Description

Understand the current market and opportunities within the chips category in the US market. Use Mintel’s research to become more informed and tackle challenges in your industry. This report examines the tortilla and potato chip market size and share, what consumers want and trends in the category, and opportunities for brands and companies to best position themselves for consumer demands. Read on to discover our insights.

Tortilla and Potato Chip Market Overview

This report finds that the US chips category continues to build upon the sales growth momentum gained amid the pandemic, with 2022 growth actually outpacing that of 2020. Prices have gone up, but even accounting for inflation, the category has seen strong positive growth, thanks to chips’ established place in consumers’ routines and as a comforting snack. While sales are expected to slow in coming years, natural claims and a wider range of flavors could drive them higher than pre-pandemic levels.

  • Tortilla and potato chip market size: Market size is at an estimated $20.2bn for 2022, with Mintel’s forecast suggesting strong growth over the next 5 years.
  • Potato and tortilla chips market share: PepsiCo Inc continues to dominate the market with just over 63% of market share between 2021-2022.

Find a comprehensive breakdown of potato and tortilla chips market size and market share in the full report, alongside our expert’s comments.

Tortilla and Potato Chip Trends and Consumer Behavior

Mintel’s research in this report finds that overall, half of consumers stick to familiar flavors when purchasing chips. But, there’s a significant difference between generations in choice of chips when it comes to flavors and variety. Where US adults over 55 are much more likely to stick to plain chips, Gen Z consumers have a broader repertoire: almost a third eat five or more types of chips. This suggests that Gen Z is still experimenting with finding their favorites.

Millennials, together with Gen Z, are avid snackers, with many snacking nearly as often as eating a meal. These generations are also the most receptive to different or unusual flavors or varieties, suggesting a strong market here for opening out the portfolios of chips brands, and targeting appropriately. The common ground amongst all age groups is a desire for high quality and natural ingredients, as more than half of chips eaters of any age agree these factors are worth the price.

  • Potato chip industry facts: 38% of Gen Z consumers would like to see more chips with regionally inspired or spicy flavors.

Potato and Tortilla Chips Market Opportunities

Tortilla and potato chips consumption is mostly solo, rather than social. Therefore, there is potential to improve perceptions of versatility and quality by introducing recipes and pairings for occasions that involve more people.

Chips brands can capitalize on the trend of at-home meals by emphasizing convenience and quality, while also partnering with limited service operations for distribution and promotion. Inflation stabilization is likely to lead to increased restaurant traffic, although some habits formed during the pandemic like value-seeking may persist.

  • Tortilla and potato chip trends: 51% of consumers in the US cite price as a factor in their chips selection.

To discover more about the tortilla and potato chips industry, purchase our Salty Snacks Market Report, or take a look at our extensive Food Market Research.

Quickly Understand This Report

  • Chips consumption by type.
  • Important purchase factors.
  • Interest in BFY and flavor innovation.
  • Chips occasions and uses.
  • Behaviors and attitudes toward chips.

Segments, Brands, and Companies Covered

Segments: Potato chips and tortilla chips.

Brands: Lays, Ruffles, Utz, Good’s, Rap Snacks, Spudlove, Pringles, Cape Cod, Kettle, Doritos, Tositos, Santitas, Takis, Popchips, Fritos, Tia Rosa, Megathin, On the Border, Zapp’s, Jack ‘n Jill, Lillie’s Q, Off The Eaten Path, and more.

Companies: PepsiCo Inc, Kellogg Company, Campbell Soup Company, Utz Brands Inc, KLB Ent. Inc, Ralph Good Inc, Grupo Bimbo, Haitai Confectionery & Foods, and more.

Expert Analysis from a Specialist

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

Even accounting for inflation, consumers are turning to chips at home more and more, pushing sales growth even beyond rates seen in 2020. And with chip consumption at a near-universal 95%, the best prospects for significant growth are in extending use and occasions. Snacking clearly drives chip consumers, yet that consumption tends to be solo, indicating improvements in quality and offering suggestions for a wider array of usages would grow chip purchase repertoires and lead even less-adventurous consumers to more-diverse offerings.

