Industry Analysis & Industry Trends
Demand for the Frozen Pizza Production industry has cooled over the past five years. In the early part of the period, competition from imported pizzas hindered growth in domestic production. Downturns in industry revenue were fought off by product innovation, aimed at increasing the customer base and overcoming external competition. As a result, industry revenue is expected to grow by a compound annual 2.0% over the five years through 2014-15. However, increased competition has reduced the average price and profit margins for the industry. Following growth of 1.8% in 2014-15, industry sales are expected to be worth $178.5 million.
The greatest challenge for the industry comes from pizza's image as junk food, and an unhealthy dining option... purchase to read more
Industry Report - Starting a New Business Chapter
The industry exhibits moderate barriers to entry. Major players such as McCain and Dr. Oetker have been in the industry for some time and hold a high market share. Customers recognise these brands and often display preferences for one or the other. This enables such companies to negotiate with the supermarkets and compete with private-label goods.
There is also a significant level of capital investment required to make frozen pizza. The purchase costs of factories, plant equipment, warehousing and distribution are sizable and are necessary to operate at scale... purchase to read more