India Cloud Kitchen Market Size More Than Triples at Robust CAGR of 23.8% to Reach USD 2.9 Billion by 2029

Published | 30 November 2023

India cloud kitchen market is flourishing because of the increasingly high popularity of online food delivery and high disposable income among consumers.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India cloud kitchen market size at USD 800 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the India cloud kitchen market size to grow at a robust CAGR of 23.8% reaching a value of USD 2,880 million by 2029. Major growth drivers for the India cloud kitchen market include the increasing demand for online food and grocery delivery services, fostering a surge in the number of startups supported by substantial investor backing. Transforming to enhance customer service, the industry embraces quick commerce to expedite delivery times. Cloud kitchens present an enticing alternative to traditional dine-in restaurants, offering lower initial investments, reduced operating costs, and enhanced expansion opportunities, as outlined in a recent report. Concurrently, the industry undergoes disruption as specialized service providers introduce diverse infrastructure and support services, fostering innovative business models. Key trends involve technology integration, automation, and a 'House of Brands' model, offering diverse cuisines and subscription plans, supported by substantial funding activity and increased demand from tier 2-4 cities. Quick Service Restaurants (QSRs) further extend into cloud kitchens, marking a dynamic evolution in the industry. However, high reliance on delivery platforms is anticipated to restrain the overall market growth during the period in analysis.

Cloud Kitchen – Overview

A cloud kitchen, also known as a virtual, ghost, or dark kitchen, operates solely for delivery without a physical dining or takeout area. These kitchens, which receive orders through restaurant apps or food aggregator platforms, represent a significant trend in the food industry. In Delhi alone, there are over 20,000 active cloud kitchens, with an annual growth rate exceeding 20%. This model, exemplified by popular names like Faasos by Rebel Foods, Hoi Foods, and Biryani By Kilo, offers efficient food production, supporting numerous direct and indirect jobs. The rise of cloud kitchens is transforming the traditional restaurant landscape, focusing on online orders and delivery services.

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Impact of COVID-19 on India Cloud Kitchen Market

COVID-19 pandemic had a mixed impact on the India cloud kitchen market. With lockdowns and restrictions altering consumer behavior, there has been an accelerated shift toward online food delivery. Cloud kitchens, leveraging their delivery-centric model, witnessed increased demand, reflecting a resilience in the face of the crisis. The emphasis on contactless transactions and home dining further fueled the growth trend. However, challenges such as supply chain disruptions and workforce limitations impacted operations. As the market navigates post-pandemic recovery, the experience underscores both the adaptability of cloud kitchens and the need for strategic resilience in responding to unforeseen disruptions in the food industry landscape.

India Cloud Kitchen Market – By Product

Based on product, the India cloud kitchen market is divided into Burger/Sandwich, Pizza, Pasta, Chicken, Seafood, and Mexican/Asian Food segments. The burger/sandwich segment holds the highest share in the India cloud kitchen market by product. The dominance reflects the popularity of these quick and versatile offerings, appealing to a broad consumer base. Cloud kitchens specializing in burgers and sandwiches benefit from the convenience of online ordering, aligning with the fast-paced lifestyle. The widespread acceptance of these iconic food items, coupled with efficient delivery mechanisms, contributes to their market prominence. With a focus on quality and variety, cloud kitchens in the burger/sandwich segment successfully capture consumer preferences, making it a thriving and integral component of the diverse and dynamic Indian cloud kitchen landscape.

Competitive Landscape

Major players operating in the India cloud kitchen market include Biryani By Kilo, Masalabox, Kitchen United, Kitopi, KEATZ, Rebel Foods, and Zuul Kitchens. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India Cloud Kitchen Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Cloud Kitchen Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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