Cloud Kitchen Market Analysis, Key Company Profiles, Types, Applications and Forecast

Cloud kitchens, also known as virtual or ghost kitchens are much more affordable to run as compared to conventional kitchens in dine-in restaurants. Cloud kitchens do not require dine-in facilities or account for costs related to property and location. These kitchens also have as compared to dine-in restaurants higher profit margins.

The flexibility of operating cloud kitchens from any location, such as from parking spaces, warehouses, or basements is another key factor that adds to the popularity of this type of kitchens. Due to the large range of benefits, along with the rising real-estate costs and competition among the dine-in restaurants, entrepreneurs and restaurateurs are anticipated that there will be an increase in adopting ghost kitchens in the coming years.

Cloud kitchens allow businesses the opportunity to serve customers directly without any additional costs and the constantly rising real-estate prices. It is also seen the restaurants with the only purpose of delivering foods that are targeted to specific customers can operate under more than one brand from the same kitchen, which allows them to make the most of their ingredients and reduce additional raw material costs.

Cloud Kitchen Market: Forecast and Overview

The global Clod Kitchen Market was valued at USD 51.96 Billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 12.4% and the value is expected to reach USD 167.24 Billion.

Over the years, there has been a rise in number of workforce in various segments. Majority of consumers around the world, especially in the developed countries have been looking out for food products that can be prepared and served within a minimal range of time. In return, various fast food products witness significant demand over the past couple of years that has also resulted in boosting the growth of the cloud kitchen market.

The hectic work schedule of various sectors of the society along with rise in demand for ready to eat products is driving the cloud kitchen market growth. The busy lifestyle adopted by a majority of consumers is making way for the cloud kitchen products to witness growth in terms of volume sale.

There has also been an increase in number of users on various social media sites, such as Facebook, Twitter, Instagram which results in a rise in internet penetration. Because of this, most of the key players in the cloud kitchen market are strategizing on promoting their products and services on these social media platforms. Social media marketing is one of the major strategies which has been adopted by various companies and industries to promote their product offerings. The rise in use of social media marketing is expected to provide great opportunity for the growth of the cloud kitchen market and eventually increase its customers.

Cloud kitchen mainly produces fast food products that are known for their taste, unique product offerings, and easy availability that attracts the target customers. The regular consumption of these products have negative effects on the health of the consumers. This can be a restraint in the growth of cloud markets. Cloud kitchens represent a crucial element of the process as a large number of operators are adapting their businesses to a rising trend of online food delivery demand. As freshly prepared snacks and meals are becoming a large part of our lives due to which more production of food is moving into the cloud, which also results in boosting the growth of the cloud kitchen market.

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Cloud Kitchen Market: Key Trends

Choosing the Right Technology.

Technology plays a crucial role in cloud kitchens, as most of the orders are made online through a website, app, or delivery aggregators. It is seen that cloud kitchens require an integrated technology system for accepting online orders, processing payments, and efficient kitchen management.

The key requirement for a cloud kitchen is a point of sale (POS) system which accepts orders from various channels, such as delivery aggregators and online ordering platforms. Having access to sales data is critical to developing strategies which can maximise the sales. Thus, technology plays a critical role in the smooth functioning of a cloud kitchen business and also ensures operational efficiency.

Lower Financial investment and flexible menu

Cloud kitchens eliminate several expensive elements that don’t apply to virtual restaurants, such as, decor, signage, dinnerware, and additional staff members as servers or hosts. This helps in the lower financial investment.

When we talk about the flexible menu, as it is app or web-based, it means that there can be a change in menu focusing on whenever it is feasible without having to worry about updating signage or printed materials. If an ingredient becomes too expensive or is no longer accessible in a particular area, one can easily take it out of the menu items to suit what is available.

Covid-19 Impact on the market

Because of the COVID-19 pandemic, dine-in facilities were shut completely as a precautionary measure to stop the spread of the virus. Online food ordering and delivery services gained popularity among consumers. The rising demand for online food delivery services has encouraged several restaurateurs to start their cloud kitchen outlets to serve customers and generate orders.

The COVID-19 pandemic has brought several challenges before the food industry. Dine-in businesses, which contribute to nearly two-thirds of the food industry were majorly affected and has faced intense financial crunch because of the lack of regular customer orders. Also, varying degrees of lockdowns and related restrictions in several countries around the globe has helped the food delivery service models to gain increased prominence. As cloud kitchens work entirely on the delivery-only model, restaurateurs could now easily continue their businesses and serve customers efficiently.

Market Major Key Players:

The Cloud Kitchen Market is splitting with the presence of several large and small restaurateurs who are operating with the use of delivery-only model service. The competition in the market is intensified with a rise in several individual restaurant operators who are seeking to enter the food industry with limited investments. Some of the major key players operating in the global cloud kitchen market are:

• Dahmakan (Pop Meals)
• DoorDash
• Kitchen United
• Kitopi
• Rebel Foods
• Zuul Kitchens Inc.

Market Segmentation:

The Cloud Kitchen Market is segmented on the basis of Type; Nature and Region.

On the basis of Type

• Independent Cloud Kitchen
• Commissary/ Shared Cloud Kitchen

On the basis of Nature

• Franchised
• Standalone

On the basis of Region

• North America
• Europe
• Asia Pacific
• Middle east and Africa
• LAMEA

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