Cloud Kitchen Market Size was valued at USD 58.2 Billion in 2022. The Cloud Kitchen Market industry is projected to grow from USD 65.6 Billion in 2023 to USD 172.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.80% during the forecast period (2023 - 2032). The rising trend of co-working kitchen spaces, integration of artificial intelligence (AI) and robotics in the kitchen for tasks like cooking, cleaning, and packing, and the introduction of subscription models are expected to be a significant market driver for the Cloud Kitchen Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Increasing penetration of online food delivery platforms and advancements in technology and data analytics is driving the market growth
Market CAGR for Cloud Kitchen is driven by the increasing penetration of online food delivery platforms and advancements in technology and data analytics. The expansion of online food delivery platforms is contributing significantly to market growth, acting as a seamless link between consumers and restaurants. These platforms provide a diverse array of cuisines and dining options with just a click, appealing to an increasing number of consumers who value the convenience of ordering meals online. The allure of relishing restaurant-quality dishes in the comfort of one's home, coupled with easy payment methods and order tracking capabilities, is fostering a positive impact on the market. A substantial 60% of diners are anticipated to increase their online orders in 2022, with 42% planning to order directly from restaurants, a threefold increase compared to those opting for third-party apps (14%). The trend of customers using mobile devices for food orders is on the rise, with 35% reporting an increase in app-based orders over the past three months. Moreover, customers tend to spend more when utilizing restaurant apps for their orders. Restaurants equipped with online ordering systems can boost their takeout profits by as much as 30% compared to those without such systems. In 2022, the number of Americans using apps to order food and groceries is projected to grow from 27.9 million to 30.4 million. Leading online food delivery platforms are expanding their offerings by partnering with local restaurants and cloud kitchens, contributing to the market's continued growth.
The market is further influenced positively by technological advancements and the widespread adoption of data analytics. Cloud kitchen operators are leveraging these technologies to gain valuable insights into consumer behavior, preferences, and purchasing patterns. Additionally, advancements in delivery logistics, driven by technology, enable cloud kitchens to achieve faster and more efficient food delivery. Real-time order tracking and accurate delivery time predictions enhance the overall customer experience, encouraging a growing number of consumers to opt for online food delivery and providing a favorable outlook for the market. As a result, it is anticipated that throughout the projection period, demand for the Cloud Kitchen Market will increase due to the increasing penetration of online food delivery platforms and Advancements in technology and data analytics. Thus, driving the Cloud Kitchen Market revenue.
The Cloud Kitchen Market segmentation, based on Type includes Independent Cloud Kitchens, Commissary/Shared Kitchen, and Kitchen Pods. The Independent Cloud Kitchens segment dominated the market, accounting for 58% of market revenue (33.7 Billion). Autonomous cloud kitchens provide heightened flexibility and operational control. These kitchens can promptly modify menus, explore new cuisines, and implement operational adjustments without corporate authorization. This adaptability enables swift responses to evolving consumer trends. Furthermore, independent cloud kitchens offer more personalized and localized services. They tailor their offerings to specific local preferences, utilize locally sourced ingredients, and cultivate a closer relationship with their customer base. This unique approach sets them apart from competitors. Additionally, they are exempt from franchise fees and profit-sharing obligations with a parent company.
Figure 1: Cloud Kitchen Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Cloud Kitchen Market segmentation, based on Product Type includes Burger/Sandwich, Pizza, Pasta, Chicken, Seafood, Mexican/Asian Food, and Others. The Burger/Sandwich segment dominated the market, accounting for 58% of market revenue. The growth of the segment is fueled by the rising demand for fast food products among millennials and Gen Z consumers. Changing lifestyles and increased digitalization are prompting individuals to gravitate toward fast food options like burgers and sandwiches. There is a noticeable increase in the number of cafes and restaurants worldwide.
