The global tortilla chips market was valued at USD 34.4 Billion in 2021 and is projected to expand at a CAGR of 4.3% from 2022 to 2030. The increasing demand for convenience and ready-to-eat food, changing lifestyles, and the proliferation of restaurant chains are the major factors propelling the growth of the market. Furthermore, the rising popularity of Mexican cuisine and the increasing awareness of health benefits associated with tortilla chips, such as low fat content, are driving the growth of the market.

The increasing popularity of flavored tortilla chips is driving the market. Companies are introducing new flavors and products to increase their market share. For instance, in October 2021, Frito-Lay launched Flamin’ Hot Dill Pickle flavored tortilla chips. The product is made with potatoes and is cooked in sunflower oil. Furthermore, in December 2021, Frito-Lay launched Quest Nutrition Tortilla Style Protein Chips in two flavors: Nacho Cheese and Chili Lime. The product is made with a unique combination of pea and potato protein and is gluten-free and certified vegan.

The increasing demand for organic and gluten-free products is driving the growth of the market. Companies are introducing new products to cater to the changing consumer preferences. For instance, in March 2022, Garden of Eatin’ launched organic corn tortilla chips with natural flavors. The chips are made with organic yellow corn and are Non-GMO Project Verified, gluten-free, and vegan. Furthermore, in April 2022, Way Better Snacks launched a new line of tortilla chips in five flavors: Simply Sunny Multi-Grain, Simply Sweet Potato, Simply Sprouted Black Bean, Simply Sprouted Sweet Potato and Simply Sprouted Chia. The chips are made from all-natural and organic ingredients and are certified gluten-free and Non-GMO.

The increasing number of collaborations and merger and acquisition activities are propelling the growth of the market. Companies are forming strategic partnerships to expand their product portfolio and gain a competitive edge in the market. For instance, in March 2021, Herdez Del Fuerte and Hormel Foods announced a partnership to develop a new line of tortilla chips. The companies are aiming to offer a range of flavors and ingredients that appeal to Mexican-American consumers. Furthermore, in April 2021, Cacique Inc. acquired the La Banderita brand of tortilla chips from Grupo Bimbo. The acquisition is expected to expand the product portfolio of Cacique and help the company gain a competitive edge in the market.

The plain tortilla chips segment held the largest market share in 2019 and is expected to remain dominant over the forecast period. The growth of the segment can be attributed to the increasing demand for plain or basic flavors as well as rising number of health-conscious consumers who prefer plain chips over flavored ones. Furthermore, the growing demand for plain tortilla chips that are low in sodium content is also aiding the segment’s growth.

The flavored tortilla chips segment is expected to register the fastest CAGR of 7.8% over the forecast period. The increasing demand for flavored tortilla chips that are packed with unique and bold flavors, such as nacho cheese, jalapeno, and chili, is driving the segment’s growth. Furthermore, the increasing popularity of flavored tortilla chips among teenagers and young adults is also aiding the segment’s growth. Moreover, the availability of gluten-free, organic, and low-sodium flavored tortilla chips is also driving the segment’s growth.

The supermarkets and hypermarkets segment held the largest share of 58.2% of the overall tortilla chips market in 2022. These stores offer a wide variety of products including tortilla chips at a reasonable price. In addition, the availability of a wide range of brands, product variety, and promotional offers at these stores are some of the major factors driving the growth of this segment. Moreover, the presence of in-house dieticians and nutritionists at these stores, providing guidance and advice on the health benefits and nutritional value of the chips, has further propelled the segment growth.

The convenience stores segment is anticipated to register the highest CAGR of 5.8% over the forecast period. The quick availability of tortilla chips at convenience stores has made them a popular distribution channel for these products. Moreover, the presence of these stores in residential areas has further propelled the segment growth. In addition, these stores also offer convenience to purchase chips in small-sized packs, which is driving the segment growth.

The traditional segment accounted for the largest revenue share of 46.2% in the year 2022. Traditional tortilla chips are made from stone-ground corn and are either fried or baked. The traditional chips are available in different flavors, including chili, jalapeno, and lime. The rising popularity of this product among consumers is driving the demand for traditional chips. Moreover, the increasing trend of consuming traditional chips as snacks by consumers is also driving the market in the forecasted period.

