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Summary of our market study
The global pizza market, with a strong presence of franchises like Domino's Pizza and Pizza Hut, has been adapting to consumer trends toward home consumption, facilitated by online catering and delivery sectors. In Austria, the pizza market's growth is notable, with frozen pizza sales expected to reach €146.9 million by 2024, exhibiting a compound annual growth rate (CAGR) of 5.5% from 2020 to 2024. Despite a projected slight decline in full-service restaurant sales, limited-service restaurant sales are set to grow due to the increasing popularity of food delivery services, which are expected to significantly contribute to the total Austrian food delivery market valued at approximately $15.23 billion by 2024.
The COVID-19 pandemic has shifted consumer behavior, with online food delivery platforms like Lieferservice and Mjam seeing a surge in orders, whereas physical restaurants, particularly full-service establishments without delivery options, have been facing financial challenges. Regulations in Austria follow European standards, ensuring food safety and consumer protection within the pizza market.
Austrian Pizza Market Analysis: A Detailed Investigation of Consumer Preferences and Demand Trends
The Austrian pizza market, part of the global pizza consumption that stands at an impressive rate of 951 pizzas per second, is a stable yet evolving sector. Despite not being a top player in terms of per capita consumption, Austria's love for highly caloric diets indicates significant underlying demand for pizza, a food item that conveniently fits the high-energy meal category. With a recorded €1.03 billion in pizza sales, the market in Austria contributes roughly between 1 and 2 percent of Western European consumption and is expected to see growth to €1.08 billion by 2024, maintaining a steady CAGR of approximately 2%.
Interestingly, Austrian consumers have a clear preference for fresh pizza, with around two-thirds opting for restaurant or home-delivered options. Frozen pizzas, although a smaller market segment, exhibit growth momentum with a forecast CAGR of more than 4% from 2019 to 2024. Despite this, frozen pizza remains among the most popular frozen products purchased by Austrians. When it comes to pizza consumption habits, Austrians prefer to share this meal in a social context – most often with a partner or friends – and have a higher inclination for pizzas with cheese, tomato sauce, oregano, garlic, and a thin, crispy crust. Alongside, the market for delivery services has been growing. Notably, platforms like Lieferservice and Mjam, both backed by powerhouse parent companies from Germany, dominate the online delivery sector, indicating a trend towards consolidation of delivery services.
The Austrian pizza market has seen a slight but steady increase in pizza prices, which have grown by less than 1%, compared to the national CPI growth, indicating a competitive market with low profit margins and barriers to entry. For producers, it costs near €3.5 to produce a simple Pizza Margherita considering ingredients, operations, and staff, with margins tightly squeezed in the face of competition. Notably, the rise in online food services, with a market projected to be worth well over €15 billion in 2024, suggests a robust future for pizza sales through these platforms. COVID-19 brought significant disruptions to this market, with full-service restaurants experiencing almost catastrophic declines in cash flow due to mandatory closures. Conversely, delivery services thrived due to increased demand for at-home dining options. This market dichotomy illustrates the critical importance of diversification and online presence for survival in the current economic climate.
Key Players Dominating the Austrian Pizza Market Landscape
The Austrian pizza market, like many others worldwide, has seen its landscape shaped and dominated by a mixture of global powerhouses, national franchises, and rising stars in the online food delivery segment. In the realm of pizza chains and franchises, several names stand out for their reach and influence.
- Pizza Hut remains a global behemoth, harnessing the power of widely-recognized branding and a ubiquitous presence. While its exact financial figures in Austria were not provided, globally, it continues to assert substantial market influence with a wide array of pizza offerings and a focus on fast, convenient service.
- Vapiano, despite declaring bankruptcy and facing significant challenges due to the pandemic, has been a go-to name for many Austrians looking for a more refined fast-food experience. Their offerings have traditionally focused on Italian cuisine with a contemporary and stylish twist, blending the convenience of fast service with a touch of gourmet flair.
- L'Osteria is another noteworthy contender in the full-service restaurant category that has impressed with its expansive menu and a strong focus on the ambiance and dining experience. While their presence is not as widespread as Pizza Hut's, they have carved out a substantial niche within the market with their emphasis on quality and authenticity.
- When it comes to the frozen pizza segment, Dr. Oetker stands as a giant, not just in Austria but globally, revered for its wide range of frozen food products. Their ability to innovate and offer convenience without compromising taste has made them a significant player in the frozen pizza space.
