has risen substantially in the last year or so, as restaurants were forced to close down due to lockdown. Some of the other reasons which led to increase in sales of online food services during the pandemic are the consumer desire to stock up in case of food shortages, enabling consumers to limit the number of trips to the grocery store, the ease of preparation, saving time on preparation and cleanup and consumers’ belief that online prepared foods are safer than restaurant items. Also, the demand for home-prepared meals increased. Consumers turned to online food services.

Some of the major key players announced that their sales decreased during the pandemic. For instance, Starbucks sales declined for the whole year 2020 and the current-quarter operating income to plunge by up to $2.2 billion in 2020. In addition, Starbucks announced that it would permanently close 400 stores in Americas and due to which Starbucks converted its cafes into drive-thru or pick up only. However, from 2021 the new stores stared to grow it accelerated the plan to shift to more pick-up only locations. These factors are responsible for the growth of the cloud kitchen market post the COVID-19 pandemic.

The global cloud kitchen market report would provide an access to approximately 61 market data tables, 57 figures and 180 pages

Frequently Asked Questions

What is the Projected CAGR value of the Cloud Kitchen Market ?

Cloud Kitchen Market  expected to grow at a CAGR of 10.89% during the forecasting period 2022-2029.

Which region controlled the global market during 2022-2029?

North America region Controls the Cloud Kitchen Market  during 2022-2029.

Which is the fastest growing region in the Cloud Kitchen Market ?

Among all regions, Asia Pacific is the fastest growing market share during the forecast period.

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