KANSAS CITY — With persistent inflation, budget-conscious consumers are searching for alternatives to dining out as often as in the past.
“We are seeing consumers trading out of restaurant pizza and into premium frozen pizza,” said Maddie Essman, senior marketing manager for Schwan’s Consumer Brands Inc. “These consumers can still get a great pizza but at a fraction of the price by switching over.”
She also noticed an increase in value pizza consumption to reduce grocery expenses.
“Consumers can purchase a Red Baron pizza for around $5 and a Tony’s pizza for around $4,” Ms. Essman said. “These options present affordable and delicious pizzas that the entire family can enjoy.”
In its 2022 pizza report, Mintel noted that nearly three quarters of those surveyed reported their household has eaten pizza from a supermarket in the past three months. But consider these two key observations. More than three quarters of retail pizza consumers agree that delivery pizza tastes better. Mintel stated this suggests that delivery remains the standard for judging retail pizza quality. Secondly, nearly half of retail pizza consumers said they would like to see more refrigerated and frozen pizza with extra toppings, indicating that some consider retail pizza could be “skimpy” on toppings.
Mintel mentioned products that promise and deliver extra cheese or toppings are likely to have a more receptive audience. Perhaps that’s why many brands offer “loaded” or extra toppings options. Unpredictable ingredient costs, however, make value-added a tricky proposition. Raising prices to cover costs may result in fewer units and eventually lower sales. Creative merchandising and promotions are what’s needed to keep this category hot.