Pizza at Retail - US - January 2010

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations
Terms
EXECUTIVE SUMMARY
Packaged pizza sales reach almost $5.3 billion in 2009
Recession benefits all segments of the market
Private label and small brands are leading growth
More than 1,100 new pizza products launched in the U.S. since 2005
Three out of four U.S. households use packaged pizza products
Recession has impacted pizza purchase behavior
INSIGHTS AND OPPORTUNITIES
Need for better-for-you pizzas targeted to moms and kids
Opportunity to boost consumption among older adults
Figure 1: Types of pizza eaten in the past three months, by age, October 2009
“Customizable” pizza will help compete against delivery
INSPIRE INSIGHTS
Trend 1: Craft not graft
Trend 2: Gourmet in the Dorms?
Trend 3: Transparency, transparency, transparency
MARKET SIZE AND FORECAST
Key points
Pizza sales get a big boost from recession-driven “eating in” trend
Private label and small brands are driving recent growth
Sales and forecast of market
Figure 2: Total U.S. retail sales of pizza, at current prices, 2004-14
Figure 3: Total U.S. retail sales of pizza, at inflation-adjusted prices, 2004-14
Walmart sales
COMPETITIVE CONTEXT
Recession-weary consumers shift from pizza restaurants to frozen pizza
Figure 4: Usage of foodservice establishments compared to last year, October 2009
Recession changes pizza purchase behavior
Market leader Kraft plans to sell pizza business to Nestlé in 2010
SEGMENT PERFORMANCE
Key points
Recession gives boost to all types of packaged pizza
Sales of packaged pizza, by segment
Figure 5: Total U.S. retail sales of packaged pizza, by type, 2004-09
SEGMENT PERFORMANCE—FROZEN PIZZA
Key points
Rising household consumption—and retail prices—fuel sales growth
Growth expected to slow as economy recovers
Sales and forecast of frozen pizza
Figure 6: Total U.S. retail sales of frozen pizza, at current prices, 2004-14
SEGMENT PERFORMANCE—OTHER PIZZA PRODUCTS
Key points
Refrigerated pizza delivers on freshness and value
Sales and forecast of other pizza products
Figure 7: Total U.S. sales of other pizza products, at current prices, 2004-14
RETAIL CHANNELS
Key points
Supermarket is most popular purchase location for frozen pizza
Figure 8: Where frozen pizza has been bought in the past month, by presence of children, October 2009
Pizza sales by channel
Figure 9: Total U.S. retail sales of pizza, by channel 2004-09
RETAIL CHANNELS—SUPERMARKET/FOOD STORES
Key points
Retailers leverage “eating in” trend with merchandising efforts, expanded private-label offerings
Supermarket/food store sales of packaged pizza
Figure 10: U.S. supermarket/food store sales of pizza, at current prices, 2004-09
RETAIL CHANNELS—NATURAL FOOD STORES
Key points
Natural food store pizza sales take a dive in 2009
Natural food store sales of packaged pizza
Figure 11: Natural supermarket sales of pizza*, at current prices, 2007-09
Natural food store sales—brand sales
Figure 12: Manufacturer brand natural supermarket sales of pizza, 2007 and 2009
Organic vs. non-organic sales
Figure 13: Natural supermarket sales of pizza, by organic/non-organic, 2007 and 2009
MARKET DRIVERS
Households with children drive pizza consumption
Figure 14: Households, by presence of children, 1998-2008
Figure 15: Household usage of frozen pizza brands, by presence of children, April 2008-June 2009
Convenience more important than ever
Figure 16: Reasons for eating pizza, by presence of children, October 2009
Figure 17: Top 20 product claims for new pizza products, 2009*
Healthy eating trend gives rise to better-for-you pizza
Figure 18: Age-adjusted prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2008
LEADING COMPANIES
Key points
Market leader Kraft sees strong growth, maintains share
Private label and small brands steal share from the market leaders
Figure 19: Manufacturer FDMx sales of pizza in the U.S., 2008 and 2009
BRAND SHARE—FROZEN PIZZA
Key points
DiGiorno benefits from “eating in” trend and posts big gains
Private-label growth outpaces all leading brands
