Kitchen Market Is Estimated To Witness High Growth Owing To Rise Of...

Kitchen Market Is Estimated To Witness High Growth Owing To Rise Of Online Food Delivery And Demand For Convenience

Posted 2023-10-31 13:06:06

Market Overview:

Ghost kitchen, also known as dark kitchen, is a type of commercial kitchen space that is used solely for the preparation of delivery and take-out meals and has no storefront or wait staff. It allows restaurants to enter new delivery-only verticals and geographical areas with lower real estate and operational costs compared to regular restaurants. Ghost kitchens are popular among start-ups and established chains looking to expand their reach through delivery channels like DoorDash, Uber Eats, Grubhub etc.

Market Dynamics:

The growth of the ghost kitchen market is primarily driven by the rise of online food delivery services and growing demand for convenience among consumers. More consumers now prefer getting meals delivered to their homes or offices rather than dining out, which has increased the demand for cloud kitchens from food businesses. Furthermore, ghost kitchens allow food brands to test new concepts and menus at low costs before investing in expensive brick-and-mortar locations. They provide an affordable way for businesses to enter new markets and expand operations. The market is also driven by growing venture capital investments in start-ups focused on shared commercial kitchen spaces and delivery-only restaurants. This has led to an increase in the number of ghost kitchen facilities globally in recent years.

The global Ghost Kitchen Market Share is estimated to be valued at US$ 71.14 Billion 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.

SWOT Analysis

Strength: Ghost kitchens allow restaurants to expand to new locations without taking on expensive physical real estate. They leverage existing kitchen space and staff more efficiently. Ghost kitchens offer a lower-cost model that enables restaurants to test new brands and concepts.

Weakness: Ghost kitchens lack a storefront, signage, and foot traffic of physical restaurants. This can make customer acquisition more challenging. They also face issues with delivering a consistent brand experience without a standard physical environment.

Opportunity: The market is expected to grow significantly as many new delivery-only restaurant brands enter the space. Ghost kitchens enable restaurants to serve broader geographic areas and access untapped delivery demand. They provide an alternative operating model for restaurants during economic downturns.

Threats: Competition is intense as many new ghost kitchen operators enter the market. Established delivery platforms that operate their own kitchen networks could gain competitive advantages over independent kitchen operators. changes in consumer preferences or delivery fees/policies could impact demand.

Key Takeaways

The global ghost kitchen market is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period, due to increasing demand for delivery and takeout meals. The flexibility and lower costs of the ghost kitchen model has enabled many new restaurant brands to launch during the pandemic.

Regional analysis: The US dominates the current ghost kitchen market, accounting for over 50% of the global revenue in 2023 due to high demand for delivery and growing popularity of delivery-only brands. However, Asia Pacific region is expected to be the fastest growing market exhibiting a CAGR of around 15% during the forecast period led by countries like India and Indonesia with large populations and rising disposable incomes.

Key players: Key players operating in the ghost kitchen market include CloudKitchens, Kitchen United, REEF Technology, Virtual Kitchen Co., Zuul Kitchens, Deliveroo Editions, Kitopi, DoorDash Kitchens, Grubhub/Seamless, Swiggy Access, Uber Eats Kitchens, Rebel Foods, Ghost Kitchen Brands, JustKitchen, and Keatz. These companies are investing heavily in building large commercial kitchen networks across major cities to enable new restaurant brands to launch delivery-only concepts.