Market Research Report

Middle East & Africa Cloud Kitchen Market Research Report: Forecast (2023-2028)

By Type (Independent Kitchen, Commissary/Multi-brand Kitchen, Kitchen Pods, Outsourced Kitchen), By Nature, (Franchised, Standalone), By Country, (Saudi Arabia, The UAE, Egypt, Tur...key, Israel, South Africa, Rest of the Middle East & Africa), By Company (Arjan Cloud Kitchen, Avane Cloud Kitchen, Comida Cloud Kitchen, Grubtech, Jozi Cloud Kitchen, Kaykroo, KITCH, Kitchen United, Kitopi, IKCON, Meal Box, Sweetheart Kitchen, The Food Lab) Read more

  • ICT & Electronics
  • Jun 2023
  • 152
  • PDF, Excel, PPT

Market Definition

Cloud kitchens, also known as ghost kitchens or virtual kitchens, are kitchens that prepare food, especially for delivery, and have no storefront. While the concept of cloud kitchens has been in the market for several years, the advent of the Covid-19 pandemic gave a significant boom to this industry, as stay-at-home orders were enforced worldwide for public safety. Due to benefits like reduced rentals & overhead costs, fewer investments for setup, & less manpower required, as compared to a dine-in restaurant, several restaurants, especially across the Middle East & Africa, are adopting cloud kitchen models in order to serve the burgeoning consumer requirements for online food orders.

Market Insights & Analysis: Middle East & Africa Cloud Kitchen Market (2023-28)

The Middle East & Africa Cloud Kitchen Market is expected to grow at a CAGR of around 19.36% during the forecast period, i.e., 2023-28. Most of the market expansion would be driven by the burgeoning demand for food delivery, the flourishing e-commerce industry, and rapid digital transformation. Besides, increasing urbanization and busy lifestyles, which are leading to shifting consumer preferences, are also driving the cloud kitchen industry in the region.

As cities become more densely populated and consumers seek convenience, cloud kitchens are offering an alternative to traditional dine-in experiences by catering to the evolving preferences of urban consumers looking for fast, convenient, and a wide variety of food options. The region has a rich & diverse food culture, with a wide range of ethnic cuisines, on which cloud kitchens have capitalized by offering specialized & niche food concepts to meet specific food preferences of consumers and tap into various market segments.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 19.36%
Country Covered Saudi Arabia, The UAE, Egypt, Turkey, Israel, South Africa, Rest of the Middle East & Africa
Key Companies Profiled Arjan Cloud Kitchen, Avane Cloud Kitchen, Comida Cloud Kitchen, Grubtech, Jozi Cloud Kitchen, Kaykroo, KITCH, Kitchen United, Kitopi, IKCON, Meal Box, Sweetheart Kitchen, The Food Lab, Others
Unit Denominations USD Million/Billion

 

Some countries within the Middle East & Africa have implemented favorable regulations & initiatives to promote entrepreneurship & innovation in the food industry, which, in turn, has facilitated the establishment & growth of cloud kitchens, i.e., providing a conducive environment for entrepreneurs & virtual restaurant brands to thrive.

Furthermore, strategic investments and partnerships from both local & international players, which include mega investments in cloud kitchen facilities, technology solutions, and collaborations between cloud kitchen operators & food delivery platforms, are also playing a crucial role in augmenting the adoption of ghost kitchens in the region and, consequently, creating lucrative prospects for the leading companies operating in the Middle East & Africa Cloud Kitchen Market.


Middle East & Africa Cloud Kitchen Market Research Report: Forecast (2023-2028)

Middle East & Africa Cloud Kitchen Market Driver:

Ever-Increasing Demand for Food Delivery Services - The Middle East & Africa region has witnessed a significant rise in the number of people ordering food online, backed by factors like busy lifestyles, urbanization, convenience, and changing consumer preferences. In order to cater to this demand, cloud kitchens provide a cost-effective & efficient solution by enabling virtual restaurant brands to operate without the need for a physical dining space and focus solely on preparing & delivering food to consumers' doorsteps. Digitalization trends, the booming e-commerce sector, and the mounting proliferation of online food delivery platforms are thus contributing to the ever-increasing demand for food delivery services and, in turn, driving the cloud kitchen industry in the Middle East & Africa.

