Valley Cottage / NY. (fmi) The consumption of tortillas has increased rather significantly over the past decade. According to an analysis by Future Market Insights (FMI), the global Tortilla market is projected to be valued at USD 12,324.4 Mn by 2028 end, expanding at a CAGR of 3.7 percent during the forecast period 2018-2028. Despite an extremely slow moving annual growth rate, increased tortilla consumption is predicted in the coming years-mostly supported by population growth, especially among Hispanics, as well as a continuation in the trend of consumer tortilla consumption preferences.
Tortillas have successfully positioned itself in the Latin American market. With a revenue share of +48 percent in 2017, Latin America clearly dominated the global tortilla market, in terms of value sales, substantially driven by the rapidly growing Hispanic population in the United States. In countries like Mexico, more than 94 percent of the tortillas are processed or produced using corn as its main source. Flour tortillas have a fairly high value share in the global tortillas market, compared to other variants such as tortilla chips, taco shells, tostadas, and corn tortillas. However, tortilla chips are expected to witness significant consumption in the coming years.
Research also suggests that, due to increasing demand for Mexican cuisine such as such as tortillas, nachos, enchiladas, tacos, and tamales, especially in North America and Latin America, tortillas, in the on-the-go snacks format, have been gaining traction. Busy lifestyles, deteriorating health conditions, and increasingly urban working population are some factors contributing to the consumption increase of tortillas, as per convenience. Moreover, an in-depth consumer sentiment analysis also indicates that more than 40 percent consumers buy tortilla products on a weekly basis and +50 percent consumers buy from modern trade stores like hypermarkets and supermarkets, owing to easy availability of the product at reasonable prices. Tortilla flour-based products, being one of the main Mexican foods, is gaining traction among its target customers throughout the foodservice industry.
Traditional Tortillas in New Convenient, Flavoured Formats to Push Global Adoption
The global tortilla market has witnessed a surge a surge in the launch of new products containing innovative flavours over the last couple of years. Moreover, organic or gluten-free new products are being increasingly adopted in Americas, primarily attributable to the rising demand for the product, with added health benefits. The launch of these new flavoured products is expected to have a positive impact on the market, thereby fuelling the growth of global tortilla market during the forecast period. Moreover, significant growth in organized retailing in the form of hypermarket and specialty markets, which are more likely to make savoury snacks popular among the consumers, will significantly drive the adoption of tortillas in the coming years.
Key Food Manufacturers Adding New Features to Tortillas to Expand Consumer Base
In new food formulations, key food manufacturers including Cargill and AB Mauri are leveraging the significant growth in the consumption of tortillas and have come up with new features added to tortillas. Cargill has developed a number of whole grain, low-fat tortilla prototypes in an effort to capture a slice of the growing U.S. market for healthy bread alternatives. With their new patent technology, AB Mauri has developed reduced-fat tortillas, paving way for manufacturers to attract growing base of health conscious consumers. The company’s new patented technology enables manufacturers to develop reduced fat, reduced sodium, wheat-based tortillas. Already widely adopted in American market, AB Mauri has been strategizing on implementing the same patented technology in the European markets as well.
Moreover, FDA approvals for folic acid fortification of corn masa flour, allowing manufacturers to add up to 0.7 milligram of folic acid per pound of corn masa flour, has opened up new opportunities for manufactures to explore new food formulations. Key food manufacturer Bunge, offers corn masa flours and a wide variety of shortenings to help create products that meets all consumer demands.
However, lack of stringent regulations and less emphasis on clean labelling, particularly in terms of safety and efficacy of organic products, could impact consumer outlook, thereby, affecting the growth of tortilla market. Since, the production of tortillas is extremely low in other parts of the world, would also affect the value sales of tortillas.