- In the thriving sphere of online pizza services, companies like Lieferando (operating under Takeaway.com) and Mjam (owned by Delivery Hero) have significantly transformed how consumers enjoy pizza. These platforms cater to the digital-savvy and convenience-seeking customers, streamlining the process of ordering and delivering hot and fresh pizzas straight to one’s door.
These key players each bring unique strengths and offerings to the table, contributing to a diverse and competitive Austrian pizza market. From the traditional sit-down pizzerias to the modern convenience of app-based ordering, the players mentioned above underscore the multifaceted nature of pizza consumption in Austria. As the market continues to evolve amid technological advancements and changing consumer preferences, these companies are expected to adapt and innovate to maintain their leadership positions.
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Summary and extracts
1 Market overview
1.1 Definition and scope of study
Pizza originated in Italian cuisine, and the modern pizza was invented in Naples. Pizza is made from bread dough, topped with various ingredients (e.g. tomato sauce, cheese, olives) and baked in the oven.
The main distribution channels for pizza are
- Commercial catering (restaurants, fast-food chains, sometimes franchises).
- Hypermarkets and supermarkets
- Contract catering
The pizza market in Austria appears to be relatively stable. Traditionally, pizzas are eaten in restaurants. A few global brands dominate the market in fast-food chains, but the market is more fragmented in traditional restaurants.
However, the trend is increasingly towards home consumption. This evolution is facilitated by the online catering and delivery sector, but also by a wider range of products such as frozen pizzas. Takeaway or eat-in consumption is also being developed by the arrival of FoodTech players. this has helped to further stimulate growth in the pizza market and its distributors.
Finally, this study analyzes the full range of pizzas on offer and how they can be consumed (fresh, chilled and frozen).
1.2 The global market
Worldwide pizza consumption stands at *** pizzas per second, or ***,*** tonnes of pizza consumed per year. The biggest pizza consumers in cumulative numbers are the Americans, followed by the French and Italians. [***]
Global pizza market size World, ****, Billion US$ Source: ****
In ****, the total value of pizza sales amounted to almost $*** billion. Western Europe accounts for around **% of global consumption. The global pizza market is dominated by large franchises such as Domino's Pizza and Pizza Hut. Worldwide, the former had **,*** restaurants in ****, corresponding to sales of *.* billion euros. Pizza Hut had over **,*** in ****, but remains behind Domino's Pizza in terms of revenues, which amount to around * billion . These two brands alone account for around *% of the global pizza market.
Relative per capita pizza consumption
Pizza consumption per capita World, ****, US$ Source: ****
In terms of pizza consumption per capita, Austria doesn't score highly, as evidenced by its absence from the per capita consumption rankings. The chart above shows that per capita consumption in **** was less than $**, and this is unlikely to have changed in recent years. Nevertheless, Worldatlas reports that Austria had the highest food consumption in the world in ****, measured in kilojoules per capita (***). Austrians eat a high-calorie diet, but don't seem to ...
1.3 The pizza market in Austria
The distribution channels and range of pizzas are manifold; for example, they can be eaten in restaurants, as takeaways, but also fresh or frozen. This is why, to obtain the size of the total market, we aggregate all the figures for the different types of pizza taken from Euromonitor. In the second part, we'll give a breakdown of the figures for each pizza distribution channel.
Total value of pizza sales Austria, ****-****, € million CAGR: *.*% Source: ****
This chart summarizes pizza sales for each year between **** and **** for frozen and chilled pizzas, as well as pizzas sold in restaurants. Values beyond **** are based on projections. The Austrian pizza market was worth €*.** billion in ****. This figure is expected to rise to *.** billion euros in ****. Since ****, this is equivalent to a CAGR of *.*%. Finally, *.** billion euros in **** represents around *.*% of Western European pizza consumption (***) based on the graph in section *.*.
2 Demand analysis
2.1 Product breakdown
In this section, we examine the pizza market distributed through four different channels: frozen pizza, refrigerated pizza, full-service restaurants (***). Together, these four channels make up the global pizza market.
Frozen pizza
Value of frozen pizza sales Austria, ****-****, € million CAGR (***) : +*.* CAGR (***): +*.* Source: ****
In ****, the value of frozen pizza sales was €***.* million, rising to €***.* million by ****. Between **** and ****, this equates to a CAGR of *.*%. Indeed, this is a steadily growing food market in Austria.
