by Dark kitchens, also known as ghost kitchens or cloud kitchens, are spaces dedicated primarily to the preparation of food for delivery or take-away. They are focused on online delivery as opposed to in-person dining and often operate out of commercial kitchen spaces without a storefront. As the popularity of food delivery services rises in the UAE, these commercial kitchens dedicated solely to delivery and takeout have seen significant growth. Dark kitchens allow restaurants to expand their delivery zones at a much lower cost than a traditional brick-and-mortar establishment. The global dark kitchens, ghost kitchens and cloud kitchens market offers food rental spaces and virtual kitchens for startups and established restaurants looking to maintain delivery-only operations or expand their delivery business.
The global UAE Dark Kitchens Ghost Kitchens Cloud Kitchens Market is estimated to be valued at US$ 330.3 million in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.
Market Dynamics:
Growing demand for online food delivery services is expected to boost the dark kitchens market in the UAE over the coming years. The rapid growth of food delivery platforms such as Talabat, Zomato and Uber Eats have encouraged many restaurants to devise delivery and takeaway focused cloud kitchen formats. This has generated significant demand for rental commercial kitchen spaces for preparation of delivery only food operations. Ghost kitchens help restaurants hedge against risks and high real estate costs associated with traditional brick-and-mortar places while granting access to expanded delivery locales. As the popularity of online food delivery continues increasing in UAE backed by growing internet and smartphone penetration, dark kitchens are poised to benefit from the rising consumption of takeout and delivered meals.
Investments from major food brands in digital kitchen ventures is another important driver of the dark kitchens industry. For instance, in 2021, Kitopi, a cloud kitchen company, raised over $60 million in new funding led by Delivery Hero to scale its own brands and virtual cuisine offerings for partner restaurants across the Middle East region including UAE. Such funding and deals demonstrate strong interest from investors and restaurant chains in the expanding dark kitchens space.
Segment Analysis
The UAE Dark Kitchens, Ghost Kitchens, and Cloud Kitchens market is segmented into independent kitchens and chain kitchens. The independent kitchen segment currently dominates the market with over 60% share. This is because independent kitchen operators have more flexibility to customize menus as per local customer preferences and dietary requirements. They can also quickly scale operations and introduce new concepts in growing market areas compared to chain kitchen operators.
PEST Analysis
Political: The UAE government is promoting food delivery business growth through various policy initiatives like easing regulations. This is positively impacting the dark kitchen market.
Economic: Rising disposable incomes and busy lifestyle of people are driving the demand for delivered meals prepared in dark kitchens. The economic growth outlook for UAE also supports the market expansion.
Social: Changing demographics like increase in young population and more people living alone is increasing the customer base for delivered food prepared in dark kitchens. Moreover, growing awareness about cloud kitchen concept acceptance is aiding the market.
Technological: Adoption of advanced technologies like AI, data analytics and mobile apps by cloud kitchen operators help enhance customer experience through personalized offerings and optimized order fulfilment. This is an important growth lever for the UAE dark kitchen market.
Key Takeaways
The UAE Dark Kitchens, Ghost Kitchens, And Cloud Kitchens Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by changing consumer preferences and rapid digitalization. The regional analysis indicates that Dubai dominates currently with over 40% market share due to high density of young working professionals demanding convenient dining options.
Key Players like COYA Dubai, Freedom Pizza, Project Pie have established strong presence in Dubai by leveraging latest technologies, competitive pricing and expanding portfolio. Other major cities like Abu Dhabi and Sharjah are also emerging as high growth areas for dark kitchen business. Key players operating in the UAE Dark Kitchens, Ghost Kitchens, and Cloud Kitchens market are COYA Dubai, Freedom Pizza, Project Pie, The Mattar Farm Kitchen, Kitopi, Sweetheart Kitchen, Foody, Dalia Kitchen, OvenFresh, Kaykroo. They are differentiating service offerings and focusing on hyperlocal expansions to capture more market share.
Objectives of the Report:
1) Investigate and forecast the value and volume of the UAE Dark Kitchens And Ghost Kitchens market.
2) Estimate market shares for major UAE Dark Kitchens And Ghost Kitchens segments.
3) To demonstrate how the market for UAE Dark Kitchens And Ghost Kitchens is evolving in various parts of the world.
4) Research and analyze micro markets in terms of their contributions to the UAE Dark Kitchens And Ghost Kitchens market, as well as their prospects and individual growth patterns.
5) To provide precise and useful information on the factors influencing the rise of UAE Dark Kitchens And Ghost Kitchens.
6) To provide an in-depth analysis of key business strategies used by major companies in the UAE Dark Kitchens And Ghost Kitchens market, such as R&D, collaborations, agreements, partnerships, acquisitions, mergers, new product launches, and acquisitions, mergers, and acquisitions.
FAQ’s
Q.1 What are the main factors influencing the UAE Dark Kitchens And Ghost Kitchens market?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top UAE Dark Kitchens And Ghost Kitchens Market companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the UAE Dark Kitchens And Ghost Kitchens market’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
*Note:
1. Source: CoherentMI, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
