Embracing Change: Trends in the Evolving Cloud Kitchen Market

0
725

Emerging Cloud Kitchen Market is Trends by Digitization of Food Service Industry

The cloud kitchen market is experiencing significant growth driven by an increasing number of delivery-only restaurants and virtual brands owned by third-party operators. Cloud kitchens allow food establishments to prepare food for delivery or take-away orders only, without dining areas for customers. Food entrepreneurs can launch multiple virtual restaurants through a single cloud kitchen space at lower start-up costs compared to opening a brick-and-mortar restaurant. This concept is becoming popular among millennials and young professionals who prefer on-demand delivery services.

The Global Cloud Kitchen Market is estimated to be valued at US$ 100.46 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period from 2023 to 2030.

Key Takeaways

Key players operating in the Cloud Kitchen Market are Dahmakan, DoorDash, Ghost Kitchen Orlando, Keatz, Kitchen United, Kitopi Catering Services LLC, Rebel Foods, Starbucks Corporation, Swiggy, and Zuul. These major players are investing heavily in establishing newcloud kitchen facilities globally and partnering with restaurant chains to boost delivery-only food services.

The growing demand for online food delivery apps has increased the need for central commissary kitchens specializing ins delivery-only meals without formal eat-in spaces. Cloud kitchens allow food brands to test new menu items and cuisines at lower investment to understand customer preferences. Their delivery-focus model allows reaching more target audiences geographically without maintaining expensive dine-in infrastructure.

Many cloud kitchen operators are expanding globally by partnering with local restaurant operators in different countries. For instance, DoorDash partnered with Kitchen United and Zuul to launch shared commercial kitchens in Southern California, Chicago, and New York in 2023. Rebel Foods also raised $125 million to expand to 50 cities in India by 2025. These partnerships aim to leverage local supply chains and food culture to drive the global cloud kitchen industry.

Market Key Trends

The digitization of the food service industry is a key trend driving the growth of cloud kitchens. The popularity of food delivery apps compelled restaurants to offer delivery-only models for meeting the growing consumer demand. Cloud kitchens allow food brands to focus only on cooking and fulfilling delivery orders without renting expensive restaurant spaces. This has especially helped new restaurant concepts, celebrity chefs, and international cuisines to test global markets remotely. The operators can also launch multiple virtual kitchens from one hub to cater to various niches in a cost-effective way. This trend of digital restaurants is expected to fuel the cloud kitchen industry expansion over the coming years.


Porter’s Analysis

Threat of new entrants: Establishing new cloud kitchens requires large capital expenditures and gaining customers' trust is challenging against established brands.

Bargaining power of buyers: Individual consumers have low bargaining power as they have many restaurant options available on delivery apps. Bulk orders from enterprises can negotiate on pricing and customization.

Bargaining power of suppliers: Key suppliers including ingredient providers, packaging vendors and technology partners have moderate bargaining power due to availability of substitutes from other players.

Threat of new substitutes: Threat from alternative food delivery modes like dine-in is low as consumer preference is shifting to online ordering and delivery. Threat from alternate channels like grocery delivery is also limited.

Competitive rivalry: Intense competition among existing cloud kitchens to acquire customers and partners. Players rely on frequent product launches, collaborative partnerships and competitive commission rates.

Geographical regions: North America leads in terms of cloud kitchen market value currently due to high adoption of online food delivery services in countries like US and Canada.

Fastest growing region: Asia Pacific region is expected to grow at the fastest rate during the forecast period mainly due to rapidly growing young population, rising urbanization and increasing number of working professionals relying on food delivery services especially in countries like India, Indonesia and China.

Buscar
Categorías
Read More
Juegos
Understanding Football Betting: A Comprehensive Guide
Football betting has gained immense popularity over the years, attracting millions of enthusiasts...
By Grand Seo 2024-09-26 20:56:49 0 281
Other
Pendred Syndrome Market Industry Analysis and Forecast by 2028
Pendred syndrome market is expected to gain market growth at a potential rate of 4.60% in the...
By Aniket Kulkarni 2023-12-08 03:40:48 0 1K
Health
Veterinary CT Scanner Market Demand, Size, Share, Growth Opportunities, Market Potential, Segmentation, Trends & Global Industry Forecast to 2032
The veterinary CT scanner market is experiencing a surge in interest, driven in part by the...
By Amol Shinde 2024-08-05 06:59:25 0 389
Other
Unforgettable Experiences on Manaslu Expedition
When I first chose to take on the Manaslu Expedition, I knew I was in for a battle. Climbing...
By TravelTranquility Nepal 2024-07-30 07:15:03 0 482
Sports
Play Online Casino Games Live on Win2Buzz
Dive into the excitement of live casino games with Win2Buzz. Enjoy classics like blackjack,...
By Win 2buzz 2024-12-19 10:22:38 0 15