Frozen pizza among the most popular frozen products
Ranking of most popular frozen products (***) Austria, ****, % Source: ****
A survey conducted in **** revealed that the most common frozen product was vegetables (***) of total purchases.
Refrigerated pizza
Total fresh pizza sales Austria, ****-****, in € million CAGR: +*.*% Source: ****
In Austria, consumption of chilled pizzas is much lower than that of frozen pizzas; in ****, this mode of consumption generated sales of €* million. Chilled pizzas are mainly sold in supermarkets and hypermarkets, and sometimes over the counter. Historically, the limited availability of outlets and the need for fast consumption have kept this market at a low level. Nevertheless, the product offer is growing rapidly, and producers are innovating in the field of refrigerated pizzas by adding different toppings and offering healthier alternatives. Indeed, it ...
2.2 The Austrian consumer: Demand analysis
How do Austrians eat pizza?
In ****, **% (***) of those surveyed preferred to eat fresh pizza, either by home delivery or in a restaurant. The frozen pizza segment accounted for just *% of responses. Nevertheless, as we saw in the previous section, the frozen pizza market is growing and is set to remain so until ****.
Best pizzerias by region
The graph above is based on a survey in which Austrian respondents were asked to vote for the best pizzeria in each region. It shows the percentage of votes obtained by the most popular pizzeria. For example, in Voralberg, Antonio was voted best pizzeria, winning **% of the vote. In Vienna, L'Autentico was the most popular pizzeria, with **% of the vote. The conclusion that can be drawn from this poll is that Austrians seem to prefer local and independent pizzerias to the big chains, and this is demonstrated by the fact that pizzerias such as Pizza Hut, Vapiano and L'Osteria do not feature in this list.
Pizza is a social meal
According to mjam (***) were the most frequent responses.
The most important ingredients
Austrians
Austrians prefer pizza with a fine, crunchy texture. **% of those questioned chose this type of pizza. On the other hand, **% of consumers ...
2.3 Demand trends
Interest in online catering services stable
Source: ****
The graph above represents the proportion of searches for a keyword in a given region over a given period of time, relative to the time when it was most searched for (***). Thus, a value of ** means that the keyword has been used less frequently in the region concerned, and a value of * means that there is insufficient data for this keyword.
The trend above illustrates Google searches for the three most popular online food delivery services. As can be seen, demand for Lieferservice is stable, while Mjam has been attracting more attention since ****. Lieferservice is a German company, owned by Dutch site Takeaway.com, and Mjam is owned by the German delivery champion. Meanwhile, interest in Foodora's search has waned.
The recent peak was due to COVID-**, when a large number of people ordered home delivery. Interestingly, Foodora was unable to capitalize on the virus crisis and containment measures, as evidenced by the drop in searches for the company's name.
Finally Takeaway.com's **** annual report , states that the average order value in Austria in **** was **.** euros, compared with **.** euros in ****.
The most popular online delivery services
Lieferservice.at is the most widely used takeaway ...
3 Market structure
3.1 Production
Market overview
The "fast food" sector comprises a large number of players, and there are many franchises offering pizzas, including Domino's, Pizza Hut, Mamma Roma, Pizza Italia and Pizza Box.
Pizza is distributed in a variety of ways: through retailers, and in full-service or limited-service restaurants.
Traditional versus industrial production
Production differs greatly depending on the type of player: pizzerias offer products prepared on the premises from fresh ingredients. Sometimes, the meal is prepared in front of the customer using a wood-fired, gas-fired or electric pizza oven. Supermarkets are the most common distribution channel for frozen or refrigerated pizzas.
3.2 Distribution
Although pizza consumption is on the rise, and the previous sections have shown that sales are increasing, the number of full-service restaurants is declining and is expected to continue to fall. In ****, there are expected to be a total of *,*** full-service restaurants in Austria, compared with *,*** in **** (***). In other words, sales are up, the number of restaurants is down. Finally, all the restaurants included in this category are independent.
