Segmented By Type (Independent Cloud Kitchen, Commissary/Shared Kitchen, Kitchen Pods), By Product Type (Food Vs Beverage), By Source of Order (Web Vs Mobile App) By Payment Method (Cash on Delivery, UPI, Card Transaction, Others (Mobile Wallets, Internet Banking, etc.
New York, Dec. 05, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Cloud Kitchen Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F" - https://www.reportlinker.com/p06370186/?utm_source=GNW
) By Region, Competition
The global cloud kitchen market is valued at more than USD60 Billion in the year 2022 and is projected to grow at an impressive growth rate of approximately 11% in the forecast year. The increasing number of customers ordering from online food delivery platforms, changing consumer tastes & preferences, and busy life schedules drives the market.
Moreover, the increase of the young population with the rise in demand for different cuisines is helping cloud kitchen operators to enhance their menus and reach more consumers around the globe.
The increase in the usage of smartphones is also helping the market to overgrow.According to World Bank, the United States had a smartphone penetration of around 91% in 2021 and is also one of the leading countries in the global cloud kitchen market.
Even though the US has occupied a significant percentage of the market, the US has around 1500 cloud kitchens putting them behind China with more the 7500 and India with around 3500. At the same time, the United Kingdom only has 750 cloud kitchens.
There are majorly three types of cloud kitchens: independent cloud kitchens, commissary/shared kitchens, and kitchen pods.Independent cloud kitchen is operated by a single brand from a single kitchen and does not have a storefront.
Commissary/shared kitchens are shared kitchens where multiple brands operate from a single kitchen.They are owned and operated by a third-party company or an entrepreneur instead of a restaurant.
Kitchen pods are shipping containers equipped with kitchens. Kitchen pods are practical because they are tailored for efficacy and efficiency, on the one hand.
The development of ghost kitchens is currently being led by third-party services like Uber Eats, Kitchen United, Cloud Kitchens, and Kitopi.But major restaurant brands are also experimenting in this area.
McDonald’s opened a ghost restaurant in London last year, Bloomin’ Brands is testing kitchen-only formats for takeout and delivery orders, and Chick-fil-A is experimenting with kitchen-only locations in Nashville and Louisville, Kentucky, where they will prepare individual and catering orders for DoorDash delivery.
As millions of small restaurants close permanently due to COVID-19 disruption, deep-pocketed chains drive restaurant-driven experimentation in this market. However, this strategy may level the playing field by allowing surviving small players to purchase additional real estate and continue to meet rising delivery demand.
Experts working in the cloud kitchen market said cloud kitchens existed before COVID-19. Still, after the pandemic, the industry started to grow at an increasing rate in the countries like India because restaurants were shut down for many months.
Increasing Investment is Fueling the Market Growth
Venture capitalists have been swarming to invest a significant amount of dollars in cloud kitchens.For instance, the former CEO of Uber Travis Kalanick raised USD400 million last year.
The U.K.-based delivery firm Deliveroo has made investments in its own cloud kitchen platform, Deliveroo Editions, totaling USD1.5 billion thus far. Over USD35 million has been invested in Virtual Kitchen, including a sizable sum from prominent venture capitalist Andreessen Horowitz. Another significant player is Kitchen United, which has so far raised USD40 million in fundraising. After financing of USD175 million raised the valuation of the company to USD1.4 billion and Rebel Foods became a unicorn in the year 2021. Rebel Foods has so far raised a total of USD536.5 million in investment throughout its 20 funding rounds.
More Scalability is Fueling the Market Growth
Scalability is one of the main benefits of cloud kitchens.There are few seats available in conventional restaurants.
Again, scaling requires substantial investments.All that is required for cloud kitchens, typically housed in warehouse-style settings, is renting out an additional kitchen block.
Because cloud kitchens are typically situated in less expensive areas of a city and only require extra space for the kitchen, not the seating area, it is less expensive to buy equipment and increase square footage even if you can’t rent it at your location. This is because traditional restaurants are typically located in more expensive areas of a city.
Lower Set-up Cost Aiding the Market Growth
Initial expenses for cloud kitchens are comparatively low as compared to traditional restaurants.An average cloud kitchen startup costs about USD 6000.
It is optional to hire a sizable workforce or acquire an expensive lease.Additionally, one does not require the equipment or other decorations usually associated with a traditional restaurant.
As a result, the initial setup expense is far lower than for traditional eateries.
Hygiene Issues is Challenging the Market Growth
The cloud kitchen concept requires a lot of scaling.The problem is that many companies build their kitchens in unhygienic conditions to save money.
Although customers prefer not to be served in top-notch restaurants, any chosen kitchen must be sanitary for the food to be edible.There have been numerous reports of people receiving contaminated food on social media.
The businesses using shared kitchens are having hygiene issues. For instance, Zomato, an Indian food delivery application and cloud kitchen operator, discovered that kitchens operating with more than ten brands were not receiving positive reviews from their customers because they did not like the food or the way it was packaged.
The global cloud kitchen market is segmented based on type, product type, source of order, payment method, region, and competitional landscape.Based on type, the market is further fragmented into independent cloud kitchens, commissary/shared kitchens, and kitchen pods.
Based on product type, the market is segmented into food and beverage.Regarding the source of order, the market is divided into web and mobile apps.
And in terms of payment methods, the market is segmented into cash on delivery, UPI, card transaction, and others (wallet payment, internet banking, etc.). The market analysis also studies the regional segmentation which are North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
Pop meals (formerly Dahmakan), DoorDash, Kitchen United, Kitopi, Rebel Foods, Starbucks Coffee Company, Ghost Kitchen Orlando, Cloud Kitchens, Swiggy, Zomato are among the major market players in the global Cloud Kitchens market.
To increase their presence, many companies are acquiring companies that are cloud kitchen operators.For instance, Kitchen United has recently received a ghost kitchen developer, Zuul, a New-York based virtual kitchen operator.
The expansion of Kitchen United’s ghost kitchen network in New York City will be aided by this company’s initial acquisition.
In this report, the global cloud kitchens market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
• Cloud Kitchen Market, By Type:
o Independent Cloud Kitchen
o Commissary/Shared Kitchen
o Kitchen Pods
• Cloud Kitchen Market, By Product Type:
• Cloud Kitchen Market, By Source of Order:
o Cash on Delivery
o Card Transaction
• Cloud Kitchen Market, By Region:
o North America
The United States
o Middle East & Africa
o South America
Company Profiles: Detailed analysis of the major companies present in the global cloud kitchens market.
With the given market data, we offers customizations according to a company’s specific needs. The following customization options are available for the report:
• Detailed analysis and profiling of additional market players (up to five).
Read the full report: https://www.reportlinker.com/p06370186/?utm_source=GNW
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