Billy Roberts - Senior 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
          • Executive Summary

              • Top takeaways
                • Market overview
                  • Figure 1: Total US sales and fan chart forecast of potato and tortilla chips, at current prices, 2017-27
                  • Figure 2: Total US sales and forecast of potato and tortilla chips, at current prices, 2017-27
                  • Figure 3: Category outlook, 2022-27
                • Challenges and opportunities
                  • For some, old chip habits may die hard
                    • Figure 4: Chip behaviors, 2022
                  • Target for both social and solo occasion
                    • Figure 5: Chip usage occasions, 2022
                  • Millennials, Gen Z ripe for new occasions through new tastes
                    • Figure 6: Interest in flavor variety, by generation, 2022
                  • Reimagine “healthy” through better ingredients
                    • Figure 7: Chip attitudes, by generation, any agree, 2022
                • Market Size and Forecast

                    • Figure 8: Total US sales and fan chart forecast of potato and tortilla chips, at current prices, 2017-27
                    • Figure 9: Total US sales and forecast of potato and tortilla chips, at current prices, 2017-27
                • Segment Performance

                  • Tortilla chip growth edges out dominant potato chips segment
                    • Figure 10: Total US Retail sales of potato and tortilla chips, by segment, 2020-2022
                  • After 2021 rebound, C-store growth falls behind “other” channels
                    • Figure 11: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2017-22
                    • Figure 12: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2017-22
                • Market Factors

                  • Oil, potato and corn supply issues, prices challenge brands to keep costs in check
                    • Figure 13: Consumer price index forecast changes and historical average, 2022-23
                  • Snacking’s continued upswing bodes well for chips
                    • Figure 14: Frequency of snacking, 2022
                  • At-home worker growth should compel a tweak in messaging
                    • Figure 15: Work-from-home status, 2022
                  • Consumer aspirations encompass both health and indulgence
                    • Figure 16: US eating/snacking motivators, 2022
                  • Even with an increase in restaurant usage, at-home will play a key role for chips
                    • Figure 17: Total US revenues and forecast of restaurants and eating places*, by segment, at current prices, 2017-27
                    • Figure 18: Total US revenues and forecast of restaurants and eating places*, by segment, at current prices, 2017-27
                • Market Share/Key Players

                  • Other brands outpace leading brands
                    • Sales of potato and tortilla chips by company
                      • Figure 19: Sales of potato and tortilla chips, by company, 2021-2
                    • Potato chip sales by company
                      • Figure 20: Multi-outlet sales of potato chips, by leading companies and brands, rolling 52 weeks 2021 and 2022
                    • Tortilla chip sales by company
                      • Figure 21: Multi-outlet sales of tortilla chips, by leading companies and brands, rolling 52 weeks 2021 and 2022
                  • Competitive Strategies and Market Opportunities

                    • PepsiCo’s planet-positive position
                      • Brands going bold with flavor innovation to reach young palates
                        • Figure 22: Preference for innovative chip flavors vs traditional flavors, by generation, 2022
                        • Figure 23: Social media flavor promotion, 2022
                      • Slip in “natural” launches, though the claim continues to resonate
                        • Figure 24: Natural claim usage on chip launches, 2017-22
                        • Figure 25: Natural ingredients on chips’ healthy perception, by generation and parental status, 2022
                      • Brands turn to simple, cleaner labels to tackle BFY
                        • Figure 26: Clean, simple ingredient messaging in chips’ social media, 2022
                        • Figure 27: Chip ingredient information, by parental status, 2022
                      • Encouraging chip usage as an ingredient in recipes
                        • Figure 28: Recipe suggestions, 2022
                        • Figure 29: Ingredient usage of chips, by generation, 2022
                    • The Potato and Tortilla Chip Consumer – Fast Facts

