Thawing out: Health awareness prompts industry innovation to shed unhealthy image

Demand for frozen pizza has cooled over the past five years. Despite ongoing product innovation to increase the customer base, intense external competition pressures have constrained revenue growth for the Frozen Pizza Production industry, reducing the average price and profit margins. Industry revenue is expected to grow by a weak 0.6% annualised over the five years through 2017-18, to be worth $181.5 million. This includes growth of 1.4% in the current year.The greatest challenge for the industry is pizza being perceived as unhealthy junk food. In response, the industry has been creating new gourmet and healthier product lines, as well as introducing specialised dietary requirements frozen pizzas, including those made with gluten-free more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry is forecast to face greater competition from ready-made meals and fresh pizza businesses
  • Firms have unveiled premium product lines to combat the industry’s unhealthy image
  • Product innovation and exports to Asia represent potential growth areas for the industry
  • 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.

    Additional Insights for the Frozen Pizza Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Frozen Pizza Production Industry are

  • Having a wide and expanding product range
  • Economies of scale
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Health consciousness in the Frozen Pizza Production industry impact industry performance..

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    Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Health consciousness
  • Total full-time workforce
  • Real household disposable income

  • Current Performance
  • New entrants
  • Product innovation
  • Competition and technology
  • Chart: Revenue Growth

  • Industry Outlook
  • Premiumisation and substitution
  • Industry dynamics
  • Table: Frozen Pizza Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Frozen Pizza Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soft Drink and Pre-Packaged Food Wholesaling
  • Supermarkets and Grocery Stores
  • Convenience Stores

  • Key Selling Industries
  • Dairy Produce Wholesaling
  • Flour and Grain Mill Product Manufacturing
  • Fruit and Vegetable Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling

  • Products & Services
  • Family pizzas
  • Thin-crust pizzas
  • Snack pizzas
  • Gourmet pizzas
  • Chart: Frozen Pizza Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets
  • Wholesalers
  • Convenience stores
  • Food services companies
  • Export markets
  • Chart: Major Market Segmentation for the Frozen Pizza Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Frozen Pizza Production

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Frozen Pizza Production Industry

  • Industry Globalization
    McCain Foods (Aust) Pty Ltd, Dr. Oetker Australia Pty Ltd,
  • Table: McCain Foods (Aust) Pty Ltd - financial performance
  • Table: Dr. Oetker Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Frozen Pizza Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Frozen Pizza Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The trend towards higher quality products. These products typically cost more and provide greater profit margins to the producer.
  • Private-Label
  • Products that are produced by a company for use under another company's brand. This has been occurring in the supermarket sector to increase revenue.
  • Ready-Made Meals
  • Pre-packaged meals that only require heating before consumption. They typically appeal to a time-poor consumer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Frozen Pizza Production market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Frozen Pizza Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Frozen Pizza Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Frozen Pizza Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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