Market Research Report

Saudi Arabia Cloud Kitchen Market Research Report: Forecast (2024-2030)

Saudi Arabia Cloud Kitchen Market Report - By Type (Independent Kitchen, Commissary/Multi-brand Kitchen, Kitchen Pods, Outsourced Kitchen), By Nature (Franchised, Standalone), By P...roduct Type (Burger/Sandwich, Pizza/Pasta, Chicken, Seafood, Others (Desserts & Sweets, Coffee & Beverages, etc.)), and Others Read more

  • ICT & Electronics
  • Jun 2024
  • 136
  • PDF, Excel, PPT

Market Insights & Analysis: Saudi Arabia Cloud Kitchen Market (2024-30):

The Saudi Arabia Cloud Kitchen Market size was valued at USD 173 million in 2023 and is estimated to grow at a CAGR of around 11% during the forecast period, i.e., 2024-30. Changes in consumer food habits and increasingly busy lifestyles have fueled a growing demand for fast food in the Saudi Arabia Cloud Kitchen Market. This shift has prompted cloud kitchens to adapt by offering greater flexibility in their location-based operations and culinary concepts.

Moreover, the emergence of virtual restaurant brands within a single cloud kitchen space has broadened gastronomic diversity. This provides culinary enthusiasts and aspiring chefs with opportunities to launch concepts with minimal investments. Collaborations with third-party delivery platforms and the implementation of AI-driven menu optimization strategies have further enhanced visibility, diversified revenue streams, and expanded product offerings.

The inclination towards online ordering platforms, facilitated by the ease of digital payment solutions, has become increasingly prominent. Looking ahead, advancements in technology such as drones and autonomous vehicles hold promise for expediting the food delivery process.

Report Coverage Details
Study Period Historical Data: 2019-22
Base Year: 2023
Forecast Period: 2024-30
CAGR (2024-2030) 11%
Region Covered Central, South, East, West
Key Companies Profiled Kaykroo, Kitopi, IKCON, Talabat, Kitchen Park, Matbakhi, Grubtech, Kook, Rebel Foods, and Others
Market Value In 2023 USD 173 Million

 

Additionally, amidst these developments, menu diversification, providing personalized experiences, and sustainable practices are gaining prominence, which is anticipated to shape the future growth of the industry. However, adherence to laws and regulations governing food production, delivery, and storage remains critical for ensuring compliance and maintaining consumer trust, thus enhancing the Saudi Arabia Cloud Kitchen Market during 2024-30.

Saudi Arabia Cloud Kitchen Market Driver:

Embracing the Soaring Demand for Food Delivery Services – The escalating demand for food delivery services, propelled by the expansion of online food delivery platforms, stands as a significant driver in the growth trajectory of the Saudi Arabia Cloud Kitchen Market. The widespread adoption of digital technology has further amplified this preference for online food ordering and delivery services, aligning seamlessly with the fast-paced lifestyles of consumers. The digitalization of food ordering, facilitated through various channels like telephone, online platforms, and increasingly popular mobile apps, has played a significant role in driving the evolution and expansion of the Cloud Kitchen Market in Saudi Arabia. 

This digital drive, initially fuelled by the global pandemic, has revolutionized the way people, including children, order food, enabling convenience without the need to venture out. Delivery platforms in such as Talabat, Deliveroo, and HungerStation have emerged as key facilitators in Saudi Arabia, connecting cloud kitchens with a wider audience. They are leveraging internet visibility to cater to customers even from distant locations, by incorporating nominal delivery charges, hence, gaining significant expansion.


Saudi Arabia Cloud Kitchen Market Research Report: Forecast (2024-2030)

Saudi Arabia Cloud Kitchen Market Opportunity:

Maximizing Efficiency Through Data-Driven Strategies – The gradual integration of disruptive technologies and analytics are enabling the cloud kitchens in Saudi Arabia to optimize their end to end operations. These developments are expected to enable the companies in this market to take informed decisions regarding menu offerings, product pricing, and customized marketing campaigns ensures alignment with consumer preferences. Simulateboulsy, the overall customer experience and loyalty can also be improved.

