According to data from IRI, Chicago, sales of frozen pizza were up about 1.15 percent in the 52 weeks ending August 7, 2016, representing about $4.5 billion. Unit sales, though, were down about 2.14 percent. Why?
“There is somewhat of a ‘premiumization’ going on,” says Mike Pytlinski, senior brand director, Palermo Villa, Milwaukee, WI. “The premium ($5.50 to $7.00 average retail price) and super premium (greater than $7.00) segments have grown substantially, while all other price segments have declined.” He chalks this up to an improving economy, but more so, a trend in the industry toward premium quality—and the pricing that goes along with it. “It reflects a larger macro consumer trend across many categories, where consumers are increasingly willing to pay a premium for products that deliver,” he says. “In addition to the trend toward more indulgent pizzas, we are seeing a trend toward healthier eating.”