February 22, 2024
China Dark Kitchens Market
Ict

The Rapid Adoption Of Online Food Delivery Services Is Driving Growth Of China’s Dark Kitchens Market

Dark kitchens or ghost kitchens have emerged as an innovative way for restaurants to cater to the growing demand for delivery and take-out orders in major cities across China. Dark kitchens allow restaurants to operate without the expensive real estate costs associated with a traditional brick-and-mortar location. They consist of shared commercial kitchen spaces that prepare food strictly for delivery and take-away. The concepts enable restaurants to expand their delivery zones and increase order volumes without establishing new dining locations. As such, dark kitchens have become an attractive option for restaurants looking to scale their businesses through online and mobile delivery platforms.

The global China Dark Kitchens Market is estimated to be valued at US$ 4.03 Billion in 2023 and is expected to exhibit a CAGR of 25.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving growth in China’s dark kitchens market is the surge in popularity and widespread adoption of online food delivery platforms. Major cities across China have witnessed exponential increases in the number of people ordering food online and relying on delivery apps for daily meals over the past few years. This has created a huge opportunity for restaurants looking to tap into this growing delivery demand without substantial real estate investments. Additionally, real estate costs in top Chinese cities continue to skyrocket, making it difficult for traditional restaurants to find affordable locations. Dark kitchens provide a lower-cost alternative that allows restaurants to focus purely on delivery volumes. The market is also witnessing an increase in the number of dedicated cloud kitchen startups that are setting up shared kitchen facilities for restaurant partners. These startups offer restaurants services such as delivery logistics, marketing support and access to multiple delivery apps.

Porter’s Analysis

Threat of new entrants: Low threat of new entrants in China dark kitchens market as significant capital investments are required to set up new infrastructure. Established players have advantage due to scale and branding.

Bargaining power of buyers: High bargaining power of buyers as multiple choices available and customers will switch easily between brands. Buyers look for convenience, choice, quality and price.

Bargaining power of suppliers: Moderate bargaining power of suppliers as key supplies includes ingredients, packaging, logistics which are available from multiple players. Supply chains are also being organized.

Threat of new substitutes: Low threat of new substitutes as the China dark kitchen market directly caters to food delivery and takeaway demand which is not easily substitutable. However, socializing in new food places could provide options.

Competitive rivalry: Intense competition expected among existing players in China due to growing demand, entry of new ventures and aggregation models. Players compete based on selection, quality, delivery and value addition.

Key Takeaways

The Global China Dark Kitchens Ghost Kitchens Cloud Kitchens Market Size is expected to witness high growth. The global China Dark Kitchens Market is estimated to be valued at US$ 4.03 Billion in 2023 and is expected to exhibit a CAGR of 25.9% over the forecast period 2023 to 2030.

The China dark kitchens market in particular is expected to grow at a CAGR of 4.5% during the forecast period owing to high density of cities and reliance on online food aggregators and delivery platforms. Eastern and Southern regions in China such as Shanghai, Guangzhou and Shenzhen etc. are expected to lead the market growth and provide high opportunities.

Key players operating in the China dark kitchens ghost kitchens cloud kitchens market are Panda selected, Hua xiang fu, Daojia and Zhongxinyuan, and Meicai. Players are adopting expansion and partnership strategies to leverage market opportunities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it