Tortilla Market - Forecast(2024 - 2030)

Tortilla Market Overview

The Tortilla Market size is estimated to reach $5.3 billion by 2026, growing at a CAGR of 3.3% over the forecast period of 2021-2026. Tortilla is a flatbread and often a supplement for many modern delicacies. Tortilla in its original form is a flatbread made from the likes of corn. Only after further urbanization and migration did the wheat tortilla take a sizeable market share. As a result, it undergoes the process of nixtamalization, by which the kernel of maize gets treated with alkali. The process is undertaken to culminate the goodness of niacin and tryptophan and improve the nutritional value of the tortilla. The maize kernel naturally occurs in various colors, depending on the cultivar. Hence, the tortilla color changes from pale white, to yellow, to blue in some areas. Modern techniques have incorporated the usage of baking powder while preparing the tortilla at home. The following increases the puffiness of the tortilla, unlike the flatbread available in the market. An increase in the number of health-conscious consumers globally and heavy reliance on a vegan diet will provide traction and act as drivers for the Tortilla Market in the forecast period of 2021-2026.

Report Coverage

The report: “Tortilla Market Forecast (2021-2026)”, by Industry ARC covers an in-depth analysis of the following segments of the Tortilla Market.

By Nature- Organic and Conventional.
By Source- Wheat and Corn.
By Product Type- Tortilla Chips, Taco shells, Tostadas, Flour Tortillas, Corn Tortillas, Spanish Tortillas, and Others.
By Distribution Channel- Business to Business and Business to Consumers.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, and Rest of South America), and Rest of the World (the Middle East, and Africa)

Key Takeaways

• North America Tortilla Market held the largest market share in the year 2020. It is owing to Mexico being the originating region for the discussed market, and due to the rising technology to make the tortillas healthier and at competitive market rates. Moreover, Asia-Pacific offers lucrative growth opportunities owing to the rising capital allocation for food processing and manufacturing industries, along with the rising demand for a healthy yet wholesome meal. 
• An increase in the number of health-conscious consumers across the globe will act as a driver for the Tortilla Market. However, primitive processing methodologies are a challenge faced by the Tortilla Market. 
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Tortilla report.

Tortilla Market Segment- By Geography (%) for 2020

The Tortilla Market based on nature can be further segmented into two categories- organic and conventional. The conventional segment held the largest market share in the year 2020. It is owing to the rudimentary practices adopted by the farmers in producing a mass number of corns or wheat grains. Moreover, the cost per package of tortillas acquired by conventional methods is cheaper than the former. For example, the cost of purchasing one organic tortilla chip is $4.50 on average, while the conventional tortilla chips cost $3 on average per 16 Oz.

The organic segment is estimated to be the fastest-growing segment with a CAGR of 3.7% over the forecast period of 2021-2026. It is owing to the eco-friendly practices and the awareness around climate changes. Moreover, soil degradation and low yield were observed by practicing the conventional methods. The organic methodology relies on the use of organic Manure. Organic Manure boosts land productivity, reduces the carbon footprint, and reduces water intake and discharge.

Tortilla Market Segment Analysis- By Distribution Channel

The Tortilla Market based on distribution channels can be further segmented into two categories- Business to Business and Business to Consumers. The business to consumer segment held the largest market share in the year 2020. It is predominantly owing to the subsequent lockdowns in major tortilla-dominated regions such as North America. As a result, the B2C segment came into the spotlight. Moreover, trends like DIY- Do It Yourself helped the consumers buy tortillas from stores to create a unique dish of their own.

The business-to-business segment is estimated to be the fastest-growing segment with a CAGR of 3.6% over the forecast period of 2021-2026. The restaurants and other vendors have adopted dynamic consumer needs. For example, restaurants are serving vegan meals, along with high nutritional values, which serve both the current demands and trends.

Tortilla Market Segment Analysis- By Geography

The Tortilla Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Geographically, North America held the largest market share of 38% as compared to the other regions. It is owing to an age-old reliance on tortilla-made items. For example, 50% of the entire maize production of Mexico is used to make tortillas. Moreover, the USA is a predominant consumer and the importer of tortillas.

Asia-Pacific is set to grow at a lucrative pace owing to the improved agricultural facilities and schemes for maize and wheat production in China and India. In addition, China has started adopting organic manure instead of synthetic fertilizers, which has resulted in improved yield and subsequent production of tortillas.

Tortilla Market Drivers

Heavy reliance on a vegan diet has boosted the revenues for the tortilla market.

“Veganism” has been a recent movement, a movement that allows people to change their diets from “animal-based” to “plant-based.” Google searches have soared by up to 700% for “vegan” products in the developed nations. The following trend has benefitted the Tortilla Market, as the tortilla is obtained from corn and wheat primarily. Manufacturers have now started intaking crops which are organically grown and follow a sustainable trade practice. Furthermore, customers are made aware of such practices via social media and other outlets. Millennials and Gen Z now opt for tortillas rather than going for a meat-based wrap. Companies such as La Tortilla Factory offers varieties of tortillas, each labeled as vegan friendly, with no artificial sweeteners, and an increased intake of protein by 12 grams.

An increased product differentiation of tortillas to supplant unique consumer needs is one of the leading market drivers.

Tortilla manufacturing companies have increased their product portfolios, as they are now not limited to offering traditional tortillas. Consumer needs are ever-changing, from going for a carbohydrate-free diet to high protein intake are some of the notable trends that the product manufacturers have foreseen. For example, product differentiation is now created based on the net ingredients. Thus, a low-carb-high fiber tortilla has only 5g net carbohydrates and only adds 60 calories post-consumption. Moreover, a product differentiation of offering an “organic low carbohydrate” is now seeing an increase in sales. Firstly, its production methodologies are USDA recognized, and as a benefit for the former variant, this tortilla has 6g of proteins. 

Tortilla Market Challenges

The environmental impact of producing tortillas is a challenge the market needs to address.

A comprehensive study was done in the Mexican agricultural region and all the activities required to produce tortillas. By culminating all the activities such as production, transport, logistics, nixtamalization, and lastly, the cooking of the dough. The researchers noticed an immense environmental impact. The preparation of land required heavy usage of fuels such as petrol and diesel, which on average takes 7.5 liters per hour of work. Moreover, corn production is primarily based on the use of nitrogen. To pack one 1kg of tortilla, 0.419kg of CO2 is emitted. Furthermore, the water footprint for production for 1 kilogram of tortillas is 1870 liters. The following are one of the significant challenges which the marketers need to address. 

Tortilla Market Competitive Landscape

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Tortilla Market. The top 10 Tortilla Companies include:

1. Mission Foods
2. Gruma, SAB de CV
3. Don Marcos
4. La Tortilla Factory
5. Ole Mexican Foods
6. Aranda’s Tortilla Company
7. Arevalo Tortilla
8. Azteca Foods
9. Grupo Bimbo SA
10. Tyson Foods

Product/Brand Launches

• In March 2021, PepsiCo started a new brand line by the name of Hilo Life. The tortilla chips are obtained uniquely from almond flour, and only 4 grams of net carb, along with 9grams of protein per serving.
• In September 2020, La Tortilla Factory launched two new variations in its product portfolio of tortillas. Organic Low Carb Whole Wheat and Low Carb High Fiber Quinoa and Flax Tortillas. The former is obtained by organic practices, with a net carb intake of 5 per serving. While the latter is a blend of quinoa and wheat flour.

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