The pizza market - Belgium

1.2 Pizza in the world

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. [***]

Pizza market value World, ****, in billions of $ Source: ****

Western Europe and North America dominate the pizza industry, together accounting for **% of consumption. Latin America, meanwhile, consumed $** billion worth of pizzas in ****. Australasia consumed the least, at $*.* billion. In total, the pizza industry was valued at $*** billion in ****.

1.3 Continued growth for pizza in Belgium

The pizza market in Belgium was valued at around *** million euros in ****, with an average of **,*** pizzas sold every hour. [***] This represents around *.*% of the global market in ****, or *.*% of the European market.

Pizza sales Belgium, **** - *****, in € million CAGR: +*.*% Source: ****

In addition, pizza consumption is on the rise in Belgium: from **** to ****, pizza and quiche consumption increased by *.*%, and from **** to ****, the average increase in consumption was *.**%. The chart above is based on a value of *** million euros in **** [***], with values before **** and after **** discounted at an average annual growth rate of *.**%. Thus, if pizza consumption were to increase by *.**% per year, the pizza market in Belgium would be valued at *** million euros in ****.

Note: the quiche industry is included in this value estimate. The value of the pizza market is therefore slightly lower.

1.4 Belgium leads the way in per capita spending

Pizza consumption per capita World, ****, in $ Source: ****

In terms of per capita pizza consumption, Belgium ranked *th worldwide in ****, with an average consumption of $** per person. Pizza consumption is closely linked to GDP. Moreover, if we measure overall consumption, Belgium again ranks *th in the world, with an annual consumption of *.* kg per person per year. [***]

2.1 Overview of the request

Frozen or refrigerated pizza

Consumption by type of Pizza Belgium, ****-****, in millions of euros Source: ****

frozen pizza trumps chilled pizza in retail. It is important to bear in mind that the third pizza segment, fresh pizza (***), is not included in this valuation comparison.

Traditional pizza catering in Belgium

The traditional foodservice market includes restaurants of all sizes, from fine dining to casual dining. This category excludes fast-food chains such as Domino's or Pizza Hut. For example, in traditional catering establishments, employees include bartenders and kitchen staff, who are responsible for setting tables, managing portions, washing up and packing up at the end of service.

Traditional foodservice market Belgium, ****-****, thousands of outlets Source: ****

The graph above shows that the trend for traditional pizzerias is downward. Overall, the market shrank by *.*% between **** and ****. Consumers increasingly prefer to eat pizza at home or in fast-food outlets. This trend is worrying traditional pizzerias in Belgium, which have failed to capitalize on it and whose number has risen by **.*% since ****(***). This problem is illustrated in the following graph.

Pizza sales Belgium, **** - *****, in millions of transactions CAGR: -*.** Source: ****

The above chart also shows a downward trend in pizza sales in traditional restaurants. The ...

2.2 Profile analysis: the Belgian consumer

Correlation between demographics and pizza consumption

Spending on food and non-alcoholic beverages by consumer age group Belgium, ****-****, in millions of $ Source: ****

From the chart above, it's clear that the older part of the population in Belgium should be targeted to maximize sales. Indeed, this is the age group with the greatest purchasing power. However, we note that spending has fallen in all age groups between **** and ****

Consumption location

Although the traditional restaurant segment has declined in favor of online ordering, most pizza consumption still takes place in restaurants (***), while the takeaway segment accounts for just **%.

Pizza consumption outside the home Belgium, ****, in % Source: ****

2.3 Demand trends

A growing concern for health

Lameuse reports that a growing proportion of the population is moving towards new diets, such as the "flexitarian" diet (***), and consequently modifying pizza toppings. For example, in the choice of toppings, meat is often replaced by cheese. In addition, Belgians are demanding an increasingly wide range of products: Dr Oetker and GfK report that **% of pizzas sold in Belgium are based on specific consumer requests.

Daily breakdown: fast-food demand

Average expenditure in a fast-food outlet (***) Belgium, ****, in € Source: ****

The chart above illustrates average spending in fast-food outlets by time of day.

In Belgium, spending in fast-food outlets is highest on average at lunchtime (***). On average, *.** euros are spent per day in fast-food establishments.

Demand in restaurants or bistros

Average spending in restaurants and bistros (***) Belgium, ****, in € Source: ****

In Belgium, the highest expenditure in restaurants or bistros increases as the day progresses: **.** euros are spent on average at dinnertime, while the lowest expenditure occurs in the morning, with an average amount of **.** euros. Belgian consumers spend an average of **.** euros per day in restaurants

The most popular takeaways

In a **** Deliveroo survey, the most popular dishes (***), Speculoos, and finally Moules Frites. This confirms that the tastes of ...

3.1 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. Three main segments stand out and are well established in Belgium: "French-style" fast-food outlets offering mainly sandwiches and salads, "American-style" outlets offering burgers and fries, and "Italian-style" outlets offering pizza and pasta.

The fast-food market is fairly concentrated in Belgium. Although only **% of fast-food outlets are owned by chains (***), they generate **.*% of chain revenues.

By contrast, the traditional restaurant market is highly fragmented: only *.*% of outlets are owned by chains.

3.2 Relative market share of pizza companies

Distribution of companies in the market (***) Belgium, ****, in % of market Source: ****

Pizza is included in the product range of Vanherpe, Yum Brands (***), Louis Delhaize and finally Domino's Pizza.

Most popular fast foods Belgium, ****, in % of market Source: ****

As part of a survey, respondents were asked "Which fast food outlets (***).

Fast-food outlet distribution

Top * Fast Food companies Belgium, ****, in % of company establishments in the market Source: ****

Pizza outlets top the list in terms of market share of all food restaurants in Belgium: again, Domino's participates in this market share (***). The oil company Total SA is included in this segment because of its convenience stores, often located in gas stations.

3.3 Distribution goes online

Source: ****

In general, the trend in pizza delivery is upward. What's more, pizzas distributed directly by the supplier, such as Domino's and Pizza Hut, have the highest customer satisfaction ratings. For example, Domino's satisfaction rate was **/***, while the equivalent for Deliveroo was only **/***.

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 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.

4.2 Price breakdown

Price - Refrigerated Pizza

Source: ****

Price - Frozen Pizza

Source: ****

4.3 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

DHnet reports on "Let's Pizza", a machine that single-handedly assembles and bakes ingredients on site. 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.

5.1 Current regulations

As Belgium is subject to Community law, pizza has been governed by Regulation (***) no. ***/**** since ****. Within this framework, the European Parliament and the Council have adopted the definition of the general principles and requirements of food legislation in the General Regulation on Food Law.

At national level, the regulations governing pizza are part of the **** law to protect the health of consumers with regard to food products. In addition, other legislative frameworks, such as those concerning labeling, also touch on the regulation of food when it comes to pizza.

6.1 Player segmentation

6.2 key players

• Domino’s Belgium
• Pizza Hut USA
• Dr Oetker
• Pizza Hut Belgique