Cloud Kitchen Market to expand at a CAGR of 12.80% until 2032 to value USD 172.0 Billion

Rising consumer preference for continental and fast food is expected to drive market expansion shortly at a CAGR of 12.80% during the forecast period 2023 to 2032.

Market Research Future (MRFR) has published a cooked research report on the “Cloud Kitchen Market” that contains information from 2018 to 2032. The Cloud Kitchen Market is estimated to register a CAGR of 12.80% during the forecast period of 2023 to 2032.

MRFR recognizes the following companies as the key players in the global Cloud Kitchen Market— Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zomato.

Market Highlights

The global Cloud Kitchen Market is accounted to register a CAGR of 12.80% during the forecast period and is estimated to reach USD 758.63 billion by 2032.

The surge in the valuation of the cloud kitchen market is propelled by the increasing inclination of consumers towards online food solutions rather than traditional dining experiences. Additionally, the market is thriving due to busy lifestyles and a rise in disposable income among consumers.

Segment Analysis

The global Cloud Kitchen Market has been segmented based on the Type, Product Type, and Nature.

Based on the Type, the market is segmented into Independent Cloud Kitchens, Commissary/Shared Kitchen, and Kitchen Pods. The Independent Cloud Kitchens segment was attributed to holding the largest market share in 2022. The global surge in standalone brands operating from a single location is noteworthy. The increasing inclination of customers to utilize online food delivery apps, driven by the associated conveniences, has markedly propelled the expansion of this sector. The sustained dominance of this segment is anticipated throughout the forecast period, supported by the rising customer demand for international cuisines and fast food through online delivery channels.

Based on the Product Type, the Cloud Kitchen Market has been segmented into Burger/Sandwich, Pizza, Pasta, Chicken, Seafood, Mexican/Asian Food, and Others. The Burger/Sandwich segment was expected to hold the largest market share in 2022. Burgers and sandwiches offer versatility, catering to diverse tastes and dietary preferences. Their adaptability makes them a popular choice for a wide audience. Moreover, their quick and straightforward preparation makes them particularly well-suited for cloud kitchens, requiring neither specialized skills nor equipment. Additionally, these items are optimal for delivery, as they maintain quality and presentation during transit from kitchen to customer. The swift preparation aligns seamlessly with the needs of a society that values speed and convenience.

Based on Nature, the Cloud Kitchen Market has been segmented into Franchised and standalone. The Franchised segment was expected to hold the largest market share in 2022. Engaging in franchising within the cloud kitchen sector presents an opportunity for businesses to expand their brand rapidly without requiring substantial capital investment, serving as a pivotal factor contributing to market growth. The franchise model adheres to a well-established business plan, promoting consistency in product quality and service across diverse locations, thereby ensuring brand uniformity and fostering customer trust. Additionally, franchising enables the parent company to leverage the local expertise of franchisees who possess a deep understanding of local tastes and preferences. This insight allows for flexible menu adjustments. Furthermore, franchisees' local connections contribute to securing prime locations for cloud kitchens, providing a competitive advantage.

Regional Analysis

The global Cloud Kitchen Market, based on region, has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. North America consists of the US and Canada. The Europe Cloud Kitchen Market comprises of Germany, France, the UK, Italy, Spain, and the rest of Europe. The Cloud Kitchen Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World Cloud Kitchen Market comprises of Middle East, Africa, and Latin America.

The largest market share for the Cloud Kitchen Market was maintained by the North American regional sector. The North America cloud kitchen market has experienced substantial growth due to factors such as increased purchasing power, enhanced access to digital technologies, widespread internet penetration, and the widespread adoption of smart devices. The surge in demand for fast food, coupled with the busy lifestyles of consumers, is driving the popularity of cloud kitchen services due to the associated conveniences. Notably, annual food spending in the United States has seen a remarkable 70 percent increase from 1997 to 2022, reaching the highest recorded level. While spending on food at home (FAH) and food away from home (FAFH) both increased during this period, FAH recorded a slower growth rate (53 percent) compared to the 89 percent increase in FAFH. In 2021, real total food spending rose by 11.4 percent, driven by higher FAFH spending (up 19 percent), and continued to increase by 3.4 percent in 2022. Conversely, real FAH spending increased by 4 percent in 2021 but decreased by 2 percent in 2022.

Moreover, the Europe market has been persistently growing over the forecast period. The cloud kitchen market in the region is experiencing robust growth, fueled by the widespread use of smartphones and the proliferation of food delivery apps and kiosks. The United Kingdom stands out as the largest European market for food delivery, with online food delivery revenues reaching 31 billion U.S. dollars in 2022. Uber Eats, renowned for its success in the United States, has gained traction in the UK, boasting approximately 3.5 million app downloads in 2022, surpassing Deliveroo and Just Eat. Despite this, a survey on restaurant and food delivery bookings revealed that around 71 percent of UK consumers preferred Just Eat for their orders in 2022. The regional cloud kitchen market is further strengthened by the presence of key market players. The outbreak of the pandemic has accelerated the adoption of online food delivery, with customers showing a heightened inclination towards these options, driving the high demand for online food delivery services.

Asia Pacific, housing over half of the global population, serves as an extensive consumer base. The market in this region is propelled by rapid urbanization, increasing disposable income, busy lifestyles, widespread internet penetration, and growing smartphone sales. Additionally, the rising demand for international cuisines and a preference for food delivery over dine-in contribute to a positive market outlook. According to a Zomato report, Indian food delivery platforms aimed to achieve 80 million monthly active users in 2021, with a target of reaching 200 million in the coming years.

Furthermore, the rest of the world's Cloud Kitchen Market is divided into the Middle East, Africa, and Latin America. The adoption of cloud kitchens is gaining momentum in Latin American nations, propelled by the expanding middle class, urbanization, and the growing prevalence of smartphones. Countries like Brazil, Mexico, and Argentina are experiencing significant market growth. In the Middle East and Africa, the acceptance of cloud kitchens is gradually increasing, influenced by the expanding tourism sector, urbanization, and evolving consumer preferences. Key markets in this region include the UAE, Saudi Arabia, and South Africa.

Key Findings of the Study

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  The global Cloud Kitchen Market is expected to reach USD 172.0 billion by 2032, at a CAGR of 12.80% during the forecast period.

  
  


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  The Asia-Pacific region accounted for the fastest-growing global market because of rapid urbanization, rising disposable income, busy lifestyle, rising penetration of the internet, the increasing adoption of smartphones, rising demand for international cuisines, and rising preferences for food delivery over dine-in.

  
  


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  Based on Type, the Independent Cloud Kitchens segment was attributed to holding the largest market in 2022, with an approximate market share of 55–60%.

  
  


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  Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zomato.