The Cloud Kitchen Market segmentation, based on Nature includes Franchised and standalone. The Franchised segment dominated the market, accounting for 60% of market revenue. The rising inclination towards franchising among stakeholders, driven by benefits such as reduced capital requirements and simplified business expansion, is a key factor bolstering the market value of this segment. The growing emphasis on marketing food franchises in both developing and developed economies is expected to further contribute to growth throughout the forecast period. A Commissary (Aggregator) Kitchen refers to leased vacant kitchen spaces where several small kitchens operate concurrently under different brand names. This shared working space concept is also known as kitchen as a service (KaaS).
By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the Cloud Kitchen market in North America can be attributed to several key factors. Factors such as the growing purchasing power of consumers, widespread access to various digital touchpoints, and an increasing demand for fast food are contributing to the rise of ghost kitchens in the region. On average, an individual in the United States spends approximately $1,200 annually. Additionally, American households allocate around 10% of their income to fast food expenditures each year. As of 2023, there are 201,865 fast-food restaurant businesses in the US, reflecting a 2.55% increase from 2021 when the count was around 196,839. Moreover, the increasing awareness of the benefits associated with cloud kitchens is prompting numerous franchised store outlets and aggregators to establish cloud or ghost kitchens.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: CLOUD KITCHEN MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Cloud Kitchen Market accounts for the second-largest market share as the rapid expansion of online food delivery platforms such as Deliveroo, Just Eat, and Uber Eats has generated a substantial demand for online food delivery services throughout Europe. Professionals, students, and young urban consumers are increasingly opting to order food online due to the advantages of convenience, diverse choices, and promotional discounts. Uber Eats, since it entered the European market, has gained significant popularity, securing approximately two-thirds of all online food delivery bookings in France in 2022 and ranking third in app downloads in countries like Germany and Spain. DoorDash, a U.S.-based platform, made its debut in the European rankings in 2022, with 210,000 app downloads in the UK and around 98,000 in Germany. Following its acquisition of Helsinki-based Wolt in late 2021, DoorDash is poised to gradually expand its consumer reach across the Atlantic. Further, the German Cloud Kitchen Market held the largest market share, and the UK Cloud Kitchen Market was the fastest-growing market in the European region
The Asia-Pacific Cloud Kitchen Market is expected to grow at the fastest CAGR from 2023 to 2032. The proliferation of ghost kitchens in China and Japan plays a pivotal role in advancing the growth of the Asia Pacific region. Market expansion is further fueled by the growing population and increased consumer purchasing power. Notably, approximately 28% of consumers in China opted for food orders from virtual restaurants and cloud kitchens. The rising prevalence of smartphones and the widespread use of online food service channels are additional drivers of regional growth. In 2020, China alone boasted over 7,500 ghost kitchens. Moreover, China’s Cloud Kitchen Market held the largest market share, and the Indian Cloud Kitchen Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Cloud Kitchen market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Cloud Kitchen industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Cloud Kitchen industry to benefit clients and increase the market sector. In recent years, the Cloud Kitchen industry has offered some of the most significant advantages to food entrepreneurs, restaurant owners, and culinary innovators alike. Major players in the Cloud Kitchen Market, including Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zomato are attempting to increase market demand by investing in research and development operations.
Established in 2014 and headquartered in Bengaluru, Swiggy stands as India's foremost on-demand delivery platform, blending a tech-centric logistics approach with a consumer-centric solution strategy. Operating in 500 cities throughout India, Swiggy has established partnerships with numerous restaurants, boasts an employee count exceeding 5,000, and relies on a robust fleet of over 200,000 independent delivery executives. Leveraging cutting-edge machine learning technology and processing terabytes of data daily, Swiggy provides a swift, seamless, and dependable delivery experience for millions of customers nationwide. Initially starting as a hyperlocal food delivery service, Swiggy has evolved into a logistics hub of excellence, ensuring not only rapid delivery for customers but also a rewarding experience for its workforce. Swiggy's continuous innovation is evident in its offerings such as Swiggy New Supply, along with recent launches like Swiggy Instamart, Swiggy Genie, and Health Hub, making a significant impact in the market. In November 2017, Swiggy introduced Swiggy Access, aimed at assisting restaurants in operating delivery-only kitchens in locations where they lack a physical presence. The model provides free real-estate infrastructure to restaurants and charges them based on a revenue-sharing arrangement.
