Tortilla Chips Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Tortilla Chips Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Global Tortilla Chips market is projected to register a CAGR of 4.9% during the forecast period, 2022-2027.

The increase in the consumption of snack-based meals from various countries is one of the key factors anticipated to propel the growth of the tortilla chip market during the forecast period. The market for tortilla chips is also expected to rise as a result of the availability of these chips in a variety of flavors and sizes. The consumers were experimental with tortilla chips and were creating new snacking dishes like a tortilla with dips, and cheese tortilla. According to estimations, increasing on-the-go food demand brought on by busy work schedules would also drive up product demand.

Additionally, companies advertise their products through celebrity endorsements, TV and magazine advertising, and other methods to capture the largest possible market share. The rising popularity of healthier snacking, with customers seeking out alternatives to classic potato chips and other fried foods that are lower in fat and calories. Consumers are eager to buy tortilla chips that are good for their health. Since producers are creating tortilla chip that tastes great and is also healthy for the consumer, the market has a significant demand for fat-free snacks. As long as the product satisfies the standards for both taste and nutrition, this market offers a great opportunity for new entrants or established players. Consumers who prefer to buy private label products make their purchasing decisions by deciding between different flavors of tortilla chips and caring rarely about health issues. Conversely, customers who prefer to purchase branded tortilla chips limit their choice between products with supposed health benefits.

Key Market TrendsGrowing Demand for Convenient Snacking Options

In several parts of the world, tortilla chips rank with potato chips and crisps as one of the most popular spicy convenient snack food products. The most important factor driving consumer demand for the product and the growth of this industry is a changing way of life. Demand for the tortilla chips product is also anticipated to be driven by rising demand for convenient snack food due to hectic work schedules. Due to the cost-effectiveness of these alternatives to traditional meals, the demand for convenient snacks is rising globally. Leading manufacturers introducing new products that are healthy and have a variety of flavors will contribute significantly to the growth of the tortilla chip market. For instance, in September 2022, Que Pasa, an organic tortilla chip brand from Nature's Path Foods, launched innovative jalapeno & lime tortilla chip flavors. The chips are manufactured with only the healthiest components, such as entire corn kernels pounded with volcanic stones, and are organic, non-GMO certified, gluten-free, and vegan.

Young people are becoming more accustomed to consuming snacks while traveling and watching television. Additionally, the surge in demand for tortilla chips in multiplexes as quick snacks while watching movies and sporting events is a prominent market trend that will considerably contribute to the tortilla chip market's strong growth over the forecast period.

North America holds a significant market share.

North America presently dominates the majority of the tortilla chip market due to the presence of numerous well-known convenient snack food brands. Tortillas are one of the most popular Mexican foods, and demand is rising as the Hispanic population in North America increases. The growing Hispanic and Latino population in the United States is one of the major factors driving the tortilla market in the region. Additionally, the expansion of supermarkets and hypermarkets, rising consumer disposable income, and the growing popularity of western cuisines will all contribute to the market growth for tortilla chips in the region during the forecast period. The huge and easily accessible supply of raw materials required to create tortillas, in addition to the presence of significant international market players, have fueled the growth of the tortilla industry in this region. Based on sales, Frito Lay is the largest supplier of tostada and tortilla chips in the United States in 2021. Leading companies are increasing their investments in tortilla chip production in the United States. For instance, in June 2021, Pepsico Inc invested USD 200 million in its Frito Lay plant in Rosenberg, Texas to add two production lines and double the warehouse's capacity to assure future growth.

Competitive Landscape

The global tortilla chips market is competitive. The major players in this market are PepsiCo Inc., GRUMA corporation, La Tortilla Factory, Aranda's Tortilla Company Inc., and Catallia Mexican Foods. Companies promote their products through endorsements, TV and magazine ads, and other strategies to capture the largest possible market share. For Instance, In August 2022, Pepsico's tortilla chip brand Doritos transforms triangles all around and invites fans on an epic hunt, with the help of its new Triangle Tracker program. By holding well-known triangle landmarks in New York, Atlanta, and Memphis, Doritos is making it more simpler for them to take part in the challenge.

Additionally, companies are investing in R&D to create premium, healthier products. For instance, whole-grain chips with low sodium and lipid content and gluten-free. Additionally, a variety of flavors are available on the market to suit consumer needs.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
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