In the food industry, there is a clear statement that pizza and burgers are the two kind of food that Americans love to eat but with obesity rate rising, the driving force of trends today come down to health benefits.
Rather than having the usual greasy substance, reports state that the need for healthier options started five years ago when the economy changed with the food preferences of consumers.
Reports from IBISWorld state that demands are changing as lifestyles of consumers become busier.
“The increasingly health consciousness of Australians has been the largest motivator towards healthier eating options,” Said analyst Ryan Lin of IBISWorld.
In the food industry, innovating recipes and products towards a greener option became the key to recovery.
“Convenience trends and changing menus have helped the industry to recover strongly from the financial crisis, which led consumers to trade down or substitute foods for cheaper alternatives. Technological developments have not only contributed to operational efficiency, but have also enabled more personalised customer ordering experiences.”
Together with technology, expansions are made and growth was posible. On one case, pizza franchises remains at struggle as the growth corridors continue. Even the largest chains could not keep up.
“As new growth corridors are explores, new geographic markets will continue to emerge.The development of mobile and internet technology to improve the customer experience will continue to fuel revenue growth for the largest industry operators.”
Meanwhile, frozen pizzas become a bigger competition towards the takeaway pizza restaurants. The developments and changes in five years are seen to be growing better for the frozen products.
“Frozen products in supermarkets have threatened the takeaway pizza restaurant industry as these products provide a similar, if not better, level of convenience. Consumers can readily purchase an affordable frozen product, such as a frozen pizza, from a supermarket which they can quickly heat up and consume.”
In addition to the competitive changes going on, there will also be some price and quality changes that are considered challenges in the industry for the year. Average growth of 2.3% is foreseen by IBISWorld for the next five years, a slow rate that is caused by competition.
“Over the coming years, competition between established pizza chains will grow, with large players such as Pizza Hut and Domino’s competing aggressively for market share,” he says.“Supermarkets offering a more sophisticated range of goods such as frozen foods, and healthy takeaway meals such as salads, will increasingly work to undermine the dominance of pizza fast food restaurants.”
The leading brand so far in the pizza industry is Domino's Pizza with over 13.5% of the market share. Next in line is EBA Pizza Holdings with 7.2% and Yum! Australia with 5.8%
As always, pizza will be influencial and preferred but as stated by the reports, price will also come as a factor for consumer decisions.