UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market Poised for Rapid Growth

UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market Poised for Rapid Growth

The UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market is anticipated to Witness High Growth Owing to Rising Demand for Online Food Delivery. Dark kitchens, also known as ghost or cloud kitchens are commercial spaces housing kitchens dedicated to preparing food for delivery or take-away ordered through mobile apps or online platforms. The emergence of online food delivery platforms amidst the Covid-19 pandemic has boosted the growth of these facilities in the UAE.

The UAE's Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market Size is estimated to be valued at US$ 330.3 Mn in 2024 and is expected to exhibit a CAGR of 13% over the forecast period 2023-2030.

Dark kitchen facilities allow restaurants to expand their reach through delivery partners with minimal investment and real estate costs. They enable restaurants and food brands to scale up operations efficiently to meet the increasing demand for online food orders. The growing popularity of delivery platforms like Talabat, Zomato and Careem across the UAE is fueling investments in dark kitchen infrastructure in the country.

Key Takeaways

Key players operating in the UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens are Kitopi, Sweetheart Kitchen, Kaykroo, COYA Dubai, Freedom Pizza, Project Pie, The Mattar Farm Kitchen, Foody, Dalia Kitchen, OvenFresh. Kitopi is one of the leading players offering a fully-integrated operating system for restaurants with multiple brands. Sweetheart Kitchen operates several dark kitchen facilities and handles food preparation, delivery and tech infrastructure for food brands.

The UAE dark kitchen market offers significant growth opportunities such as expanding operations to new cities, introducing exclusive delivery brands and virtual restaurants. Market players are launching new delivery-only restaurant concepts and ghost kitchen hubs to cater to the growing demand for online food orders. For instance, Kitopi launched Samosa Station, a virtual restaurant brand specialized only in samosas across multiple cities in the UAE.

Dark kitchen operators are also expanding globally to leverage business opportunities abroad. Key players like Kitopi and Sweetheart Kitchen have expanded their presence across markets in the Middle East and Southeast Asia. The growing popularity of online food delivery worldwide is driving these companies to set up international operations through partnerships with regional entrepreneurs. Rapid global expansion will help them scale up and strengthen their market leadership position.

Market Drivers 

The main driver for the growth of the UAE dark kitchen market is the boom in online food delivery driven by the Covid-19 pandemic. With restrictions on dining out, consumers increasingly adopted mobile apps and websites to order meals at home pushing the demand for delivery-only kitchens. The rise of delivery platforms further fueled investments in cloud kitchen infrastructure in the country. Other factors like young population, rising incomes, and convenient payment options are contributing to the increase in online food delivery orders.

Market Restraints

High rental and real estate costs remain a challenge for dark kitchen operators in the UAE, especially in larger cities like Dubai. Finding suitable commercial real estate and managing operating costs can strain profits for companies. There is also intense competition among dark kitchen facilities to partner with leading delivery platforms and food brands. Maintaining quality control and service consistency across multiple virtual restaurants also requires substantial resources and manpower.

Segment Analysis 

The UAE dark kitchens market comprises of independent kitchens and restaurants as sub segments. The independent kitchens sub segment currently dominates the market and is expected to retain its leading position throughout the forecast period. This is because independent kitchens are more cost effective, provide economical delivery with focus only on online orders and don't have to bear the costs involved in dine-in restaurants like rent, waiters salary etc.

Global Analysis

Middle East region is the fastest growing and dominating region in the UAE dark kitchens market. The proliferation of online food delivery platforms and apps in the region along with COVID induced lockdowns and restrictions are driving increased demand for cloud kitchens and ghost kitchen concepts. Moreover, the influx of expat population and demographic shifts towards nuclear families in countries like UAE has increased demand for quick, convenient and affordable food delivery options driving market growth. Additionally, modern lifestyles, higher disposable incomes and limited time for home cooked meals are fuelling demand for ready to eat meals delivered at doorsteps.

Regional Analysis 

Within Middle East, UAE accounts for over 50% market share and is the largest and fastest growing country for UAE dark kitchens due to strong online delivery infrastructure, tech savviness of population and widespread mobile and internet penetration. Saudi Arabia and Qatar are other major markets growing swiftly owing to rapid urbanization, increasing young population and modern retail channels. The ongoing mega infrastructure projects and real estate developments in GCC countries catering to migrant populations also presents ample opportunities for market expansion of cloud kitchens over the forecast period.

What Are The Key Data Covered In This UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens's growth between 2024 and 2031.

:- Accurate calculation of the size of the UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens vendors

FAQ’s

Q.1 What are the main factors influencing the UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the UAE Dark Kitchens/Ghost Kitchens/Cloud Kitchens’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?

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