Cloud Kitchen Market by Type and Geography - Forecast and Analysis 2022-2026

The cloud kitchen market share is expected to increase by USD 24.31 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 12.09%.

This cloud kitchen market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers cloud kitchen market segmentation by type (franchised and standalone) and geography (APAC, North America, Europe, South America, and Middle East and Africa). The cloud kitchen market report also offers information on several market vendors, including All Day Technologies Inc., CloudKitchens, DoorDash Inc., Dropkaffe Food and Beverages Pvt. Ltd., Farm To Fork Sdn. Bhd., Food Haven Technologies Inc., Ghost Kitchen Orlando, Kitchen United, Kitopi, Kouzina Food Tech Pvt Ltd., ParTech Inc., Rebel Foods Pvt. Ltd., Salted, Starbucks Co., The Kroger Co., Toast Inc., Uber Technologies Inc., and Wingstop Inc. among others.

What will the Cloud Kitchen Market Size be During the Forecast Period?

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Cloud Kitchen Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The advantages of cloud kitchens over traditional restaurants is notably driving the cloud kitchen market growth, although factors such as increasing preferences for home-cooked food may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the cloud kitchen industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Cloud Kitchen Market Driver

• The advantages of cloud kitchens over traditional restaurants is one of the key drivers supporting the cloud kitchen market growth.
• Cloud kitchens produce food for online delivery and are equipped with kitchen equipment and facilities needed for the preparation of food but have no dining area.
• Cloud kitchens have emerged as a promising business model due to the rapid increase in consumer demand for food delivery.
• The cost of opening a cloud kitchen is low when compared to traditional restaurants. They roughly cost $2,000-4,000 a month, depending on the market.
• The increase in penetration of the internet and the use of mobile applications is influencing many people to prefer ordering food through mobile applications and online portals. 
• The adoption of cloud kitchens helps reduce the rent and labor costs incurred by restaurants. Moreover, the use of cloud kitchens allows established restaurants to expand their delivery operations at a low cost. Therefore, the advantages of cloud kitchen and the rising demand for online food delivery services are likely to drive the growth of the market during the forecast period.

Key Cloud Kitchen Market Trend

• New packaging for delivery foods is one of the key cloud kitchen market trends contributing to the market growth.
• Packaging is often considered to be an extension of brand value. Therefore, the packaging of any brand is important in generating interest and curiosity among consumers.
• Corrugated packaging has been successful in generating curiosity among vendors and customers alike. Its thermal property keeps food hot, as the boxes are intended for heat maintenance for food delivery. 
• Vendors in the corrugated packaging industry have provided a wide range of packaging solutions for hot food, particularly for food delivery, combining innovative design with fine fluting to make food easier to handle and consume. 
• Vendors use sustainable packaging and have expanded the utilization of reusable or recyclable substances. In addition, they do not use paper from questionable sources, such as damaging logging practices. Such innovative offerings attract consumers, which, in turn, will drive propel the market growth.

Key Cloud Kitchen Market Challenge

• Increasing preferences for home-cooked food is one of the factors hindering the cloud kitchen 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. 
• Home-cooked food is economical when compared to food from cloud kitchens. Further, the number of cooking programs on TV and the internet is increasing due to which consumers prefer to watch cooking programs and prepare the same dishes at home, which leads to an increased preference for food prepared at home. Thus, the increasing preference for home-cooked food may hinder market growth.

This cloud kitchen market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global cloud kitchen market as a part of the global restaurants market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the cloud kitchen market during the forecast period.

Who are the Major Cloud Kitchen Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• All Day Technologies Inc.
• CloudKitchens
• DoorDash Inc.
• Dropkaffe Food and Beverages Pvt. Ltd.
• Farm To Fork Sdn. Bhd.
• Food Haven Technologies Inc.
• Ghost Kitchen Orlando
• Kitchen United
• Kitopi
• Kouzina Food Tech Pvt Ltd.
• ParTech Inc.
• Rebel Foods Pvt. Ltd.
• Salted
• Starbucks Co.
• The Kroger Co.
• Toast Inc.
• Uber Technologies Inc.
• Wingstop Inc.

This statistical study of the cloud kitchen market encompasses successful business strategies deployed by the key vendors. The cloud kitchen market is fragmented and the vendors are deploying growth strategies such as technological innovations, and partnerships among vendors and service providers to compete in the market.

Product Insights and News

• cloudkitchens.com - Through the unified segment, the company offers commercial kitchens optimized for food delivery.
• cloudkitchens.com - The company offers smart kitchens for delivery-only restaurants.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The cloud kitchen market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Cloud Kitchen Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the cloud kitchen market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Cloud Kitchen Market?

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62% of the market’s growth will originate from APAC during the forecast period. China, India, and Japan are the key markets for the cloud kitchen market in APAC. Market growth in this region will be faster than the growth of the market in North America and Europe.

The rising urbanization will facilitate the cloud kitchen market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 had a positive impact on the cloud kitchen market in the region. However, the gradual growth of the regional cloud kitchen market is expected to propel during the forecast period, owing to the easing of lockdown restrictions as a result of large-scale vaccination drives in various countries of this region.

What are the Revenue-generating Type Segments in the Cloud Kitchen Market?

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The cloud kitchen market share growth by the franchised segment will be significant during the forecast period. The franchised 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. Such factors will drive the segment growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the cloud kitchen market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Cloud Kitchen Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive cloud kitchen market growth during the next five years
• Precise estimation of the cloud kitchen market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the cloud kitchen industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of cloud kitchen market vendors

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