Pizza’s endless customization and the range of quality pizza keep it as one of U.S. consumers’ favorite meals, according to an analysis conducted by Supermarket Perimeter.
“You can do so many different things with pizza: pizza for breakfast with fried eggs and sausage gravy, or you can go healthy with arugula and balsamic reduction,” said Chris Miller, director of operations, Baker’s Quality, Waukesha, Wis. “There are so many different combinations down to the basic pepperoni. People are hard-pressed to find a pizza they don’t love. It’s a universally loved meal. You never get bored of pizza, which is why I love being in this industry so much.”
While other food segments are struggling against rising prices and channels like food service continue to lose dollars to at-home eating, pizza remains resilient. According to the latest report from Technomic, in the U.S. market pizza has grown about 5.5% CAGR between 2021 and 2023. That growth is projected to continue for the next two years.
“Our pizza and flatbread category has exceeded industry growth for the past five years, and it’s definitely a strategic growth area for Rich’s,” said Rachel McCrone, director, customer marketing, bakery/deli, Rich Products, Buffalo, NY. “We significantly invested in our capabilities to expand further in the marketplace, and our portfolio consists of a variety of offerings, including dough balls, sheeted proof-and-bake, freezer-to-oven, par-baked crusts and fully topped pizzas packaged and ready for retail deli and the frozen aisle.”
Sales are so strong that pizza chain Papa John’s, Louisville, Ky., has turned its attention to promoting its other offerings like side dishes. “I think more broadly consumers are coming to Papa John’s right now while they’re doing check management,” said Ravi Thanawala, chief financial officer and interim chief executive officer, in an earnings call to discuss first-quarter financial results. “They’re buying the things that we are famous for, and that is for our core offerings of pizza and our specialty pizzas. So we are seeing that the consumer is spending more year-over-year, and they’re pulling back in sides and beverages. We think that we’re going to continue to test offers that continue to improve that mix.”
However, the pizza market is always changing as consumers are continually pushing for higher quality and more creative crusts and toppings. “Crave-worthiness and comfort open up the opportunity for pizza to build a more robust identity past convenience,” wrote Kelsey Olsen, food and drink analyst, Mintel, in the firm’s latest executive summary on pizza. “While familiarity is a key component of the comfort aspect, this treat can continue to grow the appeal of the category to meet more diverse needs and occasions.”
