The cloud kitchen market is expected to reach UD 154.9 billion globally by 2035 at 100 percent CAGR according to a new report by Allied Market Research.
The rapid expansion of the cloud kitchen market is fueled by shifting consumer preferences towards convenience and online food delivery services, with significant impact of the COVID-19 pandemic on traditional dine-in restaurants. As consumers increasingly opt for the ease of ordering food online, cloud kitchens emerge as a cost-effective solution tailored for delivery-only operations, catering to rise in demand for off-premises dining options. The pandemic has acted as a catalyst, accelerating the adoption of cloud kitchens as restaurants pivot toward delivery-centric models to adapt to restrictions and closures. Moreover, the scalability and flexibility of cloud kitchens attract both food entrepreneurs and established restaurant brands, offering opportunities for market expansion with reduced overhead costs.
By nature, the franchised segment held the highest market share in 2023, accounting for nearly three-fourths of the global cloud kitchen market revenue and is estimated to maintain its leadership status during the forecast period. Franchised cloud kitchen accounts for a higher value share, as the segment has a larger customer base, which is loyal to its brand and product offerings. Such kitchens have unique trademarks that are used for promotional activities as well as for selling their products. These kitchens also provide or facilitate customer loyalty programs for customers who frequently order food from cloud kitchens.
By type, the independent cloud kitchen segment held the highest market share in 2023, accounting for more than three-fifths of the global cloud kitchen market and is estimated to maintain its leadership status during the forecast period. Independent cloud kitchens dominate the market primarily owing to their agility, adaptability, and lower barriers to entry compared to traditional restaurant chains. Unlike established brands, independent operators can swiftly respond to changing consumer preferences, experiment with diverse cuisines, and pivot their offerings without the constraints of legacy infrastructure or brand image.
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