The ghost kitchen market has witnessed significant growth in recent years due to rising demand for delivery-only restaurant formats without the costs associated with dining space. Ghost kitchens, also known as virtual kitchens or dark kitchens allow restaurant owners to focus solely on delivery and take-out by renting commercial kitchen space to prepare food for the sole purpose of takeout and delivery orders. They do not have a physical storefront or seating area for customers to dine-in. This business model helps restaurant operators save costs associated with renting retail space, table seating, wait staff, and other expenditures related to operating a traditional brick-and-mortar restaurant. Ghost kitchens have become popular among restaurateurs as they provide an efficient solution to participate in the growing food delivery sector at lower upfront and operating costs.
The global Ghost Kitchen Market is estimated to be valued at US$ 70.37 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growth of the ghost kitchen market is majorly driven by the growing popularity and use cases of delivery-only restaurants without dining space. The increasing consumer preference towards food delivery services owing to changing lifestyles and busy schedules has boosted the demand for delivery and take-out offerings from restaurants. Ghost kitchens allow restaurants to capitalize on this growing delivery trend and cover more delivery zones without having to invest in expensive retail spaces. Moreover, the coronavirus pandemic further accelerated the demand for contactless food delivery worldwide in the last two years. Lockdowns and restrictions on dining out drove consumers to order in more frequently, benefiting the ghost kitchen business model. The second driver for the market is increasing partnerships between third-party delivery platforms and ghost kitchens. Prominent delivery platforms are collaborating with virtual kitchens to boost their local supply of kitchens and expand their delivery menus and coverage. This collaboration helps both parties to consolidate their positions in the rapidly growing online food delivery industry.
Segment Analysis
The global ghost kitchen market is dominated by independent kitchens sub segment which accounts for around 60% of the total market share. Independent kitchens allow budding entrepreneurs to enter into delivery business with less investment compared to brick and mortar restaurants. They can focus on few delivery centric menus and test the customer demand with minimal overhead costs.
PEST Analysis
Political: Ghost kitchen market growth is impacted by food safety and hygiene regulations set by local authorities. Favorable regulations to support startup businesses helps the market growth.
Economic: Strong economic growth, rising disposable incomes, increasing number of nuclear families and busy lifestyles drive the demand for delivery focused cloud kitchens.
Social: Changing food consumption patterns, preference for convenience over dining out and rising demand for international cuisines through delivery apps support the growth.
Technological: Advanced online food delivery platforms, cloud kitchen management software, digital food ordering and payments fuel the market growth. Data analytics help players customize menus and optimize operations.
Key players: Key players operating in the ghost kitchen market are CloudKitchens, Kitchen United, REEF Technology, Virtual Kitchen Co., Zuul Kitchens, DoorDash Kitchens, Deliveroo Editions and others. Players are focusing on partnerships, acquisitions to consolidate their presence and expanding into newer geographies.
Regional analysis: North America dominates currently led by US market. Asia Pacific region is expected to emerge as the fastest growing market led by China, India and Southeast Asian countries. Increased smartphone and internet penetration along with initiatives by major food delivery players are driving the regional markets.
Key Takeaways
The global Ghost Kitchen Market is expected to witness high growth over the forecast period supported by growing online food delivery trend among time constrained consumers across regions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.