Tortilla Market Analysis North America,South America,Europe,APAC,Middle East and Africa - US,Mexico,UK,Brazil,Argentina - Size and Forecast 2024-2028

Tortilla Market Size 2024-2028

The Tortilla Market size is forecast to increase by USD 10.43 billion, at a CAGR of 5.25% between 2023 and 2028. The Tortilla Market is experiencing significant growth due to several key factors. Firstly, the increasing demand for convenience foods is driving market expansion. Consumers are seeking quick and easy meal solutions, making them an attractive option due to their versatility and ease of use. Secondly, initiatives to improve agricultural output are contributing to the market's growth. Advancements in farming technology and practices are increasing the yield and quality of crops used to produce tortillas. This not only benefits producers but also ensures a consistent supply of high-quality ones for consumers. Lastly, the expansion in the retail landscape is fueling market growth. The availability of tortillas in various retail channels, including supermarkets, convenience stores, and online platforms, has made them more accessible to consumers. This increased accessibility is leading to higher demand and sales in the market.

Expansion in the retail landscape is notably driving the market growth. The increasing presence of supermarkets, hypermarkets, and specialty stores across the world is indicative of the global proliferation of the organized retail sector. Convenience food products are primarily sold by large organized retailers such as Walmart and Tesco. Companies operating in this market compete for limited shelf space in large retail stores. Moreover, the sales can be mainly attributed to the rapidly increasing infrastructure (especially in emerging economies), internet penetration, and the increasing number of smartphone users. The online retail mode will help players save operating costs and overheads. Furthermore, owing to the rapid internet penetration across the globe, e-commerce retailers are strengthening their hold in the market. Hence, retail landscape expansion is expected to drive the growth of the global market during the forecast period. 

Market Overview

The Market shows an accelerated CAGR during the forecast period.

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Market Dynamics

In the dynamic and health-conscious marketplace, the demand for the products continues to surge among consumers seeking nutritious food options. This trend is particularly prominent among the urban working population, who prioritize convenient, plant-based meals, such as vegan burritos or tacos. Tortilla manufacturers respond to this demand by offering a wide range of options, including those made with organic ingredients and free from artificial additives. These health-focused consumers are increasingly concerned about their health, with bone disorders and other chronic conditions being a major concern. As a result, manufacturers prioritize the inclusion of essential nutrients like folic acid, protein, vitamins, magnesium, and lipids in their tortilla offerings.

Advanced technologies and product standardization play a crucial role in ensuring consistent quality and safety. For instance, manufacturers use advanced wrapping techniques to maintain the freshness and texture of their tortillas. However, the use of conventional farming practices, pesticides, and chemical herbicides in the production of wheat, a primary ingredient in many tortillas, remains a concern for some consumers. Sodium levels are another area of focus, with many consumers opting for low-sodium or no-sodium alternatives. Additionally, the importance of fiber in a balanced diet has led to an increased demand for high-fiber tortillas. Overall, the tortilla market continues to evolve, catering to the diverse needs and preferences of health-conscious consumers.

Significant Market Trends

The rise of diverse flavors and ingredients in tortillas is an emerging trend shaping market growth. A shift in the culinary preferences of consumers and a desire for more new and distinctive culinary experiences may be seen in the trend of individuals searching for new and diverse flavors and ingredients in tortillas. The global market has seen numerous noteworthy breakthroughs as a result of this trend. For instance, manufacturers of tortillas have started offering a variety of alternatives with added flavors. Herb-infused tortillas, such as cilantro-lime or jalapeno, give a fiery touch to classic tortillas, while spinach and tomato-infused tortillas offer a vibrant, natural taste.

Furthermore, there is an expanding demand made with alternative flours, such as quinoa or chickpea, which appeal to people looking for high-protein or gluten-free options. These developments take the global market into new culinary frontiers by satisfying the needs of consumers seeking innovative, healthier, and culturally diverse options for their meals. Hence, the rise of diverse flavors and ingredients will create additional opportunities for the manufacturers, which in turn will drive the growth of the market during the forecast period.

Major Market Challenge 

Competition from alternative grain-based products is a significant challenge hindering market growth. A significant challenge in the global market is the increasing rivalry from alternative grain-based goods, including wraps, naan, and pita bread. Demand for healthier and more varied options is growing, which may cause conventional ones to lose ground to other products. For instance, due to its thinner profile and capacity to be filled with lean proteins and fresh veggies, pita bread, which is renowned for its soft, pocket-like structure, is sometimes seen as a healthy option. Similarly, the classic Indian flatbread known as naan has a distinct taste and texture. On the contrary, wraps offer variety with a range of fillings and grain-based choices.

However, to overcome this challenge, manufacturers must be ingenious, providing distinct and healthier options while emphasizing their own nutritional advantages in order to hold onto market share. Hence, competition from alternative grain-based products has the potential to significantly hamper the growth of the market during the forecast period.

