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Cloud Kitchen Market: Description
A cloud kitchen utilizes a commercial kitchen for the purpose of preparing food for delivery or takeout only, with no dine-in customers. Cloud kitchens usually enable restauranteurs to expand an existing restaurant or start a virtual brand at minimum cost. It also provides restauranteurs with the opportunity to scale, explore new markets, or trial new concepts. Many restaurants use cloud kitchens as an experimental space, for optimizing staff and for inventory, while testing new ideas.
Cloud kitchen can also be known as virtual kitchen, shadow kitchen, dark kitchen, etc., at its core, its actually a restaurant that handles digital orders. They can operate within the kitchen of an established brand or on their own, but they are typically accessible online. Despite having several names, they have similar characteristics and exist to serve customers delivery-only meals. Cloud kitchens are primarily based on a delivery-only business model. These restaurants are dependent on orders which are coming via their own website, or via delivery apps like UberEats, Grubhub, DoorDash, and Deliveroo, to deliver food for off-premises dining.
Source: WMR
Cloud Kitchen Market: Overview
The global cloud kitchen market size was valued at USD 51,960 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.4% during the forecast period and achieve revenues of USD 148,700 million by 2033.
Cloud kitchens are much more affordable to run as compared to conventional kitchens in dine-in restaurants. These do not require dine-in facilities or account for costs related to property and location. Cloud kitchens also have higher profit margins than dine-in restaurants. The flexibility of operating cloud kitchens from any location, ranging from parking spaces and warehouses to basements, is another key factor which adds to their popularity. As, customer acquisition is achieved through digital platforms, cloud kitchens heavily invest in technology that benefits the entire business operation. Apart from technology, major investments include well-equipped kitchen infrastructure and trained manpower, such as chefs and delivery drivers. Some cloud restaurants depend on their own delivery fleet to personalize their service, while others depend on aggregators for delivery.
Source: WMR
Cloud Kitchen Market: Key Trends
Choosing the Right Technology.
Technology plays a crucial role in cloud kitchens, as most of the orders are made online through a website, app, or delivery aggregators. It is seen that cloud kitchens require an integrated technology system for accepting online orders, processing payments, and efficient kitchen management. The key requirement for a cloud kitchen is a point of sale (POS) system which accepts orders from various channels, such as delivery aggregators and online ordering platforms. Having access to sales data is critical to developing strategies which can maximise the sales. Thus, technology plays a critical role in the smooth functioning of a cloud kitchen business and also ensures operational efficiency.
Lower Financial investment and flexible menu
Cloud kitchens eliminate several expensive elements that dont apply to virtual restaurants, such as, decor, signage, dinnerware, and additional staff members as servers or hosts. This helps in the lower financial investment. When we talk about the flexible menu, as it is app or web-based, it means that there can be a change in menu focusing on whenever it is feasible without having to worry about updating signage or printed materials. If an ingredient becomes too expensive or is no longer accessible in a particular area, one can easily take it out of the menu items to suit what is available.
Cloud Kitchen Market: COVID-19 analysis
Due to COVID-19 pandemic, dine-in facilities were shut as a precautionary measure to stop the spread of the virus. During that time, online food ordering and delivery services gained popularity among consumers. The rising demand for online food delivery service encouraged several restaurateurs to open cloud kitchen outlets to serve customers and generate orders. The COVID-19 pandemic brought several difficult challenges before the food industry. Dine-in businesses, that contributed to nearly two-third of the food industry were severely affected and faced intense financial crunch because of the lack of regular customer orders. But, as cloud kitchens work entirely on the delivery-only model, restaurateurs easily worked on their businesses and served customers efficiently.
Key Players:
Dahmakan (Pop Meals)
DoorDash
Kitchen United
Kitopi
Rebel Foods
Zuul Kitchens, Inc.
Starbucks Coffee Company
Ghost Kitchen Orlando
CloudKitchens
Swiggy
Cloud Kitchen Market: Segmentation Analysis
Cloud Kitchen Market based on Type:
Independent Cloud Kitchen
Commissary/shared Kitchen
Kitchen Pods
The independent cloud kitchen segment held the largest revenue share accounting for around 60% of the overall market. Independent cloud kitchens target consumers that prefer a single cuisine type and mostly 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 this segment. The commissary or the shared kitchen segment is expected to register a CAGR exceeding 13.0% over the forecast period. The increase in popularity of the shared kitchen concept among restaurateurs and its several benefits contribute to the rise in the number of commissary kitchens. An increase in the number of food trucks and caterers that use storage space and free time slots of restaurant facilities is expected to drive the segment growth.
