Tortilla Market Highlights Key Development Factors and Upcoming Trends During forecast 2017-2025

Published: Tue Aug 20 2019

Tortilla is a key component of Mexican cuisine which is a thin round of unleavened flatbread and is processed or made from two main sources, i.e., corn or wheat. Tortilla has been a staple food for the Hispanic population for decades, however, in other regions the product has been served in various sectors as snacks, wraps, etc. There are four main types of tortillas available in the market, i.e., tortilla chips, taco shells, tostadas, flour tortillas and corn tortillas. North America and Latin America account for more than 70% share of the tortilla market in terms of value due to the increasing demand for ethnic Hispanic cuisine in these regions.

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Among the nature segment, organic-certified tortilla is anticipated to register a high growth rate of 4.1% in terms of revenue in the global Tortilla Market, owing to increasing awareness of organic certification and their associated quality by consumers across the globe. Although currently, the conventional tortilla segment is estimated to hold a relatively large share of the market in 2018.

Owing to a rise in the awareness about the health benefits associated with the consumption of healthy and natural food products, over the past few years, there has been a rise in the number of health and diet conscious consumers. Despite traditional flour and corn-based tortilla remaining mainstream, several alternatives such as sweet potato tortillas are carving a niche for themselves in retail shelves and diet plans as they offer a healthy, flavorful alternative to standard tortilla offerings. Additionally, consumers prefer products with a clean label, as well as vegan, organic and non-GMO project verified tortilla products such as those offered by Angelic Bakehouse.

  • Leading ingredient producer Cargill has developed a number of whole grain, low-fat tortilla flour prototypes in an effort to capture a slice of the growing U.S. market for healthy bread alternatives.

  • Food ingredient firm AB Mauri has developed a patented technology for reduced-fat tortillas, which paves an opportunity in gaining traction among health-conscious consumers. The company’s new patented technology enables manufacturers to develop reduced fat, reduced sodium, wheat-based tortillas.

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Over the last several years, a consistent reduction in the size of tortillas has been observed, thereby lending opportunity to its use for tacos, as opposed to burritos. Tacos are more versatile, being in line with the consumption of food in smaller portions, as consumers feel the need to incorporate more variety by using tortillas in taco recipes rather than large portions of a single dish. These sentiments are also corroborated through an internal analysis of restaurant menus in the U.S., where the number of menu items with tacos is slightly higher than those with burritos in 2017. Based on product type, the taco shells segment accounted for a share of about 6% in terms of revenue in 2017 in the global tortilla market, however, is expected to register a robust growth rate of 5.6% over the forecast period, ranking second only to tortilla chips.

Traditionally part of a Hispanic cuisine, tortillas have found their way into Asia Pacific thanks to a rapid integration of ethnic food due to population migration, willingness to experiment with new cuisines, and the robust marketing and advertising campaigns by food giants such as PepsiCo. Several countries in Asia Pacific share cultural similarities with Latin America in terms of cuisine, which has also accelerated this process. By region, Asia Pacific excluding Japan is expected to exhibit the most lucrative growth, registering a CAGR of 7.4% over the forecast period.

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