News

Take-and-bake pizza, low-carb trends could hurt frozen pizza sales

March 31, 2004

NEW YORK—Although the U.S. market for frozen pizzas controlled nearly $3.7 billion (27 percent) of retail sales in the $13.4 billion market for frozen meals, snacks and appetizers in 2003, total sales in the category are expected to rise by only $600 million by 2008, according to "The U.S. Market for Frozen Meals, Appetizers and Snacks," a new report by market research publisher Packaged Facts.

According to a news release, the report cites low-carb dieting as the primary reason for the stagnation in sales, as consumers seek out alternatives to these high-starch, high-carbohydrate products. Manufacturers, meanwhile, are scrambling to meet changing tastes, by incorporating healthier ingredients, like soy flour, into pizzas.

The concept of "take and bake" could also erode market share. Chain pizzerias are enticing local customers with fresher alternatives to frozen by preparing pies on baking trays that can then be taken home, put in the oven, and enjoyed in 15 minutes.

"There's no question that frozen pizza is a staple of the American freezer—two-thirds of Americans report using the product," said Don Montuori, acquisitions editor for Packaged Facts. "And in the long term, the market is likely to remain strong. But for now, it appears that Atkins has struck again."

"The U.S. Market for Frozen Meals, Appetizers, and Snacks" is the second in a three-volume Packaged Facts series on convenience foods and packaging. It features insight into consumer trends, industry players, mergers and acquisitions, and new product developments. Key categories addressed include frozen entrees and dinners, frozen pizza, frozen breakfasts, and frozen appetizers and snacks. Volume I in the series covers ready meals and side dishes, while volume III will cover packaging and serving size trends.

This new report is priced at $2,250 and can be purchased directly from Packaged Facts by clicking here. It is also available through www.MarketResearch.com.