The flavored segment is anticipated to expand at the highest CAGR of 8.1% over the forecast period. The increasing availability of flavored chips in the market is driving the growth of this segment. Furthermore, the growing popularity of flavored chips among consumers is anticipated to drive the market in the forecast period. The flavored chips are available in different flavors such as cheese, sour cream & onion, nacho cheese, and barbecue. Companies are actively focusing on launching new flavors to increase their sales. For instance, in April 2021, Frito-Lay, a brand of PepsiCo, Inc., introduced two new flavors of Doritos—Nacho Cheese and Spicy Sweet Chili. These activities are likely to boost the demand for flavored chips in the forecasted period.

The tortilla chips market in the United States is projected to witness the highest growth rate during the forecast period. This growth is mainly attributed to the increasing consumption of snacks in the region. The US is home to famous brands such as Frito-Lay, which dominates the market and holds the largest share in terms of revenue. Additionally, the increasing number of launches of new flavors, such as jalapeno, and nacho cheese, is expected to further drive the product demand in the US.

Latin America is expected to witness significant growth in the coming years. Growing demand for packaged food products, especially in Brazil and Mexico, is driving the market growth. Additionally, the growing demand for flavored chips, such as chili and lime, is expected to further propel the product demand in the region. For instance, in April 2021, Chio Tortilla Chips launched a new flavor, called ‘Chili & Lime’, in Mexico.

In this part of the tortilla chips products business plan, we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for the tortilla chips products business. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions

The main source of revenues for a tortilla chips products business comes from direct sales, distribution, and retail outlets. Here you will find a list with a description of each of them and other possible sources of profit such as licensing, franchising, and online sales.

Projecting Expenses

In this section, all the regular expenses related to keeping the tortilla chips products business running will be described. The list of operating expenses includes raw materials, packaging, labor, marketing and advertising, transportation, rent, utilities, insurance policies, and others.

Some of the key companies operating in the tortilla chips market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In April 2022, Frito-Lay launched a new line of flavored tortilla chips such as jalapeno, habanero, and chile.

– In May 2022, Taco Bell launched a new line of vegan-friendly tortilla chips.

– In June 2022, Mission Foods launched a new line of gluten-free tortilla chips.

Some of the prominent players in the tortilla chips market include:

– Frito-Lay, Inc.
– Herdez
– Mission Foods
– Barcel USA
– Old El Paso
– B&G Foods, Inc.
– On The Border
– Bimbo Bakeries USA
– Don Pancho Tortilla Factory
– Tostitos

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global tortilla chips products market based on product, distribution channel, type, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Plain Tortilla Chips
– Flavored Tortilla Chips
– Baked Tortilla Chips
– Organic Tortilla Chips

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Type Outlook (Revenue, USD Million, 2017 – 2030)

– Mass
– Premium

4. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What are the main drivers of the global tortilla chips products market?
[A]: The main drivers of the global tortilla chips products market include increased demand for convenient snacking options, rising consumer preference for Mexican cuisine, growing demand for vegan and gluten-free snacks, and increasing health awareness among consumers.

[Q]: What are the key trends in the global tortilla chips products market?
[A]: The key trends in the global tortilla chips products market include the introduction of innovative flavors and health-enhancing ingredients, increasing consumer demand for organic and natural tortilla chips, and the rising popularity of tortilla chips as an appetizer.

[Q]: Which regions offer the largest opportunity for sales of tortilla chips products?
[A]: North America is expected to be the largest region for the sales of tortilla chips products, followed by Europe, Asia Pacific, and the rest of the world. The presence of leading market players and the high demand for convenience food are the primary factors driving the growth of the market in these regions.

[Q]: Who are the key players in the global tortilla chips products market?
[A]: The key players in the global tortilla chips products market include Frito-Lay, Inc., Utz Quality Foods, Inc., The Kraft Heinz Company, Grupo Bimbo S.A.B. de C.V., Barcel USA, LLC, and Mission Foods Corporation.

[Q]: What are the key strategies adopted by market players to stay competitive in the tortilla chips products market?
[A]: The key strategies adopted by market players to stay competitive in the tortilla chips products market include product innovation, brand extension, mergers and acquisitions, and collaborations. These strategies help the market players to stay ahead of the competition by introducing new products and expanding their product portfolios.