The global cloud kitchen market size is expected to reach USD 139.37 billion by 2028, registering a CAGR of 12.4% from 2021 to 2028, according to a new study conducted by Grand View Research, Inc. Digital disruption and technological innovations have popularized the trend of ordering food online and doorstep delivery. Increased efforts toward convenience, comfort, and quality of service have also helped the emergence of cloud kitchens. Additionally, changing lifestyles, especially of millennials with increased disposable incomes demanding convenience at their touchpoints, are the factors stimulating the rise of virtual kitchens.
Changing lifestyles are compelling restaurateurs to focus on customer convenience and customer experience improvement strategies. With increased competition among restaurants delivering similar offerings, the need to maintain the quality of the service puts increased pressure on cost management, failure to do so often results in the shutdown of outlets. Therefore, to ensure the survival of businesses and increase profits, cloud kitchens are gaining momentum. With the minimal risk involved, several entrepreneurs, including food aggregators, are increasingly investing in the concept.
The rise in COVID-19 cases globally made social distancing imperative. Moreover, frequent lockdowns to contain the spread of the virus acted as a catalyst in increasing the demand for deliveries and takeaways, leading to a rise in the number of cloud kitchens globally. Restaurants facing a slump in business due to declining footfall have shifted to the virtual kitchen concept, as the takeaways model emerged as a viable source of generating revenue during the COVID-19 pandemic. Furthermore, as virtual kitchens require minimal investment and operational costs to run, they help restaurants improve their profit margins. The increased realization of the benefits of cloud kitchens is encouraging several food entrepreneurs and restaurateurs to invest in cloud kitchens.
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In terms of type, the independent cloud kitchen segment held the largest market share in 2020, accounting for more than 60% of the overall market. Increasing consumer preference for international cuisines and fast foods is expected to emerge as the key trend driving the growth of the segment
In terms of nature, the franchised segment is expected to register the highest CAGR over the forecast period. The growing popularity of large restaurant chains possessing high brand equity and offering high service quality is expected to drive the growth of the segment over the forecast period
Factors such as increasing internet penetration and the rising proliferation of online delivery services across the economies of China, India, and Japan allowed the Asia Pacific regional market to hold the dominant position in 2020. The regional market exceeded 60.0% of the global market share in 2020
Grand View Research has segmented the global cloud kitchen market based on type, nature, and region:
Cloud Kitchen Type Outlook (Revenue, USD Million, 2017 - 2028)
Independent Cloud Kitchen
Cloud Kitchen Nature Outlook (Revenue, USD Million, 2017 - 2028)
Cloud Kitchen Regional Outlook (Revenue, USD Million, 2017 - 2028)
List of Key Players of the Cloud Kitchen Market
Dahmakan (Pop Meals)
Ghost Kitchen Orlando
Starbucks Coffee Company
Zuul Kitchens, Inc.
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