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Frozen Pizza Production in Australia Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Oct 11, 2013, 15:00 ET

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IBISWorld Market Research
IBISWorld Market Research

Increasing competition is slowing revenue growth for frozen pizza producers.

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Melbourne, Australia (PRWEB) October 12, 2013 -- Demand for the Frozen Pizza Production industry has cooled over the past five years. In the early part of the period, competition from imported pizzas hindered growth in domestic production. According to IBISWorld industry analyst Emily Witham, "downturns in industry revenue were fought off by product innovation, aimed at increasing the customer base and overcoming external competition." As a result, industry revenue is expected to grow at a compound annual rate of 1.9% over the five years through 2013-14. However, increased competition has reduced the average price and profit margins for the industry. The industry is struggling to maintain its strength, with revenue forecast to grow by only 0.9% over 2013-14.

The greatest challenge for the industry is the increasing trend of health consciousness. The industry has been battling with pizza's stigma as an unhealthy dining option. In response, it has innovated new products that aim to portray a gourmet or healthier image. The inclusion of frozen pizzas specialised for dietary requirements has also been an area of considerable growth. The rise of time poor consumers as the number of full-time employees increases has been favourable for the industry due to the convenience of frozen pizza. However, this has not been without an increased threat from growth in many healthier ready-made meals. "The growth of the major supermarkets' private labels has not bypassed the frozen pizza segment," says Witham. The increase in demand from supermarkets for private-label pizza has increased production of private-label pizza. This has been a major contributing factor to the reduction of the industry's profit margins as the supermarkets have squeezed the industry for lower prices. The industry has a high level of market share concentration, with the two largest players - McCain Foods (Aust) Pty Ltd and Dr. Oetker Australia Pty Ltd – accounting for the majority of industry revenue.

Over the next five years, the Frozen Pizza Production industry is expected to face increased external competition from healthier ready-made meals and the growing fresh pizza business. Growth in gourmet pizza shops and convenient stores like Dominos Pizzas are expected to remain major threats to the industry. There is the potential for growth in product innovation and export developments in the growing Asian markets.

For more information, visit IBISWorld’s Frozen Pizza Production report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau.

IBISWorld Industry Report Key Topics

This industry produces frozen pizzas that are distributed to grocery wholesalers, supermarkets and retail food stores.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

Gavin Smith, IBISWorld, +61 396553838, [email protected]

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