Tortilla Chips Market Size was valued at USD 36.5 Billion in 2023. The Tortilla Chips Market industry is projected to grow from USD 38.3 Billion in 2024 to USD 56.62 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.00% during the forecast period (2024 - 2032). Rising disposable incomes, particularly in emerging economies, along with the widespread incorporation of the product into social gatherings and events worldwide, and the introduction of diverse textures are expected to be significant market drivers for the Tortilla Chips Market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for Tortilla Chips is driven by the changing dietary preferences, growing health consciousness, and the rising influence of Mexican cuisine. With increasing awareness of the adverse effects associated with obesity and cardiovascular diseases, individuals are actively seeking healthier alternatives to conventional snacks. Tortilla chips, particularly those crafted from whole grains or plant-based ingredients, are being increasingly viewed as a healthier option compared to fried snacks or confectioneries due to their reduced fat and sugar content. Moreover, many brands are capitalizing on this trend by introducing products that are gluten-free, non-GMO, and composed of natural ingredients. Insights from the Good Food Institute (GFI) and the Plant Based Foods Association (PBFA), based on retail sales data obtained from SPINS, reveal that the plant-based food market in U.S. retail reached a value of $8 billion in 2023, with dollar sales experiencing a 7% increase from 2021. A research study conducted by the Angus Reid Institute, a Canadian public opinion research foundation, during the financial year 2019-2020 found that almost all Canadians are familiar with plant-based meat alternatives (95%), and nearly four in ten (39%) had tried them. Furthermore, according to survey results published by the National Library of Medicine in 2020, 136% of respondents reported adopting plant-based dietary practices. This survey encompassed youth and young adults from five major cities in Canada. Brands are also enriching their products with proteins, fibers, and vitamins to address the nutritional requirements of health-conscious consumers. This shift in consumer preferences is fostering innovation in product offerings and exerting a significant influence on market growth.
As globalization continues to shape food trends, culinary preferences are becoming increasingly international. Mexican cuisine, renowned for its rich and diverse flavors, has garnered widespread favor among consumers worldwide. As tortilla chips are integral to Mexican dishes, their popularity is on the rise alongside the embrace and integration of this cuisine. Consumers are embracing new flavors and culinary adventures, and the unique and varied tastes provided by tortilla chips cater to this evolving demand. As a result, it is anticipated that throughout the projection period, demand for the Tortilla Chips Market will increase due to Changing Dietary Preferences, Growing Health Consciousness, and the Rising Influence of Mexican Cuisine. Thus, driving the Tortilla Chips Market revenue.
The Tortilla Chips Market segmentation, based on Nature, includes Organic and Conventional. The Conventional segment dominated the market, accounting for 58% of market revenue. The ready availability of standard raw materials compared to organic alternatives is anticipated to fuel the demand for conventional tortilla chips. Additionally, conventional products are notably more affordable than their organic counterparts, which is expected to further bolster segment growth.
Figure 1: Tortilla Chips Market, by Nature, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Tortilla Chips Market segmentation, based on Type, includes Baked Tortilla Chips and Fried Tortilla Chips. The Fried Tortilla Chips segment dominated the market, accounting for 58% of market revenue. The market's expansion is aided by the availability of an extensive array of flavors and unique seasonings, catering to varied consumer tastes. Additionally, shifting food preferences, cultural impacts, and a focus on healthier snacking options are encompassed within the segment's market drivers.
The Tortilla Chips Market segmentation, based on Distribution Channel, includes Online and Offline. The Offline segment dominated the market, accounting for 60% of market revenue. The reliance on offline stores and the reliance on assisted shopping represent the primary drivers of the offline channels. Moreover, the accessibility of diverse product selections from various brands and the discounts provided by offline retailers will propel segment expansion.
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Tortilla Chips market in North America can be attributed to several key factors. North America dominates the tortilla chip market, largely due to the presence of numerous well-established convenient snack food brands. Tortillas rank among the most popular Mexican foods, with demand escalating alongside the increasing Hispanic population in North America. The expanding Hispanic and Latino demographic in the United States stands as a major driving force behind the region's tortilla market. Moreover, the proliferation of supermarkets and hypermarkets, along with the rise in consumer disposable income and the growing preference for Western cuisines, will all contribute to the market's growth in the region during the forecast period. The ample and easily accessible supply of raw materials necessary for tortilla production, coupled with the presence of significant international market players, has further propelled the tortilla industry's growth in this region. According to sales figures, Frito Lay emerged as the leading supplier of tostada and tortilla chips in the United States in 2021. Major companies are ramping up their investments in tortilla chip production in the United States. For instance, in June 2021, Pepsico Inc. injected USD 200 million into its Frito Lay plant in Rosenberg, Texas, to install two production lines and double the warehouse's capacity, ensuring readiness for future growth.
Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: TORTILLA CHIPS MARKET SHARE BY REGION 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Tortilla Chips Market accounts for the second-largest market share as the rising prevalence of social media and the expanding internet user base have exerted a significant influence on the tortilla market in Europe. Social networks emerged as the most utilized form of social media in 2021, experiencing a notable 23 percentage point increase compared to 2015. In 2021, 59% of EU enterprises engaged with at least one form of social media. These platforms have evolved into potent tools for promoting food trends and culinary experiences. Influencers, food bloggers, and cooking enthusiasts actively share their insights, recipes, and visually appealing content featuring tortilla-based dishes. This concerted effort creates awareness and sparks interest among a broad audience. Consequently, this exposure has played a pivotal role in driving the growth of the tortilla market, introducing newcomers to the cuisine and amplifying its popularity. Further, the German Tortilla Chips Market held the largest market share, and the UK Tortilla Chips Market was the fastest-growing market in the European region.
