Cloud Kitchen Market Size, Share, and Trends 2024 to 2034

Cloud Kitchen Market Size and Growth 2023 to 2032

The global cloud kitchen market size was estimated at US$ 57.51 billion in 2022 and is expected to hit US$ 174.66 billion by 2032, poised to grow at a CAGR of 11.8% during the forecast period 2023 to 2032.

Growth Factors

The growing demand for food coupled with the rising global population, rising disposable income, increased demand for conveniences, and proliferation of digital technologies are the major factors that drives the global cloud kitchen market. The rising preferences for the online food delivery over the dine-in experience are a significant factor that has boosted the demand for the cloud kitchen services. The rapid growth and penetration of the various online food delivery app such as Zomato, Swiggy, EatSure, and Grubhub has exponentially supported the growth of the global cloud kitchen market. Furthermore, the ease of doing business and favorable government policies regarding the food delivery and kitchens has made it easier to start a cloud kitchen. Furthermore, there are various organizations that trains and guides people to start their own cloud kitchens. This has boosted the number of the small and independent cloud kitchens especially in the developing countries. The increased penetration of the internet, growing adoption of smartphones, and adequate support from the food delivery platforms has contributed towards the growth of the cloud kitchen market. Moreover, the increasing demand for the online food delivery services has forced the restaurateurs to start cloud kitchen outlets in order to serve the online customers. The increasing penetration of social media and the digital marketing strategies adopted by the top market players is significantly contributing towards the market growth.

The outbreak of the COVID-19 pandemic in 2020 forced the government to shut down all the restaurants and restrict the dine-in facilities in an attempt to curb the spread of the virus. Furthermore, the lockdown rules and travelling restrictions were imposed across the globe. However, only the only food deliveries and emergency services were allowed to operate. This situation has exponentially boosted the growth of the cloud kitchen businesses across the globe. The cloud kitchen market witnessed a sudden spike during COVID-19 as the dine-in facilities were restricted; hence the customers were extensively using the online food delivery apps to order food. Furthermore, the food delivery apps offer huge discounts and easy payment options on ordering from popular restaurants. The door step delivery of food and availability of 24/7 customer care support is boosting the adoption of the food delivery apps among the global customers. The cloud kitchens are gaining popularity as operating costs are lower and the profits margins are higher as compared to that of the restaurants. Further, the flexibility in operations is another major factor that has supplemented the growth of the cloud kitchen across the globe.

Cloud Kitchen Market Scope

Type Insights

Based on the type, the independent kitchen segment dominated the global cloud kitchen market, garnering a market share of around 60% in 2022. The rapid increase in the number of standalone brands across the globe that serves the customers through a single location. The growing preferences of the customers to order food from the online food delivery apps owing to the associated conveniences with it has significantly boosted the growth of this segment. The growing demand among the customers for the international cuisines and fast food through online delivery channels is expected to sustain the dominance of this segment throughout the forecast period.

On the other hand, the commissary/shared kitchen segment is estimated to grow at a CAGR of 13% during the forecast period. The growing popularity of the shared kitchen concept among the restaurateurs and the food service providers has fueled the growth of the commissary/shared kitchen segment. Moreover, the restaurant owners are renting out their extra spaces to the food service providers to earn extra income, which is fueling the growth of the shared kitchen segment.

Nature Insights

Franchised segment has generated a revenue share of more than 60% and dominated the global cloud kitchen market in 2022. The rapid growth in the online food delivery apps has offered a huge growth opportunity to the cloud kitchen brands that has fostered the growth of the franchised segment. The increasing penetration of the popular franchises, especially in the developing regions has fostered the growth of this segment. Furthermore, the franchisor extends its support, training, and marketing activities to the franchisee that favors that establishment of the franchise at many locations and hence supports the segment’s growth across the globe.

The standalone is expected to be the fastest-growing segment during the forecast period. The minimum investment, higher profitability, and ease of operations has significantly boosted the growth of the standalone cloud kitchens across the globe. Moreover, the support from the food delivery providers has supplemented the growth of this segment.

Region Insights

Asia Pacific was the leading cloud kitchen market that garnered a market share of more than 60% in 2022. Asia Pacific is the home to more than half of the global population which provides a huge consumer base. The rapid urbanization, rising disposable income, busy and hectic lifestyle, rising penetration of the internet, and the increasing adoption of the smartphones are some of the significant macroeconomic factors that drives the growth of the cloud kitchen market in Asia Pacific. Moreover, the presence of huge youth population and the rising demand for food along with the rising population is supplementing the market growth. The countries like China and India are showing promising growth opportunities for the market players owing to the strong economic growth in the region. The rising demand for the international cuisines and rising preferences for the food delivery over dine-in is supplementing the growth of the Asia Pacific cloud kitchen market. For this, the Asia Pacific is also estimated to be the fastest-growing market.

North America is estimated to grow at a considerable pace 10% during the forecast period. Increasing buying power, improved access to the digital technologies, higher penetration of internet, and increased adoption of the smart devices are some of the major factors that has propelled the growth of the North America cloud kitchen market. The high demand for the fast foods coupled with the busy and hectic schedules of the consumers is boosting the demand for the cloud kitchen services owing to the conveniences associated with it.

Key Market Developments

• In November 2017, an online food aggregator in India, Swiggy launched Swiggy Access that aimed at helping the restaurants to operate delivery-only kitchen in India.

The cloud kitchen market is highly fragmented with the presence of several local and global companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

Cloud Kitchen Market Companies

• Kitchen United
• Rebel Foods
• DoorDash Kitchen
• Zuul Kitchen
• Keatz
• Kitopi
• Ghost Kitchen Orlando
• Dahmakan
• Starbucks (Star Kitchen)
• Cloud Kitchen

Segments Covered in the Report

By Type

• Independent
• Commissary/Shared Kitchen
• Kitchen Pods

By Nature

• Standalone
• Franchised

By Product

• Burger/Sandwich
• Pizza/Pasta
• Chicken
• Seafood
• Mexican/Asian Food
• Others

By Deployment Types

• Web
• Mobile

By Solutions

• Order Management
• Brand Management
• Inventory Management
• Customer Experience Management
• Marketing Management
• Reporting & Analytics
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa