May 10, 2024 – Pizza is an icon of indulgence and satisfaction in the food and beverage industry. While the product is a mainstay in popular culture, consumer trends towards pizza products are always changing. Through our 360 research, utilizing both top down and bottom-up analysis of market trends and consumer attitudes, we highlight the (in-home, retail) pizza trends of today, and what will likely develop in the future.
Global Concerns and Macro Trends
Amidst heightened environmental concerns, health pressures, economic uncertainty, and technological transformation, consumers continue to adapt their lifestyles. Many are finding ways to live healthier lives through exercise and diet. Some are developing more conscious sustainable lifestyles. Others are finding ways to enjoy social occasions in less expensive, more flexible venues. Consumers are also adapting their treat and reward systems for everyday moments of happiness. These megatrends influence all food and beverage trends, including pizza trends.
Consumer Insights in Pizza Trends
Pizza is the second most commonly purchased product in the ready meals subcategory. US consumers eat pizza more frequently than Canadians, with pizza trend research indicating that almost 25% of US consumers eat pizza two or more times a week. As consumers get older, they tend to eat pizza less, and pizza consumption is accordingly driven by Gen Z and Millennials.
Pizza consumption also increases with income. Over half of consumers with high or mid-high incomes consume pizza once a week or more. Regarding the most popular times of day for eating pizza, dinner and lunch are expectedly the most common. Canadian consumers are more likely to eat pizza at dinnertime, while US consumers are more likely to eat it for lunch.
Pizza Market Size and Trends
The retail pizza market in North America is expected to continue growing in the coming years, driven by factors such as increasing population and rising disposable income. The market is also shifting towards healthier options, with consumers increasingly seeking out pizzas made with whole-wheat crusts and vegetable toppings. In the United States, the pizza market is projected to grow by 2% annually over the next five years. The market is partly driven by growth in the frozen pizza segment, which is expected to account for over half of all pizza sales by 2027. In Canada, the pizza market is will likely grow by 3% annually over the next five years. The market may also be driven by growth in the delivery segment, which is projected to account for over one-third of all pizza sales by 2027.
Companies and Brands
Oetker, private label, and Nestlé are the top three companies driving pizza sales in the US and Canada. The top branded manufacturer is Dr. Oetker, which leads the Canadian market with a 26% market share. Other prominent brands include Nestlé, McCain Foods, Pinnacle, General Mills, Schwann’s Company, Amy’s Kitchen, and Newman’s Own. Nestlé is the top pizza launcher in the US and Canada, with nearly twice as many new product launches as the next competitor – a powerful influencer of pizza trends. The company’s top-selling brands include Digiorno, Tombstone, and Lean Cuisine. Nestlé has recently invested in “priority categories” and plans to continue to drive innovation and renovate existing products.
Caulipower is a notable brand in the pizza category, known for its cauliflower-based crust pizzas. The brand has grown significantly in recent years and now accounts for 4% of launches, up from 1% in 2019-2021. Caulipower’s recent innovations include top line pizzas, baked bites, and pinsa-style roma.
New Product Launch Trends
Innovation is important in the pizza category, with a focus on crust types and toppings. Consumers are increasingly seeking healthier options, such as cauliflower crusts and vegetable-based toppings. Additionally, pizza trend research indicates there is a growing demand for products that evoke the restaurant experience at home, such as stone-baked and hand-tossed pizzas.
Plant-based claims and the expansion of gluten-free options are also on the rise. Consumers are becoming more health-conscious and are seeking products that meet their dietary needs. As a result, manufacturers are introducing more pizzas with plant-based ingredients and gluten-free crusts.
Consumers are interested in products that evoke a sense of place and authenticity in pizza products. Consumers are drawn to products that evoke the flavors and styles of different regions, such as straight-from-Italy imports and limited-edition offerings. By offering a variety of innovative and authentic options, manufacturers can appeal to the diverse preferences of consumers and drive growth in the pizza category.
What’s Next in Pizza Trends?
Consumers are seeking restaurant-type experiences at home, leading to a demand for delivery pizzas that evoke the flavors and styles of traditional ovens. There is also a growing interest in authentic Italian-style pizzas, including Roman, Neapolitan, and local styles. Limited editions and innovative offerings are sparking interest, particularly among younger consumers. The use of non-wheat flours, such as rice, soy, oat, and konjac, is also on the rise, providing opportunities for expansion and ingredient innovation.
This article is based on our report, “Next Slice: US & Canada Pizza Trends.” If you are interested in reading this report, feel free to request a demo.
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