The global cloud kitchen market has gathered around $57 billion

New York, Aug. 02, 2022 (GLOBE NEWSWIRE) — Bogota, Colombian roads (53%) were the 3rd the busiest roads in the world in 2020, behind Mumbai in India (53%) and Moscow roads in Russia (54%) top the list of the most congested roads in the world in 2020. It must be stressful to travel by car when the roads become more congested. On top of that, as there are 6.648 billion smartphone users globally in 2022, 83.72% of the global population is expected to own smartphones. A total of 7.26 billion people in the world, or 91.54% of the world’s population, own smart and functional phones. The demand for cloud kitchens is expected to rise owing to the growing adoption of smartphones and increasingly congested highways, which is expected to propel the global cloud kitchens market..

In the recent research titled Global Cloud Kitchen Market, Kenneth Research has provided a brief overview of market elements, including growth drivers, restraining factors, current market trends, and future growth potential. Both the influence of COVID-19 and its effects on the end users are thoroughly discussed in the market research report, which covers the forecast period, i.e., 2022-2030. Additionally, the research study examines the product portfolios and market expansion plans of key competitors.
The United Nations estimates that there are 1.2 billion young people or 16% of the world’s population are between 15 and 24 years old. The number of young people is expected to increase by 7% to around 1.3 billion by 2030. In addition, the employment-to-population rate is expected to be 55.9% in 2022. The demand for cloud kitchens increases in parallel with the proportion of young people, smartphone users and young workers, as well as the number of traffic jams and congested roads. By 2027, around 600 million users are expected to opt for online food delivery in India, while in the US, there are expected to be around 2.18 million users .

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The global cloud kitchen market has accumulated around USD 57 billion in 2021 and is expected to grow at a CAGR of around 13% during the forecast period. Cloud kitchens, also known as ghost, virtual, dark, and commissary kitchens, are establishments that produce food that is only available for online ordering and delivery. Since there’s no need to pay exorbitant rent, buy real estate, invest in interior design, or pay more labor costs, cloud kitchens are more cost-effective. They are also more adaptable and efficient thanks to the concept of having multiple brands under one roof. Moreover, according to World Bank statistics, 57% of the total global population belongs to an urban population in 2021 where cloud kitchen is expected to be more in demand and hence the growth of the global cloud kitchen market. Additionally, as part of its growth goal to build a network of top national, regional and international brands, Dubai-based managed cloud kitchen platform Kitopi has invested USD 415 million and is expected to invest around 1 billion USD in a number of regional restaurants. and beverage organizations in October 2021.

The global cloud kitchen market is segmented into five major regions, namely North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Due to the high popularity of cloud kitchens in the region, Asia-Pacific is expected to hold the largest market share growing at the fastest rate during the forecast period. Additionally, growing disposable income and increasing usage of online food delivery services are fueling the growth of the market in the region. As of July 2020, China had over 8,000 cloud kitchens, making it the country with the most. On top of that, a pleasant or somewhat positive experience of ordering food from a virtual restaurant or ghost kitchen was reported by around 50% of respondents in China due to their fast delivery services. Additionally, in October 2021, Rebel Foods collaborated with food and grocery delivery service Foodpanda to improve the reach of its offerings in Southeast Asian countries such as Singapore, Thailand, Malaysia, Bangladesh, Hong Kong and the Philippines. Rising number of cloud kitchens is expected to drive the market growth in the region.

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On the other hand, the North American region market is expected to witness notable growth during the forecast period. The pandemic has led to a 70% increase in food delivery in 2020, leading to nearly 1,550 cloud kitchens in the United States. On top of that, 35% of Americans prefer to place at least two weekly food orders online. Moreover, the initial investment for shadow kitchens is lower than that of conventional restaurants. The start-up cost for cloud kitchens is expected to be between $25,000 and $30,000. The market in the region is expected to improve due to the rise of cloud kitchens, increased consumer interest in online delivery, and low cost of doing business.

The study further incorporates YOY ​​growth, demand and supply and forecasts future opportunities in North America (US, Canada), Europe (UK, Germany, France, Italy, Spain, Hungary, Belgium, Netherlands and Luxembourg, NORDIC [Finland, Sweden, Norway, Denmark]Poland, Turkey, Russia, Rest of Europe), Latin America (Brazil, Mexico, Argentina, Rest of Latin America), Asia-Pacific (China, India, Japan, South Korea, Indonesia, Singapore, Malaysia, Australia, New Zealand, Rest of Asia Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman]North Africa, South Africa, Rest of the Middle East and Africa.

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The global cloud kitchen market is segmented by type into standalone cloud kitchen, commissary/shared cloud kitchen and kitchen modules. Due to consumer preference for a specific type of cuisine and heavy reliance on third-party or online meal delivery services, independent cloud kitchen is expected to have the highest market share. In 2025, the gross market value (GMV) of cloud kitchens in India will be around $2.5 billion. Cloud kitchen GMV has increased significantly from around $190 million in 2018 to $450 million in 2019. Independent cloud kitchens are looking to start a home food business that has a delivery-only system, a brand and a kitchen with a low investment. . Since there is no dining room and no hospitality staff needed, the initial investment is low for freestanding cloud kitchens. In 2020, at the start of the COVID-19 pandemic, 8% of operators in the United States built cloud or virtual kitchens. Additionally, each year the typical American household spends $3,000 on dining out. Additionally, when choosing a restaurant to eat at, 70% of customers value food quality over any other consideration. On top of that, customers who frequent their favorite restaurants have 15% brand loyalty. The expansion of the segment is expected to be accelerated by the growing number of cloud kitchens and customer preference for a certain brand, cuisine or level of food quality.

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The global cloud kitchen market is further segmented by nature into franchised and standalone. Among these, the franchise segment has a major share of the market growth over the forecast period. In 2020, the total number of food franchises was estimated to be around 220,000 in the United States. In addition, every day nearly 55 million Americans prefer fast food. Additionally, fast food restaurants are expected to continue growing at an annual rate of 2% in 2020. The expansion of fast food franchises is further expected to fuel the growth demand of the segment.

Some of the major industry leaders in the global cloud kitchen market that are included in our report are Pop Meals (Dahmakan), Kitchen United, Rebel Foods, DoorDash, Zuul, Keatz, Kitopi, CloudKitchens and others.

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