Cloud Kitchen Market based on Product Type
Burger/Sandwich
Pizza/Pasta
Chicken
Seafood
Mexican Food
Asian Food
Others
The burger/sandwich segment held a revenue share of 23.7% in 2019 and is anticipated to register notable gains over the forecast duration ascribing to escalating demand for fast food among the younger generation.
Cloud Kitchen Market based on Nature:
Franchised
Stand-alone
The franchised nature segment dominated the cloud kitchen market and accounted for more than 60% of the revenue share. The growing number of franchised restaurants across the globe is behind the growth of the segment. The popularity of international cuisines and tailored foods among consumers is encouraging operators to invest in popular brands. The standalone segment is expected to grow over the forecast period. This growth can be attributed to the minimum investment involved that ensures complete control over kitchen operations. Establishing a standalone kitchen as a brand requires time and therefore, the adoption is less in comparison to franchise stores. On establishing as a brand, the increase in rich customers demanding quality food delivery services is encouraging restaurateurs to opt for standalone kitchens.
Source: WMR
Cloud Kitchen Market: Regional Analysis
The cloud kitchens popularity is more prominent in the Asia Pacific region, that accounts for more than 60% of the global market. The increase in trend of cloud kitchens across countries, such as China and India is driving the regional markets. North America is expected to register a CAGR of around 10%. Factors, such as the increasing buying power of consumers, access to several digital touch-points, and a rise in demand for fast foods are encouraging the development of cloud kitchens in the region. Other regions where the cloud kitchen is growing are Europe, Latin America, and Middle East and Africa.
Report Scope:
Cloud Kitchen Market Forecast Year: 2023-2033
Cloud Kitchen Market 2022: USD 51,960 million
Cloud Kitchen Market 2033: USD 148,700 million
Cloud Kitchen Market CAGR: 12.4%
Key Regions: North America; Europe; Asia Pacific; Latin America; Middle East and Africa
Key segments: Type; Product Type, Nature; Region
1. Global Cloud Kitchen Market Introduction and Market Overview
1.1. Objective of the Market Research Study
1.2. Cloud Kitchen Market Definition & Description
1.3. Research Data Parameters & Reporting Timelines
1.3.1. Historical Data Reporting Years 2020 to 2021
1.3.2. Projected Data Reporting Years 2023 to 2033
1.3.3. Reporting Data Parameters Value (US$ Million)
1.4. Global Cloud Kitchen Market Scope and Market Estimation
1.4.1. Global Cloud Kitchen Overall Market Size (US$ Million), Market CAGR (%), Market Estimates & Forecast (2020 to 2033)