Market Segmentation

By Product 

The tortilla chips segment has witnessed steady growth over the past few years. The increasing per capita consumption in developed regions such as North America and Europe is the major growth driver for this product segment. The segment constitutes a major share of the market. Less-oily and 100% oil-free chips, a result of advances in processing technologies, are popular among health-conscious people. For instance, in September 2021, the RSVP group in India added three new variants, such as Classic tomato, Indian Masala and classic salted, into Too Yumm!'s healthy snacking portfolio featuring Virat Kohli. The multigrain Chips contain 40% lesser fat compared to other conventional products in the market. These factors will drive the growth of the segment globally, which, in turn, will fuel the growth of the market during the forecast period.

By Distribution Channel

The market share growth by the offline segment will be significant during the forecast period. In the global market, traditional brick-and-mortar retail locations that sell tortilla products directly to customers are contributing significantly to the offline distribution channels. Supermarkets, grocers, convenience stores, speciality food stores, and local markets are some examples of these channels.

The offline segment was the largest and was valued at USD 21.88 billion in 2018.

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However, major supermarket chains such as Walmart and Kroger, neighborhood grocery stores, and specialty food merchants such as Mexican markets or bakeries are a few examples of offline distribution in the global market. These offline channels are still essential for accessing a large consumer base, particularly for those who value in-store purchases for assurance of freshness and quality and prefer to shop in person. The global distribution strategy of the market still heavily relies on traditional distribution channels, even with the rise of online retail. The offline distribution channel is expected to be the leading distribution channel and, hence, will drive the growth of the market during the forecast period.

Key Regions

North America is estimated to contribute 53% to the growth of the global market during the forecast period

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Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market in North America is driven by rapid urbanization, the well-organized food industry, and high vendor penetration. The US is the key leading country in the market in the region. The region is witnessing rapid urbanization along with the increased disposable income of the population.  The region consists of numerous market vendors, including General Mills, PepsiCo, Tyson Foods, Arevalo Foods, Azteca Foods, Bunge, Cargill, and Easy Food. The presence of these vendors ensures efficient supply chain management and the timely availability for end-users in the market.

In addition, in the US, Doritos, offered by PepsiCo, is the most popular brand, followed by Tostitos (PepsiCo), among others. The high popularity of these brands and the health benefits provided by these food products have led to widespread demand in the region during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering- Arandas Tortilla Co. Inc.: The company offers tortillas that are made from 100 percent stone ground corn for salsa and guac.
• Key Offering- Arevalo Foods Inc.:  The company offers tortilla products such as corn products, wraps, and ready to cook.
• Key Offering- Azteca Foods Inc.:  The company offers tortillas that are made with no artificial preservatives, colors or flavors and are a good source of Calcium and Vitamin D.

The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Bunge Ltd.
• Cargill Inc.
• Corporativo Bimbo SA de CV
• Eagle Foods Australia
• Easy Food Inc.
• Fiesta Tortillas
• Franco Whole Foods LLC
• Gruma SAB de CV
• La Tortilla Factory
• LIVEN S.A.U.
• MF Food
• Ole Mexican Foods Inc.
• PepsiCo Inc.
• Teasdale Foods Inc.
• Tyson Foods Inc.
• Utz Brands Inc.
• General Mills Inc.

Qualitative and quantitative market growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Distribution Channel Outlook
  • Offline
  • Online

• Product Outlook
  • Tortilla chips
  • Pre-cooked tortilla
  • Tortilla mix

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile 
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

 In the dynamic and health-conscious consumer market, the demand for plant-based foods, including tortillas, has surged. This trend is driven by various health concerns and lifestyle choices, such as vegan and vegetarian diets. Tortillas, a versatile staple in international cuisines, are now available in a wide range of options, including those made from ancient grains and natural additives.

Manufacturers employ modern production techniques and automation to meet the increasing demand for these products. However, maintaining the freshness and shelf life of tortillas remains a challenge. Innovations in manufacturing processes, such as improved inventory management and reduced product wastage, are crucial to meet consumer expectations.

Mexican-inspired dishes continue to be popular, with tortillas being a key ingredient. Gluten-free and whole grain options cater to diverse dietary habits and cultural significance. The European market, particularly Germany, has shown a growing interest in these products, reflecting the mainstream adoption of healthier lifestyle choices.

Tortillas, rich in carbohydrates, provide essential nutrients like potassium and vitamin B. However, consumers are increasingly concerned about the manufacturing processes and the use of wrappers, which may contain additives. Therefore, transparency in production techniques and adherence to natural and sustainable practices are essential for market success.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the market growth and forecasting, market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Market trends and analysis across North America, South America, Europe, APAC, and Middle East and Africa
• Thorough market research and growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report analysis of factors that will challenge the growth of  market companies

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