Description

This report provides comprehensive and current information and analysis of the US Potato and Tortilla Chips market including US Potato and Tortilla Chips market size, anticipated market forecast, relevant market segmentation, and industry trends for the Potato and Tortilla Chips market in the US.

 

US Potato and Tortilla Chips Market Statistics

The consumption of potato and tortilla chips is nearly universal, and the category fared well during the lockdown-year of 2020. These are some statistics and insights into the US market for potato and tortilla chips.

 

What is the #1 chip selling in America?

The leading brands – Lay’s, Doritos, and Ruffles – continue to dominate the market share, demonstrating the power of brand in this category.

 

How big is the potato chip market?

Chip performance in 2021 reflects a return to patterns established prior to the pandemic. Following a two-year period of growth, the category is set for correction in 2022.

Current market landscape

Chips brands have long relied upon flavor innovation to distinguish themselves from competitors, often focused on hotter and spicier options. Yet spicy innovation is just one way to reach consumers, and heat has its limitations. Chip flavor is the primary driver of choice, yet there is a strong tendency to favor the familiar, comforting flavors that consumers remember from their youth. The actual level of interest in spicy chips is a fairly low 38%. Bolder flavors may be good at attracting trial purchase, but familiar flavors are the ones that consumers return to time and again.

One consequence of COVID for the chips category has been the exposure of just how engrained the category’s usage occasions are, as well as a general unwillingness among consumers to turn to potato chips for many dayparts other than lunch. This may well point to opportunity for the category, however, as brands that can encourage usage of potato (and tortilla) chips for the lunch occasions should have a sizable audience to attract, considering there will continue to be a greater portion of consumers working from home post-COVID.

Future potato and tortilla chip industry trends

Flavored chips (both tortilla and potato) are commonly used snacks, but a host of healthier options are vying for the snack consumer, whether it’s fruit and vegetables or more-processed foods that are nevertheless staking a healthful claim around being plant-based. Chips have long had a reputation as a less-than-healthy indulgence driven by flavor, yet in a post-pandemic world, consumers are expected to place a greater emphasis on nutrition and health. As such, chips that can offer a healthier promise (not even “healthy” but simply healthier than other chip options) will be better positioned to meet the demands of that health-oriented consumer.

Read on to discover more about this Potato and Tortilla Chips Market Report, read our The Future of Salty Snacks: 2022, or take a look at our other Food and Foodservice research reports.

Quickly understand

  • Chips consumed and increased frequency.
  • Key drivers of chip purchase.
  • Interest in chip innovation.
  • Attitudes toward potato and tortilla chips.
  • The Potato and Tortilla Chips Industry in the US.

Covered in this report

Brands include: PepsiCo, Lay’s, Doritos, Ruffles, Utz, Pringles, Campbell Soup Company, Cape Cod, Kettle, Truco Enterprises, Tostitos, Santitas, Takis, Grupo Bimbo, Funyuns, Wendy’s, Meijer’s, Clancy’s (Aldi), Frito-Lay’s, Cheetos, Tyrrell’s.

Expert analysis from a specialist in the field

This report, written by Billy Roberts, a leading analyst in the Food and Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Consumption of potato and tortilla chips is nearly universal, and the category saw an 8% increase in 2020. The next year will see sales correct and, by 2023, resume their pre-pandemic pace of slow but steady growth, fueled by interest in on-the-go snacking options and chips that can offer flavors that attune to consumers’ sense of the familiar. The category could likewise benefit from a focus on modern BFY approaches (ie healthier oils and functional ingredients), as well as a disruption in terms of occasions for chips, broadening them beyond their role in snacks and as a side at lunch.
William Roberts, Jr, Senior Food & Drink Analyst
Billy Roberts
Senior Analyst, Food and Drink

