April 20, 2024

Ghost Kitchen Market is Estimated to Witness High Growth Owing to Increasing Popularity of Online Food Delivery Services

The ghost kitchen market involves the preparation of food for delivery or takeout orders without the diner-facing operation of a traditional restaurant. Ghost kitchens allow restaurants to operate more profitably by significantly reducing rental and labour costs compared to traditional brick-and-mortar restaurants. They offer convenient and affordable food options to customers through delivery and takeout via partnerships with third-party delivery platforms. Ghost kitchens are increasingly being adopted by renowned restaurant chains and independent food businesses to cater to the growing demand for online food delivery services.

The Global Ghost Kitchen Market is estimated to be valued at US$ 70.37 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the ghost kitchen market are CloudKitchens, Kitchen United, REEF Technology, Virtual Kitchen Co., Zuul Kitchens, Deliveroo Editions, Kitopi, DoorDash Kitchens, Grubhub/Seamless, Swiggy Access, Uber Eats Kitchens, Rebel Foods, Ghost Kitchen Brands, JustKitchen, and Keatz. The key players are focusing on expanding their portfolio of virtual restaurant brands to cater to diverse customer preferences.

The growing investments and partnerships in the ghost kitchen space present numerous opportunities for market growth. Key players are strengthening their delivery capabilities and expanding in new markets which is positively impacting the industry.

The increasing global footprint of food delivery platforms and rising popularity of delivery-only restaurant concepts are driving the global expansion of the ghost kitchen market. Key players have established operations across major markets including the United States, United Kingdom, India, Middle East, and Southeast Asia to tap demand from these regions.

Market Drivers

The increasing popularity of online food delivery services is a major market driver for ghost kitchens. Consumers’ growing preference for quick, affordable and convenient food delivery options especially amid the pandemic is strengthening the case for ghost kitchens. The anonymity of ghost kitchens also allows restaurant operators to launch multiple virtual restaurant brands and test new cuisine styles without investing in physical infrastructure, thereby lowering risks. This advantage has fuelled adoption of the ghost kitchen business model worldwide.

PEST Analysis:

Political: The ghost kitchen market is positively impacted by supportive government policies and regulations for increasing food delivery businesses and encouraging entrepreneurs to open ghost kitchens.

Economic: Strong economic growth, rising disposable incomes, and busy consumer lifestyles have increased the demand for convenient on-demand food delivery services, driving the adoption of ghost kitchens.

Social: Changing food consumption patterns and preferences of people towards ordering food online from diverse restaurants instead of dining out has boosted the popularity of ghost kitchens.

Technological: Advanced technologies like online food ordering and payment platforms, delivery fleet management systems, and cloud kitchen management software have enabled efficient functioning and expansion of ghost kitchen operations on a large scale. Analytics tools also help operators in menu engineering and demand forecasting.

The United States represents the largest market for Ghost Kitchen Market in terms of value currently, given the strong presence of major food delivery companies and high adoption of online food ordering services in the country. The availability of vast infrastructure for logistics and delivery services also contributes to the leading market position of the US.

The Asia Pacific region is poised to emerge as the fastest growing regional market for ghost kitchens over the coming years, driven by burgeoning demand from densely populated countries like India and China. Rapid urbanization, rising incomes, proliferation of smartphones, and growing digital connectivity in Asia Pacific are catalyzing the expansion of online food delivery services and ghost kitchen models in the region.

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