Ethnic Foods Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The ethnic food market was valued at USD 38,731.43 million in 2021, and it is projected to reach USD 62,179.99 million by 2027, registering a CAGR of 8.33% over the forecast period, 2022-2027.

After the closure of restaurants, hotels, and other foodservice facilities during the advent of the COVID-19 pandemic, consumers moderately increased the intake of a variety of ready-to-eat food products, which come in various ethnicities such as Italian, Indian, and Chinese, and are popularly demanded across the world, driving the demand for ethnic foods during 2020.

With the growing immigration rates due to employment opportunities, higher education, and tourism, the demand for ethnic food has been increasing. Moreover, over the medium term, with the increasing consumption of nutritious food and rising capital investment in producing healthy, ethnic-based food, the market studied is expected to gain traction over the forecast period. Ethnic food manufacturers are focusing on the convenience factor, quality of food, cuisine variants, and packaging formats of the products.

The market studied continues to diversify as consumers continue to experiment with new global cuisines. Some of the niche ethnic food categories include African, Indian, and Indonesian cuisines that have been growing over the recent past.

Key Market Trends

Presence of Asian Cuisine in the US Ethnic Food Marketspace

Consumers’ interest in Asian cuisines, such as Thai, Korean, Vietnamese, and Japanese, is increasing globally, and they seek bold and spicy flavors.

As per the data published in the Pew Research Center report in 2017, there were 20 million Asian-Americans in the United States, an increase of 72% since 2000, making the Asian population the fastest-growing population group in the country. With an increasing number of Asian-American grocery store chains, Americans are consuming more Asian food than ever.

Therefore, supermarkets that sell Asian ethnic cuisine are also increasing their foothold in the market studied. For instance, in 2017, iFresh, a Chinese supermarket chain in the United States, introduced its tenth national location and first Texas location in Houston, thus meeting the demand for ethnic food products among the fast-growing Asian population and the established Vietnamese community.

Increasing Indulgence of Ethnic Food in the Asia-Pacific Region

The rising young population, along with a fast-paced trend of eating and experimenting with various interstate and inter-country food cuisines on a frequent basis, has provided a plethora of growth opportunities for ethnic food services operations in the Asia-Pacific region.

The increasing use of social media among Indians and other developing countries has enabled people to share their culinary experiences, urging consumers to try new food options and outlets based on the reviews shared. Exploring new culinary experiences for both global and authentic regional cuisines is on the rise among consumers in Asia-Pacific. Moreover, manufacturers are striving to satisfy the demand from consumers for new and different food products with more international favorites, added variety, spices, and bold flavors.​

Specialty and international food aisles are increasing in Asia-Pacific supermarkets as consumers, especially millennials, are inclined toward ethnic cuisines. Other factors such as international travel and globalization policies are also influencing the market positively.​

Competitive Landscape

The ethnic foods market is competitive, with the presence of various small and medium-sized companies. Some of the major companies in the market include Ajinomoto Co. Inc., McCormick & Company Inc., Associated British Foods PLC, and General Mills Inc.

Owing to the diversified product portfolio, which includes popular cuisines such as Chinese, Italian, Indian, English, French, Mexican, Caribbean, and African, the leading companies are marketing various cuisines to consumers.​ The top players have also succeeded in providing the availability of their products across multiple channels of distribution, in particular supermarkets and hypermarkets, which also happen to hold one of the largest segments in terms of distribution channels of the ethnic food market.​

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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