Table of Contents

  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Definition
    • Market context
    • COVID-19: US context
    • Economic and other assumptions
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Total US sales and fan chart forecast of potato and tortilla chips, at current prices, 2016-26
      • Figure 2: Total US sales and forecast of market, at current prices, 2016-26
      • Figure 3: Potato chip and tortilla chip outlook, 2022-27
    • Opportunities and challenges
    • Health’s role likely to increase post-pandemic
      • Figure 4: Healthy interest in chips, by age and gender, 2022
    • Highlight the alignment of natural with healthy
      • Figure 5: Natural and health in chips, by age, 2022
      • Figure 6: Natural/organic and related claims on US chip introductions, 2016-21
    • Optimize chips for on-the-go snacking
      • Figure 7: Chips for those on-the-go, by age, 2022
    • Packaging refresh to meet value needs
      • Figure 8: Chip packaging upon purchase, by age, 2022
  3. Market Size and Forecast

    • Chip sales expected to reset after 2022 correction
      • Figure 9: Total US sales and fan chart forecast of potato and tortilla chips, at current prices, 2016-26
      • Figure 10: Total US sales and forecast of market, at current prices, 2016-26
  4. Segment Performance

    • Tortilla chips set the pace, as both chip segments grow
      • Figure 11: Sales of potato and tortilla chips, by segment, 2016-26
      • Figure 12: Total US retail sales and forecast of potato and tortilla chips, by segment, at current prices, 2016-26
    • Consumer shift away from physical stores points to brand opportunity
      • Figure 13: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2016-21
      • Figure 14: Total US market share of potato and tortilla chips, by channel, 2019-21
  5. Market Factors

    • Economics will keep food spend at home
      • Figure 15: Consumer Sentiment Index, 2019-21
    • eCommerce growth points to online opportunities
      • Figure 16: Total US online sales and forecast of groceries, at current prices, 2015-25
    • Aging consumer base presents challenges for chips
      • Figure 17: US population, by age, 2014-24
  6. Market Share/Key Players

    • PepsiCo increases market share, as Kellogg gains ground
    • Sales of potato and tortilla chips, by company
      • Figure 18: Multi-outlet sales of potato and tortilla chips, by leading companies, rolling 52 weeks 2020 and 2021
    • Flavors and natural options fuel potato chip growth among legacy brands
      • Figure 19: Multi-outlet sales of potato chips, by leading companies and brands, rolling 52 weeks 2020 and 2021
    • Established brands maintain share in tortilla chips
      • Figure 20: Multi-outlet sales of tortilla chips, by leading companies and brands, rolling 52 weeks 2020 and 2021
  7. Competitive Strategies and Market Opportunities

    • Play the game
      • Figure 21: Brands speak to gamers via social media, 2022
      • Figure 22: Marketing with video games, 2022
    • Balancing bold with the familiar
      • Figure 23: Flavor-focused chip introductions and messaging, 2022
    • Expand chip usage further into recipes
      • Figure 24: Recipe ideas for expanding chip usage, 2022
    • Renew the connection with health through ingredients and novelty
      • Figure 25: Natural and health in chips, 2022
      • Figure 26: Natural and free-from claims in US chip introductions, 2016-21
    • Healthier means better ingredients
      • Figure 27: Healthy interest in chips, 2022
    • Functionality is in the cards for chips
      • Figure 28: Healthy interest in chips, 2022
    • Portable chip occasions still up for grabs
      • Figure 29: on-the-go chip consumption, 2022
    • Packaging interest reflects value needs
      • Figure 30: Chip packaging upon purchase, by age, 2022
  8. The Potato and Tortilla Chip Consumer – Fast Facts

    • Chip fans:
    • Flavor drives choice
    • Seeking a healthier chip
    • Chip habits ripe for disruption
  9. Chips Consumed

    • Increased consumption as classics hold ground
      • Figure 31: Chips consumed, 2022
    • Room to grow engagement among young men
      • Figure 32: Repertoire of chips consumed, by age, by gender, 2022
      • Figure 33: Chips consumed, by age, by gender, 2022
    • Healthy options appeal to parents
      • Figure 34: Chips consumed, by parental status, 2022
    • Young adults dig in to increased chip consumption
      • Figure 35: Growth in chip consumption, by age and gender, 2022
    • Parents drive increased chip consumption
      • Figure 36: Growth in chip consumption, by parental status, 2022
  10. Chip Purchase Factors

