What pizza restaurateurs should know about frozen pie market
The popularity of retail pizza chains is helping frozen pizza sales, according to a new report from Allied Market Research. The study, which investigated the growth of the frozen pizza market growth, found that global rises in disposable income and living standards are not only spawning growth in the sales of frozen pies but also pizza brands, a news release said.
The study found that for the frozen pizza sector — which was valued at $11,113 million in 2016 — all the aforementioned market forces will bring a 6.4 percent increase between now and 2023, bringing total sales for the supermarket-purchased pies to $17,296 million by 2023.
It also reported, however, that consumers view frozen pizza as less nutritious, with higher sodium and preservatives, so those perceptions could hold back growth in the sales of frozen brands. The report said that poor freezing facilities in semi-urban and rural areas further restrains the growth of that market, a finding that could be of interest to pizza restaurateurs, particularly in those more rural area markets, where that presents a distinct competitive advantage for pizza restaurant brands. However, the report said more frozen pizza makers are investing in research around freezing technologies, which could also potentially hamper sales at restaurant brands.
Also of interest is the fact that in frozen sales of pizza, regular thin crust varieties have the highest market share, and the category, in general, is trending more toward selling these types of pizzas since they tend to have lower calories.
Other findings included:
- Meat toppings had the highest market share, with an anticipated CAGR of 7.2 percent.
- Asia-Pacific is anticipated to grow at the highest CAGR of 8.8 percent.
- China, India and Brazil will also see growth due to higher urban populations, disposable incomes, and number of retail chains.