Cloud Kitchen Market to grow at a CAGR of 12.17% during 2024-2028
The Cloud Kitchen Market is expected to grow at a CAGR of 12.17% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 29482.08 million. In the dynamic and competitive cloud kitchen market, the significance of branding and packaging cannot be overstated. Packaging serves as an extension of a brand's identity, capturing consumers' attention and generating curiosity. Innovative packaging solutions, such as biodegradable and compostable options, and customized designs tailored to food products, are gaining traction. Corrugated packaging, specifically, has emerged as a popular choice for food delivery due to its thermal properties, which maintain food temperature, and protected fluting material, ensuring food freshness and preventing spills. Additionally, the use of recyclable corrugated layered board trays for items like fish sticks and French fries further enhances their appeal.
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Technavio analysts predict that the Franchised subsegment will lead the Type segment during 2024 and 2028 Cloud kitchens, commercial facilities dedicated to producing food for delivery, have experienced significant growth in recent years. These kitchens provide a diverse range of food products under one roof, catering to the increasing demand for online food delivery. Major restaurant operators and food brands are partnering with cloud kitchens through franchise agreements to expand their reach without the financial burden of investing in costly real estate and dining arrangements. The cloud kitchen model offers a platform for multiple brands to onboard their menus, thereby reducing overhead costs and enabling businesses to serve a larger customer base. The growth of online food delivery has been a key driver in the popularity of cloud kitchens, providing restaurants with an efficient and cost-effective solution to expand their operations.
Here are the various ways based on which the market is segmented:
There are several factors that are causing the market to flourish advantages of cloud kitchens over traditional restaurants
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The cloud kitchen market has seen a significant surge in recent years, with consumers increasingly turning to online food delivery services for their favorite international cuisines like Chinese and Thai food. The rise of digital technologies, including the internet, smartphones, and social media, has made ordering food from different cultures more convenient than ever before. Newspapers and magazines once dominated food trends, but television shows and digital marketing strategies now set the culinary agenda. The hectic life schedule of modern consumers and the increase in literacy rates have contributed to this trend. Shared kitchens, where multiple food businesses operate from a single commercial kitchen, have become a popular business model in the cloud kitchen market. Fast food chains and food restaurants have also joined the bandwagon, recognizing the potential of online food delivery. Customer service is a key differentiator in the cloud kitchen market, with restaurants using digital technologies to offer seamless ordering and delivery experiences. The cloud kitchen market is expected to continue growing, as more consumers embrace the convenience of online food delivery and the popularity of international cuisines shows no signs of waning.
According to Technavio, the global cloud kitchen market is a segment of the expansive global hotels, restaurants, and leisure industry. This market encompasses businesses specializing in food preparation and delivery, contributing to the industry's overall revenue alongside companies operating in casinos and gaming, hotels, restaurants, leisure, and leisure facilities. The global hotels, restaurants, and leisure industry's growth is driven by the expanding travel and tourism sector, which continues to grow steadily despite a moderate pace.
The Cloud Kitchen Market is experiencing significant growth, fueled by the advantages of cloud kitchens over traditional restaurants. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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