There has also been a decline in the total number of limited-service restaurants. In effect, we are witnessing a takeover of the market by restaurant chains. In other words, the big players are gaining market share and the market is becoming more concentrated. Nevertheless, the pizza market remains highly fragmented, with many different players. Indeed, by ****, out of a total of *** restaurants (***). Finally, the number of limited-service restaurants in Austria is set to rise from *** in **** to *** in ****. Here again, market concentration for independent businesses is increasing, while chains are gaining in appeal and market share.
4 Offer analysis
4.1 Products and/or services
Products on the market
Products on the market are classified according to their sale, content and final purpose. Consequently, there are three main segments:
Refrigerated pizza Refrigerated pizzas are most often distributed by Hyper- and Supermarkets, and are distinguished by the fact that they are ready-to-eat.
Frozen pizza Frozen pizzas are sold in supermarkets and convenience stores, and can be eaten immediately or stored for later consumption.
Fresh pizza Fresh pizza is distributed by establishments such as fast-food chains, restaurants and delicatessens. They can be eaten on the premises or taken away. In this analysis, we consider fresh pizza to be sold in full-service or limited-service restaurants.
4.2 Prices
Source: ****
In this analysis, we use code A.**.*.*.* Pizza and quiche to obtain the evolution of pizza prices in Austria. We can see that pizza and quiche prices have risen by *.*% since ****, while the CPI (***) has risen by *.**%. In other words, price increases have been smaller for pizzas and quiches compared to the general price level of consumer goods. Nevertheless, there was in fact an increase in prices for pizzas and quiches, which, combined with stronger demand, may explain the increase in sales in this sector. In addition, this slight increase in prices confirms that the pizza market is highly fragmented, with many players, creating market conditions similar to those of perfect competition. In such scenarios, prices roughly cover costs, and profits and barriers to entry are low.
Breakdown of pizza prices
If we add up the costs of ingredients, restaurant operations and staff, it costs around * euros to produce a Pizza Margherita in Italy. In addition, the same source adds a "foreign supplement" to cover the cost of transporting quality products from Italy to Vienna. Finally, this implies that in Austria, the production of a Pizza Margherita costs around *.* euros. [***]
To obtain the exact breakdown of costs illustrated in the ...
4.3 Supply trends
A wider range of products
To meet all consumer needs, pizzerias must constantly update their product offering and introduce new products, such as vegetarian, organic and allergy-friendly alternatives. This is essential not only so that pizza producers can compete, but also to avoid losing market share to other fast-food solutions. Domino's and Pizza Hut both offer personalized "do it yourself" pizzas, where the consumer builds the entire pizza, from dough to toppings.
Germany's success in food technology reaches Austria
Since ****, Germany has dominated the European food-tech start-up market, as measured by private investment. Indeed, Germany's HelloFresh and Delivery Hero represent two of the four (***). It also explains why consumers are less keen on services such as Uber Eats, which are very popular in other countries.
4.4 COVID-19 market impact
The global COVID-** pandemic will affect the pizza industry differently depending on the player's positioning.
Pizza restaurants that rely entirely on physical outlets will suffer enormously from the closure of catering services, as cash flow approaches zero. For many, **** will be a test of solvency and survival. As we saw in the second section, in the demand analysis, full-service restaurants account for almost **% of all restaurant sales in Austria, and many have no online delivery services, bringing their cash flows close to zero. Indeed, for these restaurants, the impact will be detrimental and bankruptcies will soar. However, small players aren't the only ones to be affected: in April ****, Vapiano Austria filed for bankruptcy. Their downfall means that ** restaurants will be closed and *** workers laid off. [***] This decision was taken because of the German restaurant group's financial difficulties.
On the other hand, some players in the pizza industry will benefit from the pandemic, as consumers order more food from home. In particular, players with no physical store, such as Lieferservice and Mjam, will see their sales increase relative to their costs. According to Takeaway.com's financial report, the company's orders increased by **% in Q* **** compared to Q* ****.
Finally, in the middle are ...
5 Regulations
5.1 Current regulations
Since Austria is subject to European law, pizza has been regulated by Regulation (***).
Pizza, defined in this document as A.**.*.*.* Pizza and quiche , is affected by both European regulations and Austrian national regulations on food safety and standards.
6 Positioning the players
6.1 Segmentation
The aim of this section is to provide information on the main companies currently operating in the pizza market
- Pizza Hut Austria
- Vapiano
- L’Osteria
- Lieferando (takeaway)
- Mjam
- Dr Oetker
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the pizza market | Austria
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