Manufacturer and brand sales of frozen pizza
Figure 20: Selected brand sales and market share of frozen pizza, 2008 and 2009
Frozen pizza—brand usage
Figure 21: Household usage of frozen pizza brands, by presence of children, April 2008-June 2009
BRAND SHARE—REFRIGERATED PIZZA
Key points
Private label leads refrigerated pizza sales
Mama Rosa’s, Pillsbury post big gains
Manufacturer and brand sales of refrigerated pizza
Figure 22: Selected brand sales and market share of refrigerated pizza in the U.S., 2008 and 2009
Ready-made pizza crust—brand usage
Figure 23: Household usage of ready-made pizza crust brands, by presence of children, April 2008-June 2009
BRAND SHARE—PIZZA PRODUCTS
Key points
Chef Boyardee and Ragu are top brands
Private label and small brands gain market share at expense of brand leaders
Manufacturer and brand sales of pizza products
Figure 24: Selected brand sales and market share of pizza products* in the U.S., 2008 and 2009
Pizza sauce—brand usage
Figure 25: Household usage of pizza sauce brands, by presence of children, April 2008-June 2009
BRAND QUALITIES
Premium, pizzeria-style brands cater to consumers seeking to create a “restaurant experience” at home
Better-for-you pizza targets health-conscious consumers
INNOVATION AND INNOVATORS
More than 1,100 new pizza products launched in the U.S. since 2005
Figure 26: Number of pizza introductions in the U.S, 2005-09
Figure 27: Top 20 companies, by number of new pizza products, 2005-09*
Top 20 product claims, 2009
Figure 28: Top 20 product claims for new pizza products, 2009*
Better for you
Natural and Organic
Wholegrain
Portion control
Gluten-free
Premium, “pizzeria-style” pizza
…and pizzeria-style packaging
You can take it with you
Good morning, Palermo
ADVERTISING AND PROMOTION
DiGiorno
Figure 29: DiGiorno Crispy Flatbread Pizza television ad, 2009
Figure 30: “DiGiornomics” television ad, 2009
Figure 31: “DiGiornomics” print ad, 2009
Freschetta
Figure 32: Freschetta PizzAmoré TV ad, 2009
Figure 33: Freschetta Naturally Rising Crust Pizza TV ad, 2009
Totino’s
Figure 34: Totino’s Party Pizza TV ad, 2009
Figure 35: Totino’s Air Crisp Pizza TV ad, 2009
PIZZA CONSUMPTION AND USAGE FREQUENCY
Key points
Household consumption of packaged pizza products
Figure 36: Household consumption of pizza products, by presence of children and region, April 2008-June 2009
Trends in household consumption of frozen pizza
Figure 37: Trended household consumption of frozen pizza, 2002/03-2008/09
Adult consumption of pizza by age
Figure 38: Types of pizza eaten in the past three months, by age, October 2009
Adult consumption of pizza by presence of children
Figure 39: Types of pizza eaten in the past three months, by presence of children, October 2009
Household usage frequency of frozen pizza
Figure 40: Household usage frequency of frozen pizza, by presence of children and region, April 2008-June 2009
HOW THE ECONOMY HAS IMPACTED PURCHASE BEHAVIOR
Key points
Purchase behavior by age
Figure 41: Pizza purchase behavior, by age, October 2009
Purchase behavior by presence of children in household
Figure 42: Pizza purchase behavior, by presence of children, October 2009
INTEREST IN NEW PIZZA CONCEPTS
Key points
Interest in new pizza concepts by gender
Figure 43: New pizza concepts of interest, by gender, October 2009
Interest in new pizza concepts by presence of children
Figure 44: New pizza concepts of interest, by presence of children, October 2009
REASONS FOR EATING—AND NOT EATING—PIZZA
Key point
Convenience and “family friendly” top list of reasons for eating pizza
Figure 45: Reasons for eating pizza, by presence of children, October 2009
Usage barriers
Figure 46: Reasons for not eating frozen or refrigerated pizza, by age, October 2009
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Household consumption of packaged pizza products
Figure 47: Household consumption of pizza products, by race/Hispanic origin, April 2008-June 2009
Purchase frequency—frozen pizza
Figure 48: Household consumption frequency of frozen pizza, by race/Hispanic origin, April 2008-June 2009
