PUBLISHER: The Business Research Company | PRODUCT CODE: 1527156
PUBLISHER: The Business Research Company | PRODUCT CODE: 1527156
A virtual kitchen, also called a ghost kitchen, is a professional facility for food preparation and cooking, dedicated to making delivery-only meals. It operates without a dine-in area and is designed to handle online orders through delivery services or directly from the restaurant's app or website.
The primary components of a virtual kitchen include software, services, hardware, and more. Software consists of instructions and programs that allow a computer or electronic device to perform specific tasks, such as running applications, managing data, and executing operations. This software is used in various settings such as workplaces, homes, schools, and others, and by different end-users including commercial spaces, residences, hospitality, and more.
The virtual kitchen market research report is one of a series of new reports from The Business Research Company that provides virtual kitchen market statistics, including the virtual kitchen industry global market size, regional shares, competitors with a virtual kitchen market share, detailed virtual kitchen market segments, market trends, and opportunities, and any further data you may need to thrive in the virtual kitchen industry. This virtual kitchen market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The virtual kitchen market size has grown rapidly in recent years. It will grow from $60.15 billion in 2023 to $68.04 billion in 2024 at a compound annual growth rate (CAGR) of 13.1%. The growth during the historic period can be attributed to the rise in social media marketing, the increased demand for international cuisines, the growing popularity of shared kitchen concepts in hotels and restaurants, the proliferation of standalone brands serving customers at single locations, and the heightened demand for fast food products.
The virtual kitchen market size is expected to see rapid growth in the next few years. It will grow to $112.47 billion in 2028 at a compound annual growth rate (CAGR) of 13.4%. The anticipated growth in the forecast period is expected to be driven by the surge in online food delivery demand, shifting consumer taste preferences, rising disposable incomes, increased smartphone usage, and easy access to the internet. Major trends projected for this period include a strong focus on advertising, strategic partnerships, transformation within the restaurant industry, innovative service launches, and technological advancement
The increasing importance of digitalization is expected to drive the growth of the virtual kitchen market. Digitalization refers to the process of converting information, data, or physical objects into a digital format that computers can easily process, store, and transmit. The rise in digitalization can be attributed to enhanced brand awareness and visibility, improved customer engagement, better customer support, and cost-effective marketing. In virtual kitchens, digitalization is crucial for streamlining operations, enhancing customer experiences, and optimizing resource management. It enables these kitchens to operate more efficiently, reduce costs, and provide a superior customer experience, which ultimately drives growth and success in the competitive food delivery market. For example, according to a February 2024 report by the United Kingdom, provisional estimates indicate that in 2022, the digital sector contributed $171.25 million to the UK economy, accounting for 7.2% of the total UK gross value added (GVA), up from 7.1% in 2021. Therefore, the increasing significance of digitalization is fueling the growth of the virtual kitchen market.
Major companies in the virtual kitchens market are focusing on developing innovative kitchens, such as ghost kitchens, to streamline operations and optimize delivery services. Ghost kitchens provide a turnkey, scalable solution for customers aiming to expand their flavors to new or existing markets, increase their off-premise presence, and drive revenue. For instance, in November 2022, Pepsicon, a US-based company, launched its ghost kitchen service for restaurant partners. This service allows customers to utilize the company's beverage and snack portfolio, including popular brands such as Pepsi, Mtn Dew, Doritos, and Cheetos, to create uniquely branded menu items and virtual experiences. It enables restaurants to start their virtual brand, bring in an outside brand, or outsource their concept to other restaurants.
In October 2021, Kitchen United, a US-based restaurant company, acquired Zuul for an undisclosed amount. This acquisition aims to strengthen Kitchen United's platform by integrating Zuul's advanced technology, particularly the ZuulOS software. Zuul, a US-based software company, offers virtual kitchen space, shared kitchens, and technology.
Major companies operating in the virtual kitchen market are Uber Eats, Starbucks Corp., DoorDash Inc., Micro-Star International, Deliveroo, Foodpanda, CloudKitchens , GrubHub Holdings Inc., Kitopi , Postmates Inc., Rebel Foods, Kitchen United, Wetzel's Pretzels LLC, Clicky Media Ltd., Deliverect, Kitchen Connect, Zuul Kitchens Inc., Dahmakan, Taster Group Ltd., Franklin Junction, The Local Culinary, Smart City Kitchens, Ghost Kitchen Orlando, Kouzina FoodTech, Nextbite
North America was the largest region in the virtual kitchen market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual kitchen market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the virtual kitchen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The virtual kitchen market consists of revenues earned by entities by providing commissary kitchens, pop-up kitchens, managed kitchens, delivery-optimized kitchens, and hybrid kitchens. The market value includes the value of related goods sold by the service provider or included within the service offering. The virtual kitchen market also includes sales of cooking equipment, food preparation equipment, packaging equipment, and delivery drones. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Virtual Kitchen Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on virtual kitchen market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for virtual kitchen ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The virtual kitchen market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.