Tortilla Chips Market Size, Share & Trends Analysis Report By Product (Organic, Conventional), By Type (Baked, Fried), By Distribution Channel (Online, Offline), By Region, And Segment Forecasts, 2024 - 2030

Tortilla Chips Market Size & Trends

The global tortilla chips market size was valued at USD 27.3 billion in 2023 and is projected to grow at a CAGR of 8.8% from 2024 to 2030. The factors responsible for the market growth are the increased demand for convenient snacking products due to their accessibility, affordability, and availability of various options. Significant companies invest heavily in research and development to launch new products with different flavors and ingredients. There is also an increased demand for tortilla chips made from organic ingredients and flavors free from artificial flavoring and preservatives. Therefore, these factors have resulted in the growth of this market.

Urbanization and lifestyle changes have resulted in an increased demand for quick snack products, as the population consumes these products due to hectic schedules. These snacks are a convenient option for traditional meals due to their affordability and availability in various types. There is an increased demand for tortilla chips in movie theatres and sports venues over other snacks. Furthermore, increased demand for chips due to increased consumption by the younger population has resulted in market growth.

Significant companies invest heavily in innovation by launching products with different flavors and ingredients. Furthermore, there has been an increase in the population seeking healthy, convenient snacks with low calorie & fat content and free of artificial ingredients. Hence, companies are emphasizing the use of natural ingredients and flavors. Huge company investments for marketing campaigns have further resulted in market growth. Due to strong distribution channels, the companies effectively distribute new products to convenience stores and retail shops. Hence, these factors have contributed to the market growth.

Product Insights

The conventional segment dominated the market in 2023, with a revenue share of 92.9% in 2023. The factors responsible for the growth are the presence of a predominant market due to the high consumption of tortilla chips. Manufacturing conventional tortilla chips is cheaper than the organic variant due to the easy availability of raw materials. The sale of traditional chips is growing due to the affordability and availability of the product in various flavors. Moreover, increased investment by key market players in marketing these products has further resulted in market growth of this segment.

The organic segment is expected to witness a CAGR of 13.3% over the forecast period attributed to increased populations seeking healthier snack options. Due to increased awareness regarding healthy food alternatives and the negative impact of processed foods, consumers are seeking tortilla chips made from natural ingredients and flavors. Furthermore, the growing number of startups in the healthy food sector and increased investment by key market players into launching healthy and organic tortilla chips have resulted in the market growth of this segment.

Type Insights

The fried segment dominated the market in 2023. The fried tortilla chips are available in different flavors and seasonings that caters to consumer’s taste preferences. Major companies invest heavily in launching and marketing of new variant of these chips. This helps in increasing the market penetration and increase the sale of the new product. Furthermore, companies display their products with attractive packaging and offers in the supermarket, which helps in increasing the sale of the chips.

The baked segment is projected to grow with the fastest CAGR during the forecast period pertaining to the rising number of health conscious population and increased awareness regarding healthy food alternatives. There is a rise in population adopting to healthier alternatives in order to maintain their health. Consumers are avoiding fried products and shifting to baked products in order to reduce their oily food consumption. Major companies are launching baked variants of their traditional fried chips in order to capture the market of health conscious population. Furthermore, companies are launching new tortilla chips that are baked and contain natural ingredients.

Distribution Channel Insights

The offline segment dominated the market in 2023, with a revenue share of 85.2%. The factors contributing to the rise in this market are the high presence of convenience stores and retail outlets. These outlets provide a variety of products under one roof, enabling the consumer to shop according to their choice. A strong distribution network allows key companies to deploy their products to these stores efficiently. Therefore, these factors are responsible for the growth in this segment.

The online segment is anticipated to grow at a CAGR of 10.7% over the forecast period. This market growth was due to the growth in the e-commerce sector as there is an increase in the adoption of online platform by the companies. Online platform allows companies to increase their market area by delivering products to new locations at customer’s doorsteps. Furthermore, increased adoption of product selling through e-commerce platforms such as Amazon, Flipkart, and more resulted in the positive market growth of this segment.

Regional Insights

North America tortilla chips market dominated with a market share of 40.4% in 2023 due to the presence of significant companies and increased consumption of convenient snack foods. Companies are launching products with new ingredients and flavors according to the trends in the market. The presence of supermarkets and retail stores also helps the market grow as they offer many tortilla chips under one roof. Furthermore, tortilla chips are famous in the Mexican and other Hispanic communities. Therefore, these factors are responsible for the market growth in this region.

U.S. Tortilla Chips Market Trends

The U.S. tortilla chips market dominated the market of North America in 2023 due to the presence of major companies and the rise in the demand for convenient food snacks. There is an increased demand for these snacks as they are accessible and affordable. Due to hectic schedules, the population is seeking products that are more convenient and ready to eat. Furthermore, the rise in the Hispanic population also propelled market growth as tortillas are a widely consumed food product in the Hispanic community.

Europe Tortilla Chips Market Trends

Europe tortilla chips market was identified as a lucrative region in this industry attributed to increased consumption of convenient food products and the growing number of options in them. Key market players are aggressively launching new tortilla products with different ingredients and flavors. This has resulted in the popularity growth of these products especially among the young generation of the population. Hence, these factors are responsible for the market growth in this region.

UK tortilla chips market is expected to grow due to the rising demand for convenient food products as consumer prefer them over traditional products due to hectic schedules. Tortilla chips are sold in different flavors as per the market trend in the region. Key companies invest heavily into launching new products and marketing of them in order to increase their market penetration. Therefore, these factors contribute to the market growth in this country.

Asia Pacific Tortilla Chips Market Trends

Asia Pacific tortilla chips market had a market share of 31.6% in 2023. The factors attributing to the market growth are the presence of major companies and growing demand for convenient food products. Rising population in countries such as China, India and Japan enables major companies to expand their business. The tortilla chips are growing in popularity in this region as they are launched with new flavors and ingredients. Furthermore, presence of high number of youth population helps in the market growth as these products are a popular snack item among the youth. Hence. These factors attribute to the market growth in this region.

China Tortilla Chips Market Trends

China held a substantial market share in tortilla chips market due to rising population and developed manufacturing industry. There is an increased demand for tortilla chips and other convenient food products as they are easily available and are of less cost. Furthermore, growing population seeking for healthy snack alternatives have resulted in companies launching tortilla chips made from natural and organic ingredients and flavors. Therefore, these factors attribute to the market growth of tortilla chips in this country.

Key Tortilla Chips Company Insights

Some of the major companies in the tortilla chips market are Grupo Bimbo, PepsiCo, Truco Enterprises, Amplify Snack Brands, and more. Companies are focusing on launching snacks with healthier ingredients and flavors due to the increased demand for healthy snacking options.

• Hain Celestial is a food and personal care company that offers natural food and organic personal-care items. The company deals in products such as Terra Vegetable Chips, Earth’s Best, Parmcrisps, and more that are sold through retailers such as Costco, Walmart, whole foods, and more.

• Intersnack Group is a food company specializing in production of snacks such potato chips, baked products, nuts, and more. Chio Chips, Hula Hoops, McCoy’s, and Pom-Bear are some of the brands sold by the company.

Recent Developments

• In March 2024, Hain Celestial announced to showcase a new product named Garden Veggie Flavor Burst Tortilla chips in its global portfolio. The company sampled the product at the Expo West 2024. The chips are being marketed as gluten-free, artificial flavor free, artificial preservatives free and have ingredients such as spinach, tomato, and red bell pepper.

• In January 2024, Hain Celestial announced the launch of the company’s Garden Veggie Brand with a better-for-you offering. The company launched this brand, as there was a demand for healthier snack option. The snack was launched in two flavors namely Zesty Ranch and Nacho Cheese. 

Tortilla Chips Market Report Scope

Global Tortilla Chips Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global tortilla chips market report based on product, distribution channel, and region: 

• Product Outlook (Revenue, USD Million, 2018 - 2030)

  • Organic

  • Conventional

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Baked

  • Fried

• Distribution Channel Outlook (Revenue, USD Million, 2018 - 2030)

  • Online

  • Offline

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • South Africa