Dublin, April 02, 2024 (GLOBE NEWSWIRE) -- The "Cloud Kitchen Market Report by Type (Independent Cloud Kitchen, Commissary/Shared Kitchen, Kitchen Pods), Product Type (Burger and Sandwich, Pizza and Pasta, Chicken, Seafood, Mexican and Asian Food, and Others), Nature (Franchised, Standalone), and Region 2024-2032" report has been added to ResearchAndMarkets.com's offering.
The global cloud kitchen market reached US$ 71.1 billion in 2023. Looking forward, the market is expected to reach a value of US$ 170 billion by 2032 exhibiting a growth rate (CAGR) of 10.2% during 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 some of the major factors propelling the market.
The increasing penetration of online food delivery platforms
Online food delivery platforms are rapidly proliferating worldwide, which, in turn, is driving the growth of the market. These platforms are effectively bridging the gap between consumers and restaurants by offering a wide range of cuisines and eateries at the click of a button. Additionally, more consumers are embracing the convenience of ordering meals online. The comfort of enjoying restaurant-quality meals in the privacy of sitting at home, along with the ease of payment and the ability to track orders, is positively influencing the market. Apart from this, the leading online food delivery platforms are partnering with local restaurants and cloud kitchens to increase their food offerings, which is propelling the market growth.
Rapid urbanization and lifestyle changes
Rapid urbanization, increasing working population, and the busy lifestyles of individuals are among the key factors catalyzing the demand for ready-to-eat (RTE) and convenient meal options. Apart from this, there is a rise in dual-income households where both partners are working, leaving little time for meal preparation. The convenience of ordering diverse food options through a simple app is an attractive alternative to these consumers. Moreover, as the population is increasing and urban areas are expanding, the demand for a variety of food options is also growing. Cloud kitchens, with their ability to host multiple cuisines under a single roof, are capitalizing on this opportunity, consequently experiencing significant growth.
Advancements in technology and data analytics
Technological advancements and the increasing use of data analytics are positively influencing the market. Additionally, with the ability to analyze large volumes of data, cloud kitchen operators are gaining valuable insights into consumer behavior, preferences, and buying patterns. Furthermore, advancements in delivery logistics, powered by technology, are allowing cloud kitchens to deliver food faster and more efficiently. The ability to track orders in real-time and predict accurate delivery times is enhancing the overall customer experience, thereby encouraging more consumers to opt for online food delivery. This, in turn, is offering a favorable outlook for the market.
Cloud Kitchen Industry Segmentation
The report provides an analysis of the key trends in each segment of the global cloud kitchen market report, along with forecasts at the global, regional and country levels from 2024-2032. The report has categorized the market based on type, product type, nature, and region.
Breakup by Type:
- Independent Cloud Kitchen
- Commissary/Shared Kitchen
- Kitchen Pods
Independent cloud kitchen holds the largest market share
Independent cloud kitchens offer greater flexibility and control over their operations. These kitchens can swiftly adapt their menus, experiment with new cuisines, and make operational changes without the need for corporate approval. This flexibility allows them to quickly respond to changing consumer trends and preferences. Additionally, independent cloud kitchens provide more localized and personalized services. They cater to specific local tastes, use locally sourced ingredients, and foster a closer connection with their customer base, offering a unique selling proposition that differentiates them from the competitors. Furthermore, they are not obligated to pay franchise fees or share profits with a parent company.
Breakup by Product Type:
- Burger and Sandwich
- Pizza and Pasta
- Chicken
- Seafood
- Mexican and Asian Food
- Others
Burger and sandwich dominate the market
Burgers and sandwiches are versatile dishes that can be customized to suit various tastes and dietary preferences of the masses. Additionally, these items are typically fast and easy to prepare, making them ideal for many cloud kitchens. Apart from this, their preparation does not require specialized skills or equipment, allowing cloud kitchens to manage high volumes efficiently. Furthermore, burgers and sandwiches are highly suitable for delivery as they can endure the journey from kitchen to customer without a significant loss of quality or presentation. Their quick food preparation time aligns well with the demands of a fast-paced and convenience-oriented society.
Breakup by Nature:
- Franchised
- Standalone
Franchised hold the largest share in the market
Franchising in the cloud kitchen sector provides an opportunity for businesses to rapidly expand their brand without a substantial capital investment, which represents one of the key factors favoring market growth. Additionally, the franchise model follows an established business plan and helps maintain uniformity in product quality and service across different locations, ensuring brand consistency and customer trust. Furthermore, franchises also allow the parent company to leverage the local expertise of franchisees. They have a better understanding of local tastes and preferences and can adjust the menu offerings accordingly. Moreover, they have local connections that aid in securing prime locations for cloud kitchens, offering a competitive edge.
Breakup by Region:
- North America
- Asia-Pacific
- Europe
- Latin America
- Middle East and Africa
Asia Pacific exhibits a clear dominance, accounting for the largest cloud kitchen market share
Asia Pacific is the home to more than half of the global population which provides a huge consumer base. Rapid urbanization, inflating disposable income levels, busy and hectic lifestyles, increasing penetration of the internet, and the growing sales of smartphones are some of the significant factors that are driving the market in the Asia Pacific. Apart from this, there is an escalating demand for international cuisines and rising preferences for food delivery over dine-in is offering a favorable market outlook.
Competitive Landscape
Companies are actively innovating and diversifying their offerings. Additionally, many of them are enhancing their digital platforms to ensure the delivery of a user-friendly experience to customers placing online orders. Apart from this, they are fine-tuning their operations, focusing on making kitchens more efficient to cater to the high volume of orders. Some companies are experimenting with artificial intelligence (AI) and machine learning (ML) to forecast demand accurately, enabling them to prepare dishes in advance and reduce waiting times. Furthermore, leading players are also focusing on expanding partnerships with established food delivery platforms to increase their reach and customer base. Moreover, many cloud kitchen companies are analyzing customer data diligently to understand dining habits and preferences better. This data-driven approach is helping them customize their menus effectively and boosting customer satisfaction.
The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
- CloudKitchens
- DoorDash Inc.
- Kitchen United
- Kitopi Catering Services LLC
- Lightspeed Commerce Inc.
- PAR Technology Corporation
- POSist Technologies Private Limited
- Rebel Foods
- Starbucks Coffee Company
- Swiggy Platform
- Toast Inc.
In July 2023, Rebel Foods entered the Saudi Arabian market by opening two cloud kitchens in Riyadh. It is also planning to establish 60 internet restaurants in the city within the next year.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 139 |
| Forecast Period | 2023-2032 |
| Estimated Market Value (US$) in 2023 | $71.1 Billion |
| Forecasted Market Value (US$) by 2032 | $17 Billion |
| Compound Annual Growth Rate | 10.2% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/b0ezt5
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