DoorDash originated in Palo Alto and, as of May 2019, has expanded its services to over 4,000 cities, offering a diverse selection from 340,000 stores across the United States, Canada, and Australia. The platform has gained recognition for its strategic approach in managing various factors crucial for reliable deliveries, including food preparation time, staffing based on fluctuating demand, selecting the most suitable "dasher" for order pickup and delivery, and determining the optimal mode of transportation. In a move to further its business reach, DoorDash announced a partnership with Mercato, an e-commerce platform, in August 2019. This collaboration facilitated the expansion of DoorDash's services to independent grocers and specialty stores, enabling same-day deliveries to 750 independent grocers across 22 states. To support its growth initiatives, DoorDash secured $400 million in funding in February 2019, bringing the total funding for the company to $1.4 billion and establishing a valuation of $7.1 billion.
February 2022: Rebel Foods has forayed into the inte by launching 2 cloud kitchens in Riyadh. They are also going to start working with Tasty for 60 out of the 72 Internet restaurants, which are targeting opening in the city over the next 12 months. These internet restaurants also fit into the designs of the company as its intent is to open 60 such restaurants in Riyadh over the coming year only. These internet restaurants are part of the business system of Rebel Foods, in which a number of food brands share one cloud kitchen handling different types of food. This is exemplified by this company’s Cloud Belly, which does not include self-service premises. It is cheap and easily replicated, and hence, the growth can be hatched without the traditional restaurant-related expenses. This paradigm is very suitable for a country like Saudi as there are high food ordering habits.
Dahmakan
DoorDash
Ghost Kitchen Orlando
Keatz
Kitchen United
Kitopi Catering Services LLC
Starbucks Corporation
Swiggy
Zomato
January 2024: ITC is readying itself for expansion by broadening its cloud kitchen business into new markets like Mumbai, Delhi and West Bengal. The business model involves a central kitchen and more than one satellite kitchen, which suits the likes of both Swiggy and Zomato, as delivery kitchens should be every 2.5-3 kilometers.
July 2023: In July 2023, Rebel Foods made its entry into the Saudi Arabian market by inaugurating two cloud kitchens in Riyadh. Additionally, the company has outlined plans to establish 60 Internet restaurants in the city within the upcoming year
August 2021: In August 2021, Kitchen United partnered with Kroger to offer takeout and delivery food within certain grocery stores. In this collaboration, Kitchen United planned to launch ghost kitchens in select Kroger locations, featuring up to six restaurant brands, spanning local, regional, and national offerings.
Independent Cloud Kitchen
Commissary/Shared Kitchen
Kitchen Pods
Burger/Sandwich
Pizza
Pasta
Chicken
Seafood
Mexican/Asian Food
Others
Franchised
Standalone
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 58.2 Billion |
| Market Size 2023 | USD 65.6 Billion |
| Market Size 2032 | USD 172.0 Billion |
| Compound Annual Growth Rate (CAGR) | 12.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Product Type, Nature, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zomato |
| Key Market Opportunities | Cloud kitchens, with their ability to host multiple cuisines under a single roof |
| Key Market Dynamics | Rise of on-demand food delivery across the globe |
Frequently Asked Questions (FAQ) :
The Cloud Kitchen Market size was valued at USD 58.2 Billion in 2022.
The Cloud Kitchen Market is projected to grow at a CAGR of 12.80% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zomato
The Independent Cloud Kitchens segment dominated the market in 2022.
The Franchised segment had the largest share in the market.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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