India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market is Segmented By Type (Independent Cloud Kitchens, Shared Kitchen Spaces, Kitchenpods), By Product Type (Fast Food ....
Market Size in USD Mn
CAGR15.6%
Study Period | 2023 - 2030 |
Base Year of Estimation | 2022 |
CAGR | 15.6% |
Largest Market | India |
Market Concentration | High |
Major Players | Rebel Foods, Swiggy, Zomato, FreshMenu, Box8 and Among Others. |
The India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market size was valued at US$ 552 million in 2023 and is expected to reach US$ 1523 million by 2030, grow at a compound annual growth rate (CAGR) of 15.6% from 2023 to 2030. Dark kitchens, also known as cloud kitchens or ghost kitchens, are delivery-only kitchens with no dine-in facility. They are designed for preparing food exclusively for online delivery through food delivery apps. The key advantage of dark kitchens is increased convenience, cost benefits, and quick delivery of food. The market growth is driven by factors like rising demand for online food delivery, increasing disposable incomes, and supportive government policies.
The India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market is segmented by business model type, kitchen type, by food type, by ordering method, and cities. By type, the market is segmented into Independent Cloud Kitchens, Shared Kitchen Spaces, and Kitchen Pods. Independent Cloud Kitchens is the largest segment, accounting for over 40% of the total market revenue in 2022. The Independent Cloud Kitchens segment is growing rapidly due to expansion of cloud kitchen chains.
New Delhi NCR is expected to hold a significant share
Figure 1. India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Share (%), by Type, 2023
Rebel Foods, Swiggy, Zomato, FreshMenu, Box8, EatFit, Faasos, Holachef, Biryani By Kilo, Licious, Foodpanda, InnerChef, UberEats, Oven Story, Hoi Foods, Eatonomist, Happy Eats, Box C, Curefoods Brands.
India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market
During the pandemic the Indian food landscape saw a significant shift towards online food ordering, the pre pandemic consumer behaviors of ordering in or take away was further accelerated owing to the pandemic induced restriction. These restriction carved out the niche of cloud /ghost / dark kitchen during the pandemic. Many food aggregators and restaurant entered the space owing to low entry barrier and low capital investment. Cloud Kitchen market saw market players with chains operating country wide to a specific geographic based kitchens providing plethora of food ranging from health to gourmet food.
However, the market also faces certain restraints. One of the key challenges is the issue of lack of hygiene and regulations to maintain a standard kitchen quality. Currently, there are no hygiene and food safety guidelines mandated specifically for dark kitchens in India. The lack of regulation also prevents their growth across regions. Consumer’s perception about the hygiene standards at some small dark kitchens also negatively impacts market growth. The need is for unified hygiene and licensing regulation to support the nascent market segment.
Nevertheless, there is a large untapped market opportunity for dark kitchens in tier 2 and 3 cities of India. Food delivery apps like Swiggy are expanding deep into small towns and cities to access this new target segment. The lower rent and labor costs in small towns also make it profitable to launch cloud kitchens there. Dark kitchens can cater to the latent demand from consumers in these cities who have limited access to quality restaurants. Sit-down restaurant brands can also leverage dark kitchens to grow their reach into smaller towns for added revenue streams.
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What are the key factors hampering growth of the India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market?
High real estate costs, lack of standardized regulation, stiff competition, high operational costs, unorganized sector, negative perception about hygiene of delivery-only kitchens, finding suitable locations in metro cities.
What are the major factors driving the India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market growth?
Rising internet penetration, increasing demand for online food delivery, busy work schedules, convenience and easy availability of food, cost benefits for restaurants, innovative food offerings.
Which is the leading component segment in the India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market?
Independent/standalone cloud kitchens lead the India dark kitchens market owing to low infrastructure costs and easy scalability.
Which are the major players operating in the India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market?
Rebel Foods, Swiggy, Zomato, FreshMenu, Box8, EatFit, Faasos, Holachef, Biryani By Kilo, Licious, Foodpanda, InnerChef, UberEats, Oven Story, Hoi Foods, Eatonomist, Happy Eats, Box C, Curefoods Brands.
Which region will lead the India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market?
Asia Pacific is expected to lead the India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market.
What will be the CAGR of India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market?
The CAGR of India Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market is expected to be around 38% from 2023-2030.