The trend is evident with the rise in sales of frozen foods such as whole-wheat tortillas, which are being used to replace sandwich bread and free up space in refrigerators. As consumers become more health-conscious, there is a growing demand for organic tortilla products like multigrain chips and soups.

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Pepsico, a U.S. multinational food company, is witnessing increased sales of its Tostitos tortilla chips, prompting companies in the organic tortilla market to ramp up production of tortilla chips and taco shells to meet the rising demand.

Multigrain Tortilla Chips: Balancing Health and Indulgence

Health-conscious customers are favoring organic tortilla chips made primarily from wheat or corn. Mission Foods, a subsidiary of the U.S.-based tortilla manufacturing company Gruma Corporation, is intensifying its marketing efforts to promote its Organic Multigrain Tortilla Chips, which are packed with non-GMO (Genetically Modified Organism) ingredients. Companies in the organic tortilla market are adhering to USDA (United States Department of Agriculture) regulations to ensure their products meet high standards.

Manufacturers are striving to strike a balance between health and indulgence by introducing freshly baked tortilla chips made with consumer-friendly ingredients such as sea salt and multigrain components like chia and quinoa, catering to the millennial market. To enhance the appeal of organic tortilla chips, companies are also providing recipes for creamy baked bean dips.

Latin American Culinary Influence Benefits U.S. Retail Sector

The growing influence of Latin American cuisine in the U.S. is benefiting the retail sector, with organic tortillas and tortilla chips becoming staples in both retail and foodservice environments. Companies are tapping into opportunities within schools, institutions, and military settings to expand their revenue streams. The organic tortilla market is projected to reach a value of US$ 34.5 billion by the end of 2030.

Clean-label Ingredients Boost Consumer Confidence

The demand for clean-label and flavorful organic tortilla products is creating valuable opportunities for manufacturers. The market is expected to expand at a CAGR of 7.6% during the forecast period. To simplify ingredient lists and appeal to health-conscious consumers, manufacturers are using clean-label ingredients such as dried yeast and enzymes instead of reducing agents like L-cysteine or sodium metabisulfite. These ingredients mimic the properties of reducing agents, ensuring a balance between health and indulgence.

Analysts' Viewpoint

The ongoing pandemic has resulted in increased sales of organic tortilla chips and taco shells as health-conscious consumers seek healthier snack options. Companies are boosting the availability of baked tostadas and other organic products to meet this demand. Despite challenges in soil conservation affecting corn cultivation, manufacturers are encouraged to adopt sustainable practices and increase production capacities for organic uncooked corn tortillas.

Market Overview

According to Transparency Market Research (TMR), the global organic tortilla market is estimated to reach US$ 16.6 billion in 2020, with a projected value of US$ 34.5 billion by 2030, growing at a CAGR of 7.6%. The urban population, which constitutes over 60% of the global populace, is driving the demand for convenient and high-nutrition food products like organic tortillas.

Key Market Trends

• Fresh organic tortillas are in high demand due to increasing incidences of food adulteration and a growing focus on health and wellness.
• The Asia-Pacific region, particularly Australia and South Korea, is expected to show a high growth rate of 10% during the forecast period.
• North America currently holds a significant market share of 37.3%, driven by rising health and wellness trends.
• B2B distribution channels account for a substantial share of the market, with retail units being the preferred channel for organic tortilla producers.
• Organic tostadas tortillas are anticipated to witness high growth with a CAGR of 12.4%.

Strategies for Growth

Leading players in the global organic tortilla market are focusing on innovation and new product launches to attract consumers. Partnerships and joint ventures are also key strategies, as evidenced by Rudy's Tortillas' partnership with Teasdale Foods, Inc., aimed at expanding distribution networks and production capacities.

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Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. The firm scrutinizes factors shaping the dynamics of demand in various markets. The insights and perspectives on the markets evaluate opportunities in various segments. The opportunities in the segments based on source, application, demographics, sales channel, and end-use are analysed, which will determine growth in the markets over the next decade.

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