The pizza market - Spain (2024)

1.2 The global pizza market

The global pizza market was estimated in **** at $***.* billion worldwide. With an estimated CAGR of *.**% over the period ****-****, the pizza market is expected to reach a value of $***.* billion worldwide in ****.

The global pizza market World, ****-****, $ billion Source: ****

1.3 The Spanish market

While it is difficult to estimate sales figures for the pizza market in Spain, given that most sales are made via the HORECA channel, and that no detailed statistics are available, we can nevertheless determine with certainty the sales figures achieved by manufacturers in the pizza as a ready meal sub-segment.however, it is possible to determine with certainty the market share achieved by manufacturers in the prepared-dish pizza sub-segment. The graph below shows these figures, presenting only the sales generated by the pizza as a ready meal sub-segment. The size of the pizza market is therefore much greater, but difficult to estimate given that the majority of sales are generated by the hotel/restaurant sector.

Spanish pizza market Spain, ****-****, millions of euros Source: ****

2.1 The HORECA canal

Pizza is one of the star products sold in restaurants. Its ease of preparation, price and taste make it an indispensable part of the hotel/restaurant offer. The graph below shows the evolution of HORECA sales in Spain. Between **** and ****, an upward trend is observed, with average annual increases of between *% and *%. However, in ****, a sharp fall of almost **% is recorded, bringing sales down to **.** billion euros, mainly due to restrictions linked to the COVID-** pandemic. In ****, a recovery begins, with an increase of almost **%, bringing sales to **.** billion euros. This recovery is confirmed in ****, with a further increase of almost **%, taking sales to **.** billion euros.

Sales trends in the hotel/restaurant sector in Spain Spain, ****-****, billions of euros Source: ****

The sector's sales also point to greater on-site consumption, with **% of meals being eaten away from home.

Breakdown of HORECA sales by channel Spain, ****, % of sales Source: ****

We also note that food remains the main item of expenditure for Spaniards when dining out, with per capita spending equal to ***.** euros in ****.

Per capita expenditure on eating out in Spain Spain, ****, euros/head Source: ****

Finally, it appears that eating out is driven by hedonistic behavior. **.*%, **.*% and **.*% of Spaniards say they eat ...

2.2 Demand for pizza as a prepared product

By ****, in Spain, the pizza segment will be a major player in the prepared meals market, with a **% market share by value. This substantial share testifies to the enduring popularity of pizza among Spanish consumers, confirming its status as a popular and widely consumed dish. Canned and frozen products follow close behind, with shares of **% and **.*% respectively. Soups and creams, pasta and tortillas also represent significant segments, but with smaller shares. Finally, other prepared dishes, which include a range of different dishes, record the highest market share at **.*%.

Thus, with a "prepared dishes" food market estimated at *.*** billion in ****, we can see that the market for pizza as a prepared dish represented ***.*** million euros that same year.

Value market share of the pizza segment within the prepared meals market Spain, ****, % (***) Source: ****

In terms of volume in ****, pizza accounted for **.*% of sales, placing it in *th position.

Market share by volume of the pizza segment within the prepared meals market Spain, ****, % Source: ****

However, there is a downward trend in pizza consumption as a prepared product. While consumption was *.**kg in ****, it will now reach *.**kg/head in ****.

Per capita consumption of prepared "pizza" products Spain, ****-****, kg/capita Source: ****

2.3 Pizza, a product that meets Spanish demand

Pizza is a universal product appreciated by all, and its composition can be multiple. The table opposite shows the * favorite pizzas of Spaniards in ****, according to a study carried out by Telepizza:

Source: ****

So, by its very nature, pizza is a product that appeals to everyone, carnivores and vegetarians alike.

A product everyone can eat:

With around * million Spaniards claiming to be veggies in ****, pizza is an essential product in this sub-segment of the food market. The graph below, shows the shares of the Spanish population according to their diet. Between **** and ****, there has been a shift in behavior towards flexitarianism and vegetarianism (***). These changes in behavior are taking place against a backdrop of growing awareness of the challenges of climate change and animal welfare within our food supply. In conclusion, this trend does not appear to be a threat to the pizza market, given that it is not threatened by a substitute product.

Vegetarian population in Spain Spain, ****-****, % of total population Source: ****

3.1 Market overview

The pizza market can thus be characterized according to its players:

It appears to be a highly concentrated market for the preparation of ready-made meals It also appears to be highly concentrated in terms of the number of franchisees offering restaurants throughout the country. Finally, it appears to be highly fragmented, with a very large number of players, as it is a dish served throughout the HORECA sector. It is therefore highly competitive.

While the two biggest pizzeria chains in Spain are Telepizza and Domino's, the table below shows the country's main pizza franchises:

Source: ****

3.2 Home delivery

Pizza has always been consumed by delivery, long before the arrival of delivery platforms like Just Eat or Uber Eats. Large and small chains alike almost all have home delivery systems, and Spaniards use them frequently, even if the development of food-delivery is shaking up this sector. The chart below shows the delivery platforms that Spaniards appear to be using in ****.

Spaniards' preferred platforms for food delivery Spain, ****, % of total Source: ****

However, the development of food-delivery appears to be a source of growth for the pizza market. Indeed, pizza is the favorite dish of Spaniards when it comes to making a choice on the different delivery platforms, with **% of them preferring this category.

Spaniards' * favorite dishes when ordering food on platforms Spain, ****, % Source: ****

The predicted growth of food delivery in Spain should boost the pizza market. Estimated at *.** billion euros in ****, it should reach *.** billion in ****, an increase of **.**% in * years.