Moreover, leveraging data driven approach facilitates seamless order management and delivery logistics, improving overall service efficiency. Furthermore, proactive management of inventory levels and supply chain logistics minimizes waste and operational costs. Thus, by adopting a data-driven approach, cloud kitchens not only augment their market reach and revenue streams but also develop innovation and adaptability in response to evolving market trends and consumer demands.

Saudi Arabia Cloud Kitchen Market Challenge:

Managing Third-Party Delivery Dynamics – The dependence on third-party delivery platforms, driven by their regulations, fees, and commission structures, significantly impacts the profitability of cloud kitchens in the Saudi Arabia Cloud Kitchen Market. This reliance limits the control cloud kitchens have over the entire customer journey, affecting their ability to maintain consistent service standards.

While cloud kitchens generally enjoy lower operational costs than traditional restaurants, their profitability can still be challenged due to escalated expenses and limited customer interactions. Also, despite benefiting from reduced operational costs, cloud kitchens often face lower sales figures, primarily relying on delivery services for revenue generation. This heavy dependence on delivery apps further restricts collaboration opportunities between cloud kitchen services and delivery platforms. These limitations deepen the challenges faced by cloud kitchens, complicating delivery logistics and regulatory compliance. By addressing these challenges, cloud kitchens can position themselves for success in the evolving landscape of the Saudi Arabia Cloud Kitchen Market.

Saudi Arabia Cloud Kitchen Market Trend:

Navigating Through Diverse International Cuisines – The surging demand for diverse international cuisines, particularly among younger generations and the expat population, is revolutionizing the Saudi Arabia Cloud Kitchen Market. This preference for varied culinary experiences, including popular choices like Chinese and American cuisines, reflects the cultural diversity driving consumption patterns. The adoption of AI-driven menu optimization enhances customer engagement and allows cloud kitchens to adapt to changing preferences, facilitating global expansion. This strategic menu curation by international brands highlights the market's potential for sustained growth.

Saudi Arabia is gradually opening up its economy to host numerous global business events, sporting competitions, etc. In 2024, the country will organize more than 300 local and regional exhibitions, expos, conferences, etc.  During 2024-30, the country is expected to host more than 270 international events of global recognition, excluding apart the domestic and regional ones. These dynamics will likely translate into an influx of visitors and increase the demand for diverse culinary offerings. By tapping into the diverse culinary preferences of consumers nationwide while maintaining operational efficiency and profitability, cloud kitchens can capitalize on the evolving landscape of the Saudi Arabia Cloud Kitchen Market.

Saudi Arabia Cloud Kitchen Market (2024-30): Segmentation Analysis

The Saudi Arabia Cloud Kitchen Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the national level. As per the analysis, the market has been further classified as:

Based on Type:

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

In the Saudi Arabia Cloud Kitchen Market, Independent Cloud Kitchens claim a significant portion of the market share. Independent cloud kitchens distinguish themselves by operating with a remarkable degree of agility and flexibility. This allows them to swiftly adjust their menus to cater to evolving tastes and preferences, free from the restrictions of a traditional physical location. Moreover, their lower initial investment requirements and reduced financial risks make them an attractive option for entrepreneurs seeking to enter the food service industry.

By embracing the independent cloud kitchen model, operators can capitalize on the growing demand for international cuisines while minimizing the barriers to entry, typically associated with traditional brick-and-mortar establishments. As the market continues to evolve, independent cloud kitchens are positioned to play a crucial role in shaping the future of this industry.

Based on Product Type:

  • Burger/Sandwich
  • Pizza/Pasta
  • Chicken, Seafood
  • Others (Desserts & Sweets, Coffee & Beverages, etc.)

