South Korea Cloud Kitchen Market Report and Forecast 2024-2032

South Korea Cloud Kitchen Market Outlook

The South Korea cloud kitchen market size reached a value of more than USD 6.29 billion in 2023. The South Korea cloud kitchen industry is expected to grow at a CAGR of 12.4% between 2024 and 2032, reaching a value of USD 18.02 billion by 2032.

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Key Trends in South Korea Cloud Kitchen Market

A cloud kitchen, sometimes known as a "ghost kitchen" or "virtual kitchen," is a commercial cooking area that allows food enterprises to cook food items for delivery and takeaway. Cloud kitchens, as opposed to traditional brick-and-mortar sites, enable food enterprises to make and transport cuisines with minimum overhead.

Low Start-up Costs Lessen the Financial Burden, Motivating More People in South Korea to Invest in Cloud Kitchen Business

Utilizing cloud kitchens helps food companies cut costs. Leasing a commercial kitchen from a ghost kitchen supplier lowers initial costs because food enterprises no longer have to invest in building permits, costly building construction, zoning compliance, and so on. In addition, cloud kitchens enable food enterprises to launch quickly, as compared to the months or years needed for conventional leases or construction financing.

In the case of Cloud kitchens, preparing food and business operations may be conducted even from home or in regions with reduced property prices. Because of their flexibility, cloud kitchens can save a lot of money, which is beneficial for industries with narrow profit margins like restaurants. This factor bolsters the development of cloud kitchen market in South Korea.

The surge of Smart Kitchen Appliances and Less Manpower Requirement Paves the Way for Small Entrepreneurs to Thrive in the Competitive Cloud Kitchen Market

Chefs, a few assistants, and domestic helpers are all that are required to run a cloud kitchen. When compared to a regular restaurant, this significantly reduces total personnel costs. increased profit margins owing to lower costs while revenue remains constant, resulting in more effective marketing opportunities. Many restaurants have switched to the cloud kitchen concept in recent years since it requires fewer staff and has lower overhead expenses. Many amateur restaurateurs in South Korea have recently adopted the concept of cloud kitchens because it reduces the costs of starting a cuisine business, thereby augmenting cloud kitchen market development.

Moreover, companies like Samsung and LG, among others, have launched several technologically advanced kitchen appliances that make everyday chores easy by providing information and tips. Many steps of cooking can now be done automatically by these smart appliances, reducing preparation time and making the process hassle-free and quick.

Affordability and Increased Health Concerns, Along with Convenience, Bolster the Cloud Kitchen Industry in South Korea

Hectic lifestyles and poor work and personal life balance lead people to opt for affordable and convenient food delivery options. Moreover, increasing health concerns have shifted people's preference from packaged ready-to-eat food to freshly prepared food. Also, the ease of availability due to online food delivery is perhaps one of the most defining drivers which are contributing to the growth of the cloud kitchen market in South Korea. Furthermore, the high penetration of the internet and increased smartphone usage further propels the cloud kitchen market in South Korea.

To save time and money, young professionals, especially the MZ generation prefer to order from outside rather than prepare or eat out. Because of the expansion of the online meal delivery service, the cloud kitchen restaurant sector can now earn greater profits while not owning a walk-in storefront.

The Shift in Eating Habits due to Globalisation and High Disposable Incomes is Anticipated to Propel the Cloud Kitchen Market Development

Globalization has changed the eating patterns and habits of the South Korean population. Consumers have developed a broad taste palette and prefer to try various cuisines from all over the world along with their local Korean foods. Consumers now prefer foods that are both nutritionally adequate and appealing to taste buds. Rising disposable income and living standards are other factors aiding the growth of the cloud kitchen market in South Korea.

Market Analysis

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Based on type, the South Korea cloud kitchen market is segmented into independent cloud kitchen, commissary/shared kitchen, and kitchen pods. Based on product type, the South Korea cloud kitchen market can be bifurcated into burger and sandwich, pizza and pasta, seafood, and chicken, among others. On the basis of nature, the cloud kitchen market of South Korea is divided into franchised and standalone.

• Ghost Kitchen

• Simple Project Company Co., Ltd (WeCook)

• Monthly Kitchen Co., Ltd

• Others

Market Share by Type

The growing prevalence of doorstep food delivery systems and the increased demand for local as well as western cuisines are majorly driving the cloud kitchen market in South Korea. Independent cloud kitchen, commissary/shared kitchen and kitchen pods all three segment types are expected to perform well in the market. Factors such as long working hours, hectic lifestyles, awareness regarding healthy food options and increasing health concerns among people are providing significant impetus to the growth of the segments as well as the market in South Korea.

Market Share by Product Type

Globalisation has led to improved access to foods from diverse regions around the world. This factor is further influenced by the increasing purchasing power and the surge of franchises of several global food giants. The increased use of social media and food delivery applications is aiding in making communication and ordering food easier. Western food especially, burger and sandwich, pizza and pasta, seafood, and chicken, among others are the most preferred food items among South Korean population, aiding to the growth of cloud kitchen market in South Korea.

Market Share by Nature

The number of single-person households is rapidly increasing in South Korea. This "Honjok," i.e., living alone lifestyle, has led to an increased acceptance of "Honbap," i.e., eating alone culture, in South Korea, which has taken away the responsibility of preparing food for themselves as well as the family members. Due to their hectic lifestyles and increased affordability, the young generation, especially students, are the most significant customers of franchised as well as standalone businesses, thereby aiding the expansion of the cloud kitchen industry in South Korea.

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Key Highlights of the Report