Cloud Kitchen Market Is Thriving in The Wake of Rising Consumer Preference & Ongoing Pandemic Protocols

Cloud Kitchen Market Is Thriving in The Wake of Rising Consumer Preference & Ongoing Pandemic Protocols

Cloud kitchen refers to the utilization of commercial kitchen space for preparing food meant for either delivery or takeout only with no dine-in customers. It is also called virtual kitchen or ghost kitchen which allows businesses to make and deliver food products in minimum costs and enables them to maximize the delivery revenue.

It also offers other benefits like reasonable rentals, lowers capital expenditure to set up and requires less manpowered as compared to traditional restaurant. These kitchens are adopting various innovative technology including AI and automation to improve their services so as to expand their customer base.

The cloud kitchen market is projected to amplify at a CAGR of 12.4% over the forecast period of 2022-2030.

Highlighting the factors positively swaying cloud kitchen market dynamics

There has been a rising inclination of the masses towards online food services over dine-in options owing to busy lifestyle or other convenience related factors. Apart from that, the outbreak of the COVID 19 outbreak which resulted in the imposition of various protocols including social distancing prevented people from visiting restaurants or other eateries, thus expanding opportunities for cloud kitchen market to grow.

Alongside, technical developments in the field, operational flexibility offered by these kitchens coupled with rising real-estate costs are contributing to the market development.

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Factors impeding the growth of this industry vertical

Although, cloud kitchen is a convenient and a profitable entity but it comes with some disadvantages as well. One of the major downside of virtual kitchen is that it lacks the medium of customer interaction. Since everything takes place via an online medium there is very less to no interaction between the restaurant and the consumer, which in turn creates communication gap, thereby impeding market growth.

Insights on the various segments of worldwide cloud kitchen industry

Based on type, this business sphere is fragmented into kitchen pods, independent cloud kitchen, and commissary/shared. The independent cloud kitchen segment is anticipated to register notable gains in the ensuing years owing to the increasing number of standalone brands serving customers from one particular location.

By nature, the industry is bifurcated into franchise and standalone. Among these, franchise segment is expected to garner significant revenues over the estimated timeline ascribing to surging number of franchised restaurants worldwide.

Regional Assessment of the market

The major regions constituting the geographical landscape of cloud kitchen industry are Europe, North America, Asia Pacific, Latin America, and Middle East & Africa. Among these, Asia Pacific is poised to generate significant revenues over the analysis timeline ascribing to rising trend of virtual kitchen in nations like India and China, increasing disposable incomes, and widespread adoption of smart devices among the masses.

Major players influencing the global cloud kitchen market

The key companies operating in the industry are Starbucks Coffee Company, Swiggy (Bundl Technologies Pvt Ltd, DoorDash, Inc, Kitchen United, Zuul Kitchens, Kitopi, Rebel Foods Pvt Ltd, and Pop Meals.

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