Ghost Kitchen Market Size was valued at USD 56.71 billion in 2021. The Ghost Kitchen market industry is projected to grow from USD 57.85 Billion in 2022 to USD 115.21 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 11.42% during the forecast period (2022 - 2030). The growing hectic working population has increased the consumer preference for purchasing food through online channels which in turn is expected to fuel its market growth during the forecast period.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increasing working population coupled with their hectic schedules has increased the demand for ghost kitchen which in turn is boosting its market growth. For instance, according to MRFR analysis, in 2020, despite a downward trend in fertility rates, there were over 900 million people in India who were working age (15–64), making up 67% of the country's total population. By 2030, this number is projected to increase by another 100 million. This suggests that India will account for a staggering 24.3% of the additional global workforce over the following ten years. Moreover, in the U.S., in 2019, there were 157.53 million employed persons. It is anticipated that there would be over 2 million more employed persons in 2023.Besides, this the increasing policies adopted by key players to strengthen its foothold in the market is expected to boost its market growth during the upcoming years. For instance, in December 2022, a new fundraising round of USD 1.7 million was raised by Oman-based ghost kitchen operator KitchenomiKs, which plans to develop its business and enter the GCC market. By the beginning of next year, the startup hopes to spread throughout the GCC region, and it "aims to create and build a number of high-quality food brands operating out of their highly automated hub-and-spoke cloud kitchens”. Furthermore, by the end of 2025, Prasuma, a momo brand, aims to add more than 200 units to its ghost kitchen company. After establishing 18 of these units across three cities, the business intends to introduce a Momo kitchen. The organization also intends to increase its presence in Mumbai, Delhi, Bangalore, Chennai, Pune, Kolkata, and Hyderabad.
The Ghost Kitchen Market segmentation, based on type, includes incubator/pop up kitchen, commissary/shared kitchen, and kitchen pods. The incubator/pop up kitchen segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is primarily owing to the growing demand among consumers for new types of dishes, which the pop-up kitchen usually provides. A regular restaurant is connected to an incubator or pop-up ghost kitchen, which specializes in online ordering and deliveries. This kind of ghost kitchen is perfect for adding a new source of income and testing out novel foods on the local market. The eatery establishes a system that enables the ghost kitchen staff to concentrate on preparing the delivery orders.
November 2019: Swiggy one of the largest food delivery company announced  that, as part of its "Swiggy Access" project, it has invested Rs 175 crore over the course of two years to establish over 1,000 cloud kitchens for its restaurant partners across 14 cities. By March 2020, Swiggy plans to deploy more partner cloud kitchens in 12 new cities by investing an additional Rs 75 crore. Through cloud kitchens, the Swiggy Access project enables restaurant partners to grow to more locations both within their own city and across other cities.
September 2022: CloudEats with it headquarter in Manila which runs cloud kitchens around the Philippines and Vietnam in order to speed up the digitization of food delivery in Southeast Asia, has raised a USD 7 million Series.A extension headed by Nordstar. After a successful launch in Vietnam earlier this year, the firm intends to expand into other Southeast Asian nations like Thailand, Malaysia, and Indonesia in 2023.
The Ghost Kitchen Market data has been bifurcated by food type into burger and sandwich, pizza and pasta, chicken, seafood and others. The burger and sandwich segment held the majority share in 2021 contribution to around ~40-42% in respect to the Ghost Kitchen Market revenue. This is mainly owing to the growing consumption of burger across the North American region. For instance, according to the United States Department of Agriculture (USDA) the Americans eat 2.4 burgers on average per day, or 50 billion burgers annually. In addition, the most extensively produced fast food in the US is burger. Burgers can be purchased at every fast-food establishment, and some fast-food outlets specialize in making burgers only.
May 2022: Rebel Foods Pvt Ltd (Rebel Foods), an Indian online restaurant firm, invested 1,308 crore in a series F round of fundraising, giving it a USD 1.4 billion value, and as a result, it became a unicorn. With 45+ brands across 10 different countries, Rebel Foods runs the most online restaurants in the world. The foodtech company used cutting-edge and contemporary technology like artificial intelligence (AI), the internet of things (IoT), and machine learning (ML) to manage its cloud kitchens effectively across the globe.
March 2021: Rebel Foods entered into a partnership with independent restaurant chains that use its cloud-kitchen network to increase the exposure of their own brands. From more than 320 sites, the company runs cloud kitchens for its own gourmet brands, including Faasos, Behrouz Biryani, Mandarin Oak, and Oven Story. Additionally, it uses the Rebel Launcher Program to contract out its kitchen to other brands. It collaborates with 15 food businesses, both big and small, such Wendy's, Mad Over Donuts, Natural's Ice Cream, and Anand Sweets.
