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The Tortilla Market size is forecast to increase by USD 10.43 billion, at a CAGR of 5.25% between 2023 and 2028.
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 such as tortillas 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 of tortillas 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.
The Market shows an accelerated CAGR during the forecast period.
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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 for tortillas 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 in tortillas will create additional opportunities for the manufacturers of tortillas, which in turn will drive the growth of the market during the forecast period.
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 tortillas 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, tortilla manufacturers must be ingenious, providing distinct and healthier tortilla 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.
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 tortilla chips 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 tortilla chips segment globally, which, in turn, will fuel the growth of the market during the forecast period.
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.
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 of tortilla products for end-users in the market.
In addition, in the US, Doritos, offered by PepsiCo, is the most popular brand of tortilla chips, 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 for tortillas in the region during the forecast period.
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.
The market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth and forecasting analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
The market is experiencing a shift driven by changing dietary preferences, with an increasing number of individuals adopting a vegan diet. As health concerns take center stage, tortillas are gaining popularity for their nutritional properties, including vitamins, magnesium, and fiber. The urban working population, prioritizing health-conscious choices, is driving the demand for tortillas that align with their dietary goals.
The market is witnessing a preference for tortillas produced through organic farming practices, avoiding chemical herbicides commonly used in conventional farming. Various options, such as wheat, almond flour, and organic low-carbohydrate alternatives, cater to diverse dietary needs. Additionally, the nixtamalization process enhances the nutritional profile of tortillas, contributing to their appeal in the health-conscious market segment. With a focus on ingredients like folic acid and vitamin B, tortillas continue to evolve to meet the demands of a health-conscious consumer base.
Tortilla Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.25% |
Market Growth 2024-2028 |
USD 10.43 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.84 |
Regional analysis |
North America, South America, Europe, APAC, and Middle East and Africa |
Performing market contribution |
North America at 53% |
Key countries |
US, Mexico, UK, Brazil, and Argentina |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arandas Tortilla Co. Inc., Arevalo Foods Inc., Azteca Foods Inc., 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., and General Mills Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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