Brand preferences—frozen pizza
Figure 49: Brand preferences for frozen pizza, by race/Hispanic origin, April 2008-June 2009
CLUSTER ANALYSIS
Crusties
Cheesies
Saucies
Cluster characteristics
Figure 50: Pizza retailing clusters, October 2009
Figure 51: Types of pizza eaten in the past three months, by pizza retailing clusters, October 2009
Figure 52: New pizza concepts of interest, by pizza retailing clusters, October 2009
Figure 53: Reasons for eating pizza, by pizza retailing clusters, October 2009
Figure 54: Pizza purchase behavior, by pizza retailing clusters, October 2009
Cluster demographics
Figure 55: Pizza retailing clusters, by gender, October 2009
Figure 56: Pizza retailing clusters, by age group, October 2009
Figure 57: Pizza retailing clusters, by household income, October 2009
Figure 58: Pizza retailing clusters, by race, October 2009
Figure 59: Pizza retailing clusters, by Hispanic origin, October 2009
Cluster methodology
CUSTOM CONSUMER GROUPS
Pizza consumption
Figure 60: Types of pizza eaten in the past three months, by gender and presence of children, October 2009
Figure 61: Types of pizza eaten in the past three months, by marital status and presence of children, October 2009
Figure 62: Types of pizza eaten in the past three months, by gender and age, October 2009
Purchase locations
Figure 63: Where frozen pizza has been bought in the past month, by gender and presence of children, October 2009
Figure 64: Where frozen pizza has been bought in the past month, by marital status and presence of children, October 2009
Figure 65: Where frozen pizza has been bought in the past month, by gender and age, October 2009
IMPACT OF MOSAIC DEMOGRAPHIC GROUPS
Pizza consumption by household type
Above-average frozen pizza consumption
Figure 66: Incidence of households eating various pizza products, by main frozen pizza-eating Mosaic groups, April 2008-June 2009
Below-average frozen pizza consumption
Figure 67: Incidence of households eating various pizza products, by next frozen pizza-eating Mosaic groups, April 2008-June 2009
Brand usage
Figure 68: Incidence of households eating main pizza brands, by main frozen pizza-eating Mosaic groups, April 2008-June 2009
Figure 69: Incidence of households eating main pizza brands, by next frozen pizza-eating Mosaic groups, April 2008-June 2009
Usage frequency
Figure 70: Volume of pizza eaten, by main frozen pizza-eating Mosaic groups, April 2008-June 2009
Figure 71: Volume of pizza eaten, by next frozen pizza-eating Mosaic groups, April 2008-June 2009
BRAND USAGE—ADULTS, KIDS AND TEENS
Figure 72: Brands of pizza eaten/preferred, by adults, teens and kids, April 2008-June 2009
IRI/BUILDERS PANEL DATA—FROZEN PIZZA
Consumer insights on key purchase measures—frozen pizza
Brand map
Figure 73: Brand map, selected brands of frozen pizza, buying rate by household penetration, 2009*
Brand leader characteristics
Key purchase measures
Figure 74: Key purchase measures for the top brands of frozen pizza, by household penetration, 2009*
APPENDIX: OTHER USEFUL CONSUMER TABLES
Figure 75: Types of pizza eaten in the past three months, by region, October 2009
Figure 76: Types of pizza eaten in the past three months, by household income, October 2009
Brands of frozen pizza eaten in past month
Figure 77: Number of frozen pizzas eaten in past month, by brand, October 2009
Pizza eaten by daypart
Figure 78: Type of pizza eaten at home, by type of pizza, and by daypart, October 2009
Figure 79: Pizza eaten at restaurants, by type of restaurant, by daypart, October 2009
Purchase behavior by household income
Figure 80: Pizza purchase behavior, by household income, October 2009
Interest in new pizza concepts age
Figure 81: New pizza concepts of interest, by age, October 2009
Reasons for eating pizza by gender
Figure 82: Reasons for eating pizza, by gender, October 2009
Reasons for eating pizza by age
Figure 83: Reasons for eating pizza, by age, October 2009
Figure 84: Reasons for eating pizza, by household income, October 2009
APPENDIX: TRADE ASSOCIATIONS