One of the biggest changes to the food and beverage sector in recent years is the growth of the cloud kitchen business.
Due to shifting consumer behaviour and the rise in demand for online meal delivery, these delivery-only kitchens—also known as ghost kitchens, dark kitchens, or virtual kitchens—are completely altering the way we eat.
The market is expanding rapidly, with forecasts indicating that it will reach USD 157.5 billion by 2035, representing a strong CAGR of 11% from 2024 onwards.
This blog examines the market size, growth, and trends influencing the cloud kitchen business, providing insights for entrepreneurs, investors, and industry stakeholders.
Cloud kitchens, also referred to as "ghost kitchens" or "virtual kitchens," are commercial kitchens designed exclusively for food preparation and delivery.
Cloud kitchens focus solely on fulfilling online orders. This innovative model has disrupted the food service industry, offering a cost-effective and efficient way to reach food-loving consumers.
By eliminating the need for dining areas and associated overhead costs, cloud kitchens enable businesses to operate with greater flexibility and scalability. This has attracted a vast range of players, including:
The cloud kitchen industry has witnessed unprecedented growth in recent years. Domestically, the market is projected to soar from an estimated $400 million in 2019 to a staggering $2 billion by 2024.
Globally, the industry is poised for even more significant expansion, with valuations expected to skyrocket from $58.61 billion to $177.85 billion within a decade.
A lot of factors contribute to this rapid growth, including the increasing popularity of online food delivery, changing consumer preferences towards convenience, and the rising disposable income of younger generations.
As more people opt for the ease and variety offered by food delivery platforms, the demand for cloud kitchens is expected to continue surging, shaping the future of the food service industry.
The cloud kitchen market is rapidly expanding, reflecting a significant transformation in the global food service industry.
As of 2023, the field size stands at USD 44.9 billion, indicating strong growth driven by increasing consumer demand for convenience and home delivery services.
This market is estimated to surge to USD 157.5 billion by 2035, growing at a robust CAGR of 11% from 2024 to 2035.
This impressive growth trajectory underscores the growing reliance on food delivery and the potential for cloud kitchens to redefine the dining experience.
Several factors are propelling the growth of the cloud kitchen market:
The relentless pace of modern life has transformed how people consume food. Commuting, long work hours, and increasing household incomes have led to a surge in demand for convenient and time-saving meal options. Food delivery platforms have capitalised on this trend, offering a vast array of cuisines at the touch of a button. Cloud kitchens, as the backbone of this delivery ecosystem, have benefited immensely.
Consumer tastes are evolving rapidly, driven by factors such as exposure to diverse cultures through travel and media and a growing emphasis on health and wellness.
Technology has been a game-changer for the food industry, & cloud kitchens are at the forefront of this revolution.
The pandemic accelerated the shift from dine-in to delivery, catapulting the cloud kitchen industry into the spotlight.
Also read: Steps to Start a Successful Cloud Kitchen Business.
Various factors influence the cloud kitchen market:
The cloud kitchen industry is booming, driven by several key trends that are transforming how food is prepared, delivered, and consumed. Let's get into these trends in detail:
While the core concept of cloud kitchens revolves around food delivery, the industry is witnessing a broader application of this model.
Increased demand for online meal delivery due to hectic lifestyles and a preference for convenience is driving the growth in online food ordering. Cloud kitchen enterprises, such as Kouzina Food Tech, precisely meet this demand by providing a delivery-oriented solution.
Technology is revolutionising the cloud kitchen industry, enhancing efficiency and customer experience.
As environmental consciousness grows, cloud kitchens are adopting sustainable practices to appeal to eco-conscious consumers.
Collaborations are becoming essential for cloud kitchen success.
The cloud kitchen market can be segmented based on:
A multi-restaurant cloud kitchen allows you to manage various cuisine concepts under one roof, making operations more efficient. For example, Kouzina effectively operates a number of culinary businesses, including well-known ones such as Indiana Burgers and WarmOven, and offers franchising options to prospective entrepreneurs.
Read on to learn more about the regional market analysis in the cloud kitchen market:
The cloud kitchen industry is experiencing rapid growth, with several key players emerging as leaders. These companies are driving innovation, expanding their reach, and shaping the future of food delivery.
Kouzina Food Tech is a pioneer in the Indian cloud kitchen industry. Known for its innovative approach, Kouzina operates multiple virtual brands, each targeting different cuisines and customer preferences.
The company has established a robust infrastructure that supports high-quality food preparation and efficient delivery operations. It focuses on optimising kitchen layouts and leveraging data analytics to enhance operational efficiency.
Kouzina has rapidly expanded across several Indian cities, making a significant impact on the food delivery market with its diverse and adaptable business model.
Rebel Foods is recognised as the world’s largest cloud kitchen operator. It has built a strong portfolio of multiple brands, each serving distinct culinary needs, from Indian comfort food to international cuisines.