1.4.2. Global Cloud Kitchen Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2020 to 2033
1.5. Cloud Kitchen Market Segmentation
1.5.1. TYPE of Global Cloud Kitchen Market
1.5.2. PRODUCT TYPE of Global Cloud Kitchen Market
1.5.3. NATURE of Global Cloud Kitchen Market
1.5.4. Key Regions of Global Cloud Kitchen Market
2. Global Cloud Kitchen Market - Executive Summary
2.1. Global Cloud Kitchen Market Summary & Snapshot
2.2. Global Cloud Kitchen Market, By TYPE (US$ Million)
2.3. Global Cloud Kitchen Market, By PRODUCT TYPE (US$ Million)
2.4. Global Cloud Kitchen Market, By NATURE (US$ Million)
2.5. Global Cloud Kitchen Market, By Geography (US$ Million)
2.6. Global Cloud Kitchen Market Outlook & Future Opportunities
3. Cloud Kitchen Market Trends, Outlook, and Factors Analysis
3.1. Global Cloud Kitchen Market Industry Development Trends under COVID-19 Outbreak
3.1.1. Global COVID-19 Status Overview
3.1.2. Influence of COVID-19 Outbreak on Global Cloud Kitchen Market Industry Development
3.1.3. Pre & Post COVID-19 Trends and Scenarios
3.2. Cloud Kitchen Market Dynamics (Growth Impacting Factors & Rationales)
3.2.1. Drivers
3.2.1.1. Increased Smartphone Adoption
3.2.1.2. Urbanization is accelerating.
3.2.1.3. Increasingly Young Population
3.2.1.4. Social Media's Growing Influence
3.2.1.5. Reduced Costs and Investment
3.2.1.6. Consumer Preference for Digital Orders is Growing
3.2.2. Restraints
3.2.2.1. Data Security and Privacy Issues
3.2.2.2. Restraint 2
3.2.3. Opportunities
3.2.3.1. The Use of Artificial Intelligence (AI) in the Cloud Kitchen Market Growing Demand for Personalization
3.2.3.2. The Rise of the Lazy Economy
3.2.3.3. New Profitability and Revenue-Generating Models and Channels
3.2.4. Impact Analysis of Drivers and Restraints
3.3. Ecosystem/ Value Chain Analysis
3.4. Porters Five Forces Analysis
3.5. SWOT Analysis
3.6. PEST Analysis
3.7. Average Selling Prices and Pricing Trends Analysis of Cloud Kitchen Market
3.8. Technological Roadmap
3.9. Key Investment Pockets of Cloud Kitchen Market
3.9.1. By TYPE
3.9.2. By PRODUCT TYPE
3.9.3. By NATURE
3.9.4. By Regions
4. Global Cloud Kitchen Market: Estimates & Historic Trend Analysis (2020 to 2021)
4.1. Global Cloud Kitchen Market, 2020 2021 (US$ Million)
4.2. Global Cloud Kitchen Market, By TYPE, 2020 to 2021 (US$ Million)
4.3. Global Cloud Kitchen Market, By PRODUCT TYPE, 2020 to 2021 (US$ Million)
4.4. Global Cloud Kitchen Market, By NATURE, 2020 to 2021 (US$ Million)
4.5. Global Cloud Kitchen Market, By Region, 2020 to 2021 (US$ Million)
5. Global Cloud Kitchen Market Estimates & Forecast Trend Analysis, by TYPE
5.1. Global Cloud Kitchen Market Share (%) Estimates and Forecasts, by TYPE, 2022 & 2033
5.2. Global Cloud Kitchen Market Revenue (US$ Million) Estimates and Forecasts, by TYPE, 2023 to 2033
5.2.1. Independent Cloud Kitchen
5.2.2. Commissary/Shared Kitchen
5.2.3. Kitchen Pods
6. Global Cloud Kitchen Market Estimates & Forecast Trend Analysis, by PRODUCT TYPE
6.1. Global Cloud Kitchen Market Share (%) Estimates and Forecasts, by PRODUCT TYPE, 2022 & 2033
6.2. Global Cloud Kitchen Market Revenue (US$ Million) Estimates and Forecasts, by PRODUCT TYPE, 2023 to 2033
6.2.1. Burger/Sandwich
6.2.2. Pizza/Pasta
6.2.3. Chicken
6.2.4. Seafood
6.2.5. Mexican Food
6.2.6. Asian Food
6.2.7. Others
7. Global Cloud Kitchen Market Estimates & Forecast Trend Analysis, by NATURE
7.1. Global Cloud Kitchen Market Share (%) Estimates and Forecasts, by NATURE, 2022 & 2033
7.2. Global Cloud Kitchen Market Revenue (US$ Million) Estimates and Forecasts, by Segment _3, 2023 to 2033
7.2.1. Franchised
7.2.2. Standalone
8. Global Cloud Kitchen Market Analysis and Forecast, by Region
8.1. Global Cloud Kitchen Market Share (%) Estimates and Forecasts, by Region, 2022 & 2033
8.2. Global Cloud Kitchen Market Revenue (US$ Million) Estimates and Forecasts, by Region, 2023 to 2033
8.2.1. North America
8.2.2. Europe
8.2.3. Asia Pacific
8.2.4. Middle East and Africa
8.2.5. Latin America