Evolution of food-delivery sales Spain, ****-****, billions of euros Source: ****

3.3 The franchise

Fast food outlets in general, and pizzerias in particular, are relying heavily on the franchising model to develop their national coverage. With the success of these brands in recent years, the number of outlets has risen considerably. The graph below shows the evolution of the number of franchised brands in Spain between **** and **** in the hotel/fast-food channel. In ****, the ** franchises in this sector generated sales of *.*** billion euros, **.**% of which came from the franchise network and the remainder from the brands' own stores.

Number of franchises in Spain Spain, ****-****, number of franchises Source: ****

The graph opposite also shows sales growth for franchises in the hotel/fast-food channel in Spain. There has been a steady increase in this sector's sales over the period.

Sales trends for the hotel/fast-food franchise channel in Spain Spain, ****-****, billions of euros Source: ****

Finally, the table below shows the ** largest Spanish franchises by number of stores. Of the ** largest franchises, two (***) offer pizzas.

Franchises Number of stores Burguer King *** Telepizza *** McDonald's *** *** Montaditos *** Llaollao *** KFC *** La Tagliatella *** Foster's Hollywood *** VIPS *** TGB (***) ***

Source: ****

3.4 Distribution of pizzas as prepared products

In Spain, the distribution of pizzas as a prepared dish reveals a marked preference for supermarkets, which capture a significant **.*% share. Hypermarkets follow closely behind, with a **.*% share, also offering consumers a popular option. The hard discount channel is also notable, accounting for **.*% of distribution, reflecting a trend towards more economical options. Traditional stores retain a small share of *.*%, while other channels, such as street stalls or kiosks, account for **.*%. Finally, e-commerce is beginning to emerge timidly, with a market share of *.*%.

Distribution breakdown of pizza as a prepared dish Spain, ****, % of total Source: ****

Analysis of average prices per kilogram for prepared pizzas reveals significant variations by distribution channel in Spain. Hypermarkets offercompetitive prices, with an average of €*.** per kilogram, while supermarkets rank just below at €*.**. Consumers looking for even lower prices turn to hard discounters, where the average price per kilogram is €*, offering an economical alternative. Traditional stores, on the other hand, have a relatively higher average price of €*.** per kilogram, perhaps justifying more artisanal or high-end products. Other distribution channels offer a range of average prices, with an average of €*.**, testifying to the diversity of offers on the market. Finally, e-commerce presents an average price per kilogram of €*.**, positioning ...

4.1 Product overview

Three products on the market

The types of pizza on the market can be grouped into three main segments:

Refrigerated pizza:

Refrigerated pizzas are most often distributed by supermarkets and are distinguished by the fact that they are ready to eat.

Frozen pizza:

Frozen pizza is 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.

4.2 Price overview

Large chains and traditional pizzerias

To compare the different brands, we decided to look at the price of a basic pizza (***) of average size

Source: ****

Frozen/refrigerated pizzas :

As there is no standard size for frozen and refrigerated pizzas, we will use the price per kilo to compare the main brands

Source: ****

4.3 Production prices

Analysis of the Consumer Price Index (***) for pizzas and quiches in Spain reveals three different trends. Between **** and ****, prices maintained relative stability, with slight variations around ** to ** based on a base of *** in ****. From **** onwards, however, an upward trend was observed, notably with a significant increase in **** and ****, reaching a value of ***.** and ***.** respectively. At the start of ****, a slight deceleration is observed, although prices remain high, with values around ***.

CPI trends for "pizza and quiches" in Spain Spain, ****-March ****, index base ***, **** Source: ****

4.4 Supply trends

A wider range of products

To meet all consumer needs, pizzerias must constantly update their product offering, while introducing new products such as vegetarian, organic and allergy-friendly alternatives. This is crucial not only for pizza producers to keep up with the competition, but also to avoid losing market share to other fast-food alternatives. Domino's and Pizza Hut both offer personalized pizzas, where the consumer builds the entire pizza, from dough to toppings.

Digitization

Numerous initiatives such as "Let's Pizza", a machine that assembles and bakes ingredients on the spot, are springing up in Spain and Europe. A pizza is delivered three minutes after being ordered. This brings a new dimension to fast food, and can meet consumers' needs at lower cost and with greater accessibility and personalization.

Personalization:

Many pizzerias and fast-food chains (***) now offer their customers the chance to create their own pizza, choosing from a variety of ingredients, sauces and toppings. This customization allows consumers to create unique pizzas that perfectly match their tastes and dietary needs, whether vegetarian, gluten-free or low-fat. By offering this freedom of choice, pizza companies are responding to the growing demand for customization in the food sector, providing a more engaging and satisfying culinary ...

5.1 Regulatory framework

The manufacture of industrial pizzas is subject to all European and national regulations governing the food industry. In the wake of numerous national and European food crises, the European Commission has published a white paper setting out the measures required to achieve a high level of food safety. In particular, these regulations aim to control the various operations carried out on the food used, to ensure that they do not deteriorate or contaminate the food.

The sale of takeaway food and prepared meals is also governed at national level by Royal Decree ****/****, which lays down hygiene rules for the processing, distribution and trade of prepared meals.

6.1 Player segmentation

• Telepizza
• Pomodoro
• Pizza Móvil
• Casa Tarradellas
• Buitoni (Italpizza Group)
• CampoFrio Food
• Palacios
• Dr Oetker