15
Australasia: 12.1%
12
Latin America: 11.8%
Middle East / Africa: 8.9%
9
Asia Pacific: 7.7%
6
Eastern Europe: 6.5%
World Pizza Growth
(compound annual growth rate)
Period: 2006–2011
Source: Euromonitor International
3
Western Europe: 3.1%
North America: 1.1%
The chart at left illustrates the pizza industry’s
compound annual growth rate from 2006 to 2011
in the U. S. and foreign markets.
0
top brand in terms of number of stores and sales,” says Liu.
“International chains—such as Papa John’s from the United
States, Mr. Pizza from South Korea, and the Pizza Company
from Thailand—are also doing well and remain confident in
the Chinese market.”
Liu says that, in addition to the success of the interna-
tional chains, local Chinese chains are also finding success.
“Shanghai-based brand Babela’s Kitchen, with more than
150 stores nationwide, is ranked the No. 1 national brand,
followed by Beijing-based Origus and Big Pizza, with more
than 100 stores respectively,” Liu notes. “Also actively com-
peting with the major players are regional brand Meiwen
from Tianjin; Europa from Shenyang; City 1+1 from Chang-
chun; Pizza Marzano and Melrose from Shanghai; Fizz from
Shaoxing; and Pizza Bee.”
As the pizza category expands and choices grow, Chinese
customers are becoming more sophisticated—they’re not sat-
isfied with just one brand or type of pizza. “Some indepen-
dent pizzerias, with their signature pizzas, can be attractive
to some customers,” Liu observes. “Still, the younger genera-
tion are the main customers; they can easily accept foreign
food and like to try different things. Thus, the marketing is
mainly targeted toward younger customers under 40.”
India
Although pizza isn’t a food you’d traditionally find in India,
according to Weiss, bread, tomatoes and cheese are an integral part of the national diet. So, as with other international
markets, pizzerias have tailored pies to fit local tastes, with
one of the favorites in India being the Peppy Paneer pizza,
which is topped with chunks of paneer (an unsalted cheese)
and red, green and chili peppers. Since the population is also
tech-savvy, Domino’s began offering online ordering to its
Indian customers in late 2010 and has already seen more
than 10% of sales coming in through the Web.
Pizza Hut, excited about India being a major growth engine for Yum! Brands, last year separated its India business
into a stand-alone segment, which it had done with only China in the past. Chairman and chief executive David C. Novak
said the company was at the same stage of development in
India as it was in China at a similar juncture in its life cycle.
34 PMQ Pizza Magazine – The Pizza Industry’s Business Monthly
China: 1,343,239,923 India: 1,205,073,612
United States: 313,847,465
Indonesia: 248,216,193
Brazil: 205,716,890
Pakistan: 190,291,129
Nigeria: 170,123,740
Bangladesh: 161,083,804
Country
Population Ranking
Looking at the chart above, you
can imagine the growth potential
in markets that have four times the
population of the United States. The
opportunities for expansion and
test marketing are limitless as an
ever-growing number of U.S.-based
businesses introduce their businesses
to a ready and excited audience.
Russia: 138,082,178
Japan: 127,368,088
Similarly, Domino’s currently owns 500 stores in India
and has plans to reach 800 stores by 2016. You’ll also find
Papa John’s, Little Caesars, California Pizza Kitchen and
Sbarro earning a slice of the pie in India.
Summing Up
All in all, our research suggests that the pizza industry
fared well in the past year, and all indications point to another strong year ahead. Independent operators continue to
thrive, holding their own against the big chains. Innovations
abound throughout the industry, another positive sign for a
healthy industry. Across the United States, pizzeria owners
continue to adhere to cherished traditions of pizza making
while embracing new ideas and technologies. And, best of
all, the consumer’s love for pizza endures from generation to
generation, ensuring that the world’s most popular food will
remain popular for a very long time.
Liz Barrett is PMQ’s editor at large.
