Report Code : A15823
The Saudi Arabia cloud kitchen market is expected to witness significant growth owing to increase in demand for fast food among millennial and Gen Z. Moreover, introduction of new advance technology such as autonomous vehicle and drones has reduced the food delivery time, which has further augmented the growth of market. In addition, rise in trend of online advertisement of cloud kitchen products is anticipated to boost the overall revenue of the industry.
Shankar Bhandalkar
Team Lead-Research, Food & Beverages at Allied Market Research
According to a new report published by Allied Market Research, titled, “Saudi Arabia Cloud Kitchens Market by Type, Product Type, and Nature: Opportunity Analysis and Industry Forecast, 2021–2030,” the Saudi Arabia cloud kitchen market size was valued at $157.0 million in 2020, and is estimated to reach $335.7 million by 2030 with a CAGR of 7.7% from 2021 to 2030. Cloud kitchens are also known as dark or shared kitchens. Cloud kitchens are delivery-only kitchens which can be owned by a brand or third party working with various brands. Moreover, increase in number of youngsters population globally along with changing taste preference of the consumers have raised the demand for online food delivery. Hectic life schedule and rise in consumer disposable income are the major factors due to which trend of ordering food online has increased.
Furthermore, increase in usage of smart phones, rise in literacy and easy access to the internet has made the work of ordering food easier. Now a days, food restaurant are tying up with online food service site for the delivery of food and also to increase their sales. Moreover, online food delivery services also provide lots of offers, which attracts the consumer and also helps in increasing consumer base. Hence, effective offers and good customer service boosts the growth of the Saudi Arabia cloud kitchen industry.
The Saudi Arabia cloud kitchen market is segmented into type, product type, nature, and region. By type, the market is categorized into kitchen, commissary/shared kitchen, and kitchenpods. By product type, it is classified into burger/sandwich, pizza/pasta, chicken, seafood, Mexican/Asian food, and others. By nature, it is bifurcated into franchised and standalone. By type, the kitchenpods cloud kitchen segment is growing with the highest CAGR followed by commissary/shared kitchen.
The commissary/shared kitchen model segment is evolving and emerging globally. In addition, the spread of commissary/shared kitchen is being boosted by changing tastes and an increasing market for fresh, healthy, local and sustainable food, which is also supporting a revival of food entrepreneurship.
Moreover, renting space in commissary/shared kitchen on an hourly, daily or monthly basis is a major trend in cloud kitchen market. In addition, renting space also helps in producing food in compliance with regulatory requirements without needing to invest in their own facility during a stage when cash flow and capital are a challenge.
By product type, the chicken segment holds the largest Saudi Arabia cloud kitchen market share, accounting for 23.7% of the total revenue in 2020, followed by burger/sandwich segment. Chicken is a most common processed poultry meat products in the Saudi Arabia. Chicken is used in various product types of cloud kitchen products including burgers, pizzas, and others. The chicken segment has gained a major popularity among the consumers due to its affordable pricing and nutritional value. It is considered as an easily available source of high-protein nutrients. Therefore, chicken is most recommended food product for consumption by all age groups.
By nature, the franchised segment led in terms of market value in 2020, and is expected to retain its dominance during the forecast period. Moreover, the trend of franchising is increasing amongst the stakeholder as it helps in expansion of the business and it requires less capital owing to which stakeholders are majorly interested in franchising their cloud kitchens.
Key Findings Of The Study
The key players profiled in the report are Kaykroo, Kitopi, iKcon, kitch, Talabat, Sweetheart Kitchen, Kitchen United, Kitchen Park, The Leap Nation and Food To Go.
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Saudi Arabia Cloud Kitchen Market by Type (Independent Cloud Kitchen, Commissary/Shared kitchen, and Kitchen Pods), Product Type (Burger/Sandwich, Pizza/Pasta, Chicken, Seafood, Mexican/Asian Food and Others) and Nature (Franchised and Standalone): Opportunity Analysis and Industry Forecast, 2021–2030
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