Cloud Kitchen Market Size, Share & Industry Analysis, By Nature (Franchised and Standalone), By Kitchen Type (Single and Multi-Kitchen), and Regional Forecast, 2024–2032

The global cloud kitchen market size was valued at USD 64.47 billion in 2023. The market is projected to grow from USD 70.18 billion in 2024 to USD 144.71 billion by 2032, exhibiting a CAGR of 9.47% during the forecast period. Asia Pacific dominated the cloud kitchen market with a market share of 47.59% in 2023.

Cloud kitchens, also called virtual restaurants or ghost kitchens, are restaurants that are designed to provide food through delivery. This industry works on the hubs and spokes business model, where central kitchens are said to be hubs and outlets spread across regions are said to be spokes from where the prepared food is further distributed to its consumers. These independent kitchens are thus takeaway outlets that do not provide dine-in facilities. The market segments are based on the nature of the business, such as franchised or standalone, followed by kitchen types, such as multi-kitchen and standalone.

The e-commerce industry has recorded a rapid expansion in recent years, which has contributed to changing the consumer landscape toward the convenience of online delivery systems, especially among Generation Z and the millennial population, fueling the global demand for online food delivery.

The global COVID-19 pandemic had a significant negative impact on various industries; however, the online delivery industry had a considerable positive impact on the global market. The stringent social distancing and trade regulations implemented by the government to curb the spread of the virus. The implementation resulted in the closing of restaurants and various other establishments to control crowd gathering—this significantly declined the food service industry sales. However, with the rapid technological advancements in e-commerce, online food delivery saw fast growth, resulting in a significant revenue spike in the ghost kitchen industry.

Cloud Kitchen Market Trends

Evolving Consumer Trends and Food Preferences to Fuel Market Growth

Global food consumption has evolved due to the rapid globalization and expansion of the food service industry. The extensive expansion strategies implemented by these prominent foodservice market players, such as Domino's, Taco Bell, McDonald's, and Pizza Hut, have significantly contributed to rising demand for Western cuisine.

For instance, in March 2023, McDonald’s China announced its focus on aggressive expansion by strengthening its ties with the local supply chain. It launched its regenerative agriculture plan, for which it collaborated with nine different suppliers, including Bimbo QSR, Cargill, GSF, and Tyson.

In addition, there has been an increasing time crunch among individuals with a rising number of dual-income households, and a busy schedule has resulted in a growing number of online delivery orders. Thus, evolving consumer trends and food preferences owing to globalization, busier lifestyles, and rising dual-income households have resulted in an increasing number of restaurants moving toward ghost kitchen operations.

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Cloud Kitchen Market Growth Factors

Rapid Growth in Online Food Delivery is Driving Global Market Growth

The growing advancements in online food delivery services, including appealing, user-friendly kitchen types, technologically enabled driver networks, and a rapidly changing consumption pattern across regions, contribute to the rising demand for ready-to-eat food delivery. The food-delivery industry has been expanding rapidly due to evolving economic structures and consumer habits.

Despite several challenges, such as changing regulatory factors across regions, the industry has recorded rapidly growing investments in the online food delivery industry. This is owing to the growing acceptance of food delivery services among individuals and aggressive penetration strategies implemented by market players, which have been fueling the growth of the online food delivery market. 

For instance, in January 2021, Wolt, a well-known food delivery kitchen type in countries, including Albania, Finland, Austria, and others, announced that the company had completed a new funding round and raised USD 530 million to expand its operations further.

RESTRAINING FACTORS

Substantial Growth in Quick Service Restaurants (QSR) Industry to Restrain Market Growth

The restaurant industry, especially the fine dining and quick service restaurants (QSR), has grown substantially in recent years with brands, including Starbucks, Subway, McDonald's, K.F.C., Pizza Hut, and others. These brands have established a significant presence across the globe, especially with the rise of café and workstation culture in developing regions.

These QSR chains have a higher liquidity ratio, which makes it convenient for them to implement aggressive expansion strategies with rapid geographical expansion. Furthermore, these brands are recording exponential growth across regions with the rising online delivery industry and advanced technologies, such as big data. In addition, these QSR chains have a wide range of product offerings, dynamic infrastructure, and significant food delivery services, which further attract a wider consumer base.

Thus, the above factors are restricting the market and hampering cloud kitchen market growth.

Cloud Kitchen Market Segmentation Analysis

By Nature Analysis

Increasing Number of New Kitchen Operators Fuels Standalone Segment Growth

Based on the nature, the global market has been segmented by nature into franchised and standalone.

Standalone cloud kitchens hold a significant cloud kitchen market share and are further anticipated to maintain their dominance over the forecast period. This dominant share of the standalone business model is due to the rapidly increasing number of new kitchen operators in the ghost kitchen industry. The fascination of business owners to try and expand in the new industry, and the minimum capital required to run the standalone business.

