The global tortilla market is expected to grow at a CAGR of 5.58% over the forecast period to reach a total market size of US$53.648 billion by 2025, increasing from US$38.731 billion in 2019. A tortilla is made from corn and wheat flour is often called flatbread with a savory filling. Increasing adoption among the non-Hispanic population in the United States coupled with its growing popularity due to its healthier eating alternatives is expected to drive the growth of the market during the forecast period. Also, expanding retailing business both online and offline in developing countries is accelerating the growth of the market in the coming years.
Growing Latin America Culinary Influence
Dishes like tacos which are made from corn tortillas and a carnitas filling are gaining popularity in various parts of the world. Latin American style food today has entered the mainstream American diets on account of the rising Hispanic and Latino immigrant population that has increased both demand and supply of Latin American styled food. Food retailing chains such as Tex-Mex and Taco Bell Corp are also gaining popularity which is boosting the demand for tortillas. With Mexican food being a popular choice in many countries and is now becoming an important diet in their snacking habits the tortilla market is expected to witness significant growth in the coming years. For instance, according to the latest data by the Snack Food Association the Americans consumers more than 8.2 million pounds of tortilla chips on Super Bowl alone.
Expanding retail businesses in developing countries
The growing population, increasing disposable income, and growing internet penetration is booming the online and offline mode of purchase for food in various parts of the world. Offline retail sales still dominate at present in comparison to the online mode of purchase which includes hypermarkets, supermarkets, and shopping malls, where consumers find it quite convenient to find their products under one roof. Slowly, with the advent of urbanization and a fast-paced lifestyle, the young population is highly influenced by the online mode of purchasing, hence this will fuel the market growth through online sales channels as well. Besides, growing internet penetration in developing countries is also widening up the scope of online sales channels which is further expected to boost the demand for tortilla chips and other tortilla-based products in the coming years. For instance, according to the World Bank, Individuals using the Internet as the percent of the total population in Indonesia has increased from 6.92% in 2009 to 39.905% in 2018 showing a growth of more than eight hundred percent. Additionally, many retailers are moving to the creation of the online sales channel in addition to offline sales in the form of, which is offering convenience to a wide population with a busy lifestyle along with secure modes of online payment and heavy discount rates.
COVID-19 impact on the online supply-side indicates a significant increase in buying and are currently witnessing massive adoption while the offline source of distribution channel is suffering due to short-term discretionary spending and uncertainties. Besides, in the long-term market is expected to see a catalytic positive impact due to COVID-19 as it is expected to increase the number of internet users. However, the further growth of the online segment depends on the quality of infrastructure facilities, and the quality of logistic services in developing regions where the logistics industry lacks in latest technologies and due to the absence of large logistics coverage networks and inconsistent quality, therefore the online retail business may face certain challenges in the coming future.
Tortilla chips are holding a noteworthy share in the market
There are distinct types of tortillas made available to the consumers such as tortilla mix, frozen tortilla, pre-cooked tortilla, and tortilla chips. The tortilla chips are expected to hold a significant share in the market and with the rising number of product launches in new flavors, the market is anticipated to witness positive growth. In addition, the nutritious value of tortilla with more carbohydrates making it a possible replacer for bread.
By geography analysis
By geography, the tortilla market is segmented as North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. North America holds a significant share in the global tortilla market owing to the presence of major market players in the region coupled with the rapid adoption of the Mexican diet in countries like the U.S., and Canada. Europe also holds a substantial market share owing to the rising number of people switching to a vegan diet supported by the growing cases of obesity and allergies related to the consumption of other products is expected to drive the market for a tortilla in the region during the forecast period. In the Asia Pacific region, increasing investments and product launches by international players in the countries like China, India, and Indonesia is also contributing to the growth of the Asia Pacific tortilla market.
August 2020: Tortilla producer Mission Foods is planning to establish a manufacturing plant in suburban Indianapolis, by the end of 2026 which will create more than 500 new jobs.
July 2020: Frito-Lay a division of PepsiCo, is planning to invest around US$200 million to expand its snack manufacturing operations in Perry, Georgia which will include the addition of two new manufacturing lines; one of which will be for producing Frito-Lay tortilla chip products.
June 2019: Fast-casual Mexican restaurant chain Tortilla is increasing its expansion plans with a step to open four restaurants in the United Kingdom bringing brands' total estate to 49 sites.
February 2019: Siete Family Foods a leading grain-free, plant-based, and dairy-free products maker secured a US$90 million investment from Stripes Group LLC to fund the company’s expansion plans.
December 2018: Reser’s Fine Foods, which makes and distributes fresh and refrigerated prepared foods, announced the investment of nearly US$3.2 million in Halifax to expand its tortilla business.
The supply chain of tortilla started from the cultivation of corn which is then prepared into either cornflour or masa which is directly used in the preparation of baking tortilla which is then available for final consumption. The tortilla is then sent for final consumption via various channels ranging from small restaurants and shops to individual establishments at supermarkets. Since its origin is from Mexico and the country’s food policy focuses on keeping food cheap and with the growing dumping of corn from Mexico the product cost is expected to be stabilized in the coming years. For instance, in last one-decade Mexico has followed a market-driven policy to ensure a sufficient supply of cheap food and the modernizing of agriculture is benefitting the large commercial farms which may have solved the problem of agricultural output, but since social polarization and inequality remain the unaddressed challenges in Mexico's rural development we may witness a change in the regulatory policy in the coming years. Prominent/major key market players in the global tortilla market include GRUMA, Tyson Foods, Inc., Catallia Mexican Foods, PepsiCo, La Tortilla Factory, Azteca Foods, Inc, Olé Mexican Foods Inc., Easy Food Inc., Mi Rancho, Eagle Foods Australia, Arevalo Foods Inc, Tortilla King Inc., Fiesta Tortilla Factory Inc., and Franco Whole Foods. The number of players in the tortilla market is huge and concentrated in the American and European regions and is growing with the opportunity to generate significant revenues because of growing demand in various parts of the world. The players in the global tortilla market are implementing various growth strategies like marketing, bulk-online discount schemes to gain a competitive advantage over their competitors in this market. Major market players in the global tortilla market have been exhaustively covered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies), strategies, and key products and services being offered along with the recent deals and investments of these important players in the global tortilla market.
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