Market Challenges And Opportunities

Global Cloud Kitchen Market Drivers:

Growing demand for international cuisine to augment market growth

Increasing globalization and growing number of working populations are contributing to the demand for international cuisines. Moreover, the cloud kitchen market is also growing rapidly due to the surge in demand for high-quality food delivery services from hungry millennials who are willing to pay premium prices. Furthermore, the technology is also evolving, with new services being offered to streamline the management of various deliveries through multiple platforms, and to optimize production workflows for faster delivery of food.

Increasing demand for online food delivery to propel market growth

Online food delivery allows customers to order prepared meals or ingredients from restaurants via apps and have them delivered to their homes. Food is usually delivered by third-party delivery services that integrate with restaurants’ own app or website. Online food delivery service market is playing very important role in the overall development of cloud kitchen market.

Global Cloud Kitchen Market Opportunities:

Increasing investment by key players in the cloud kitchen market is expected to present lucrative market opportunities. For instance, In September 2022, A Manila-headquartered startup - CloudEats, which operates cloud kitchens across the Philippines and Vietnam, has raised a $7 Billion Series A extension led by Nordstar to accelerate the digitization of food service in Southeast Asia. The startup plans to penetrate farther into Southeast Asian countries such as Thailand, Malaysia and Indonesia in 2023.

Other factors that are expected to offer profitable market opportunities are rising consumer preference for online food ordering and fast food delivery, growing disposable income of individuals, and changing lifestyles. Additionally, the rising number of smartphone users is also propelling the growth of this market. Furthermore, the emergence of new technology and innovations in the field of kitchen automation and robotics is helping the cloud kitchen market to flourish.

Global Cloud Kitchen Market Restraints:

Health issues associated with the consumption of fast is expected to hinder market growth

A key challenge for the growth of cloud kitchens is ensuring that the prepared food meets health and safety standards. This needs a comprehensive food safety management system and adherence to strict hygiene rules and regulations. This factor is expected to hamper the market growth.

Competition from dining and quick service restaurant (QSRs) is projected to restrict market growth

The rise in number of dining and QSR such as McDonald, Subway, KFC, Pizza Hut, Starbucks, Restaurant Brands International, and Dunkin Donut are one of the key factors that restrict the growth of the cloud kitchen market. Moreover, this quick service restaurant has global presence due to which smaller cloud kitchen are unable to compete with these giants.