The rising global frozen pizza market surpassed US $20,196 million in value last year, according to Future Market Insights’ Frozen Pizza Market Outlook 2023-33 report, which forecasts that turnover will increase at a compound annual growth rate of 6% over the decade.
In the United Kingdom, pizza sales rose 9.3% to £1.4 billion during the 52-week period through February 18, 2024, according to Kantar figures. However, volume is up by only 0.9%, which suggests that inflation-related price increases are responsible for the uplift in value. Frozen entry level own label pizza product prices have increased by 47%, from 66p to 97p, according to IPLC, a private label consulting firm.
“The figures indicate that frozen pizza is still outperforming fresh, with value sales of fresh up just 5.2% in the same period,” said Rupert Ashby, chief executive of the British Frozen Food Federation (BFFF). “This can be attributed to consumers seeking value in the cost-of-living crisis, with the average retail price of a frozen pizza at just £1.95 compared to a chilled pre-pack pizza at £2.60. Frozen pizzas are on average a third cheaper, yet offer great quality and less waste through their longer shelf life.”
According IPLC, the mid-tier frozen category also offers significantly better value than chilled. For example, a chilled stone oven baked pepperoni pizza at discount retail chain Aldi sells for £2.49 versus just £1.39 for the frozen equivalent, which also has more pepperoni topping.
Influences
The UK’s credit crunch has seen increasing numbers of consumers opting for “fakeaways” in place of regular takeaways. This has resulted in retailers introducing more takeaway-style pizzas to capture a share of the market. Many add desserts, sides, dips and/or drinks to complete the offer.
“Packaged to mirror high-street takeaway brands, these great-tasting products offer the same experience for a lower price point,” said Ashby. “With household budgets still being squeezed, it’s unsurprising that many consumers are making the switch.”
According to analysis from The Food People, highlights reveals trends influenced by global flavors, which includes Italian and American base styles like Detroit, Sicilian and Roman, as well as Grandma pizza bases topped with flavors from the Far East.
“We are seeing smokiness and wood-fired become more prevalent in pizza bases and more regional inspiration, such as Neapolitan, coming through – particularly in restaurants,” said a spokesperson from a leading supplier of frozen pizzas and member of the BFFF. “We also see a rise in more premium pizzas, which start to look at more hand-stretched and authentic compared to the standard ranges.”
Top Trends
Despite the traditional pizza toppings of cheese and pepperoni continuing to be dominant across all formats and tiers within the market, premium options are now also in high demand.
“With the rise of more premium flavors we are seeing spicier toppings such as Nduja-inspired and takeaway-inspired flavors such as Salt and Pepper chicken and Philly Cheese Steak,” said the spokesperson. “Additions to products such as drizzle sauces are also starting to arrive in premium offerings to offer more of the added value to a classic topping.”
Gluten free is definitely driving the performance of dietary pizza, which posted a growth rate of +7.8% in the latest 52 weeks (Nielsen data for the period ending February 24, 2024). Veganism and health concerns have also had an impact on the pizza sector, with free-from versions now commonplace.
“The rise in vegan diets and changing lifestyles, in addition to increased health concerns and busy schedules, has sparked increasing demand for high quality ingredients that answer the call for innovation in the free-from and on-the-go categories, these products are expected to move the business forward,” said Charlotte Perkins, commercial manager at Pan’Artisan.
She added: “A marked increase in the availability of gluten-free and vegan products is evident, with the number of these diners continually rising.”
Statistics for 2024 from Finder.com show an increase in the number of vegans and vegetarians in Britain, with an estimated 2.5 million vegans (4.7% of the adult population) and 3.1 million vegetarians (5.8% of the populace). Meanwhile, the latest figures from Statista also reveal 8% of UK consumers follow a gluten-free dietary regimen.
“Brand extensions are also proving popular in the pizza category,” said Richard Harrow, a partner at IPLC. “Retailers like Iceland have launched several new frozen pizzas under their unique brands such as MyProtein, Blue Dragon, TGI Fridays and Piccolino.”
Product innovation
As a leading frozen food distributor in the UK, Central Foods has recently extended its KaterBake range of bakery products to include five new authentic pizza bases for the foodservice sector.
“The round bases in different sizes, plus a rectangular base, are suitable for vegans and vegetarians so they are very versatile and can be topped with plant-based options to offer pizza that will go down well with customers who have dietary requirements,” said Gordon Lauder, the Collingtree, England-based company’s managing director. “Frozen pizza bases are super convenient for the foodservice sector – helping operators to quickly and efficiently create dishes to keep their customers happy, whilst helping to reduce waste.”
Central Foods’ range of pizza bases includes thin and crispy and soft and fluffy options, all of which are low in fat and salt to help foodservice operators comply with HFSS guidelines and to appeal to consumers looking for healthier options.
According to Lauder, regular, thin crust pizza is the most popular among consumers because it offers the ideal balance of delicate, airy dough that is not too thick or too thin, with maximum enjoyment of the flavor of the toppings. Gluten-free options are also in high demand from consumers.
Pan’Artisan also offers a variety of authentic Italian recipe pizza bases, most of which can be enjoyed by vegans or vegetarians, in addition to a newly launched gluten-free base.
“The product range includes a wide selection of pre-made, frozen pizza bases for the ultimate in convenience, as well as a selection of dough balls for those that like to create their own bases, all of which deliver excellent flavor and cooking performance for the perfect pizza serve,” said Perkins.
The Iceland retail chain’s latest exclusive brand extension includes The Original Peperami Triple Topped Pizza – a woodfired pizza base, topped with tomato sauce, mozzarella and Peperami salami. The pizza is part of Iceland’s bargain 3 for £10 range.
The frozen pizza market is growing as more premium and value options attract customers into supermarket freezer aisles. Innovation and brand collaboration is likely to continue as consumers increasingly realize the value of frozen products.
