South East Asia Cloud Kitchen

South East Asia 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 (Singapore, Indonesia, Malaysia, Thailand, Vietnam, Rest Read more

  • ICT & Electronics
  • Dec 2022
  • 156
  • IT77035

Market Definition

Virtual or cloud kitchens have no storefronts like traditional dine-in restaurants and work entirely for online food orders. While these models have existed for several years, the advent of Covid-19 acted as the most significant booster for the industry, which owes to the enforcement of stay-at-home orders for consumer safety. Various food brands operating in Indonesia are implementing cloud kitchen models due to benefits like reduced rentals, fewer setup & overhead costs, minimal manpower required, etc., and, in turn, catering to the ever-rising online food delivery orders across the country.

Market Insights

The South East Asia Cloud Kitchen Market is expected to grow at around 13.2% CAGR during the forecast period, i.e., 2023-28. While the market in still at a nascent stage, numerous promising business models are being curated by both existing & emerging companies, and some of them even overlay. Growing disposable incomes, changing lifestyles, and rising interest of consumers in snacking are the most prominent aspects projected to spur growth in Southeast Asia’s cloud kitchen industry. In recent years, several countries in the region have witnessed a notable decline in the number of dine-in customers as online food orders have surged after the Covid-19 pandemic. Consequently, it has compelled most restaurateurs to adopt delivery-only business models, i.e., stimulating the growth of the cloud kitchen industry in Southeast Asia.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 13.2%
Country Covered Singapore, Indonesia, Malaysia, Thailand, Vietnam, Rest of Southeast Asia, Others
Key Companies Profiled Dahmakan, Deliveroo, Foodpanda, GrabKitchen, Gojic, Grain, Hangry, Rebel Foods, Yummy Corp, Others.
Unit Denominations USD Million/Billion

 

Moreover, the reducing consumer interest in home-cooked meals due to hectic schedules in the corporate culture is another reason behind the surge in online food delivery orders, i.e., propelling the market expansion. An increasing number of restaurateurs are becoming aware of the benefits of virtual kitchens over traditional dine-in models, such as better profit margins and enhanced flexibility, and, as a result, are carrying out strategic alliances with prominent brands to enhance their services.

Furthermore, they are adopting technologically advanced tools to garner the popular choices of consumers and include items with significant margins in their menus. Additionally, the integration of point-of-sale, kitchen display systems, and inventory management systems to ramp up different kitchen operations & prevent delays in order processing is another crucial aspect indicating notable expansion of the cloud kitchen market in Southeast Asia in the coming years.

Market Segmentation

Based on Type:

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

Among all, independent kitchens are projected to acquire a significant share of the South East Asia Cloud Kitchen Market during 2023-28. It owes to the fact that these wholly-owned kitchens of a single brand help reduce the operational load on existing branches of restaurants that provide food delivery services to walk-in consumers. Moreover, they don't exhibit a dining space, highly depend on third-party channels, and mainly serve consumers who desire a particular type of cuisine.

Several food companies in the region are entering the cloud kitchen market in order to cater to the ever-evolving online food orders and provide the desired quality & service to their customers. In addition, the rise in consumer inclination toward international cuisines & fast food, coupled with the growing number of standalone food companies that operate from a single location, is further projected to boost the adoption of independent kitchens in Southeast Asia and, in turn, promulgate the cloud kitchen market growth in the years to come.

Based on Nature:

  • Franchised
  • Standalone

Here, franchised cloud kitchens are anticipated to attain a sizeable market share over the coming years. Compared to standalone kitchens, it incurs less capital to franchise an already existing brand. As restaurateurs with high equity, alongside offerings, including but not limited to international cuisines, personalized dishes, & superior service quality, are becoming increasingly popular across the region, more and more stakeholders are opting for franchised cloud kitchens. Moreover, they are also becoming aware of the fact that investing in well-established brands involves fewer risks since franchisors offer proper training & support associated with different parameters, such as equipment, supplies, & brand marketing. Hence, the mounting proliferation of franchised kitchens in Southeast Asia is promoting the overall growth of the cloud kitchen market.

