The Europe dark kitchens, ghost kitchens, and cloud kitchens market has been gaining significant traction over the past few years. Dark kitchens, also known as ghost or cloud kitchens, are premise-based commercial kitchens that are primarily used for the preparation of delivery-only meals and are not meant for walk-in dining. They provide restaurants with a smaller overhead cost and a means to expand delivery reach without incurring the costs associated with brick-and-mortar stores. The need for central kitchens from which multiple brands can be operated virtually is rising as an increasing number of people, especially millennials, prefer ordering food online and getting it delivered at their doorsteps. The convenience of online food delivery services is a key factor driving their adoption.

Europe dark kitchens market is estimated to be valued at US$ 5.91 billion in 2024 and is expected to exhibit a CAGR of 18% over the forecast period 2024 to 2031.

Key Takeaways

Key players: Shaw Sports Turf, Ten Cate, Hellas Construction, FieldTurf, SportGroup Holding, ACT Global Sports, Controlled Products, Sprinturf, CoCreation Grass, and Domo Sports Grass are among the major players in the Europe dark kitchens market.

Key opportunities: The rapidly growing online food delivery market in countries such as the UK, France, Germany, and Italy has created significant opportunities for Europe Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Share Demand operators looking to meet the rising demand. Moreover, partnerships with meal kit delivery and food retailers represent another major opportunity area.

Global expansion: Many dark kitchen companies are expanding globally by entry into newer markets and through mergers and acquisitions. For instance, in 2021, Germany-based Kitchen United acquired a majority stake in Belgium-based Dennik to expand into Europe.

Market Drivers

The rise of online food delivery services has been a key driver for the market. The demand for convenient food ordering and delivery options from mobile apps has witnessed a sharp rise over the past few years in Europe. This has encouraged many restaurants and food brands to leverage dark kitchens to ramp up their delivery operations and virtual food brands. The flexibility and scalability afforded by dark kitchens make them attractive to new and existing food businesses looking to benefit from the online delivery boom.

PEST Analysis

Political: The European government’s focus on improving transportation and logistics infrastructure has positively impacted the growth of dark/ghost/cloud kitchens in the region. They have also eased restrictions for delivery services which has benefitted online food delivery platforms.

Economic: Rising income levels and busy lifestyles have increased the demand for convenience food options. The growing food delivery market and shared commercial kitchen concept have provided opportunities for entrepreneurs in Europe to tap into this demand.

Social: Changing food preferences of consumers, growing popularity of online food delivery services and mobility have boosted the social acceptance of order-in food prepared in commercial kitchens without the dining area. Younger audience in particular favors this trend.

Technological: Adoption of automation, centralized systems for bulk food preparation and delivery route optimization using AI/ML and geospatial technologies have enabled dark kitchen operators to cut costs and cater to a wider delivery radius and throughput. Apps and websites developed for seamless ordering and customer servicing have also aided their growth.

Geographical regions where market in terms of value is concentrated

The Europe dark/ghost/cloud kitchens market is concentrated majorly in Western European countries like the UK, France, Spain and Italy owing to high GDP per capita and widespread usage of online delivery platforms in these nations. The established foodservice industry infrastructure further supports their operations.

Fastest growing region for the market

Central and Eastern Europe is expected to witness the fastest growth for the dark/ghost/cloud kitchen market during the forecast period. Developing economies like Poland, Czech Republic, Hungary, Greece offer an affordable real estate and labor costs which attract new investments. Rising internet penetration and growing acceptance of online food ordering in these countries will drive the future expansion of the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.