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The cloud kitchen market size is estimated to increase by USD 29.48 billion, at a CAGR of 12.17% between 2023 and 2028. The market size is forecast to increase by USD 29.48 billion. The accelerated growth of the market is due to various factors, including the advantages of cloud kitchens over traditional restaurants, changing lifestyles and a rise in demand for home delivery food and hanging lifestyles and changing lifestyles and rise in demand for home delivery food.
The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD Million for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Changing lifestyles and a rise in demand for home-delivery food are notably driving the market growth. The increasing number of dual-income families and busy lifestyles have left people with less time for traditional household chores, including the preparation of food. For instance, according to the data published by the US Bureau of Labor Statistics, in 2021, among married-couple families, both husband and wife were employed in 47.4% of families. Hence, services such as takeaway and home delivery have become highly popular. The demand for online food delivery has always been high in the US. For instance, as per the US Department of Agriculture (USDA), FAFH accounted for 50.1% of total food expenditure in the US in 2009 and 56.2% in 2021.
Furthermore, due to a rise in consumer purchasing power, most millennials prefer on-the-go food. Cloud kitchens offer a variety of foods, such as pizzas, burgers, and others. All these factors have increased the demand for cloud kitchens. Therefore, the trend of FAFH is expected to provide high growth opportunities to vendors operating in the global cloud kitchen market during the forecast period.
Increasing demand for healthy and nutritious food is an emerging trend shaping the market growth. Cloud kitchen vendors are coming up with innovative and nutritious breakfast foods with whey protein as the primary ingredient, which is one of the most popular superfoods. For instance, in May 2020, C3 (a subsidiary of SBEEG Holdings Licensing LLC), the leader in virtual kitchen and culinary concept development, announced the launch of Plant Nation, a 100% vegan brand. The brand was launched in eight locations in Los Angeles and plans to expand rapidly during the next six months to over 40 locations in San Francisco, New York, Chicago, Miami, and Los Angeles. Health-conscious people often refrain from consuming food that has a high-fat content.
As a result, many cloud kitchen brands have introduced healthy and nutritious meals to their menu, which helps customers reduce their total calorie intake. They often serve half or full-size salads containing fresh vegetables. This not only aids in changing the perception that dining outside is unhealthy but also helps cloud kitchens increase their customer base. Therefore, increasing nutritious food offerings by cloud kitchen vendors and rising consumption of healthy food are likely to drive the growth of the global cloud kitchen market during the forecast period.
Increasing preferences for home-cooked food is a significant challenge hindering market growth. Fast food is perceived to be unhealthy as it contains added sugar, large amounts of carbohydrates, and unhealthy fats and leads to lifestyle-related diseases such as diabetes and obesity. Hence, health-conscious consumers avoid eating unhealthy food from restaurants and cafeterias and prefer home-cooked food. Home-cooked food has high nutritional value and is fresh and hygienic. The chances of contamination are also low when compared to food from QSRs. Thus, the consumption of home-cooked food is increasing.
In addition, the number of cooking programs on TV and the Internet is increasing. Many consumers prefer to watch cooking programs and prepare the same dishes at home. This also leads to an increased preference for food prepared at home. Hence, these factors will contribute to moderate growth of the global cloud kitchen market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cloud Kitchen Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
All Day Technologies Inc. - The company offers cloud kitchen services through their partnered restaurants such as Paulie Gees, China Live, Jerk 48, and others.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The franchised segment is estimated to witness significant growth during the forecast period. This model witnessed steady growth during the last few years. Cloud kitchens are commercial facilities that are built to produce food for delivery. These kitchens offer food products of all types under one roof. The rising demand for such kitchens can be attributed to the growth of online food delivery, thereby enabling restaurants to reach a wider population group without the need to build offline premises.
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The Franchised segment was the largest and was valued at USD 14.20 billion in 2018. The restaurants are no longer required to invest in expensive real estate and in overhead and dining arrangements. Different vendors in the market offer cloud kitchens to various restaurant operators in different locations. For instance, Kitchen United, one of the prominent vendors operating in the market, offers cloud kitchens in Pasadena, Scottsdale, Chicago, Austin, and other cities in the US. These kitchens offer consumers different dietary preferences, including high-protein, plant-based food products. The rising awareness among restaurants about the prospective benefits of associating themselves with cloud kitchen vendors is increasing. Thus, all these factors will contribute to moderate growth of the franchised segment of the global cloud kitchen market during the forecast period.
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APAC is estimated to contribute 58% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is the fastest-growing segment of the global market. In APAC, traditional cuisines such as Indian, Thai, Japanese, and Chinese cuisines, as well as regional fast food, are largely preferred. However, the popularity of fast food is increasing as consumers find less time to cook due to busy lifestyles, and the rising urbanization is also increasing the dependency on fast food. Thus, the demand for cloud kitchens will increase with the growth in the number of working people in the region.
In addition, the growing multicultural food habits in the region are giving rise to the demand for multicuisine dishes in APAC. This is resulting in an increase in the number of fast-food restaurants that offer various cuisines, leading to a surge in the growth of the cloud kitchen market in APAC during the forecast period.
In 2020, traditional restaurants were all forced to close their fine dining facilities to curb the spread of the virus and to abide by government restrictions. Furthermore, the lockdown restrictions were relaxed because of large-scale vaccination drives across the region. This helped the vendors with the convenient procurement of raw materials. Additionally, increased funding toward the development of online interfaces of food delivery platforms from private and public resources will continue to drive the growth of the cloud kitchen market in APAC during the forecast period.
The cloud kitchen market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Cloud Kitchen Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.17% |
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Market Growth 2024-2028 |
USD 29.48 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.57 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 58% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
All Day Technologies Inc., CloudKitchens, DoorDash Inc., Dropkaffe Food and Beverages Pvt. Ltd., Farm To Fork Sdn. Bhd., Food Haven Technologies Inc., Franklin Junction, Ghost Kitchen Orlando, Kitchen United, Kitopi, Kouzina Food Tech Pvt Ltd., Nextbite Brands LLC, PAR Technology Corp., Salted, Starbucks Corp., The Kroger Co., Toast Inc., Uber Technologies Inc., Wingstop Inc., and Rebel Foods Pvt. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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