Figure 2: Ghost Kitchen Market, by Food Type, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on end use, the global Ghost Kitchen industry has been segmented into restaurants, office, and food service. The food service held the largest segment share in 2020, owing to the presence of various online food delivery app such as Zomato, swiggy and many more coupled with the recent innovations by them is set to propel its market growth. For example, in September 2022, a new intercity food delivery service named "Intercity Legends" is being launched by Zomato. Users of the service will be able to order well-known dishes from renowned restaurants in other cities, however delivery in certain circumstances may take more than a day. Zomato is now only allowing residents of Gurgaon and South Delhi to use the delivery option, therefore only those who live in these areas will be allowed to place "intercity" orders.
By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific Ghost Kitchen market accounted for USD 23.81 billion in 2021 and is expected to exhibit an 10.24% CAGR during the study period. This is mainly owing the preferences of consumers for purchasing food through online delivery apps particularly in China and India. One of the key factors propelling the cloud kitchen market in India is the growing demand for online meal delivery services. The expansion of cloud kitchens in India is facilitated by rising disposable incomes, extensive smartphone use, widespread internet connectivity, and shifting consumer expectations. Additionally, to better service their customers, restaurants were compelled to transition to a delivery-only business model by the unplanned COVID-19 pandemic breakout and the ensuing statewide lockdowns. As more people learn about the advantages of cloud kitchens over traditional kitchens, including as increased profit margins and better flexibility in operating ghost restaurants from anywhere, the sector is growing. The extensive use of point-of-sale (POS), kitchen display systems (KDS), and inventory management technology to speed up a variety of kitchen operations, improve communication, and avoid delays in order-taking processes is further promoting market expansion.
Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: GHOST KITCHEN MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North Ghost Kitchen market accounts for the second-largest market share due the increasing investment by the key players. For example, in September 2022, Microsoft, was the first American investor to support both Uber and Klanick's dark kitchen firm. At a USD 15 billion value, CloudKitchens completed a USD 850 million fundraising round in November. The sources informed FT that Microsoft took part in the deal, which included both loan and stock. With more than 4,000 personnel spread across the United States, Latin America, the United Kingdom, and the Middle East, the capital infusion was used to aid the company's expansion Further, the U.S. Ghost Kitchen market held the largest market share, and the Canada Ghost Kitchen market was the fastest-growing market in the North America region.
The Europe Ghost Kitchen Market is expected to grow at a CAGR of 8.25% from 2022 to 2030. This is mainly owing to the increasing trend of consumers towards buying foods through online deliver apps. Moreover, Germany Ghost Kitchen market held the largest market share, and the U.K. Ghost Kitchen market was the fastest-growing market in the Europe region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Ghost Kitchen market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Ghost Kitchen industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Key Companies in the Ghost Kitchen Market Includes
Ghost Kitchen Industry Developments
September 2022: Zuul, a provider of ghost kitchens, launched a new service that will transport orders from its restaurants to business buildings and residential complexes all at once. The New York-based business is collaborating with significant local real estate investors to launch the new "virtual food hall" channel.
October 2022: Ghost Kitchens India Pvt Ltd is an online restaurant technology platform that enables cloud kitchens and restaurants with underutilized capacity to generate additional revenue without investing any money. The business has announced the inauguration of its 100th fulfillment partner in Bharuch, Gujarat, and plans to invest another Rs. 50 crores in brand expansion over the next 12 months. One of the fastest-growing online restaurant tech platforms in India, Ghost Kitchens has 1200 internet restaurants total after opening its 100th location in Bharuch, Gujarat, in the past 10 months. Now, Ghost Kitchens is available in 35 cities, including all of the major metropolitan areas. The brand has more than 40 partners in West India, 20 partners in South, East, and North India, and 50 more partners in the pipeline who will become operational over the next two months. The brand works across all of India.
Frequently Asked Questions (FAQ) :
The Ghost Kitchen Market is valued USD 56.71 Billion in 2021.
India Ghost Kitchen market is valued at USD 7.25 Billion in 2021.
The growth rate of the Ghost Kitchen Market is 11.42%.
Asia-Pacific held the largest market share in the Ghost Kitchen Market.
The key players in the Ghost kitchen market are United Kitchen, Rebel Foods, DoorDash Kitchens, Ghost Kitchen Orlando, ShoppinPal, Posist Technologies, Kitopi, Oracle, Uengage Services Pvt Ltd and Slay Coffee.
The burger and sandwich segment held the largest market share in the Ghost Kitchen Market.
The Incubator/Pop Up Kitchen held the largest market share in the Ghost Kitchen market.
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