by Amanda Smith, Associate Editor
Pizza. It's a $40 billion industry that's at the heart of cheese sales, accounting for 25 to 28 percent of cheese consumption nationally in any given year.
Ninety-three percent of our nation's citizens will eat at least one pizza a month. But the vast majority isn't being consumed at a dining establishment. It's being eaten in the comfort of their homes. A recent Nielsen study noted that America's No. 1 meal choice translates to $3 billion in annual sales for grocery retailers. These offerings are split between the store's deli and frozen food departments.
Pizza dynamics began to shift as the recession's effects dissipated. Even though frozen pizza has a higher market share at 55 percent compared to the deli's 15 percent, deli sales have expanded while the freezer section fell off slightly. When looking deeper into the data, deli sales showed the most impressive growth when consumer confidence hit its low during the economic downturn.
As the economy has recovered, deli sales have maintained the sales' trend. However, sales aren't growing for all pizza types though. Shrinking household sizes affect the growth of smaller-sized options. Whole pizza sales account for over 50 percent of sales but have declined 4 percent over the past three years. Deli pizza sales are strong across all population demographics while households with children bolster frozen pizza's market.
Regardless of where it's consumed, pizza's sales strength is a boon for dairy, as cheese continues to be a staple ingredient.