    • A shift to contemporary health cues is needed
      • Figure 37: Chip purchase factors, 2022
    • Specific health claims fall short of price, flavor
      • Figure 38: Chip purchase factors, by parental status, 2022
  11. Chip Consumption Occasions

    • Brands need to disrupt siloed occasions
      • Figure 39: Correspondence Analysis – Symmetrical map – Chip consumption occasions, 2022
    • Dinner occasions are up for grabs
      • Figure 40: Chips at meal occasions, by age, 2022
    • Room to grow tortilla chips’ snacking occasions
      • Figure 41: Tortilla chips at snacking occasions, by age, 2022
  12. Interest in Chip Innovation

    • Chip fans want premium, BFY options
      • Figure 42: Interest in chip innovation, 2022
    • Under 55s are open to BFY chips
      • Figure 43: Interest in healthy chip innovation, 2022
    • Expand the base of chips to include healthier ingredients
      • Figure 44: Interest in chip innovation, by growth in chip consumption, 2021
  13. Chip Behaviors

    • Shake up chip perceptions and habits
      • Figure 45: Chip behaviors, 2022
    • Versatility points to opportunity among younger adults
      • Figure 46: Chip behaviors, by age, 2022
  14. Chip Attitudes

    • Address consumer interest in chip ingredient origins
      • Figure 47: Chip attitudes, 2022
    • Focus flavors on the familiar
      • Figure 48: Attitudes about chip brand and flavor, by parental status, 2022
    • Target parents with healthier chips
      • Figure 49: Attitudes about chips, by number of children in household, 2022
    • Packaging can lend value
      • Figure 50: Attitudes about chips, by age, 2022
  15. Appendix – Data Sources and Abbreviations

    • Data sources
    • Sales data
    • Forecast
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations
  16. Appendix – The Market

      • Figure 51: Total US sales and forecast of market, at current prices, 2016-26
      • Figure 52: Total US retail sales and forecast of potato and tortilla chips, at inflation-adjusted prices, 2016-26
      • Figure 53: Total US retail sales and forecast of potato and tortilla chips, by segment, at current prices, 2016-26
      • Figure 54: Total US retail sales of potato and tortilla chips, by segment, at current prices, 2019 and 2021
      • Figure 55: Total US retail sales and forecast of potato chips, at current prices, 2016-26
      • Figure 56: Total US retail sales and forecast of potato chips, at inflation-adjusted prices, 2016-26
      • Figure 57: Total US retail sales and forecast of tortilla chips, at current prices, 2016-26
      • Figure 58: Total US retail sales and forecast of tortilla chips, at inflation-adjusted prices, 2016-26
  17. Appendix – Companies and Brands

      • Figure 59: Multi-outlet sales of potato and tortilla chips, by leading companies, rolling 52 weeks 2020 and 2021
      • Figure 60: Multi-outlet sales of potato chips, by leading companies and brands, rolling 52 weeks 2020 and 2021
      • Figure 61: Multi-outlet sales of tortilla chips, by leading companies and brands, rolling 52 weeks 2020 and 2021
  18. Appendix – Consumer

      • Figure 62: Average annual household spending on potato and tortilla chips, 2016-21
  19. Appendix – Retail Channels

      • Figure 63: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2016-21
      • Figure 64: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2019 and 2021
      • Figure 65: US supermarket sales of potato and tortilla chips, at current prices, 2016-21
      • Figure 66: US convenience store sales of potato and tortilla chips, at current prices, 2016-21
      • Figure 67: US sales of potato and tortilla chips through other retail channels, at current prices, 2016-21
  20. Appendix – Correspondence Analysis Methodology

      • Figure 68: Correspondence Analysis – Symmetrical map – Chip consumption occasions, 2022
      • Figure 69: Correspondence Analysis – Principal map – Chip consumption occasions, 2022
      • Figure 70: Correspondence chip consumption occasions, 2022

About the report

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