Europe Cloud Kitchen Market

Europe Cloud Kitchen Market Size (2023 to 2028)

Europe's Cloud Kitchen Market was valued at $872.94 billion in 2023 and is expected to reach $2245.52 billion by 2028, growing at a CAGR of 20.8% from 2023 to 2028.

A "cloud kitchen" is a commercial kitchen that only prepares food for delivery or takeout, with no dine-in customers. Cloud kitchens allow restaurateurs to start a virtual brand or expand an existing restaurant at a low cost. A "cloud kitchen," also known as a "ghost kitchen" or "virtual kitchen," is a commercial kitchen space that allows food businesses to prepare menu items for delivery and takeout. Cloud kitchens, as opposed to traditional brick-and-mortar locations, enable food businesses to create and deliver food products with minimal overhead.

Market Drivers:

One of the major factors driving the growth of the cloud kitchen market is the rise of on-demand food delivery worldwide. In addition, the growing popularity of cloud kitchens, also known as virtual or ghost kitchens, is less expensive than traditional kitchens in dine-in restaurants and does not require dine-in facilities or account for costs related to location and property driving the market growth. The increased demand for cloud kitchens due to the flexibility of operating ghost kitchens from any location, ranging from basements and warehouses to parking spaces, as well as the high adoption of ghost kitchens due to the wide range of benefits, all have an impact on the market. Furthermore, rapid urbanization, smart strategic marketing activities, and the use of the dark kitchen to test and identify foods before presenting them to consumers have a positive impact on the cloud kitchen market. Furthermore, technological advancements provide profitable opportunities to market participants during 2022–2027.

In addition, Experimentation is possible. Cloud kitchens enable restaurateurs and entrepreneurs to experiment with new concepts, fail quickly, and easily discard ideas that aren't working with minimal exposure. More effective Cloud kitchens can operate very efficiently by utilizing custom-built spaces and optimizing processes specifically for delivery. Furthermore, the increase in the number of startups, the increase in the number of cloud kitchens across the region, and the increase in internet users motivate people to order food online. These are some of the driving factors that contribute to the growth of the European cloud kitchen market.

Market Restraint:

Some factors that may impede market growth include operating a cloud kitchen and forgoing the walk-in traffic provided by a storefront. One of the reasons why people are more attached to a restaurant is that they prefer to dine in and enjoy the view of the ambience, where they can spend their time with family, friends, and relatives, as well as interact with the restaurant staff. This factor is completely missing from the cloud kitchen concept, which may limit the growth of the European cloud kitchen market. Customers are also discouraged from ordering food online as the cost of premium delivery rises. Furthermore, as the increase in the number of internet users and the increase in the number of cloud users increases cybercrime, there may be a risk of disclosure of the private data and information of the customers. These are some restraining factors that may hinder the market's growth.

Impact of Covid-19 on the Europe Cloud Kitchen Market:

During the COVID-19 pandemic, many businesses were impacted, resulting in numerous critical changes in the food industry. One such example is the growing popularity of cloud kitchens due to customers' increased reliance on such establishments. Cloud kitchens that operate on a delivery-only model receive orders, prepare meals, and deliver them to customers. So it's no surprise that cloud kitchens have become the preferred option for many people. And there is no doubt that these kitchens will remain the new norm even after the pandemic has passed. During the pandemic, the European cloud kitchen market has maintained rapid growth, and during the forecast period, it will maintain moderate growth.

REPORT COVERAGE:

This research report on the Europe cloud kitchen market has been segmented and sub-segmented into the following categories.

Europe Cloud Kitchen Market -By Type:

• Independent Cloud Kitchen, 
• Commissary/Shared kitchen, 
• KitchenPods

The independent cloud kitchen is holding the majority. It is expected to rise in the coming year during the forecast period as the increase in demand for the food and beverage industry's consumers' first preference is hygienic, which many trust the independent cloud kitchen.

Europe Cloud Kitchen Market – By Product Type:

• Burger/Sandwich
• Pizza/Pasta
• Chicken
• Seafood
• Mexican/Asian Food
• Chinese
• Others

The Burger/Sandwich segment holds the dominant share of the Europe cloud kitchen market. The increasing prevalence of various food products is majorly promoting the demand of this segment. The pizza/pasta segment is next in leading the shares of the market.

Europe Cloud Kitchen Market – By Nature:

• Franchised
• Standalone

Based on the nature of the European cloud kitchen market, it is segmented by franchise and standalone. Because there is an increase in the number of new startups in the cloud kitchen and the demand for these startups to sustain themselves in the market, the standalone cloud kitchen is expected to grow during the forecast period and hold the major cloud kitchen market. However, the increase in brand value in the market means people trust the brand more, which may also lead to an increase in the growth of the franchise cloud kitchen.

Europe Cloud Kitchen Market- By Region:

• Germany
• Bulgaria
• France
• U.K
• Italy
• Spain
• Turkey
• Belgium
• Netherlands
• Switzerland
• Sweden
• Finland

Based on the region's analysis, the German market dominated the European cloud kitchen market and is expected to hold the market share during the forecast period. Furthermore, the UK will exhibit a CAGR during the forecast period (2022-2027). Furthermore, France, the Netherlands, Switzerland, Denmark, Sweden, Finland, and Belgium will experience moderate growth in the European cloud computing market between 2022 and 2027. 

KEY MARKET PLAYERS:

Cooklane, Karma Kitchen, Gopuff, DoorDash, Jacuna kitchens, Nextbite Brands LLC.

Recent HAPPENINGS IN THE MARKET:

• Karma Kitchen, a kitchen space startup based in London, has raised £252 million in a Series A funding round to open dozens of new locations across Europe. The deal is being led by Vengrove Real Estate Management, a real estate investment firm, and will see Karma Kitchen acquire, equip, and manage dozens of kitchen sites across Europe. Unlike a typical venture capital transaction, this one uses an "opcode-prop co" structure, in which Karma Kitchen's "prop" will buy and fit out freehold sites. At the same time, the "opco" will invest in the technology, people, and marketing operations required to scale quickly.
• DoorDash, the largest US food delivery company, is planning its first European investment in Gorillas, a fast-growing Berlin-based grocery delivery app. According to people familiar with the company's plans, Gorillas is looking to raise hundreds of millions of dollars in funding at a valuation of around $2.5 billion, a far cry from its original target of $6 billion. According to these sources, DoorDash has expressed interest in participating in the round.