Cloud Kitchen Market To Reach USD 2.63 Billion By 2026 | CAGR of 17.2%

Cloud Kitchen
Cloud Kitchen

Rising adoption of online food delivery platforms, need for eliminating physical infrastructure and equipment, Increasing standard of living and urbanization, and Low cost implementation.

Market Size – USD 0.65 Billion in 2018, Market Growth – CAGR of 17.2%, Market Trends – Increased adoption of cloud kitchen solutions for managing orders from multiple brands to propel the cloud kitchen market

According to the current analysis of Reports and Data, the global cloud kitchen market was valued at USD 0.65 Billion in 2018 and is expected to reach USD 2.63 Billion by the year 2026, at a CAGR of 17.2%.  The study provides an overall insight into the factors responsible for the growth in the cloud kitchen market. The factors driving the cloud kitchen market are the rising adoption of online food delivery platforms, eliminating the need for physical infrastructure and equipment, increasing standard of living and urbanization, and the low cost implementation. The cloud kitchen market offers different opportunities to the suppliers due to the growing investments for the digitalization of process and industries, growing alliances of restaurant owners and the technology vendors, and the increasing adoption of food delivery applications worldwide. An increasing number of key players are partnering up with the major core companies in the above sectors to provide superior and more efficient platform to help them grow their business as well as redefine experiences for the customers. In October 2018, Ola owned company Foodpanda acquired Holachef to expand its offering and presence in the cloud kitchen market and launch a range of products in the various categories and cuisines.

The cloud kitchen is a restaurant which has no physical infrastructure and no dine-in or takeaway capability. It is a virtual restaurant that does not exist as a physical entity. It is heavily dependent on third-party integrations, home delivery applications, orders placed via a website, web portal or on a call. The cloud kitchen empowers the restaurant owners the adaptability to work at least one eateries/brands utilizing a similar foundation, assets, and stock under numerous brand names. The cloud kitchen for the most part involves taking order request, handling of the request, and fulfilling the request. The cloud kitchen is a lucrative business model for the restaurant owners who want to expand their food offerings to multiple locations, multiple brands, and multiple cuisines. The cloud kitchen platform empowers them to use the same existing infrastructure to deliver food items at multiple locations under multiple brand names and cuisines. The platform also enables effective management of all the associated activities and processes for multiple brands and franchises at a centralized place along with reporting and analytics features to create customised business growth plans and identify opportunities using customer preferences and buying patterns.

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Key participants include Toast, Inc., Square, Inc., Xenial, Inc., Ambiosys Labs Pvt Ltd., ORDERLORD, LogBase Technologies LLP, POSist Technologies Pvt. Ltd., Bringg Delivery Technologies Ltd., PAR Technology Corp., and Lightspeed HQ.

Further key findings from the report suggest

  • The market is growing at a CAGR of 0% in Asia Pacific due to the rapid industrialization, urbanization and digitalization of the developing countries, increasing standard of living, and the increased use of digital payments in the region.
  • Global adoption of online food delivery applications and the increasing use of mobile and smart phones for ordering food items is expected to increase the use of cloud kitchen platforms and expand its market size.
  • Governments are investing in the digitalization of the different industry along with encouraging digital modes for payments, shopping, and daily needs offer massive opportunities in the cloud kitchen market.
  • The web deployment model is expected to dominate the cloud kitchen market owing to its low cost implementation and flexible subscription models suitable for the end users. The web deployment offers better integration with existing systems and enhanced SEO capabilities.
  • The platform segment is estimated to dominate the market in 2019, however with increasing need for implementation services and support services will drive the services segment in the cloud kitchen market during the forecast period.
  • The customer experience management is forecasted to grow at the fastest growth rate in the market due to the need for retaining and engaging new customers and provide better service and customer satisfaction for enhanced customer experience.
  • The use of AI, Big Data, and Blockchain for developing advanced solutions is the latest trend in the cloud kitchen market
  • The vendors in the cloud kitchen market have adopted various strategies to increase the product ecosystem and gain a competitive edge over its competitors. For instance in 2019; Toast, a restaurant management platform in the U.S., introduced Toast Payroll & Team Management solution built precisely for the restaurant to simplify payroll and employee management by streamlining onboarding, automating payroll, and reducing risk compliance

To identify the key trends in the industry, click on the link below:

Component type (Revenue in USD Million; 2016–2026)

  • Platform
  • Services
    • Consulting and Training Services
    • System Integration and deployment
    • Technical Support
    • Managed Services

Solutions (Revenue in USD Million; 2016–2026)

  • Order Management
  • Brand Management
  • Inventory Management
  • Customer Experience Management
  • Marketing Management
  • Reporting & Analytics
  • Others

Deployment type (Revenue in USD Million; 2016–2026)

  • Web
  • Mobile

End-User (Revenue in USD Million; 2016–2026)

  • Commercial Space
  • Residential
  • Hospitality
  • Others

 Regional Outlook (Revenue in USD Million; 2016–2026)

  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • Latin America

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Key questions addressed in the Report:

  • Which key factors are expected to hamper global market growth during the forecast period?
  • Which application segment revenue is expected to expand at a rapid CAGR between 2021 and 2026?
  • Which regional segment is expected to account for largest revenue share over the forecast period?

Thank you for reading the research report. Kindly note that we also offer customization of reports as per client requirement. Contact us to know more about the customization feature and our team will help you with the well-suited report as per your request.

About Reports and Data 

Reports and Data is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target, and analyze consumer behavior shifts across demographics, across industries, and help clients to make smarter business decisions. We offer market intelligence studies ensuring relevant and fact-based research across multiple industries, including Healthcare, Touch Points, Chemicals, Products, and Energy. We consistently update our research offerings to ensure our clients are aware of the latest trends existent in the market. Reports and Data has a strong base of experienced analysts from varied areas of expertise. Our industry experience and ability to develop a concrete solution to any research problems provides our clients with the ability to secure an edge over their respective competitors.


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