New research suggests the global cloud kitchen market could grow by more than $1 billion over the five-year period to 2024.
Cloud kitchens have emerged as a promising business model due to the rapid increase in consumer demand for food delivery.
There has been sharp rise in the number of online food orders owing to the emergence of new online platforms, especially during the pandemic.
Data firm Technavio said that compared to 2019, the cloud kitchen space will be worth an extra $1.18 billion by 2024.
With the increase in penetration of the internet and the use of mobile applications, many people prefer ordering food through mobile applications and online portals.
At the same time, the adoption of cloud kitchens has helped to reduce rent and labor costs incurred by restaurants.
Technavio said the biggest threat to the cloud kitchen market is the preference for home-cooked food over “fast food that is perceived to be unhealthy”.
59% of the market’s growth is expected to originate from the Asia-Pacific market during the next three years due to expansion in China, India, and Japan.
Market growth in this region will be faster than in North America and Europe.
