Brazilian Pizza Market
Pizzas are an international dish and this is not different in Brazil, where they are the most sought after food item when ordering from home and account for 26% of the total orders. In this article, we will take a look at the growing pizza market in Brazil.
Overview and market size
The Brazilian pizzamarket is the second largest in the world, coming second only to the United States' in terms of revenue, with a turnover of more than BRL 20 billion a year. The average growth in the Brazilian pizza market was more than 5% per year between 2003 and 2013. There are currently 25.000 pizzerias in Brazil, the majority of them in the state of São Paulo, which generates nearly 124.000 jobs: 29.000 directly related to the pizza market, 20.000 indirectly related to the pizza market and 74.000 others result from outsourcing of some activities.
An unique trait of the Brazilian pizza market is that it is dominated by micro and small businesses, generally owned by a family. Due to the structure of the market, almost 60% of pizzerias cease trading within their first year of business. The main problem is concerning management issues relating to the owners of pizzerias not knowing how to correctly price their pizzas and establish themselves in the market. Another big problem is related to the extensive menus offered by the pizzerias.
Pizzerias in Brazil offer an average of 70 different varieties, but it is recommended to present a market differential as the consumer’s demand is becoming increasingly selective in terms of crust and topping quality, as well as delivery systems.
The Brazilian pizza market is well known for its abundance of unique savory and sweet pizzas: there are over 230 different pizzas in Brazil. The three most common pizza toppings that are ordered in Brazil are:
There is even a Pizza Day in Brazil, which is celebrated on the 10th of July since 1985.
Main target regions
As of 2013, 1,5 million pizzas are made each day in Brazil according to ECD, a company which specializes in food-related surveys. In São Paulo state alone, an average of 800.000 pizzas are consumed a day, representing 53% of all pizzas ordered in Brazil. In fact, the population of São Paulo city are the second largest consumers of pizza in the world with a yearly turnover of BRL 8,5 billion, trailing only behind New York. In 2013, the average monthly pizza consumption per person was 7 pizzas per month.
The São Paulo state holds:
- Almost half of all pizzerias in Brazil: of the total 25.000 pizzerias, 11.000 are in state of São Paulo
- The city of São Paulo alone has 6.000 pizzerias
- São Paulo city also offers over 6.000 other places where pizzas are sold, like bakeries, bars and cafeterias
- Nearly 25 million pizzas are consumed per month in the state of São Paulo
- 60% of all pizza places are just grab and go counters or delivery pizzas, the other 40% are proper restaurants
Peculiarities of the Brazilian market
Frozen and pre-cooked pizzas are gaining ground in the Brazilian pizza market. There are even some restaurants where pizzas are assembled, but not cooked, and the customer takes the pizza home and cooks it himself. In addition to these, over 200.000 pizzas are made outside of pizzerias, generally in bars, bakeries and cafeterias.
As the Brazilian pizza market is dominated by micro and small businesses, it is uncommon to find players that stand out. But it is not the case of the Patroni Pizza network which, with over 30 years in the market, has more than 130 franchises in 13 Brazilian states and had a growth in revenue of around 30%, accounting for BRL 319 million in 2013.
International pizza chains like Domino’s and Pizza Hut can also be found in Brazil. Pizza Hut has been present in Brazil since 1989 and now has 67 restaurants spread over nine states. Domino’s has 54 restaurants present in 18 states.