Middle East & Africa Cloud Kitchen Market Growth Restraint:

Limited Internet Connectivity & Digital Infrastructure in Certain Areas - While the Middle East & Africa region has witnessed significant advancements in digital infrastructure, including high smartphone penetration & increasing internet access, there are still areas with inadequate connectivity, especially in rural or remote locations, which hinders the seamless operation of cloud kitchens, as they rely heavily on online platforms for order placement, communication, & delivery logistics. In areas with weak or unreliable internet connections, cloud kitchen operators may face challenges while managing online orders, maintaining real-time inventory, and ensuring efficient delivery operations. In addition, some areas within the region have lower levels of digital literacy and consumer trust in online platforms, which also impacts the adoption & growth of cloud kitchens. Hence, these aspects might hamper the fledged expansion of the Middle East & Africa Cloud Kitchen Market during 2023-28.

Middle East & Africa Cloud Kitchen Market (2023-28): Segmentation Analysis

The Middle East & Africa Cloud Kitchen Market study from MarkNtel Advisors analyzes the major trends in each sub-segment and includes predictions for the period 2023–28 at the global, regional, and national levels. The market has been segmented in our analysis based on type & nature:

Based on Type:

  • Independent Kitchen
  • Commissary/Multi-Brand Kitchen
  • Kitchen Pods
  • Outsourced Kitchen

Of them all, independent kitchens hold a prominent share of the Middle East & Africa Cloud Kitchen Market. These are the wholly owned kitchens of a single brand that don't offer a dining space and rely extensively on third-party delivery channels. Since these kitchens have the freedom to experiment with various cuisines, menu offerings, & food concepts, they serve customers who desire a certain type of food and often bring innovative & unique dishes to the market. Their growing adoption in the Middle East & Africa also owes to their flexibility & agility in adapting to changing market trends, as they can quickly adjust their menus, pricing, & branding to meet evolving customer preferences and stay competitive in the fast-paced food delivery industry.

Seeing their popularity, many food entrepreneurs are pursuing their culinary passions and have started their own virtual restaurant brands without the need for a physical restaurant space. By collaborating with food delivery platforms, these kitchens have enabled them to reach a broader customer base. Thus, the increasing number of standalone food brands operating from a single location in the region and growing consumer preferences for international cuisines & fast food are amplifying the adoption of independent kitchens and, in turn, spurring growth in the Middle East & Africa Cloud Kitchen Market.

Based on Nature:

  • Franchised
  • Standalone

Here, franchised cloud kitchens hold a significant market share. It ascribes primarily to the less capital required for franchising a brand, as a result of which more & more stakeholders are showing greater interest in such kitchens. Franchised cloud kitchens offer the advantage of established brand recognition & proven business models. They leverage the popularity & reputation of existing restaurant brands to attract customers and expand their presence in new markets. In addition, they often have a standardized operating system, centralized supply chain management, and support from the franchisor, which provides a level of consistency & reliability for customers.

The growing popularity of large restaurant chains that have high brand equity and offer international cuisine, customized dishes, & excellent service quality is also instigating stakeholders to opt for franchised cloud kitchens across the region. As more & more stakeholders are becoming aware that investing in well-established brands involves minimal risks as franchisors provide training & support associated with multiple aspects like supplies, equipment, staff, & marketing, franchised kitchens are gaining immense popularity across the region and spurring growth in the Middle East & Africa Cloud Kitchen Market.

Middle East & Africa Cloud Kitchen Market Country Projection

Geographically, the Middle East & Africa Cloud Kitchen Market expands across:

  • Saudi Arabia
  • The UAE
  • Egypt
  • Turkey
  • Israel
  • South Africa

Of all countries, the UAE, particularly Dubai, holds the maximum share of the Cloud Kitchen Market in the Middle East. The country has been at the forefront of the cloud kitchen trend in the region and has witnessed a significant rise in the number of cloud kitchen facilities & virtual restaurant brands due to various factors, including the vibrant food & delivery culture, favorable business environment, and high smartphone penetration.

Dubai serves as a regional hub for business & tourism. Its central location between Europe, Asia, and Africa makes it an ideal base for cloud kitchen operators to reach an extensive customer base not just in the Middle East but also beyond. It boasts advanced digital infrastructure and high internet penetration rates, which allows for efficient online ordering & delivery systems and, in turn, supports the growth of cloud kitchens while facilitating seamless integration with food delivery platforms.

The diverse population of the UAE that appreciates a wide range of cuisines further creates a favorable environment for cloud kitchen operators. Due to a vibrant food scene, both residents & tourists alike seek convenient & diverse dining options, which are being fulfilled by cloud kitchens. Hence, the significantly increasing demand for food delivery services, backed by the busy urban lifestyle, convenience, and rising consumer preferences for online ordering, cloud kitchens are capitalizing on this trend by offering quick & efficient delivery-only concepts and, consequently, fueling the overall growth of the Middle East Cloud Kitchen Market.

