III. Industry Analysis
3.1 Industry Profile
According to Michael Schaefer, Worldwide Meals and Beverage Lead at Euromonitor, ghost kitchens, or kitchens that only manufacture food for delivery and have no dine-in or customer-facing areas, could generate a $1 trillion global market by 2030. As per the company, more reasonably priced, quicker, and more dependable delivery may enable this market segment to take 50% of the drive-through service ($75 billion), 50% of the takeout food service ($250 billion), 35% of ready meals ($40 billion), 30% of packaged cooking ingredients ($100 billion), 25% of dine-in foodservice ($450 billion), and 15% of packaged snacks ($125 billion) markets.
3.2 Market Size
The growing population of youngsters around the world and customers' evolving taste preferences have fueled the demand for online food delivery. The explosive demand for online delivery orders has resulted in the sudden rise of the ghost kitchen model. Additionally, the growth of delivery apps has also contributed to the increase in ghost kitchens. Post Covid-19 pandemic, larger restaurants and food chains are beginning to open up their own ghost kitchens to compete with the increasing demand for delivery, enter new markets, and test consumer demand. Another key reason for the rise of ghost kitchens is their cost-effectiveness.
