Virtual Kitchen Market Size was valued at USD 34.2 Billion in 2022. The Virtual Kitchen market is projected to grow from USD 39.1 Billion in 2023 to USD 80.9 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.95% during the forecast period (2023 - 2030).The growth of food delivery services apps, convenience, cost-effectiveness, and flexibility of virtual kitchens are the factors driving the growth of virtual kitchens.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Increasing Demand Of Food Delivery Services Proliferate Demand Of Virtual Kitchen.
The increased demand for food delivery services has created opportunities for virtual kitchens to meet the needs of both restaurants and consumers, and it is likely that the trend towards virtual kitchens will continue to grow in the coming years. As more consumers opt for food delivery, restaurants are under pressure to fulfill a higher volume of orders. Virtual kitchens can help meet this demand by operating exclusively for delivery, with no physical dining space.
Operating a virtual kitchen can be more cost-effective than operating a traditional restaurant, as there is no need for a storefront, dining area, or front-of-house staff. This can make it easier for restaurants to expand their delivery capabilities without incurring significant expenses. Virtual kitchens can allow restaurant operators to test new concepts or menu items without the expense and risk of opening a new physical location. This can help restaurants adapt to changing consumer preferences and trends more quickly.
By operating from a centralized kitchen, virtual kitchens can reach new delivery markets without the need for multiple physical locations. This can help restaurants expand their customer base and increase their revenue. Many food delivery platforms, such as Uber Eats and DoorDash, partner with virtual kitchens to offer a wider range of delivery options to consumers. This can help virtual kitchens reach a larger audience and increase their visibility.
Figure 1: Food delivery market
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
food delivery market was valued at USD 150 Billon in 2022 and is expected to reach USD 340.9 Billion by 2030, growing at a CAGR of 10% from 2023 to 2030. This growth of food delivery supports cloud kitchen concept as its cheaper option for new entrepreneurs to cater easily with low capital in food services sector.
Based on component type, the Virtual Kitchen market segmentation includes hardware, software, and services. The hardware segment accounted for the largest share of this market and is also anticipated to grow at a CAGR of 9.8% through the forecast period. Virtual kitchen hardware includes appliances, tools, and equipment that are used in virtual kitchen setups. This includes:
Cooking equipment: This includes ovens, fryers, grills, and other cooking appliances used to prepare and cook food. In cloud kitchens, these appliances may be compact and designed for high-volume cooking.
Food storage and preparation equipment: This includes refrigerators, freezers, food prep tables, and other equipment used to store and prepare food before it is cooked.
Order fulfillment equipment: This includes packaging and labeling equipment, such as food containers, bags, and labels, used to package and prepare orders for delivery.
Point-of-sale systems: This includes software and hardware used to process orders and manage inventory in real-time. Cloud kitchens may rely heavily on technology to manage their operations efficiently.
Virtual kitchen hardware is designed to optimize the preparation and delivery of food orders in a virtual kitchen environment. As the demand for online food delivery services continues to increase, cloud kitchen hardware is likely to play an increasingly important role in the food industry.
Figure 2: Virtual Kitchen Market, by Component Type, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
On the other side, the services segment is also anticipated to grow with a CAGR of 24.81% over the forecast period. The market for virtual kitchen is predicted to have the second-largest proportion in the service sector. Virtual kitchens may offer a variety of cuisines and dishes that can be customized based on customer preferences and dietary restrictions. This allows customers to have a more personalized dining experience.
Virtual kitchens rely heavily on online ordering platforms such as Uber Eats, Grubhub, and DoorDash for customer orders. These platforms provide a convenient way for customers to order food and have it delivered to their doorstep. Virtual kitchen services may provide customer support through various channels such as email, phone, or live chat. This allows customers to get quick answers to their questions and resolve any issues they may encounter.
March 2023: - Kitchens@ Acquires Swiggy's Cloud Kitchen Arm 'Swiggy Access'. Swiggy sold its business at an undisclosed amount with all equity deal.
