Raising demand for online food delivery and increase in demand for international cuisine to magnify growth in the global Cloud Kitchen Market
Covid-19 Impact & Market Status
The report offers an exhaustive overview of the business dynamics and new investment strategies that are being adopted by business leaders across countries and regions to overcome the acute challenges and financial instabilities that have emerged in the post pandemic times.
The report highlights some of the best industry strategies and practices that are adopted by the players across local and global markets. Ever since the Covid-19 broke out in 2019, it has spread aggressively, resulting in rapid declaration by the WHO affirming Covid-19 as a global pandemic and an emergency.
The impact of the pandemic is widespread and the aftermath is well pronounced, gravely affecting the global cloud kitchen market. The sudden pandemic and its implications have posed significant challenges such as travel bans, quarantines, and lockdowns.
These developments are hampering operations resulting in supply chain breaches, stock market inefficiencies, and vendor chaos. These are constantly interfering with the normal functioning of industries.
Ever since the outbreak of the global crisis, impact on upstream, downstream, and midstream industries have been appalling. The report delivers a quick ready-to-deploy approach to counter such crisis and steer the global cloud kitchen market towards steady growth and systematic progression.
Amidst the pandemic, aligning with new dynamics, global cloud kitchen market has been witnessing new dynamics which are further necessitating new business models and approaches to recoup growth and revenue streams.
In this report, inquisitive business players would be provided with sufficient guidelines regarding business transformation, integral to sustain stiffening competition in the pandemic and beyond pandemic era global cloud kitchen market.
Cloud Kitchen for Independent Cloud Kitchen Services to Sustain the Highest Revenues
The independent cloud kitchen segment held the largest revenue share in 2020, accounting for around 60% of the overall market. The trend is expected to continue over the forecast period, thanks to the rising number of standalone brands serving customers from a single location. Independent cloud kitchens primarily target consumers that prefer a single cuisine type and largely depend on third-party channels for delivery. The increasing consumer preference for international cuisines, fast foods, and online ordering is expected to drive the growth of the segment.
Franchised Nature Services to be the Most Lucrative
The franchised segment dominated the cloud kitchen market in 2020, accounting for more than 60% of the revenue share. The growing number of franchised restaurants across the globe is driving the growth of the segment over the forecast period. The popularity of international cuisines and tailored foods among consumers is encouraging operators to invest in popular brands.
North America to Sweep the Largest Revenue Streams
North America is expected to register a CAGR of around 10% over the forecast period. Factors such as the increasing buying power of consumers, access to several digital touchpoints, and a rise in demand for fast foods are favoring the development of ghost kitchens in the region. Furthermore, increasing awareness about the benefits of cloud kitchens among operators is encouraging several franchised store outlets and aggregators to establish cloud or ghost kitchens.
Internet penetration and rise of social media marketing to offer new opportunities in the global cloud kitchen market
Cloud kitchens are also known as dark or shared kitchens. Cloud kitchens are delivery-only kitchens, which can be owned by a brand or third party working with various brands. Brands which are using cloud kitchens can also operate virtual restaurants or brick-and-mortar restaurant. Moreover, on the flip side brick-and-mortar restaurants are using separate cloud kitchen to provide more efficient delivery. In addition, the rise of on-demand food delivery is becoming a key trend in the food and beverages industry.
Despite a minor growth dip owing to Covid-19 implications, the global cloud kitchen market is expected to recoup growth and register over USD 139.37 billion by 2028 ticking at a CAGR of 12.4%.
Further, an increase in number of users on various social media sites with rise in internet penetration are expected to ravel new growth opportunities in the global cloud kitchen market during the forecast period.
Extensive research and development activities are boosting the market growth. Companies are investing heavily in such activities to continually offer innovative products to attract appropriate audience.
Home food delivery is rapidly becoming a popular worldwide as compared to fine dining restaurants due to the changing lifestyles of people, increase in young employed workforce, and growing traffic. These factors are expected to offer numerous opportunities to the cloud kitchen market players.
Forward-looking players in the global cloud kitchen market are furthering investments towards developing advanced Cloud Kitchen. The fast paced lifestyle of consumers looking out for convenient food products is also driving the market.
Furthermore, the rise in utilization of independent cloud kitchens by grocery stores, restaurant brands and multi-branded restaurants have augmented the growth of the cloud kitchen market. For instance, Kroger has partnered with food delivery service ClusterTruck to launch multiple independent cloud kitchen that serve up meal delivery from central kitchens
With the introduction of various food delivery apps, the concept of online food delivery has gained more momentum. Customers are preferring food delivery over dine-in, which is supporting the growth of the cloud kitchen market in the coming years. In addition, these food delivery apps are motivating restaurant owners to shift to cloud kitchens from traditional kitchen locations. The rising internet penetration and high adoption of smartphones among the customers are also promoting restaurant owners to opt for cloud kitchens rather than establishing a conventional kitchen facility.
The Absence of customer interaction and increase in health issues due to consumption of fast food is hampering its market
The major players of the global cloud kitchen market are Toast, Inc., Xenial, Inc., POSist Technologies Pvt. Ltd., Bringg Delivery Technologies Ltd., Lightspeed HQ, PAR Technology Corp., Doordash Inc., Kitchen United, Kitopi Catering Services LLC, and Cloud Kitchen.
The cloud kitchen market is a rapidly progressing industry and is characterized to have industrial frontliners as well as aspiring new players aiming to penetrate into the aggressive competitive landscape across global and local markets. Additionally, various new and aspiring players are improving their product lines and upgrading technological capabilities to improve revenue streams amidst Covid-19 impact.
Latest Innovations in the Global Cloud Kitchen Market: a Snapshot
- In Aug-2021, Kitchen United joined hands with Kroger, the nation’s largest supermarket chain. This collaboration aimed to make takeout and delivery food under some of its grocery stores. In the partnership, Kitchen United would open ghost kitchens at engaging Kroger locations and provide upto six local, regional or national restaurant brands.Japan is hosting Olympics 2020 and they have pledged to provide 5G coverage with a range of interconnected devices. This movement is creating opportunities for the cloud services market.
- In June-2021, Kitchen United signed an agreement with Camile Food Group. This agreement aimed to introduce Camile Thai in the US with Kitchen United MIX.
Cloud Kitchen Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 139.37 billion|
|Growth Rate||CAGR of 12.4% during 2021-2028|
|Segment Covered||Type, Nature, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and South Africa|
|Key Players Profiled||Toast, Inc., Xenial, Inc., POSist Technologies Pvt. Ltd., Bringg Delivery Technologies Ltd., Lightspeed HQ, PAR Technology Corp., Doordash Inc., Kitchen United, Kitopi Catering Services LLC, and Cloud Kitchen.|
Key Segments of the Global Cloud Kitchen Market
Type Overview, 2018-2028 (USD Billion)
- Independent Cloud Kitchen
- Commisssary/Shared Kitchen
- Kitchen Pods
Nature Overview, 2018-2028 (USD Billion)
Regional Overview, 2018-2028 (USD Billion)
Middle East and South Africa