Cloud Kitchen Market Size, Share, and Future Trends, 2032
Market Overview
The global cloud kitchen market size was USD 64.47 billion in 2023. The market is set to rise from USD 70.18 billion in 2024 to USD 144.71 billion by 2032 at a CAGR of 9.47% during 2024-2032.
Cloud kitchens, also known as virtual restaurants, are created to supply food through delivery. The rapid expansion of the e-commerce industry and rising adoption of online food delivery services by Generation Z and the millennial population due to their convenience are propelling market expansion.
List of Key Players Profiled in the Market Report
- Rebel Foods (India)
- Kitopi (UAE)
- CloudKitchens (U.S.)
- Ghost Kitchens Private Limited (India)
- Luckin Coffee (Sgp) Pte. Ltd. (Singapore)
- EatClub Brands Pvt. Ltd. (India)
- Loyal Hospitality Pvt Ltd (India)
- Nathan's Famous, Inc. (U.S.)
- Dine Brands Global, Inc. (U.S.)
- Dickey's Barbecue Restaurants, Inc. (U.S.)
Segments
Standalone Segment Dominates the Market Due to Rise in New Kitchen Operators
By nature, the market is bifurcated into franchised and standalone. The standalone segment accounts for the highest cloud kitchen market share owing to a surge in new kitchen operators in the cloud kitchen industry. Increased business owners’ interest in this new sector is also fueling segment expansion.
Multi-Kitchen Segment Leads the Market due to Surging Preference for Specialized Food Products
On the basis of kitchen type, the market is divided into single and multi-kitchen. The multi-kitchen segment commands the market due to a surging preference for specialized food products and cuisines globally. In the multi-kitchen business model, food is prepared for numerous brands in one kitchen hub and offered to consumers as per their requirements.
From the regional ground, the market is classified into Europe, South America, North America, Asia Pacific, and the Middle East & Africa.
Source: https://www.fortunebusinessinsights.com/cloud-kitchen-market-110628
Report Coverage
The market research report presents a complete market examination, highlighting essential elements, including the competitive environment and noticeable product categories. Furthermore, the report provides valuable insights on market trends and significant industry developments. Apart from the factors above, the report includes several aspects that have fostered market expansion in recent times.
Drivers and Restraints
Changing Consumer Trends and Food Choices Due to Globalization to Propel Market Growth
Increased globalization and rapid growth of the food service industry have changed food preferences among individuals. The widespread development tactics applied by top food service market players, including Taco Bell, McDonald's, Domino's, and Pizza Hut, have boosted the consumption of Western cuisine. An increase in online delivery orders is attributed to the growing number of dual-income families and a hectic schedule. Therefore, changing consumer trends and food choices due to globalization, hectic routines, and increasing dual-income households have led to several restaurants heading toward cloud kitchen operations. This is fostering the cloud kitchen market growth.
Nevertheless, the rapid expansion of the Quick Service Restaurants (QSR) industry is impeding market growth.
Regional Insights
Rising Demand for Western Cuisines Augments Market Growth in Asia Pacific
Asia Pacific takes center stage in the global market due to increasing disposable income in India, China, and Japan. Hectic schedules and rising demand for Western cuisines are driving market expansion in the region.
Market growth in North America is attributed to its vibrant lifestyle and increased junk food consumption rate. Rising demand for burgers and sandwiches in the U.S. and surging adoption of online food delivery services are driving market growth in the region.
Competitive Landscape
Key Players Focus on Collaborations and Mergers & Acquisitions to Enhance Their Market Positions
With cloud kitchen operators and companies, the market is extremely competitive. They focus on several expansion tactics, technological innovations, partnerships, collaborations, and mergers & acquisitions to enhance their market positions.
Key Industry Development
- January 2024: One of the top FMCG players, ITC, declared that it has planned to expand its all-new cloud kitchen business across four metro regions in India, such as Chennai, Mumbai, Delhi, and Kolkata. The choice to further boost its business is due to the great success registered in Bangalore post-inauguration.
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