The company is known for its tech-driven approach to food preparation and delivery, utilising a vast network of cloud kitchens to ensure quick and consistent service.
With a presence in multiple countries, Rebel Foods continues to grow by introducing new brands and expanding into new markets, emphasising innovation and customer satisfaction.
DoorDash Kitchen is a significant player in North America, particularly in the U.S. market. As a part of DoorDash, a leading food delivery platform, DoorDash Kitchen benefits from an extensive logistics network.
The company provides kitchen spaces for restaurant brands looking to enter new markets without the overhead of traditional dining establishments.
DoorDash Kitchen continues to grow by adding more brands to its portfolio and expanding its kitchen locations across the U.S., capitalising on the increasing demand for food delivery.
Zuul Kitchen is a U.S.-based cloud kitchen operator that focuses on offering a variety of culinary options through its delivery-only model. Zuul partners with multiple restaurant brands, providing them with the infrastructure to serve a delivery-focused customer base.
Zuul is known for its emphasis on operational efficiency and high-quality food preparation, catering to the diverse tastes of urban consumers.
Zuul Kitchen is expanding its footprint across major U.S. cities, aiming to become a leader in the cloud kitchen space by leveraging advanced kitchen technologies and strategic partnerships.
Keatz is a European cloud kitchen operator that runs multiple virtual restaurant brands across several cities. The company focuses on creating consistent, high-quality meals tailored to the delivery model.
Keatz specialises in multi-brand operations, offering a wide range of cuisines from a single kitchen space, optimising resources, and reducing costs.
With a strong presence in countries like Germany, Spain, and the Netherlands, Keatz is expanding its reach by continuously adding new brands and optimising its delivery operations.
Also read: Popular Cloud Kitchen Business Models and Examples
Kitopi is a global cloud kitchen operator with a significant presence in the Middle East. It offers end-to-end kitchen solutions for restaurants looking to scale their delivery operations without the complexities of running a physical location.
Kitopi is known for its technology-driven approach, which includes the use of AI and data analytics to streamline kitchen operations and improve customer experience.
Kitopi has expanded rapidly in the Middle East and beyond, with operations in several countries, including the UAE, Saudi Arabia, and Kuwait, and plans for further global expansion.
Ghost Kitchen Orlando is a key player in the U.S. cloud kitchen market, offering a variety of virtual brands from a single location. It caters to a wide range of customer preferences through its diverse menu offerings.
The company focuses on efficiency and scalability, allowing multiple restaurant brands to operate from a single kitchen space while maintaining quality and consistency.
Ghost Kitchen Orlando is expanding its operations across Florida and other states, aiming to become a leading provider of delivery-only dining experiences in the U.S.
Dahmakan is a Southeast Asian cloud kitchen brand that has gained popularity for its healthy, ready-to-eat meals. The company operates on a direct-to-consumer model, delivering freshly prepared meals to customers.
Dahmakan emphasises healthy eating, offering a variety of nutritious meal options designed for busy professionals and health-conscious consumers.
Based in Malaysia, Dahmakan is expanding its reach across Southeast Asia, tapping into the growing demand for convenient, healthy food delivery services.
Starbucks has ventured into the cloud kitchen space with its Star Kitchen concept, focusing on delivering its signature coffee, snacks, and light meals directly to customers.
Star Kitchen uses Starbucks’ extensive brand recognition and loyal customer base, offering a convenient way to enjoy Starbucks products without visiting a physical store.
Initially launched in select markets, Starbucks is expanding its Star Kitchen operations in major cities globally, responding to the rising demand for food and beverage delivery services.
Kitchen United is a leading cloud kitchen operator in the U.S., offering shared kitchen spaces for multiple restaurant brands. The company provides a detailed suite of services, including kitchen space, technology, and logistics support.
Kitchen United focuses on helping restaurants expand their delivery reach without the need for additional storefronts, making it easier for brands to scale their operations.
With locations across the U.S., Kitchen United is expanding its network, enabling more restaurants to enter the delivery market with minimal investment and maximum efficiency.
The cloud kitchen industry is expected to increase significantly in the future years, owing to changes in consumer behaviour, technical advancements, and the model's intrinsic cost-efficiency.
With forecasts indicating a market size of USD 157.5 billion by 2035, the future appears promising for entrepreneurs and enterprises eager to enter this dynamic industry.
However, success in this field will necessitate creativity, agility, and a thorough awareness of the market trends that are influencing the industry.
Those who can successfully move through the difficulties and grab the opportunities presented by the cloud kitchen market's ongoing evolution will be at the top of the next significant change in the food business.
If you have various cuisine concepts in mind, a multi-restaurant cloud kitchen allows you to manage them all from one location. Like the example given above, Kouzina operates a number of food businesses, including several well-known names such as Indiana Burgers and WarmOven, which are also available for franchising.
