In This Article:
We recently published a list of the 12 Best Pizza Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where General Mills, Inc. (NYSE:GIS) stands against other best pizza stocks to buy according to hedge funds.
Overview of the Pizza and Frozen Pizza Market
Pizza is one of the most popular foods in North America. According to the Global Pizza Analysis Report 2024 released by Research and Markets, the global pizza market size was valued at around $148.6 billion in 2023. It is expected to reach $222.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 4.59% between 2023 and 2032. The primary reasons behind this growth are the shifting consumer dietary patterns influenced by rapid westernization, the increasing popularity of online pizza ordering platforms, and the introduction and popularization of healthier product variants, such as gluten-free, vegan, and low-calorie pizza options.
Pizza Today surveyed 748 pizza business owners from across the US to develop the Pizza Industry Trends Report 2024. The report showed that online ordering was becoming the most popular norm in the industry, with 24.91% of respondents investing to upgrade their online ordering technology. In addition, pizzeria owners are directing around 78% of their advertising budgets to social media apps to boost growth and prominence. Around 65% of business owners surveyed showed signs of optimism regarding their annual sales, expecting growth in the next 12 months.
Frozen pizzas are also a significant force in the industry due to their ease of availability, affordability, and convenience. According to Grand View Research, the US frozen pizza market was valued at $6.62 billion in 2022 and is anticipated to grow at a CAGR of 6.9% between 2023 and 2030. Consumers are increasingly shifting to this variety due to hectic lifestyles and other factors such as increased disposable income and a rise in the standard of living.
In addition, frozen pizzas are becoming popular because they offer the same varieties as fresh pizza options, such as cheese pizza, meat pizza, veggie pizza, and more. Gluten-free frozen pizzas are also increasing in popularity due to the growing health consciousness among consumers and the increasing prevalence of gluten allergies, celiac disease, gluten intolerance, and other health reasons. The gluten-free segment is expected to grow with the fastest CAGR among all pizza categories, increasing by 9.2% between 2023 and 2030.
Trends in the Pizza Market
Chicken dominated the toppings segment in the pizza market, with the highest share of more than 30% in 2022, according to statistics by Grand View Research. Companies offering chicken produce and toppings are benefitting from this trend. The popularity of chicken topping has also been supported by the increasing preference for healthier eating and the growth of fast-casual restaurants. However, the fastest growing segment remains to be bacon. The bacon segment is expected to grow at a CAGR of 9.5% between 2023 and 2030.