The India dark kitchens/ghost kitchens/cloud kitchens market have become popular owing to the rising demand for quick-service food delivery among millennials, nuclear families and working professionals. Dark kitchens/ghost kitchens/cloud kitchens refer to professionally run centralized kitchens that prepare food strictly for delivery and takeaway orders and do not have any physical storefront. They focus on optimizing kitchen operations and centralized food distribution to gain efficiency and convenience. Dark/ghost/cloud kitchens enable restaurant operators to expand their business in a cost-effective manner by adding new virtual restaurant brands on food delivery platforms without incurring high rental costs.
The India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market is estimated to be valued at US$ 552 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023-2030, as highlighted in a new report published by CoherentMI.
Market Key Trends:
One of the key trends in the India dark kitchens/ghost kitchens/cloud kitchens market is the increasing adoption of online food delivery platforms. Brands are launching virtual brands and central kitchens exclusively for delivery to cater to the rapidly growing online food delivery sector. This allows brands to benefit from economies of scale and expand their reach without the need for large physical spaces for dining. Another notable trend is venture capital investments in dark/cloud kitchen startups. With their lower costs and high growth potential, many Indian and global VC funds are investing heavily in startups operating in this high-potential sector. Dark kitchen operators are also implementing advanced technologies such as big data analytics and AI-enabled solutions for predictive inventory management and optimized order routing. This is helping brands leverage data to enhance consumer experience and increase order volume and frequency.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants in the India dark kitchens market is moderate. Establishing large scale kitchen infrastructure requires high initial investment. However, low rental costs and affordable technologies enable new players to enter the market.
Bargaining power of buyers: The bargaining power of buyers is high in the India dark kitchens market. Buyers have many options to choose from and can easily switch between brands.
Bargaging power of suppliers: The bargaining power of suppliers is moderate. Key ingredients and packaging materials suppliers are fragmented. However, control over specialized equipment increases their bargaining power.
Threat of new substitutes: Threat of new substitutes is low. No direct substitutes exist for cloud kitchen services. Traditional dine-in restaurants offer a differentiated experience.
Competitive rivalry: Competition is intense with presence of several global and local players. Players compete on parameters like pricing, delivery timelines, quality and variety of menus.
India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Segmentation:
- By Type
- Independent Cloud Kitchens
- Shared Kitchen Spaces
- Kitchen Pods
- By Product Type
- Fast Food
- Bakery Items
- Beverages
- Desserts
- Salads & Wraps
- Biryani & Rice Bowls
- Others (Pizzas, Burgers, Rolls)
- By Nature
- Franchised
- Standalone
- By Ordering Method
- Online Channels
- Offline Channels
- Hybrid Model
Key Takeaways:
The India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Size is expected to witness high growth. Rapid internet and smartphone penetration is fueling the adoption of online food delivery services in India. The western and southern regions dominate the dark kitchens market owing to high consumer demand from tier 1 and tier 2 cities. The India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market is estimated to be valued at US$ 552 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023-2030.
Regional analysis Western region accounts for the largest share in the India dark kitchens market due to strong presence of Mumbai and Pune. Cities like Mumbai, Pune, Bangalore and Delhi house large consumer bases that are frequent users of online food ordering platforms. The southern region is also growing at a significant pace led by increasing number of cloud kitchen facilities in Chennai and Hyderabad.
Key players operating in the India dark kitchens market are Rebel Foods, Swiggy, Zomato, FreshMenu, Box8, EatFit, Faasos, Holachef, Biryani By Kilo, Licious, Foodpanda, InnerChef, UberEats, Oven Story, Hoi Foods, Eatonomist, Happy Eats, Box C, Curefoods Brands. Key players are focusing on expanding their presence by opening new facilities and providing customized options to consumers.
*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.