The Asia-Pacific Tortilla Chips Market is expected to grow at the fastest CAGR from 2024 to 2032. Consumers are increasingly aware of the adverse health and environmental impacts associated with synthetic products. The rising consciousness regarding the negative effects of antibiotics and hormones present in animal-based products has become a significant factor driving the demand for plant-based alternatives. According to IBEF, the growing appetite for vegan snacks and confectioneries is propelling the expansion of India's vegan industry. Predictions suggest that the vegan food sector could capture 7.7% of the protein market by 2030, valued at US$ 162 billion. Meanwhile, the demand for animal and dairy protein is projected to reach US$ 1.2 trillion by 2030. Additionally, the plant-based dairy market is anticipated to surge from US$ 21 million to US$ 63.9 million at a CAGR of 20.7%. In response to these trends, consumers are gravitating towards products containing natural ingredients. Food and beverage manufacturers are keenly attuned to market trends and consumer preferences, striving to develop innovative products that cater to these demands and drive overall sales. Consequently, numerous companies have introduced innovative tortilla products offering healthier options to consumers. These offerings encompass a variety of tortilla types, including tortilla chips, taco shells, tostadas, flour tortillas, and corn tortillas, to meet diverse consumer preferences. Moreover, China’s Tortilla Chips Market held the largest market share, and the Indian Tortilla Chips Market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development to expand their product lines, which will help the Tortilla Chips market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Tortilla Chips industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Tortilla Chips industry to benefit clients and increase the market sector. In recent years, the Tortilla Chips industry has offered some of the most significant advantages to the snack food market. Major players in the Tortilla Chips Market, including Aranda's Tortilla Company, Incorporated, Arca Continental S.A.B. de C.V, Catallia Mexican Foods LLC, El-Milagro Inc., Gruma, S.A.B. de C.V., Herr Foods Incorporated, Intersnack Group GmbH & Co. KG, La Tortilla Factory Inc., Pepsico Inc., Target Brands Inc., Tyson Foods Inc., Xochitl Inc are attempting to increase market demand by investing in research and development operations.
Tyson Foods Inc (Tyson Foods) is a leading food processor and marketer specializing in chicken, beef, and pork products. The company engages in various facets of the food industry, including breeding stock, feed production, processing, marketing, and transporting chicken and associated products. Additionally, Tyson Foods offers an extensive array of prepared foods, encompassing items like bacon, turkey, breakfast sausage, hot dogs, lunchmeat, and tortillas, among others. Its product portfolio is marketed under well-known brands such as Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Aidells, Wright, ibp, and State Fair. Catering to a diverse clientele, Tyson Foods serves a broad spectrum of customers, including hotel chains, restaurant operators, service distributors, food retailers, non-commercial food service providers like schools, healthcare facilities, military installations, as well as convenience stores, and international export markets. The company is headquartered in Springdale, Arkansas, USA.
PepsiCo's products are enjoyed by consumers globally, exceeding one billion servings daily across over 200 countries and territories. In 2023, PepsiCo achieved net revenue of $86 billion, propelled by its diverse beverage and convenient foods portfolio. This portfolio includes popular brands such as Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product lineup comprises a wide array of enjoyable foods and beverages, including numerous iconic brands generating over $1 billion each in estimated annual retail sales. The AMESA sector encompasses Africa, the Middle East, and South Asia, showcasing several leading snack brands like Lay's, Cheetos, and Doritos, alongside regional favorites such as Chipsy (Egypt), Simba (South Africa), and Kurkure (India and Pakistan). Additionally, the sector offers various beverage brands, including 7UP, Pepsi, Aquafina, Mountain Dew, Mirinda, and Sting. In March 2021, PepsiCo launched Keto-Friendly tortilla chips under the Hilo Life brand, aiming to revolutionize the snack market. Developed by PepsiCo's Hive accelerator, these tortilla chips, made with almond flour, cater to keto and carb-conscious consumers, representing an innovative addition to their product range.
Tortilla Chips Industry Developments
In 2024, Tostitos introduced a new line of Organic Tortilla Chips. Made with organic corn and non-GMO ingredients, these chips cater to health-conscious consumers seeking a natural, certified-organic snack option.
Tortilla Chips Market Segmentation
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 36.5 Billion |
| Market Size 2024 | USD 38.3 Billion |
| Market Size 2032 | USD 56.62 Billion |
| Compound Annual Growth Rate (CAGR) | 5.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Nature, Type, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Aranda's Tortilla Company, Incorporated, Arca Continental S.A.B. de C.V, Catallia Mexican Foods LLC, El-Milagro Inc., Gruma, S.A.B. de C.V., Herr Foods Incorporated, Intersnack Group GmbH & Co. KG, La Tortilla Factory Inc., Pepsico Inc., Target Brands Inc., Tyson Foods Inc., Xochitl Inc |
| Key Market Opportunities | The variations in lifestyle of individuals resulting in high-pressure professional life |
| Key Market Dynamics | Changing Dietary Preferences and Growing Health Consciousness |
Frequently Asked Questions (FAQ) :
The Tortilla Chips Market size was valued at USD 38.3 Billion in 2023.
The Tortilla Chips Market is projected to grow at a CAGR of 5.00% during the forecast period 2024-2032.
North America had the largest share of the market
The key players in the market are Aranda's Tortilla Company, Incorporated, Arca Continental S.A.B. de C.V, Catallia Mexican Foods LLC, El-Milagro Inc., Gruma, S.A.B. de C.V., Herr Foods Incorporated, Intersnack Group GmbH & Co. KG, La Tortilla Factory Inc., Pepsico Inc., Target Brands Inc., Tyson Foods Inc., Xochitl Inc.
The Conventional segment dominated the market in 2023.
The Offline segment had the largest share in the market.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