The burgers and sandwiches segment grabbed a considerable market share in the Saudi Cloud Kitchen Market in 2023. The growing popularity of these food items stems from their suitability for delivery while maintaining their quality & taste for a long time. Additionally, burgers & sandwiches offer ample customization options, allowing consumers to tailor their orders to their preferences keeping Saudi Arabian tastes and preferences in consideration. This segment's dominance is further fueled by the significant expatriate population from South Asia, Southeast Asia, Africa, etc., who are familiar with and fond of these Western-style fast foods. Therefore, the market share of burgers and sandwiches is expected to witness gains during the forecast period.  

Saudi Arabia Cloud Kitchen Market Recent Developments:

  • 2022: Kaykroo had established approximately 30 cloud kitchens in Saudi Arabia.
  • 2023: Rebel Foods entered the Saudi Arabian market by launching two cloud kitchens in Riyadh. The company has planned to establish 60 online restaurants in the city over the next year.

Gain a Competitive Edge with Our Saudi Arabia Cloud Kitchen Market Report

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

Frequently Asked Questions

   A. The Saudi Arabia Cloud Kitchen Market is expected to grow at a compound annual growth rate (CAGR) of 11% from 2024 to 2030.

   A. The Saudi Arabia Cloud Kitchen Market size was estimated at USD 173 Million in 2030.

   A. Embracing the soaring demand for food delivery services is expected to drive the Saudi Arabia Cloud Kitchen Market during 2024-30.

   A. Kaykroo, Kitopi, IKCON, Talabat, Kitchen Park, Matbakhi, Grubtech, Kook, Rebel Foods, and Others, are the top players in the Saudi Arabia Cloud Kitchen Market.

   A. Independent kitchen segment held a significant market share in the Saudi Arabia Cloud Kitchen Market.

   A. Navigating through diverse international cuisines is the key trend shaping the growth of the Saudi Arabia Cloud Kitchen Market.

   A. Maximizing efficiency through data-driven strategies is the growth opportunity driving the Saudi Arabia Cloud Kitchen Market.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Saudi Arabia Cloud Kitchen Start-up Ecosystem
  5. Saudi Arabia Cloud Kitchen Market Trends & Insights
  6. Saudi Arabia Cloud Kitchen Market Dynamics
    1. Drivers
    2. Challenges
  7. Saudi Arabia Cloud Kitchen Market Regulations & Policies
  8. Saudi Arabia Cloud Kitchen Market Hotspots & Opportunities
  9. Saudi Arabia Cloud Kitchen Market Outlook, 2019-2030F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
    2. Market Share & Analysis
      1. By Type
        1. Independent Kitchen- Market Size & Forecast 2019-2030, (USD Million)
        2. Commissary/Multi-brand Kitchen- Market Size & Forecast 2019-2030, (USD Million)
        3. Kitchen Pods- Market Size & Forecast 2019-2030, (USD Million)
        4. Outsourced Kitchen- Market Size & Forecast 2019-2030, (USD Million)
      2. By Nature
        1. Franchised- Market Size & Forecast 2019-2030, (USD Million)
        2. Standalone- Market Size & Forecast 2019-2030, (USD Million)
      3. By Product Type
        1. Burger/Sandwich- Market Size & Forecast 2019-2030, (USD Million)
        2. Pizza/Pasta- Market Size & Forecast 2019-2030, (USD Million)
        3. Chicken- Market Size & Forecast 2019-2030, (USD Million)
        4. Seafood- Market Size & Forecast 2019-2030, (USD Million)
        5. Others (Desserts & Sweets, Coffee & Beverages, etc.)- Market Size & Forecast 2019-2030, (USD Million)
      4. By Region
        1. Central
        2. East
        3. West
        4. South
      5. By Company
        1. Competition Characteristics
        2. Market Share of Leading Companies
  10. Saudi Arabia Cloud Kitchen Market Key Strategic Imperatives for Growth & Success
  11. Competition Outlook
    1. Company Profiles
      1. Kaykroo
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Kitopi
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. IKCON
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. Talabat
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Kitchen Park
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Matbakhi
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Grubtech
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Kook
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Rebel Foods
        1. Business Description
        2. Service Portfolio
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. Others
  12. Disclaimer

 


Saudi Arabia Cloud Kitchen Market Segment