The dark kitchens market, also known as ghost kitchens or cloud kitchens, in the United Arab Emirates (UAE) involves professional kitchen spaces that prepare food specifically for delivery and take-away orders. Dark kitchens allow restaurant operators to expand their portfolio of brands without taking on additional real estate costs for a dine-in space. They primarily function through delivery apps and websites for ordering food. The dark kitchen model enables restaurant operators to launch multiple 'virtual brands' from a single location with lower overhead costs. Global dark kitchen chains like Kitopi, Sweetheart Kitchen, and CloudKitchens have established operations in various cities across the UAE to tap growing demand.
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.
Key Takeaways
Key players operating in the UAE dark kitchens market are Kitopi, Sweetheart Kitchen, Kaykroo, COYA Dubai, Freedom Pizza, Project Pie, The Mattar Farm Kitchen, Foody, Dalia Kitchen, OvenFresh. These players have launched multiple virtual restaurant brands through their state-of-the-art cloud kitchen facilities. The growing preference for online food ordering and delivery among UAE consumers, especially in Dubai and Abu Dhabi, has fueled investments in dark kitchen infrastructure development. Foodservice operators are increasingly adopting the dark kitchen model to launch new brands, test concepts, and expand delivery coverage without expensive dine-in space requirements. Global restaurant chains as well as local UAE F&B brands are partnering with third-party dark kitchen operators to penetrate new emerging city clusters and housing communities through dedicated delivery-only facilities.
Market Drivers
The key driver fueling the growth of the UAE dark kitchens market is the increased adoption of online food delivery apps in the country. Long working hours, urbanization, and rising disposable incomes have boosted the popularity of online food delivery services among residents and overseas workforce. Additionally, the entry of global online food delivery aggregators like Talabat, Zomato, and Deliveroo has driven higher awareness and utilization of mobile apps and websites for ordering meals. The Covid-19 pandemic further accelerated digital adoption as social distancing trends increased dependency on contactless delivery. The proliferation of online food ordering is encouraging restaurant operators to establish dedicated cloud kitchen facilities for expanding their digital presence and order fulfillment capabilities.
Impact of Geopolitical Situation on UAE Dark Kitchens, Ghost Kitchens, Cloud Kitchens Market Growth
The current geopolitical situation poses various challenges for the growth of the UAE dark kitchens market. Being located in a volatile region, the UAE economy is susceptible to geopolitical risks such as political instability, conflict and security issues in neighboring countries. The ongoing geopolitical conflicts in the region have dampened consumer confidence and economic activities in the country. This has reduced discretionary spending on food delivery, thereby negatively impacting the growth of the dark kitchens industry. Additionally, economic sanctions and trade restrictions imposed on some countries in the region are disrupting global supply chains, making it difficult for kitchen operators to procure ingredients in a cost effective manner.
However, certain geopolitical dynamics are also working in favor of the dark kitchens industry. For instance, the influx of expat workers and tourists from other countries in the region maintains a steady demand for online food delivery services. Furthermore, rising security concerns have made consumers prefer home delivery over dining out, benefiting dark kitchen operators. Going forward, the major players need to devise effective risk management strategies and diversify their supplier networks to minimize the impact of geopolitical risks. They should also focus on expanding to less volatile international markets to hedge against economic and political uncertainties in the domestic market.
Geographical Regions with Highest Concentration of UAE Dark Kitchens Market in Terms of Value
The UAE dark kitchens market is highly concentrated in metropolitan areas such as Dubai and Abu Dhabi, where the majority of the population and business activity is centered. These cities account for over 70% of the total market value currently. Being global economic hubs with large expatriate population and widespread adoption of online platforms, Dubai and Abu Dhabi provide a conducive environment for the growth of cloud kitchens. The cities have well-developed infrastructure to support centralized food preparation and delivery operations. Moreover, the high population density and hectic urban lifestyles drive the demand for convenient delivery-only food options catered by dark kitchens in these regions.
Fastest Growing Region for UAE Dark Kitchens Market
The Northern Emirates region, comprising Sharjah, Ajman, Umm Al Quwain and Ras Al Khaimah, is poised to be the fastest growing regional market for dark kitchens over the coming years. Although these cities still account for a small share in the overall market currently, their growth rates are exceeding the national average. Factors such as rapid urbanization, rising incomes, increasing young population and growing expat settlements are driving the growth of online food delivery in Northern Emirates. Additionally, major franchises are now expanding to these under-penetrated markets, supported by various government initiatives to bolster intra-regional connectivity, providing an impetus to the dark kitchens industry.
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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