Country Projection

Geographically, the South East Asia Cloud Kitchen Market expands across:

  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Vietnam
  • Rest of Southeast Asia

Of all regions in South East Asia, Indonesia is expected to acquire a sizeable share of the Cloud Kitchen Market during 2023-28. It owes to the booming real estate in the country and the increasing number of restaurants adopting virtual models. With the advent of Covid-19, which instigated prolonged lockdowns & various social restrictions, several restaurants in Indonesia got shut down and were compelled to adapt to the new normal in order to survive. Consequently, online channels are being utilized aggressively by brands to reach more & more consumers and cater to their varied requirements.

  • In 2019, Gojek, in collaboration with Rebel Foods, started implementing cloud kitchens, and so far, the company has launched more than 25 of them in Indonesia.
  • In 2018, Grab introduced Indonesia's first cloud kitchen, and since 2021, the company has been working jointly with 'Yummy Corp' to expand its network across the country.

Besides these leaders, several startups are tapping into the industry and have raised significant funds. These aspects indicate that there are various prospects for the cloud kitchen market to expand and attain more consumers in Indonesia, especially with the massively surging food delivery orders across the country.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the South East Asia Cloud Kitchen Market?
  2. What are the country-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the South East Asia Cloud Kitchen Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the South East Asia Cloud Kitchen Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the South East Asia Cloud Kitchen Market study?

Frequently Asked Questions

A. The South East Asia Cloud Kitchen Market is projected to grow at a CAGR of around 13.2% during 2023-28.

A. Growing disposable incomes, changing lifestyles, and rising interest of consumers in fast food & snacks are the prime factors projected to drive the South East Asia Cloud Kitchen Market during 2023-28.

A. Dahmakan, Deliveroo, Foodpanda, GrabKitchen, Gojic, Grain, Hangry, Rebel Foods, and Yummy Corp. are the key companies participating in the South East Asia Cloud Kitchen Market.

A. Independent kitchens are projected to offer profitable prospects to the leading players in the South East Asia Cloud Kitchen Market during 2023-28.

A. In Southeast Asia, Indonesia is expected to generate remunerative opportunities for the Cloud Kitchen Market during 2023-28.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Impact of Covid-19 on the South East Asia Cloud Kitchen Market
  5. South East Asia Cloud Kitchen Market Start-up Ecosystem
    1. Number of Start-ups Launched/Registered, 2018-2022
    2. South East Asia Cloud Kitchen Market Investment Trend, By Investors, 2018-2022
    3. South East Asia Cloud Kitchen Market Investment (USD Million), By Round of Funding, 2018-2022
    4. Start-ups Fund Raise, By Amount Raised (USD Million), By Series of Fund Raise, By Purpose, By Investors Involved, 2018-2022
  6. South East Asia Cloud Kitchen Market Trends & Insights
  7. South East Asia Cloud Kitchen Market Dynamics
    1. Drivers
    2. Challenges
  8. South East Asia Cloud Kitchen Market Porters Five Forces Analysis
  9. South East Asia Cloud Kitchen Market Regulations & Policies
  10. South East Asia Cloud Kitchen Market Hotspots & Opportunities
  11. South East Asia 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. Singapore
        2. Indonesia
        3. Malaysia
        4. Thailand
        5. Vietnam
        6. Rest of Southeast Asia
      4. By Company
        1. Competition Characteristics
        2. Market Share of Leading Companies
  12. South East Asia Cloud Kitchen Market Key Strategic Imperatives for Growth & Success
  13. 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. Dahmakan
      2. Deliveroo
      3. Foodpanda
      4. GrabKitchen
      5. Gojic
      6. Grain
      7. Hangry
      8. Rebel Foods
      9. Yummy Corp
  14. Disclaimer
South East Asia Cloud Kitchen Market Segmentation