With 98% of Individuals already consuming pizza, the recognition of the meals staple may lead some to conclude the market is saturated and development shall be onerous to acquire. However for Brian Schiegg, president of client manufacturers at Schwan’s, the mature frozen pizza class stays particularly ripe for development as shoppers flock to extra premium components, single-serve choices and new innovation.
“We see development coming from all” components of the frozen pizza class, mentioned Schiegg, whose firm’s manufacturers embrace Crimson Baron, Freschetta and Tony’s. “Now’s the time to essentially capitalize on that, between providing shoppers selection and the proper innovation degree.”
Ever since shoppers had been capable of purchase the primary frozen pizzas within the Fifties, the class has exploded into a whole bunch of manufacturers, style profiles, codecs and worth factors.
Frozen pizza gross sales within the U.S. for the 52 weeks ending March 21 had been about $6 billion, in keeping with Statista knowledge, in comparison with $4.4 billion throughout the identical interval 5 years earlier. Gross sales rose 6% this previous February from the identical month a 12 months earlier as shoppers spent extra time at house, Schwan’s famous, citing data from IRI.
Right now, the frozen pizza class is dominated by Nestlé, whose manufacturers embrace top-selling DiGiorno, Tombstone and Jack’s, giving the world’s largest meals maker near 40% market share, IRI knowledge confirmed. Schwan’s is second at 21%, adopted by personal label at 12%.
With almost each individual consuming pizza at the least a couple of instances a 12 months, Schiegg mentioned Schwan’s is specializing in rising consumption charges by giving customers extra causes and alternatives to eat it. He declined to share numbers on gross sales for Schwan’s frozen pizzas however mentioned the corporate skilled “important development in 2020 and is seeing that momentum proceed” into this 12 months.
International gross sales for frozen pizza had been greater than $16 billion in 2020, in keeping with Statista. The class seems poised for significant development sooner or later with the agency predicting income to high $23 billion in 2027.
A part of tapping into this development for Schwan’s and others is giving shoppers extra choices, whether or not they need to indulge or chunk right into a product that’s higher for you with fewer energy or brisker components.
“It is a stability between all that and ensuring we proceed to supply shoppers selection,” Schiegg mentioned. “The pizza class is properly posited to satisfy the wants of many shoppers, that are going to be totally different.”
Premiumization has infiltrated almost all points of meals and drinks, and pizza is not any exception. Frozen pizza makers haven’t solely turned to new topping mixes, but additionally various choices like stuffed crusts for the indulgent crowd together with cauliflower crusts and gluten-free strains. In 2020, Schwan’s rolled out a Crimson Baron stuffed crust pizza and a skinny crust Freschetta line.
Schiegg mentioned for now, Schwan’s is prioritizing innovation of its core manufacturers, nevertheless it might ultimately resolve to introduce a wholly new product to capitalize on development within the premium area.
A number of serving pizza stays the preferred possibility, however single serve is among the many most promising development classes. An estimated 17% of pizza patrons are unique to single-serve choices, Schwan’s mentioned. However with shoppers juggling extra day-to-day duties, whether or not on the go or from the consolation of their very own houses, these traits solely serve to construct momentum for future enlargement.
With the pattern towards single-serve and the continued advantages of hand-held for these on the go, Crimson Baron debuted Pizza Melts final October — a sandwich-like providing with cheese, sauce, pepperoni and different toppings positioned between two slices of toast.
An estimated 3 billion pizzas are bought every year in america alone, with every individual consuming 46 slices yearly, in keeping with Packaged Info.
One other probably profitable possibility for Schwan’s might come from personalization. Right here, a person can customise frozen pizza they order on-line very like once they name the native pizza store.
“It’s actually a pattern that we have seen in numerous classes, and one thing we’d all the time contemplate as properly,” Schiegg mentioned.