The tortilla chip category has experienced growth this past year. A few overarching trends (namely consumer interest in health and wellness, and the desire to experience new and bold flavors) are bringing innovation to the category. Manufacturers also are bringing creativity via new shape, such as rolled and twisted tortillas. While it is smart to address these trends, products still need to deliver great taste.

Market data

The tortilla/tostada chip category had another strong performance this year growing both dollar and unit sales. Unit sales grew 2.1% to 2.4 billion units, while dollars sales had an impressive 19.1% growth resulting in $8 billion, based on the 52-week period ending April 23, 2023, according to multi-outlet data from Circana. Inflation, and an average increase in price per unit of 16.6% to $3.40, helped drive the increase in dollar sales.

Frito-Lay dominates the category with a 66% market share for the top two brands: Doritos and Tostitos. The Doritos brand experienced strong double-digit growth of 22.2% to $3.7 billion. Tostitos also had significant growth of 11.6% to $1.6 billion. The third-largest player in the category, Barcel, continued an upward trajectory with sizable growth of 32.6% to $1 billion. Private label, which represents about 5% of the category, had notable growth of 26.6% to $377.1 million. Other top performers in the category with at least $100 million in sales for the 12-month include: 

• On the Border: $291.3 million, up 8.8%
• Santitas: $182 million, up 10%
• Mission: $112.2 million, up 6.8%
• Late July: $109.2 million; up 12.6%.

Looking back

Erick Kozin, co-founder of Chipoys, states, “The increasing awareness of health and wellness is a major factor impacting the category. More and more consumers are looking for healthier snack options, and therefore additional attention is being placed on ingredients.”

“We are also seeing quite a bit of flavor innovation,” Kozin adds. “I remember when sour cream and onion, BBQ, and all the cheesy options were the main players and a big deal. We are seeing an expansion and mixing of flavors that used to live on shelves alone. For example, Spicy was its own category, and BBQ and Sweet were their own shelves. Now as consumers are becoming more adventurous; we are seeing a mixing of sweet and tangy, or different levels of spice. Ranch-flavored chips were once a new and unheard-of option, now the flavor is exploding beyond just chips. The tortilla chip category is seeing an emergence of bolder flavor options.”  

Chipoys, a relative newcomer to the tortilla chip category, is an authentic rolled tortilla chip packed with bold flavors. The company is dedicated to preserving traditional Mexican flavors while constantly evolving to bring new and exciting tastes. The products are made with premium ingredients and are free from artificial flavors, colors, and preservatives. The company recently launched its newest variety, Spicy Ranch, to join its existing lineup of Original, Chile Limon, and Fire Red Hot.

Deb Holt, CMO at Real Food From The Ground Up, notes, “Tortilla chip brands that focus on better-for-you attributes (like non-GMO, plant-based, gluten-free) are a driving force for the tortilla chip category, signaling strong demand for those attributes for both consumers and retailers. We have also seen consumers gravitate towards more flavor-forward options in the category, like lime, cheese, and ranch-based flavor options. You Need This Grain-Free Tortilla Chips, one of the company’s newer products, are well-positioned given these trends.” 

The You Need This product was launched in September 2022; it is plant-based, non-GMO Project Verified, and gluten-free. The chips come in three flavors: Ranch, Nacho, and Sea Salt. Consumers can pick them up in single-serve bags sold through convenience stores as a grab-and-go snacking option.

Josh Death, founder, and CEO of Kazoo Snacks—a newer brand committed to easing consumer guilt both nutritionally and environmentally without forgoing taste—says he has observed a distinct consumer-driven shift towards simplicity and transparency in ingredient lists. In response, he notes, manufacturers are producing products with cleaner ingredients. 

What’s more, Death says he is seeing a surge in innovation within the tortilla chip category, particularly with the advent of upcycled food products. “Brands are pushing the envelope by experimenting with unique ingredients, sourcing strategies, and production techniques,” Death notes. “Unconventional ingredients, like cauliflower and cactus, are finding their way into tortilla chips. In our case, our product is a 100% corn and gluten-free tortilla chip. However, we’ve managed to reduce our whole corn usage by 40% by incorporating upcycled corn germ, a component that would otherwise have been wasted. We’re proud and transparent about our water-saving claim of 16 gallons of water per 11-oz. bag.”

The company has recently updated the packaging to reflect the “low water footprint” claim and new “Satisfying Crunch. Sustainable Future.” tagline. The company, which is working towards attaining Upcycled Foods Certification, offers two flavors: Lime Zest and Sea Salt.

Death has noted a shift in consumer preference in relation to the shape of the tortilla chip. “The chip’s shape is no longer a secondary consideration but a significant aspect that contributes to product differentiation and consumer satisfaction,” he observes.

Collin Taylor, associate brand manager at General Mills, noted seeing tortilla chip innovations on form, expanding beyond flat and rolled, and unique flavors. This was top of mind for its Old El Paso brand when developing Fiesta Twists. 

“Since 2019, tortilla chip sales have grown by over 45%, outpacing the total salty snacks category,” Taylor notes. “This, when paired with Old El Paso’s strength in all-family Mexican flavors, made the tortilla/corn chip space a natural fit for the brand. Through our consumer research and testing, we have seen consumers take an interest in unique crispy and crunchy textures.”

The interest, Taylor says, led to the company’s expansion into the chip aisle with the launch of Old El Paso Fiesta Twists.

“These light and airy corn chips deliver a satisfying crunch in a unique twist shape,” he says. “Since introducing Old El Paso Fiesta Twists at Walmart in the fall of 2022, we have seen positive growth for the brand.” The product comes in three sweet and savory Tex-Mex inspired flavors: Queso, Zesty Ranch, and Cinnamon Churro.

Looking forward

Death state, “We can’t overlook the influence of changing taste preferences and the continued demand for new flavors. The push for novelty and variety is likely to encourage further innovation in the tortilla chip category, ranging from new ingredients to diverse culinary influences. As such, flavor innovation is a significant factor shaping the future of the tortilla chip category.”

Death also notes consumers are increasingly prioritizing convenience in their snacking choices. “I predict a rise in snack-sized packaging for tortilla chips, as opposed to only offering family-sized portions. This will cater to on-the-go consumers, who want to enjoy their favorite snack without overindulgence.”

According to Kozin, Chipoys will continue to invest in flavor innovation as a priority for 2024. The company will also be launching new pack sizes. In addition to the current 2-oz. and 4-oz. packages, the company will be introducing a ready-for-take-home 10-oz. package late this year. This is part of the company efforts to expand their opportunities into the grocery and club store channels.

Kazoo Snacks are excited to announce the company is in the process of launching two new flavors, expanding their line of upcycled snacks. These new additions promise to offer consumers an even greater variety of taste-packed options while maintaining the same reduced water footprint that Kazoo Snacks is proud to offer.

You Need This will also be looking to bring more flavor-packed take to classic snacks and continue to grow their line of products.

Most companies will be focusing on driving innovation and introducing new varieties in the coming year to grow their brand. Industry watchers will need to stay tuned to see what exciting new products will hit the market.

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