                      • Chip usage nearly universal, but young men rein in their use of different types
                        • Flavor and brand drive purchase behavior
                          • Natural formulations correlate with health
                            • Chip usage and occasions ripe for expansion
                            • Chip Consumption

                              • Extend chip usage while also driving trial
                                • Figure 30: Chip consumption, 2022 vs 2021
                              • Competitive BFY snacks chip away at younger male repertoires
                                • Figure 31: Repertoire of chip consumption, by gender and age, 2022
                              • Innovation in flavor, texture and BFY gaining traction with under 55s
                                • Figure 32: Chip consumption, by age, 2022
                              • Diverse palates and pantries = value for parents
                                • Figure 33: Chip consumption, by parental status, 2022
                            • Chip Purchase Factors

                              • Price remains top purchase factor
                                • Figure 34: Chip purchase factors, 2019 and 2022
                              • Redefining tastes steered by under 55s
                                • Figure 35: Chip purchase factors, by age, 2022
                              • Draw the attention of parents with variety
                                • Figure 36: Chip purchase factors, by parental status, 2022
                            • Chip Innovation

                              • Supplement flavor with healthier nods
                                • Figure 37: Chip innovation, 2022
                              • Millennials at the center of need for flavor, BFY variety
                                • Figure 38: Chip innovation, by generation, 2022
                            • Chip Occasions

                              • Use flavor to help create new tastes, occasions
                                • Figure 39: Chip usage occasions, 2022
                            • Chip Behaviors

                              • Use the familiar to broaden chips among less-adventurous consumers
                                • Figure 40: Chip behaviors, 2022
                              • Salient brand, flavor habits loosening with under-55s
                                • Figure 41: Chip behaviors, by age, 2022
                            • Chip Attitudes

                              • Consumers are willing to make sacrifices, pay more for premium tastes
                                • Figure 42: Chip Attitudes, 2022
                              • Ingredients play a role in defining chip health for Millennials
                                • Figure 43: Chip attitudes, by generation, any agree, 2022
                            • Appendix – Data Sources and Abbreviations

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

                                            • Figure 44: Total US retail sales and forecast of potato and tortilla chips, at current prices, 2017-27
                                            • Figure 45: Total US retail sales and forecast of potato and tortilla chips, at inflation-adjusted prices, 2017-27
                                            • Figure 46: Total US retail sales and forecast of potato and tortilla chips, by segment, at current prices, 2017-27
                                            • Figure 47: Total US retail sales of potato and tortilla chips, by segment, at current prices, 2020 and 2022
                                            • Figure 48: Total US retail sales and forecast of potato chips, at current prices, 2017-27
                                            • Figure 49: Total US retail sales and forecast of potato chips, at inflation-adjusted prices, 2017-27
                                            • Figure 50: Total US retail sales and forecast of tortilla chips, at current prices, 2017-27
                                            • Figure 51: Total US retail sales and forecast of tortilla chips, at inflation-adjusted prices, 2017-27
                                        • Appendix – Companies and Brands

                                            • Figure 52: Sales of potato and tortilla chips, by company, 2021-22
                                            • Figure 53: Multi-outlet sales of potato chips, by leading companies and brands, rolling 52 weeks 2021 and 2022
                                            • Figure 54: Multi-outlet sales of tortilla chips, by leading companies and brands, rolling 52 weeks 2021 and 2022
                                        • Appendix – Consumer

                                            • Figure 55: Average annual household spending on potato and tortilla chips, 2017-22
                                        • Appendix – Retail Channels

                                            • Figure 56: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2017-22
                                            • Figure 57: Total US retail sales of potato and tortilla chips, by channel, at current prices, 2020 and 2022
                                            • Figure 58: US supermarket sales of potato and tortilla chips, at current prices, 2017-22
                                            • Figure 59: US convenience sales of potato and tortilla chips, at current prices, 2017-22
                                            • Figure 60: US sales of potato and tortilla chips through other retail channels, at current prices, 2017-22

                                        About the report

                                        This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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