Frozen Pizza Expansion: An Analysis of Size and Price Increase in Popular Food Products from Dr. Oetker and Competitors
Ready-to-Bake Pizza Pandemonium:
The Frozen Pizza Craze Taking Germany By Storm
Since its introduction in 1970, the frozen pizza has been a staple in German retail, with sales soaring to over 395,000 tons in 2024. On average, each German citizen gobbles up 15 frozen pizzas annually, making it one of the most popular products in supermarket freezers.
This meteoric growth can be attributed to Dr. Oetker's groundbreaking "Pizza Revolution" with the launch of "Pizza alla Romana." Introduced in 1970, this pioneering deep-frozen pizza quickly became a phenomenon, propelling Dr. Oetker to the forefront of deep-frozen pizza production. Today, the pizza business contributes approximately 4.3 billion euros to Dr. Oetker's revenues, representing around 35 to 40 percent of their total earnings.
The frozen pizza revolution shows no signs of slowing down. Last year, around 395,000 tons were sold through supermarkets and discount stores, with an additional 30,000 tons moving in the away-from-home market, such as gastronomy and canteens. Surveys indicate that salami remains the favorite variety among Germans.
...And It's Still Going Strong:
The convenience factor and increased affordability compared to dining out have proved to be key drivers behind the burgeoning popularity of frozen pizzas. In fact, 67% of households in Germany regularly purchase at least one deep-frozen product, with the reach of deep-frozen pizza yet to saturate the market. The German Deep-Freezing Institute (DTI) predicts that pizza still holds immense potential for growth.
Moreover, the quality of frozen pizzas has skyrocketed in recent years. Developments in recipes, ingredients, and production methods have strived to emulate the pizzeria experience, aiming for restaurant-quality. One such standout brand is Gustavo Gusto, which has entered the premium segment and is now the third-best seller, despite charging almost twice the price of other offerings. This trend has encouraged market titans like Dr. Oetker and Wagner to counter with premium options like "La Mia Grande" and "Suprema."
The premium segment has become the driving force behind the frozen pizza category and is expected to see double-digit growth by 2024. According to market research institute NielsenIQ, this upward trend has a long way to go, with new players, products, and categories set to invade the market.
Catering to the Post-Pandemic Generation:
Younger consumers, particularly between 18 and mid-30s, are playing a pivotal role in driving demand for convenience foods. They're seeking time-saving and budget-friendly food solutions, not only pizza but also other snacks and ready meals from the freezer aisle. This trend seems to be here to stay, with the overall frozen food market growing consistently, reaching 50 kilograms per capita consumption.
From its humble beginnings in the 1970s, the deep-frozen pizza market in Germany has morphed into a thriving industry, evolving with changing consumer preferences, technological advancements, and retail expansions. The outlook for the next decade remains positive, as the frozen pizza segment continues its steady growth.
The growth in the frozen pizza market can be attributed to its convenience and affordability compared to dining out, making it a popular choice among various German households and contributing significantly to industries such as finance and business. In response to increasing consumer demand for premium quality products, market titans have introduced high-end offerings to cater to this new market segment, with the premium segment driving the overall growth of the frozen pizza industry.