February 2022 - Curefoods Pvt Ltd, a cloud kitchen startup floated by Cure.fit, which houses brands like EatFit, CakeZone, and Aligarh House, bought Accel-backed Maverix Platforms Pvt Ltd, which runs ready-to-cook food brand Fingerlix, for an undisclosed amount.
Based on end-user type, the Virtual Kitchen market is segmented into commercial space, residential and hospitality. Due to low cost and ease to reach viability in residential locations, there was a huge surge in delivery from these virtual kitchens. After Covid, with new normal there was a huge decline in dine in and on contrary a huge surge in online delivery. Due to limited food option, cloud kitchens/ virtual kitchens had shown a huge penetration among residential customers.
By region, this market has been segmented into North America, Europe, Asia-Pacific, and the rest of the world. The North American region dominates this market with a significant share of 65.9% in 2023 and is also estimated to witness good growth with a CAGR of 9.7% during the forecast period. The virtual kitchen market in the US is growing rapidly, driven by factors such as the increasing popularity of food delivery services, rising urbanization, and changing consumer behavior.
The virtual kitchen market in the US is becoming increasingly competitive, with a growing number of players vying for market share. Some of the major players include Kitchen United, Zuul Kitchens, and CloudKitchens. Many virtual kitchens in the US partner with food delivery platforms, such as Uber Eats, Grubhub, and DoorDash, to reach a wider audience and increase their visibility. Some virtual kitchens in the US are expanding beyond delivery to include pickup options or even physical storefronts. This can help to differentiate them from competitors and appeal to a wider range of consumers. The virtual kitchen market in the US presents opportunities for innovation, such as the use of robotics and automation to streamline operations and reduce costs, and the development of eco-friendly virtual kitchens.
On the other side, the Asia-Pacific is also projected to become the second-largest region across the globe at a CAGR of 18.37% from 2023 to 2030. The Chinese government has been supportive of the virtual kitchen industry, as it can help to address food safety concerns and support the development of the country's digital economy. The virtual kitchen market in China is highly competitive, with a large number of players vying for market share.
Some of the major players include Panda Selected, Eleme, and Meituan-Dianping. Many virtual kitchens in China partner with food delivery platforms to reach a wider audience and increase their visibility. For example, Panda Selected operates exclusively on the Eleme platform. Some virtual kitchens in China are expanding beyond delivery to include dine-in options or even physical storefronts. This can help to differentiate them from competitors and appeal to a wider range of consumers.
Figure 3: Virtual Kitchen Market, by Region, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The virtual kitchen market in Europe is growing, although at a slower pace than in other regions such as North America and Asia. The virtual kitchen market in Europe varies significantly by region, with the UK, Spain, and Germany among the largest markets. In the UK, for example, virtual kitchens are becoming increasingly popular due to the high cost of real estate and the increasing demand for food delivery services. In some European countries, regulations related to food safety and hygiene can be a barrier to entry for virtual kitchen operators. However, some governments are taking steps to address these challenges, such as the UK's Food Standards Agency's new guidelines for virtual kitchens.
Major players in the Virtual Kitchen market, include, Kitchen United, Rebel Foods, Keatz, Zuul Kitchens, Kitopi, CloudKitchens, Dahmakan, Swiggy Access, Foodpanda Virtual Kitchen, Taster, Cheetay, The Local Culinary, Smart City Kitchens, Ghost Kitchen Brands, DoorDash Kitchens, Deliveroo Editions, Editions by Uber Eats, Deliverect and Deliveroo Editions.
The market's growth is predicted to be accelerated by the rising adoption of cloud computing and Virtual Kitchen, as well as various strategic alliances and investments among regional businesses. Due primarily to the participation of many equipment suppliers, the United States controls the majority of the market in the region and generates a sizeable portion of overall income.
