Pizza Market to Grow by USD 66 Billion (2024-2028) as Consumption Rises in Developing Countries, with AI Powering Market Evolution - Technavio

NEW YORK, Sept. 24, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global pizza market size is estimated to grow by USD 66 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  6.79%  during the forecast period. Increasing consumption of pizza in developing countries is driving market growth, with a trend towards growing popularity of online food orders through portals and mobile apps. However, fluctuation in prices of food commodities  poses a challenge - Key market players include Boston Pizza Royalties Income Fund, California Pizza Kitchen Inc., CEC Entertainment Concepts L.P., CICI ENTERPRISES LP, Dominos Pizza Inc., FAT Brands Inc., Godfathers Pizza Inc., Hungry Howie Pizza and Subs Inc., La Pinoz Pizza, Little Caesar Enterprises Inc., Marcos Franchising LLC, Mellow Mushroom Pizza Bakers, MOD Super Fast Pizza LLC, MTY Food Group Inc., Papa Johns International Inc., Pizza Nova Take Out Ltd., PizzaExpress Restaurants Ltd., Retail Food Group Ltd., Spizzico Italian Kitchen, and YUM Brands Inc..

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Market Driver

Online ordering has revolutionized the pizza market, making it more efficient and convenient for both consumers and restaurants. Compared to telephone orders, online platforms eliminate communication errors and ensure orders are not lost during peak hours. Consumers spend more online due to attractive digital menus, and restaurants expand their customer base through mobile apps and loyalty programs. Online ordering's convenience and optimized process have led to significant market growth. Consumers can easily compare pizzas, select sizes, toppings, and ingredients, and have their orders delivered right to their door. Travelers and those unable to visit restaurants in person particularly benefit from this convenience. Online ordering has expanded the pizza market by making it easier for customers to identify and purchase pizzas, encouraging repeat business through loyalty programs. These factors will continue to drive growth in the pizza market during the forecast period. 

The pizza market is thriving with competitive prices, discounts, and combo offers attracting a large customer base. Loyalty programs add value to repeat purchases. The market outlook is positive with convenient food items like ready-to-eat and frozen pizza gaining popularity. Minimal preparation is a key factor, making convenience stores a go-to choice. Freshly baked and heated pizza slices, pizza rolls, pockets, and mini-pizzas cater to various textures and savory profiles. Healthier product variants with gluten-free crusts, locally sourced ingredients, and sustainability are on the rise. Ethical practices and online ordering add to the convenience factor. Non-vegetarian pizzas with toppings like sausage and bacon, as well as vegetable toppings and plant-based proteins, cater to diverse tastes. Cheese alternatives and crust types like thick, thin, and stuffed crusts offer choice. Substantial size pizzas, full-service restaurants, and fast food service provide a convenient dining experience, with options for dine-in, takeout, and third-party delivery services. 

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Market Challenges

• The cost of raw materials used in making pizza, such as wheat, vegetables, tomato sauce, meat, and cheese, can vary based on their availability. The increasing gap between demand and supply has led to a significant increase in their prices. This hike in raw material costs results in increased manufacturing expenses and decreased profit margins for vendors. To remain competitive, manufacturers explore cheaper alternatives. Raw material suppliers set their prices independently, which can impact the market. Adverse weather conditions, emergencies, strikes, regulations, disasters, or supply shortages can disrupt the supply of raw materials, further increasing their prices. Ultimately, these rising raw material costs translate to higher product prices, affecting consumer purchasing decisions and potentially hindering market growth.
• The pizza market is a thriving industry, with supermarkets, restaurants, and retail stores selling this beloved food item worldwide. Challenges include providing various options like whole wheat crusts, gluten-free, BBQ chicken, and cauliflower crusts. Raw materials such as wheat, water, yeast, salt, olive oil, tomato sauce, mozzarella cheese, vegetables, meats, seafood, herbs, and pepperoni are essential. With the rise of online ordering, pizza's popularity soars, reaching social gatherings, parties, and developing economies due to rapid Westernization and globalization. Leading market players face challenges from technical advancements like robotic automation and ghost kitchens, cultural integration of international cuisines, and diverse pizza options. Marketing campaigns and pizza chains continue to innovate, offering new flavors and ingredients, making pizza a beloved and enduring global favorite.

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Segment Overview 

This pizza market report extensively covers market segmentation by

1. Distribution Channel
• 1.1 Quick service restaurants (QSR)
• 1.2 Full-service restaurants (FSR)
• 1.3 Others
2. Type 
• 2.1 Non-vegetarian pizza
• 2.2 Vegetarian pizza
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Quick service restaurants (QSR)-  Quick Service Restaurants (QSRs), such as those specializing in pizza and burgers, have gained significant popularity due to their efficient and cost-effective business model. These restaurants offer fast food with minimal preparation time and express service, allowing for shorter delivery times and lower overhead costs. QSRs have standardized processes, enabling them to maintain quality while reducing expenses on space, furniture, air conditioning, and crockery. The rise of urbanization and increasing disposable income have fueled the growth of QSRs in India, with economic reports indicating a 20-25% increase in the fiscal year 2023. Notable chains like Dominos, Pizza Hut, and La Pinoz Pizza are expanding into tier 2 and 3 cities, capitalizing on the growing market and limited competition in these areas. Overall, the QSR sector is expected to drive the market in the forecast period due to its practicality and high return on investment.

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Research Analysis

Pizza, a beloved global food staple, caters to various dietary preferences with an expanding range of vegetarian and vegan options. Plant-based diets are on the rise, leading to the popularity of vegan cheeses and plant-based meats on pizzas. Whole wheat and gluten-free crusts cater to those with dietary restrictions. BBQ chicken, pepperoni, and gourmet pizzas continue to be fan favorites. Pizzerias, delivery services, and online ordering make pizza convenient for consumers. Supermarkets and convenience stores offer take-and-bake pizzas for those who prefer cooking at home. Sustainability is a growing concern, with many pizza chains focusing on using locally sourced raw materials and reducing food waste. Ingredients like garlic bread, French fries, salad, and pizza chains contribute to the overall pizza experience. Brand recognition plays a significant role in consumer choice, with some chains becoming household names.

Market Research Overview

The Pizza Market encompasses a wide range of Italian-inspired dishes, including pizzas, Italian fries, garlic bread, salads, and more. This global market is renowned for its diverse offerings, from classic pizzas to gourmet and artisanal varieties. Vegetarian and vegan pizzas, catering to plant-based diets, have gained significant popularity with the use of vegan cheese and plant-based meats. Raw materials such as wheat, water, yeast, salt, olive oil, tomato sauce, mozzarella cheese, vegetables, meats, seafood, herbs, and pepperoni are essential ingredients in creating these delicious dishes. The pizza market's worldwide popularity is fueled by cultural integration, globalization, and the convenience of delivery services like DoorDash and Grubhub. Consumers can enjoy pizza at restaurants, retail stores, supermarkets, and even order online for delivery or pick-up. Technical advancements, such as robotic automation and ghost kitchens, have streamlined the production process, making pizza more accessible than ever. Marketing campaigns, competitive prices, discounts, combo offers, and loyalty programs have contributed to the market's growth. The pizza market outlook remains positive, with an increasing focus on healthier product variants, locally sourced ingredients, and sustainable and ethical practices. Convenient food items like ready-to-eat and frozen pizza, pizza rolls, pizza pockets, and mini-pizzas continue to be popular choices for consumers.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Quick Service Restaurants (QSR)
• Full-service Restaurants (FSR)
• Others
• Type
• Non-vegetarian Pizza
• Vegetarian Pizza
• Geography
• North America
• Europe
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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