Virtual Kitchen Market Report 2025

This Virtual Kitchen market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The virtual kitchen market size has grown rapidly in recent years. It will grow from $68.04 billion in 2024 to $77.33 billion in 2025 at a compound annual growth rate (CAGR) of 13.7%. The growth in the historic period can be attributed to increased social media marketing, increased demand for international cuisines, increased popularity of shared kitchen concepts in hotels and restaurants, rise in number of standalone brands serving customers from a single location, increased demand for fast food products.

The virtual kitchen market size is expected to see rapid growth in the next few years. It will grow to $127.27 billion in 2029 at a compound annual growth rate (CAGR) of 13.3%. The growth in the forecast period can be attributed to rise in online food delivery demand, changing consumer taste preferences, rise in disposable income, increasing use of smartphones, easy access to internet. Major trends in the forecast period include focus on advertising, strategic partnerships, transformation of the restaurant industry, innovative service launch, technological advancements.

The increasing importance of digitalization is expected to drive the growth of the virtual kitchen market. Digitalization refers to the process of converting information, data, or physical objects into a digital format that computers can easily process, store, and transmit. The rise in digitalization can be attributed to enhanced brand awareness and visibility, improved customer engagement, better customer support, and cost-effective marketing. In virtual kitchens, digitalization is crucial for streamlining operations, enhancing customer experiences, and optimizing resource management. It enables these kitchens to operate more efficiently, reduce costs, and provide a superior customer experience, which ultimately drives growth and success in the competitive food delivery market. For example, according to a February 2024 report by the United Kingdom, provisional estimates indicate that in 2022, the digital sector contributed $171.25 million to the UK economy, accounting for 7.2% of the total UK gross value added (GVA), up from 7.1% in 2021. Therefore, the increasing significance of digitalization is fueling the growth of the virtual kitchen market.

Major companies in the virtual kitchens market are focusing on developing innovative kitchens, such as ghost kitchens, to streamline operations and optimize delivery services. Ghost kitchens provide a turnkey, scalable solution for customers aiming to expand their flavors to new or existing markets, increase their off-premise presence, and drive revenue. For instance, in November 2022, Pepsicon, a US-based company, launched its ghost kitchen service for restaurant partners. This service allows customers to utilize the company's beverage and snack portfolio, including popular brands such as Pepsi, Mtn Dew, Doritos, and Cheetos, to create uniquely branded menu items and virtual experiences. It enables restaurants to start their virtual brand, bring in an outside brand, or outsource their concept to other restaurants.

In March 2024, C3 and SBE, a US-based food and beverage company, acquired Kitchen United for an undisclosed amount. The acquisition aims to create Everybody Eats, a new holding company that will integrate these assets with C3 and Nextbite, existing ventures of C3 and SBE. Kitchen United is a US-based ghost kitchen company that offers commercial kitchen space, automation, and software solutions to help restaurants prepare delivery-only meals.

Major companies operating in the virtual kitchen market are Uber Eats, Starbucks Corp., DoorDash Inc., Micro-Star International, Deliveroo, Foodpanda, CloudKitchens, GrubHub Holdings Inc., Kitopi, Postmates Inc., Rebel Foods, Kitchen United, Wetzel's Pretzels LLC, Clicky Media Ltd., Deliverect, Kitchen Connect, Zuul Kitchens Inc., Dahmakan, Taster Group Ltd., Franklin Junction, The Local Culinary, Smart City Kitchens, Ghost Kitchen Orlando, Kouzina FoodTech, Nextbite.

North America was the largest region in the virtual kitchen market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual kitchen market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the virtual kitchen market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A virtual kitchen, also called a ghost kitchen, is a professional facility for food preparation and cooking, dedicated to making delivery-only meals. It operates without a dine-in area and is designed to handle online orders through delivery services or directly from the restaurant's app or website.

The primary components of a virtual kitchen include software, services, hardware, and more. Software consists of instructions and programs that allow a computer or electronic device to perform specific tasks, such as running applications, managing data, and executing operations. This software is used in various settings such as workplaces, homes, schools, and others, and by different end-users including commercial spaces, residences, hospitality, and more.

The virtual kitchen market research report is one of a series of new reports that provides virtual kitchen market statistics, including the virtual kitchen industry global market size, regional shares, competitors with a virtual kitchen market share, detailed virtual kitchen market segments, market trends, and opportunities, and any further data you may need to thrive in the virtual kitchen industry. This virtual kitchen market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The virtual kitchen market consists of revenues earned by entities by providing commissary kitchens, pop-up kitchens, managed kitchens, delivery-optimized kitchens, and hybrid kitchens. The market value includes the value of related goods sold by the service provider or included within the service offering. The virtual kitchen market also includes sales of cooking equipment, food preparation equipment, packaging equipment, and delivery drones. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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