Middle East & Africa Cloud Kitchen Industry Recent Developments 

  • On 1 March 2023, Kitopi, the UAE’s leading satellite kitchen chain, announced a deal to acquire AWJ, a popular regional f&B group, the size of which was not disclosed, but Kitopi mentioned it as one of the largest transactions in the f&b sector across the MEA.
  • On 06 January 2022, REEF, the largest operator of virtual restaurants, logistics, & proximity hubs in North America, announced a joint venture with Americana Group, the largest Food & Beverage operator in the Middle East region, to open cloud kitchens that will operate REEF, Americana, & third party brands.

Gain a Competitive Edge with Our Middle East & Africa Cloud Kitchen Market Report

  1. Middle East & Africa Cloud Kitchen Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
  2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
  3. Middle East & Africa Cloud Kitchen Market report aids in assessing and mitigating risks associated with entering or operating in the market.
  4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.

Frequently Asked Questions

   A. The Middle East & Africa Cloud Kitchen Market is projected to grow at a CAGR of around 19.36% during 2023-28.

   A. The ever-increasing demand for food delivery services is the prime aspect expected to drive the Middle East & Africa Cloud Kitchen Market in the coming years.

   A. Arjan Cloud Kitchen, Avane Cloud Kitchen, Comida Cloud Kitchen, Grubtech, Jozi Cloud Kitchen, Kaykroo, KITCH, Kitchen United, Kitopi, IKCON, Meal Box, Sweetheart Kitchen, The Food Lab, and The Kitchen are the key companies participating in the Middle East & Africa Cloud Kitchen Market.

   A. Limited internet connectivity and lack of digital infrastructure in certain regions might hamper the growth of the Middle East & Africa Cloud Kitchen Market through 2028.

   A. Independent kitchens would provide profitable opportunities to the leading players in the Middle East & Africa Cloud Kitchen Market during 2023-28.

   A. Across the Middle East & Africa, the UAE would generate remunerative prospects for the Cloud Kitchen Market in the next few years.

Middle East & Africa Cloud Kitchen Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Impact of COVID-19 on The Middle East & Africa Cloud Kitchen Market
  5. The Middle East & Africa Cloud Kitchen Start-up Ecosystem
  6. The Middle East & Africa Cloud Kitchen Market Trends & Insights
  7. The Middle East & Africa Cloud Kitchen Market Dynamics
    1. Drivers
    2. Challenges
  8. The Middle East & Africa Cloud Kitchen Market Porters Five Forces Analysis
  9. The Middle East & Africa Cloud Kitchen Market Regulations & Policies
  10. The Middle East & Africa Cloud Kitchen Market Hotspots & Opportunities
  11. The Middle East & Africa Cloud Kitchen Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
        1. Independent Kitchen
        2. Commissary/Multi-brand Kitchen
        3. Kitchen Pods
        4. Outsourced Kitchen
      2. By Nature
        1. Franchised
        2. Standalone
      3. By Country
        1. Saudi Arabia
        2. The UAE
        3. Egypt
        4. Turkey
        5. Israel
        6. South Africa
        7. Rest of the Middle East & Africa
      4. By Company
        1. Competition Characteristics
        2. Market Share of Leading Companies
  12. Saudi Arabia Cloud Kitchen Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Product Type
      3. By Nature
  13. The UAE Cloud Kitchen Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Product Type
      3. By Nature
  14. Egypt Cloud Kitchen Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Product Type
      3. By Nature
  15. Turkey Cloud Kitchen Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Product Type
      3. By Nature
  16. Israel Cloud Kitchen Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Product Type
      3. By Nature
  17. South Africa Cloud Kitchen Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
      2. By Product Type
      3. By Nature             
  18. The Middle East & Africa Cloud Kitchen Market Key Strategic Imperatives for Growth & Success
  19. Competition Outlook
    1. Competition Matrix
      1. Brand Specialization
      2. Target Markets
      3. Target End Users
      4. Research & Development
      5. Strategic Alliances
      6. Strategic Initiatives
    2. Company Profiles
      1. Kaykroo
      2. Kitopi
      3. IKCON
      4. KITCH
      5. Sweetheart Kitchen
      6. Kitchen United
      7. Arjan Cloud Kitchen
      8. The Kitchen
      9. Jozi Cloud Kitchen
      10. The Food Lab
      11. Grubtech
      12. Comida Cloud Kitchen
      13. Avane Cloud Kitchen
      14. Meal Box
      15. Others
  20. Disclaimer


Middle East & Africa Cloud Kitchen Market Segmentation