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Cloud kitchens forecast to expedite due to coronavirus

Takeaway prep crop
Communal takeaway prep could be a way to keep operators profitable.

A new market research report is predicting the rise of cloud kitchens – fully equipped shared kitchen spaces dedicated to foodservice delivery – will accelerate further due to coronavirus. Allied Market Research’s Cloud Kitchen Market Report states that the sector garnered $43.1bn in 2019, and is estimated to reach $71.4bn by 2027, registering a CAGR of 12.0% from 2021 to 2027.

The US-based research firm believes the rise in demand for online food delivery, an increase in demand for international cuisine, and adoption of tech-savvy ordering systems across will drive the growth of the global cloud kitchen market.

However, it cautioned that the increase in health issues due to consumption of fast food and competition from fine dining and quick service restaurants (QSRs) could hinder the market growth. On the other hand, increase in internet penetration and rise in adoption of social media marketing are anticipated to offer new opportunities in the coming years, according to the report.

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Allied Market Research said the operational disruption in the hotel and restaurant industries, due to the Covid-19 outbreak, has positively impacted the cloud kitchen market, as the demand for online food delivery has been increased. However, governments from all nations have made strict rules regarding hygiene for cloud kitchens to control the spread of coronavirus. The research firm reported this affected the growth of the market to a certain extent.

Based on product type, the burger/sandwich segment accounted for nearly one-fourth of the global cloud kitchen market in 2019, and is expected to maintain its lead status in terms of revenue throughout the forecast period, according to the report. This is due to the convenience and ease of availability, less preparation time, and hectic lifestyle of the consumers in developed as well as emerging countries. However, seafood is estimated to register the highest CAGR of 15.1% from 2021 to 2027.

An increase in health consciousness among the consumers across the globe is said to drive the growth of the segment.

Based on type, the independent cloud kitchen segment is claimed to have contributed to the highest market share with around two-thirds of the global cloud kitchen market in 2019, and is estimated to maintain its leadership position during the forecast period. However, the kitchen pods segment is estimated to generate the fastest CAGR of 13.9% from 2021 to 2027.

Based on region, North America accounted for the highest share based on revenue, representing more than two-fifths of the global cloud kitchen market in 2019, and is projected to maintain its dominant position throughout the forecast period. But Asia-Pacific is estimated to generate the fastest CAGR of 14.4% from 2021 to 2027.

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Clare Nicholls

The author Clare Nicholls

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