Market Overview:
Ghost kitchens, also known as dark kitchens, are commercial kitchen spaces that prepare food specifically for delivery and take-out, without the dine-in option. They enable restaurant brands to expand their reach without incurring the high costs of building and franchising traditional brick-and-mortar locations. Ghost kitchens allow restaurants to operate multiple virtual brands out of one centralized location. This allows restaurants to target multiple customer segments through different concepts and menus from a single location at lower costs. Ghost kitchens also provide a solution for increased delivery demands without significant investments.
Market Key Trends:
One of the key trends driving the growth of the ghost kitchen market is the increasing popularity of delivery-only brands. According to reports, delivery orders from delivery-only brands grew by over 80% in 2021 compared to 2020 levels. CloudKitchens was one of the early popular adopters of the ghost kitchen model focusing only on delivery through third-party platforms. Other operators like Kitchen United and REEF Technology have also focused on delivery-only ghost kitchen outlets. The success of these operators has encouraged many traditional restaurants and new food brands to leverage the ghost kitchen model and focus on the delivery segment through multiple virtual brands. This is expected to further fuel the growth of ghost kitchens globally over the forecast period.
The global Ghost Kitchen Market Share is estimated to be valued at US$ 71.14 Billion 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.
Porter’s Analysis
Threat of new entrants: Low startup costs, lack of restaurant infrastructure, and brand recognition make it easy for new players to enter this market.
Bargaining power of buyers: Ordering platforms aggregating supply have significant bargaining power over cloud kitchens. However, the threat is mitigated as multiple platforms encourage competition.
Bargaining power of suppliers: Ghost kitchens reduce dependency on restaurants, giving them bargaining power over suppliers. Rising popularity of delivery options improves their negotiation capacity.
Threat of new substitutes: The delivery industry is growing rapidly with new technologies, representing a threat. However, focus on specific cuisine and delivery quality differentiates ghost kitchens.
Competitive rivalry: The presence of numerous small and large players triggers competition. Branding, efficiency, costs and service quality determine winners in this dynamic environment.
Key Takeaways
The global ghost kitchen market is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period, due to increasing preference for delivery-only cuisine experiences and minimal operating costs for owners.
Regionally, North America dominates currently due to high mobile and internet penetration and rising demand for online food orders. Asia Pacific is expected to grow at the fastest pace, supported by rapid expansion of food delivery businesses in emerging countries like India and China. Growing middle-class appetite for new delivery concepts also aids the regional market.
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, Keatz. Among these, CloudKitchens and Kitchen United have established multiple virtual facilities globally through acquisitions and new projects. DoorDash Kitchens and Uber Eats Kitchens are also investing heavily in this nascent space.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