The franchise segment is expected to show rapid growth in the forecast period with rising investments and emerging new players across this industry. Franchised players have shown a rising inclination toward establishing their brands with unique points of differentiation and expanding their consumer base, which is expected to fuel further growth. These ghost kitchens have unique trademarks and brands, which these food service providers utilize to attract a wider range of consumers through extensive investment in promotional activities.

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By Kitchen Type Analysis

Higher Flexibility Offered by Multi-Kitchen Type Fuels Segment Growth

By kitchen type, the global market is further segmented into single and multi-kitchen, with the multi-kitchen type holding a prominent share in the global market and expected to maintain its share in the forecast period. The growing demand for specialized food products and cuisine across the globe is one of the major factors that has fueled the growth of the multi-kitchen business model, where food is cooked for various brands in one kitchen hub and delivered to consumers as per demand. Furthermore, with the rapidly growing investments and expansion of specialized brands under one umbrella, the multi-kitchen type is expected to flourish at a significant growth rate.

Single kitchen types are establishments where a diverse range of brands are consolidated under one umbrella to cater to a wider consumer base with smaller kitchen spaces. The high share of single kitchen types is due to the higher agility and adaptability of this type. This business model further provides lower barriers to expansion in the food service industry than traditional business models.

REGIONAL INSIGHTS

Based on region, the market is segregated into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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The Asia Pacific region has recorded significant growth in online food delivery in recent years and hence dominates the global market size. The region includes countries, such as India, China, and Japan, which are known for their rising disposable income, busier schedule, and growing preference for Western cuisine with rapidly growing new emerging players and investments in the food service industry—these rapidly growing investments and changing consumer dynamics in the region fuel market growth.

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North America holds a prominent share of the global market owing to its dynamic lifestyle and higher junk food consumption rate. The region includes countries such as the U.S., Canada, and Mexico, out of which, U.S. has a significant dominance owing to the higher consumption of outside food, such as burgers and sandwiches. In addition, Mexico has shown a considerable growth rate in the consumption of outside food coupled with the higher growth in demand for online food delivery services, which further contributes to its higher share in the global ghost kitchen market.

Europe, which includes countries, such as Germany, Italy, France, and others, caters to a dynamic range of cuisine and contributes toward the region's higher appetite for culinary and artisan food products. This higher inclination of individuals toward culinary and artisan food products further contributes to being the second most prominent region in the global market.

South America and the Middle East & Africa regions present significant growth potential in the forecast period, driven by favorable government support and the region's rapidly growing food service and delivery industry. These regions present diverse opportunities for the global cloud kitchen market, driven by a dynamic consumer base, rapid globalization, and a growing tourism industry.

KEY INDUSTRY PLAYERS

Key Players Focus on Technological Advancements in New Geographies to Stay Competitive Drives Market Expansion

The global cloud kitchen market is highly competitive, with ghost kitchen operators and companies looking for expansion with the help of various growth strategies, such as technological advancements, partnerships, collaborations, mergers & acquisitions. Rebel Foods, EatClub Brands Pvt. Ltd., and Dine Brands Global, Inc. are a few prominent global players dedicated to high-quality service and food products, establishing partnerships, and new product launches to expand their global market presence. For instance, in April 2022, Rebel Foods acquired a majority stake in the luxury chocolate brand Smoor.

List of Top Cloud Kitchen Companies:

• Rebel Foods (India)


• Kitopi (UAE)


• CloudKitchens (U.S.)


• Ghost Kitchens Private Limited (India)


• Luckin Coffee (Sgp) Pte. Ltd. (Singapore)


• EatClub Brands Pvt. Ltd. (India)


• Loyal Hospitality Pvt Ltd (India)


• Nathan's Famous, Inc. (U.S.)


• Dine Brands Global, Inc. (U.S.)


• Dickey's Barbecue Restaurants, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2024: Behrouz Biryani, a brand owned by Rebel Foods, one of the most prominent players in the industry based in India, announced that the brand had signed Saif Ali Khan, a Bollywood actor who has a historical background in the Nawab family, to launch its all-new Nawab product range in the country.


• March 2023: Avane, a well-known food technology startup, announced the launch of its new brand called SoUp! This all-new brand is the first ever 100% A.I.-created brand from scratch.


• April 2022: The National Restaurants Association of India (NRAI) announced its launch of the first-of-its-kind Cloud Kitchen Convention in Mumbai, where leading players in the ghost kitchen industry of India will share extensive information to raise awareness and develop the industry.


• March 2022: Kitopi, one of the leading tech-powered multi-brand restaurants, announced the launch of its three new ghost kitchens and production facilities in Bahrain.


• October 2021: Tokarii, an all-new ghost kitchen startup based in India, announced the launch of its operations with its unique range of artisanal products to cater to the health and clean food consumer base.

REPORT COVERAGE

The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies in the competitive landscape of ghost kitchen by nature, and kitchen type. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth over recent years.

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Report Scope & Segmentation