by The cloud kitchen market involves commercial kitchens dedicated to the preparation of food for delivery and take-away orders only. Companies operating cloud kitchens prepare meals, bake goods, and other food items to be exclusively ordered and delivered to customers’ doorsteps without a retail storefront or dining area. Cloud kitchens provide a lower-risk, low-cost operating model compared to opening a traditional restaurant, and allow restaurants to expand their footprint without taking on additional real estate costs. Advancements in online and mobile ordering and payment systems have enabled customers to easily order meals on-the-go from their favorite restaurants using delivery apps.
The global cloud kitchen market is estimated to be valued at US$ 100.46 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One key trend revolutionizing the cloud kitchen market is the adoption of innovative technologies by major players to improve operational efficiency, food quality, and consumer experience. The use of robotics, automation, sensors, and data analytics enables operators to streamline kitchen processes, reduce delivery times, monitor food safety standards, track performance metrics, and offer personalized customer recommendations. For example, technologies like autonomous vehicles, drone delivery, and virtual kitchen interfaces supported by augmented reality and virtual reality are being explored. This is fueling higher orders, increasing order frequency, and ultimately driving greater revenue opportunities in the cloud kitchen space. The incorporation of advanced technologies is expected to make the concept more lucrative and scalable for existing players while attracting new startups over the coming years.
Porter’s Analysis
- Threat of new entrants: The threat of new entrants is moderate as the initial investment required to set up a cloud kitchen is comparatively lower than a traditional brick and mortar restaurant. However, intense competition and need to gain customer loyalty makes entry difficult.
- Bargaining power of buyers: The bargaining power of buyers is high due to availability of various options. Buyers can easily switch between cloud kitchen brands based on price, quality, variety and discounts offered.
- Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers provide key ingredients and services required to operate a cloud kitchen. Suppliers have moderate control over pricing.
- Threat of new substitutes: The threat of substitutes is high as online food delivery options continue to expand. Traditional dine-in restaurants and QSR chains are expanding their online delivery reach posing competition.
Competitive rivalry: Competition in the cloud kitchen market is high amongst existing major players.
Key Takeaways
The global cloud kitchen market is expected to witness high growth.
Regional analysis: North America dominates the global cloud kitchen market currently followed by Europe. However, Asia Pacific region is expected to witness highest growth during the forecast period owing to rising number of internet users, increasing youth population and expanding online food delivery operations in major countries like China and India.
Key players operating in the cloud kitchen market include Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zuul. Key players are focusing on expansion, collaborations and partnerships to strengthen their presence and service multiple cuisines across various geographies.
