South Korea Cloud Kitchen Market to Reach Around USD 18.02 Billion by 2032, Driven by the Rising Smartphone Penetration and Increasing Internet Usage

In contrast to conventional brick-and-mortar businesses, the concept of a cloud kitchen, also known as “ghost kitchens” or “virtual kitchens,” enables food entrepreneurs to produce meals for delivery and takeout while minimising operating costs. Leading manufacturers of smart kitchen appliances, such as Samsung Electronics Co. Ltd., Whirlpool Corporation (NYSE: WHR), and LG Corporation, among others, have made significant contributions to increasing the operational effectiveness of cloud kitchens.

The deployment of advanced technologies in cloud kitchens has simplified culinary procedures and offered automated solutions that save preparation time and increase overall production. In 2022, disposable personal income in South Korea accounted for USD 1953.1, which was USD 1889.2 in 2021. The growth in disposable income and the growing working population aid in the demand for takeaway food, which drives the South Korea cloud kitchen market growth.

The adoption of automation in cloud kitchens to reduce cooking time and combat labour shortages further supports the market growth. In November 2023, the fast-food franchise operator of Lotte Group (KRX: 004990), Lotte GRS, announced the introduction of an artificial intelligence (AI)-powered robot automation robot, Alpha Grill, that can grill burger patties or dispenses sauce. Through this, the company aims to increase the efficiency of the burger-making process and solve labour shortages in the food franchise sector, which are mainly related to simple culinary chores.

The Alpha Grill for burger preparation saves 3 minutes and 10 seconds by reducing the total cooking time for patties from 5 minutes to 1 minute and 50 seconds. As a result, it is expected to improve the working environment and shorten service types while enhancing store turnover time.

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Market Analysis by Type, Product Type, and Nature

• The market, on the basis of type, can be divided into independent cloud kitchen, commissary/shared kitchen, and kitchen pods.

• Based on product type, the market can be segmented into burger and sandwich, pizza and pasta, seafood, and chicken, among others.

• By nature, the market is bifurcated into franchised and standalone.

Key Findings of the Report:

• In 2023, smartphone ownership in South Korea was 96%, with 50.56 million internet users. As a result, the growth in takeouts with food delivery apps drives the South Korea cloud kitchen market expansion.

• In 2023, the employment-to-population ratio accounted for 63% and around 35 million individuals were engaged in the workforce. Long working hours and busy lifestyles necessitated the demand for cloud kitchens for quick and convenient eating options.

• The concept of a shared kitchen under the Youth Training Restaurants Programme allows businesses to commence their operations with less investment. As a result, young professionals are expanding their businesses in this field.

• South Korea is witnessing a trend towards healthy and nutritious food. Food items such as bibimbap, and a rice bowl topped with loads of vegetables and meat, are widely popular due to their balanced content of protein, vitamins, and carbohydrates. Market players can capitalise on this trend to gain a competitive edge in the market.

Figure: Average of Working Population (Age 15-64 years) in South Korea (in Million), 2018-23

Key Offerings of the Report:

• The EMR report gives an overview of the South Korea cloud kitchen market for the periods (2018-2023) and (2024-2032).

• The report also offers the historical (2018-2023) and forecast (2024-2032) markets for the types, product types, and nature of cloud kitchen in South Korea.

• The report analyses the market dynamics, covering the key demand and price indicators in the market, along with an assessment of the SWOT and Porter’s Five Forces models.

The major players in the South Korea cloud kitchen market are Ghost Kitchen, Simple Project Company Co., Ltd (WeCook), and Monthly Kitchen Co., Ltd, among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

Key Highlights of the Report

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