Over the past several years, tortillas and tortilla chips have become staples in the retail and foodservice sectors and perhaps in your own pantry too. The growing Hispanic and Latino population in the United States, the influence of Latin American cuisine throughout the country, and the foods’ versatility have contributed to their popularity. In addition, consumers perceive tortillas as being healthier than bread. Some consumers looking for products with few ingredients and no preservatives are switching their buying habits from loaves of bread to packages of tortillas.

To capitalize on this better-for-you trend, manufacturers are making tortillas with whole wheat flour, ancient grains, plant proteins, flax seeds, and herb-based dough. Manufacturers are also creating tortillas for specific diets, such as low-carb, high-fiber, and low-calorie. Some Paleo-friendly grain-free tortillas and tortilla chips are made with cassava flour and vegetables. Others are made with nut flours. Organic, gluten-free, and non-GMO tortillas and tortilla chips are also trending among health-conscious consumers. In addition to healthy ingredients, consumers desire a variety of flavors: from traditional Latin-inspired chipotle adobo and tomatillo salsa to Mediterranean tzatziki to comfort food favorites like bacon Cheddar.

Today’s market sizes show retail sales of tortillas and tortilla chips in 2016 and 2019. Overall, revenues are expected to decline in 2020 as demand drops dramatically from restaurants that have closed or that are operating at reduced capacity during the COVID-19 pandemic. According to the Tortilla Industry Association, most of the $17.8 billion tortilla and tortilla chip sales in 2019 occurred at retail establishments (48%); followed by foodservice locations (24%) and schools, institutions, and military bases (21%). Leading tortilla manufacturers include Mission Foods, Inc.; Gruma Corp.; General Mills, Inc.; Olé Mexican Foods, Inc.; El Milagro; B&G Foods, Inc.; La Tortilla Factory; Megamex Foods; and Kraft Heinz Co. Leading tortilla chip makers include Frito-Lay, Inc.; Barcel USA; OTB Acquisitions LLC (On the Border brand); Mission Foods, Inc.; Gruma Corp.; Late July Snacks LLC; Juanita’s Fine Foods, Inc.; Xochitl, Inc.; Garden of Eatin’, Inc.; and Food Should Taste Good, Inc. For the 52 weeks ended June 16, 2019, Frito-Lay brands commanded more than 68% of the tortilla chip and tostada market.<sup>1

1</sup> Leading manufacturers of tortillas and tortilla chips are based on dollar sales according to IRI. Tortillas: Sales at supermarkets, drug stores, mass merchandisers, convenience stores, military commissaries, and select club and dollar chains for the 52 weeks ended March 24, 2019. Melissa Kvidahl Reilly, “State of the Industry 2019: Tortillas Offer Health Attributes and Big Flavor,” Snack Food & Wholesale Bakery, June 24, 2019 available online here. Tortilla chips: Sales by brand at supermarkets, drug stores, mass merchandisers, convenience stores, military commissaries, and select club and dollar chains for the 52 weeks ended June 16, 2019. “Claim to Fame,” Snac World Special Edition: Official State of the Industry 2019, Annual 2019 available online here.

Geographic reference: United States
Year: 2016 and 2019
Market size (Tortillas): $2.3 billion and $2.6 billion, respectively
Market size (Tortilla chips): $4.9 billion and $5.5 billion, respectively
Sources: “Tortilla Product Diversity Drives Increased Sales,” Snack Food & Wholesale Bakery, March 1, 2020 available online here; Melissa Kvidahl Reilly, “State of the Industry 2019: Tortillas Offer Health Attributes and Big Flavor,” Snack Food & Wholesale Bakery, June 24, 2019 available online here; “Claim to Fame,” Snac World Special Edition: Official State of the Industry 2019, Annual 2019 available online here; “Tortilla Production Industry in the US – Market Research Report,” IBISWorld Press Release, August 2019 available online here.
Original source: IRI
Image source: Ryan Concepcion, “Wrapped Food with Gravies,” Unsplash, July 2, 2019 available online here.