More than two in five pizza users from Spain and France agree that organic pizza is better for you than non-organic pizza, but while French manufacturers are capitalizing on this perception, Spanish companies have yet to fully exploit it.
By Alex Beckett, Mintel
France and Spain represent strong opportunities for organic pizza manufacturers. More than two in five pizza users from these countries agree that organic pizza is better for you than non-organic pizza, with interest peaking among 16-24 year-olds. This finding demonstrates a level of awareness among French and Spanish consumers of the stringent regulations governing the treatment and production of organic ingredients, e.g. being pesticide free and high animal welfare values. As well as connoting a commitment to natural values, organic certification also conveys a healthy image to these consumers, providing a rather advantageous health halo for the pizza category.
Consumers Seek Health Benefits
France has a relatively active organic pizza market, and accounted for 20% of all organic pizza launches in Europe in the year to March 2016. Consumers in France and Spain share a mutual belief in the healthiness of organic pizza, yet they are two very different markets in terms of what is available for pizza fans. France has a relatively developed organic pizza sector, and accounted for one in five of all organic pizza launches in Europe, in the year to March 2016, and double this share in years previous. Along with Germany, it is a big provider of organic retail pizza, with Les P’tits Chefs du Bio a notable manufacturer of interesting organic lines.
This is reflective of the established status of France’s overall organic industry, which grew by 10% in 2014 to reach EUR5bn, and was forecast by Agence Bio to hit EUR5.5bn in 2015. The country’s views regarding organic pizza are similar to those of the overall organic meal market, with nearly half (46%) of French consumers consider organic certification important when buying prepared meals.
Spain, however, has a less developed organic pizza sector, and accounted for just 4% of all European organic pizza launches over the same time period. This may partly relate to the country’s recent economic troubles, as it suffered a double dip recession between 2008 and 2013 and consumer spending has been fairly slow to recover. Organic pizzas traditionally command a price premium to regular pizzas owing to the smaller economies of scale and higher labor inputs, making them prohibitively expensive for many. However, the country’s economy is now in recovery mode, making it a more sensible time for pizza makers to capitalize on consumers’ positive health perception of organic recipes.
The UK/US Gluten-free Organic Pizza Model
Addressing consumers’ interest in organic pizza can also provide manufacturers with an opportunity to meet demand for more gluten-free options. Nearly one third of French pizza users are keen to see a wider variety of gluten-free pizza, which is a sizeable opportunity, but the interest from Spanish users is even bigger, with half of users interested. Again, this illustrates the appetite Spanish pizza users have for a wider variety of pizzas to choose from, such as organic and gluten-free. For example, 72% of Spanish pizza users want to see a wider variety of cheeses on pizza, which is high compared with Germany (50%) and Italy (38%).
Pizzas which carry a gluten-free claim and are also certified as organic can boast a double hit of healthiness for Spanish and French users, suggesting opportunities for innovation in these countries. Manufacturers in need of inspiration in this area can look to the US and UK, where new, specialist pizza brands have emerged over the past year with the twin claim of being gluten-free and organic. For example, in the UK, The White Rabbit Pizza Company has managed to emulate Lab Pizza by creating a chilled pizza that is organic and also gluten-free – something which is technically challenging to make. The company has launched its pizzas into Planet Organic stores, and has won rave reviews from various food competitions.
Meanwhile, US pizza brand Amy’s Kitchen has pledged to boost distribution in Europe, following increased demand for vegetarian and organic pizzas. It is building a production plant in Portugal, which will be operational by 2019 and will serve the European market. This is a sign of the confidence which big pizza manufacturers have in the future for organic and gluten-free pizza.
Like their counterparts in other developed countries, pizza manufacturers in France are under increasing pressure from the government to innovate around better-for-you recipes. And when it comes to pizza, these companies may be advised to explore organic formulations or cutting out gluten rather than changing the recipe to make the pizza more diet friendly. Nearly one in five (18%) French adults claim that they would be embarrassed to be seen eating diet food, rising to a huge 31% of 16-24s. This is significant as 16-24s are the biggest consumers of pizzas in France. Pizzas which are positioned as being overtly diet-friendly are therefore likely to struggle in France, more so than organic variants, at least.