9. North America Cloud Kitchen Market: Estimates & Forecast Trend Analysis
9.1. North America Cloud Kitchen Market Assessments & Key Findings
9.2. North America Cloud Kitchen Market Share (%) Estimates and Forecasts, 2022 & 2033
9.3. North America Cloud Kitchen Market Size Estimates and Forecast (US$ Million) (2023 to 2033)
9.3.1. By TYPE
9.3.2. By PRODUCT TYPE
9.3.3. By NATURE
9.3.4. By Major Country
9.3.4.1. The U.S.
9.3.4.2. Canada
10. Europe Cloud Kitchen Market: Estimates & Forecast Trend Analysis
10.1. Europe Cloud Kitchen Market Assessments & Key Findings
10.2. Europe Cloud Kitchen Market Share (%) Estimates and Forecasts, 2022 & 2033
10.3. Europe Cloud Kitchen Market Size Estimates and Forecast (US$ Million) (2023 to 2033)
10.3.1. By TYPE
10.3.2. By PRODUCT TYPE
10.3.3. By NATURE
10.3.4. By Major Country
10.3.4.1. Germany
10.3.4.2. The U.K.
10.3.4.3. France
10.3.4.4. Italy
10.3.4.5. Spain
10.3.4.6. Rest of Europe (includes all other European countries)
11. Asia Pacific Cloud Kitchen Market: Estimates & Forecast Trend Analysis
11.1. Asia Pacific Cloud Kitchen Market Assessments & Key Findings
11.2. Asia Pacific Cloud Kitchen Market Share (%) Estimates and Forecasts, 2022 & 2033
11.3. Asia Pacific Cloud Kitchen Market Size Estimates and Forecast (US$ Million) (2023 to 2033)
11.3.1. By TYPE
11.3.2. By PRODUCT TYPE
11.3.3. By NATURE
11.3.4. By Major Country
11.3.4.1. China
11.3.4.2. Japan
11.3.4.3. India
11.3.4.4. ASEAN
11.3.4.5. South Korea
11.3.4.6. Rest of Asia Pacific (includes all other Asia Pacific countries)
12. Middle East & Africa Cloud Kitchen Market: Estimates & Forecast Trend Analysis
12.1. Middle East & Africa Cloud Kitchen Market Assessments & Key Findings
12.2. Middle East & Africa Cloud Kitchen Market Share (%) Estimates and Forecasts, 2022 & 2033
12.3. Middle East & Africa Cloud Kitchen Market Size Estimates and Forecast (US$ Million) (2023 to 2033)
12.3.1. By TYPE
12.3.2. By PRODUCT TYPE
12.3.3. By NATURE
12.3.4. By Major Country
12.3.4.1. GCC
12.3.4.2. South Africa
12.3.4.3. Egypt
12.3.4.4. Rest of Middle East & Africa (includes all other Middle East & Africa countries)
13. Latin America Cloud Kitchen Market: Estimates & Forecast Trend Analysis
13.1. Latin America Market Assessments & Key Findings
13.2. Latin America Cloud Kitchen Market Share (%) Estimates and Forecasts, 2022 & 2033
13.3. Latin America Cloud Kitchen Market Size Estimates and Forecast (US$ Million) (2023 to 2033)
13.3.1. By TYPE
13.3.2. By PRODUCT TYPE
13.3.3. By NATURE
13.3.4. By Major Country
13.3.4.1. Brazil
13.3.4.2. Mexico
13.3.4.3. Rest of Latin America (includes all other Latin America countries)
14. Competitive Landscape
14.1. Cloud Kitchen Market Revenue Share Analysis (%), by Major Players (2022)
14.2. Cloud Kitchen Market Competition Matrix, by Leading Players
14.3. Cloud Kitchen List of Emerging, Prominent and Leading Players
14.4. Major Mergers & Acquisitions, Partnership, Joint Venture, Expansions, Deals, Recent Developments, etc.
15. Company Profiles
15.1. KITCHEN UNITED
15.1.1. Company Overview & Insights
15.1.2. Financial Performance
15.1.3. Product / Service Portfolio
15.1.4. Geographical Footprint & Share
15.1.5. Strategic Initiatives & Key Developments
*Similar details would be provided for all the players mentioned below
15.2. Rebel Foods
15.3. DOORDASH KITCHEN
15.4. ZUUL KITCHEN
15.5. KEATZ
15.6. Kitopi
15.7. GHOST KITCHEN ORLANDO
15.8. DAHMAKAN
15.9. STARBUCKS (STAR KITCHEN)
15.10. Cloud Kitchen
15.11. Swiggy
15.12. SLAY Coffee
15.13. Biryani by Kilo
15.14. Others
16. Assumptions and Research Methodology
16.1. Data Mining
16.2. Secondary Research
16.3. Primary Research
16.4. Subject Matter Expert Advice
16.5. Quality Check
16.6. Final Review
16.7. Data Triangulation
16.8. Bottom-Up Approach
16.9. Top Down Approach
16.10. Research Flow
16.11. Key Insights from Industry Experts
16.12. Data Sources
16.13. Assumptions
16.14. Limitations
17. Conclusions and Recommendations
17.1. Key Research Findings and Conclusion
17.2. Key Insights & Recommendations from Analysts