Dublin, May 29, 2024 (GLOBE NEWSWIRE) -- The "Global Cloud Kitchen Market Outlook, 2029" report has been added to ResearchAndMarkets.com's offering.
According to the report, the market is anticipated to cross USD 115 billion by 2029, increasing from USD 60.85 billion in 2023. The market is expected to grow with 12.01% CAGR by 2024-29.
Asia-Pacific is leading in the cloud kitchens industry due to its large, densely populated markets with a growing appetite for food delivery services, combined with a high degree of digital adoption and entrepreneurial innovation in culinary concepts.
Market Drivers
- Consumer Demand for Convenience: The proliferation of food delivery apps has changed consumer habits, making people more accustomed to ordering food for delivery and takeout rather than dining in. Cloud kitchens cater directly to this demand by offering a wide range of cuisines and dishes that are available for quick delivery. Busier work schedules, the increase in remote work, and a growing preference for home-based activities have all contributed to the surge in demand for food delivery. Consumers seek convenience and variety in their food choices, which cloud kitchens can provide by focusing exclusively on delivery and takeout orders.
- Cost-Effectiveness and Efficiency: By eliminating the need for a physical dining space and front-of-house staff, cloud kitchens reduce operational costs significantly. This allows them to allocate more resources to the quality of the food and delivery logistics. Cloud kitchens are designed for efficiency, with optimized kitchen layouts and processes that focus on quick order preparation and delivery. By centralizing multiple virtual brands in one location, cloud kitchens can share resources and equipment, further enhancing efficiency.
Market Challenges
- Quality Control and Consistency: One of the biggest challenges for cloud kitchens is maintaining consistent food quality and presentation across different orders and delivery times. This requires stringent processes and training for kitchen staff to ensure uniformity in cooking and packaging. Unlike traditional restaurants where customer feedback is immediate, cloud kitchens rely on delivery platforms and online reviews for customer interactions. Ensuring a positive experience through consistent quality and timely delivery is essential for customer satisfaction and loyalty.
- Dependence on Third-Party Delivery Platforms: Many cloud kitchens rely on third-party delivery services such as Uber Eats, DoorDash, and Grubhub. These platforms charge commission fees that can eat into profit margins, making it challenging for cloud kitchens to achieve profitability. Relying on third-party platforms can limit cloud kitchens' control over customer relationships and data. This can hinder their ability to tailor marketing efforts and improve the overall customer experience based on feedback.
Market Trends
- Integration of Advanced Technologies: AI-powered tools can help cloud kitchens manage orders, streamline kitchen processes, and even forecast demand. Automation can extend to cooking, food preparation, and packaging, resulting in faster order turnaround times and reduced labor costs. Data collected from orders and customer feedback can help cloud kitchens optimize menus, pricing, and marketing strategies. Analyzing customer preferences and behaviors allows them to stay ahead of trends and make data-driven decisions.
- Sustainable Practices and Initiatives: Cloud kitchens are increasingly adopting sustainable packaging solutions, such as biodegradable or recyclable materials, to reduce their environmental impact. This aligns with consumer preferences and demonstrates a commitment to sustainability. Efficient inventory management and data-driven ordering can help cloud kitchens minimize food waste. By implementing strategies such as portion control and better forecasting of demand, they can operate more sustainably and improve profitability.
Market Segmentation Insights
By Type
- Independent
- Commissary/Shared Kitchen
- Kitchen Pods
Independent cloud kitchens are leading in the industry because they offer unparalleled flexibility and agility in adapting to market trends, customer preferences, and operational efficiencies without the constraints of existing brand reputations or established physical restaurants.
By Product
- Burger/Sandwich
- Pizza/Pasta
- Chicken
- Seafood
- Mexican/Asian Food
- Others
Burger and sandwich types are leading in the cloud kitchens industry because of their universal appeal, simplicity, and ability to maintain quality during delivery, making them ideal for quick service and high-volume production that aligns with the core business model of cloud kitchens.
By Nature
- Standalone
- Franchised
Standalone cloud kitchens are leading in the industry due to their ability to operate independently without being tied to a specific restaurant brand, which allows them to innovate freely, adapt quickly to market demands, and focus on maximizing operational efficiency and customer satisfaction.
Study Coverage
- Historic year: 2018
- Base year: 2023
- Estimated year: 2024
- Forecast year: 2029
A selection of companies mentioned in this report includes, but is not limited to:
- Starbucks Corporation
- DoorDash, Inc.
- Yum! Brands, Inc.
- Rebel Foods
- Inspire Brands LLC
- iFood
- Delivery Hero SE
- Kitopi
- Toast, Inc.
- Restaurant Brands International Inc.
- Deliveroo plc
- Zomato Ltd.
- CloudKitchens
- Just Eat Takeaway.com N.V.
- Uber Eats
- ITC Limited
- Swiggy
Recent Developments
- In January 2024, ITC is set to extend its cloud kitchen venture with plans to penetrate markets in Mumbai, Delhi, and Kolkata. The business model entails a central kitchen and multiple satellite kitchens, aligning with the preferences of delivery platforms like Swiggy and Zomato, which prefer kitchens every 2.5-3 km.
- In August 2023, Dubai-headquartered cloud kitchen firm Kitopi has collaborated with Fresh On Table, an agri-tech platform based in the UAE, to adopt sustainable sourcing practices. Under the agreement, Kitopi will procure fresh, locally sourced ingredients from neighbouring farms, contributing to its sustainability endeavours. This strategic move facilitates the cloud kitchen platform's commitment to sustainability and reduces the necessity for extensive transportation, eliminating the carbon footprint associated with food miles.
- In July 2023, Rebel Foods has expanded its focus by making its foray into the Saudi Arabian market by inauguring two cloud kitchens in Riyadh. The company has outlined plans to set up 60 online restaurants in the city over the coming year.
For more information about this report visit https://www.researchandmarkets.com/r/erzewn
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