Kitchen United
Rebel Foods
Keatz
Zuul Kitchens
Kitopi
Dahmakan
Foodpanda Virtual Kitchen
Taster
Cheetay
The Local Culinary
Smart City Kitchens
Ghost Kitchen Brands
DoorDash Kitchens
Deliveroo Editions
Editions by Uber Eats
Deliverect
Deliveroo Editions
March 2023: - Kitchens@ Acquires Swiggy's Cloud Kitchen Arm 'Swiggy Access'. Swiggy sold its business at an undisclosed amount with all equity deal.
February 2022 - Curefoods Pvt Ltd, a cloud kitchen startup floated by Cure.fit, which houses brands like EatFit, CakeZone, and Aligarh House, bought Accel-backed Maverix Platforms Pvt Ltd, which runs ready-to-cook food brand Fingerlix, for an undisclosed amount.
Software
Solution
Services
Commercial Space
Residential
Hospitality
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 34.2 Billion |
| Market Size 2023 | USD 39.1 Billion |
| Market Size 2030 | USD 80.9 Billion |
| Compound Annual Growth Rate (CAGR) | 10.95% (2023-2030) |
| Base Year | 2023 |
| Forecast Period | 2023-2030 |
| Historical Data | 2019 to 2022 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | End-user Type, Deployment Type, Solution Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Kitchen United, Rebel Foods, Keatz, Zuul Kitchens, Kitopi, CloudKitchens, Dahmakan, Swiggy Access, Foodpanda Virtual Kitchen, Taster, Cheetay, The Local Culinary, Smart City Kitchens, Ghost Kitchen Brands, DoorDash Kitchens, Deliveroo Editions, Editions by Uber Eats, Deliverect and Deliveroo Editions |
| Key Market Opportunities | Targeting developing markets |
| Key Market Dynamics | The growth of food delivery services apps Better convenience, cost-effectiveness, and flexibility of virtual kitchens |
Virtual Kitchen Market Highlights:
Frequently Asked Questions (FAQ) :
The market for Virtual Kitchen was USD 34.2 Billion in 2022.
The analytics market is expected to be USD 80.9 Billion in 2030.
Th growth rate for the Virtual Kitchen market is 10.95% through the forecast period.
North America region held the largest market share in 2022.
The major players are dominating the market are Kitchen United, Rebel Foods, Keatz, Zuul Kitchens, Kitopi, CloudKitchens, Dahmakan, Swiggy Access, Foodpanda Virtual Kitchen, Taster, Cheetay, The Local Culinary, Smart City Kitchens, Ghost Kitchen Brands, DoorDash Kitchens, Deliveroo Editions, Editions by Uber Eats, Deliverect and Deliveroo Editions.
Research Analyst Level II With a technical background in information technology & semiconductors, shubham has 4.5+ years of experience in market research and analytics with the tasks of data mining, analysis, and project execution. he is the poc for our clients, for their consulting projects running under the ict/semiconductor domain. shubham holds a bachelor’s in information and technology and a master of business administration (mba). shubham has executed over 150 research projects for our clients under the brand name market research future in the last 2 years. his core skill is building the research respondent relation for gathering the primary information from industry and market estimation for niche markets. he is having expertise in conducting secondary & primary research, market estimations, market projections, competitive analysis, analysing current market trends and market dynamics, deep-dive analysis on market scenarios, consumer behaviour, technological impact analysis, consulting, analytics, etc. he has worked on fortune 500 companies' syndicate and consulting projects along with several government projects. he has worked on the projects of top tech brands such as ibm, google, microsoft, aws, meta, oracle, cisco systems, samsung, accenture, vmware, schneider electric, dell, hp, ericsson, and so many others. he has worked on metaverse, web 3.0, zero-trust security, cyber-security, blockchain, quantum computing, robotics, 5g technology, high-performance computing, data centers, ai, automation, it equipment, sensors, semiconductors, consumer electronics and so many tech domain projects.
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