ETHNIC FOODS MARKET ANALYSIS

Market Size and Trends

The global ethnic foods market is estimated to be valued at USD 87.46 Bn in 2024 and is expected to reach USD 142.30 Bn by 2031, growing at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.

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The market growth can be attributed to rising demand for exotic cuisines, exposure to different cultures through globalization, and increasing number of immigrants worldwide. Consumers are increasingly experimenting with ethnic cuisines and exploring flavors from around the world. The trend is being driven by expanding expat and immigrant populations along with the growing popularity of international travel and cross-cultural experiences among locals. Rising globalization, social media influence, and increasing availability of niche ethnic ingredients have also made ethnic foods more mainstream and appeal to many international palates beyond their community of origin. This trend is expected to persist driving the demand for ethnic food products in various regions worldwide over the coming years.

Ethnic Foods Gaining Popularity among Global Consumers

With increasing globalization and popularity of international travel, people are getting more exposed to different cultures and their foods. This has fueled tremendous curiosity among consumers to experiment with new flavors from various world cuisines. Food has become one of the most direct and authentic ways through which people can experience different cultures. Moreover, with the influence of global media and internet, ethnic recipes and ingredients are easily accessible even in remotest of regions. Food bloggers and YouTube channels dedicated to international cuisines have inspired home chefs to recreate dishes from around the world. The current generation of millennials and Gen Z especially shun monotonous diets and prefer exploring diverse flavors over repetitive menus. They consider ethnic foods trendy and like to flaunt their experimental tastes on social media. All these factors have encouraged consumers to step out of their culinary comfort zones and regularly try out cuisines like Mexican, Indian, Thai, Italian, etc., driving the demand for global ethnic ingredients.

Market Concentration and Competitive Landscape

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Countries like the U.S., Canada, the U.K., and other parts of Europe have seen rapid rise in immigrant populations from Asia Pacific and Latin America over the past few decades. These immigrant communities bring along authentic cuisines from their home countries and introduce them to the local populations. They set up ethnic grocery stores and restaurants serving their native cuisine which helps in popularizing these foreign flavors among non-native consumers. The second and third generation children of immigrants also take pride in their culinary heritage and actively participate in promoting their ethnic cultures. This has tremendously boosted the demand for ingredients integral to those world cuisines. Moreover, the increasing multicultural character of western societies has made people more receptive and inclusive towards immigrant foods and cultures. The ethnic enclave neighborhoods act as thriving markets for these exotic ingredients to serve both native and immigrant consumers in large metropolitan areas.

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Consumer preferences vary significantly across different regions due to cultural and social influences. Meeting these varied tastes requires flexible production and supply chains. Stringent import regulations in some countries also impact product availability. Moreover, authenticity and quality standards are difficult to consistently maintain across international markets. Creating wider brand awareness and consumer trust remains an ongoing challenge.

Opportunities: Rising globalization and immigration trends

Rising globalization and immigration trends are increasing the exposure and demand for ethnic cuisines worldwide. Customers are more willing to experiment with new flavors and ingredients. The growth of online retail further aids the distribution of niche ethnic products. Manufacturers can examine value-added product innovations to appeal new customers. There is scope to partner with local restaurants and retailers to gain market insights as well as boost sales prospects.

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In terms of cuisine type, Asian contributes 38.6 % share of the market owing to growing interest in diverse flavors from across the continent in 2024. Asian cuisine encompasses the preparations and cooking techniques of various countries in East, Southeast, and South Asia, with some common threads that appeal greatly to globalized palates. Chief among these are the creative use of herbs and spices to create vibrant, layered dishes. Cuisines from countries like Thailand, China, Japan, India, and Malaysia tend to highlight a balance of tastes like salty, sour, sweet, and pungent that Western palates have come to enjoy. The traditional recipes handed down for generations in these cultures offer diners authentic taste experiences that spark curiosity. Iconic dishes representing each region's cuisine have gained mass popularity worldwide - from Indian butter chicken and tandoori to Thai green curries and pad Thai. While originally niche, ethnic restaurants featuring these cuisines have spread internationally due to their widespread appeal. Home chefs also seek to recreate favorites from Asian cookbooks and online videos. Younger generations in particular have embraced Asian influences in food as an expression of openness to new experiences and cultures.  The availability of high-quality imported ingredients has also supported market growth for Asian cooking. Supermarkets stockpile must-have seasonings from different parts of Asia. Online retailers offer specialty items that allow home chefs to achieve restaurant-quality results. As globalization increases cultural sharing, interest in Asian cuisine looks set to remain strong given its healthy perceptions, abundance of flavor profiles to discover, and connection to traditions valued across Asia Pacific.

Insights by Food Type: Health and variety drive the popularity of vegetable-based ethnic foods

In terms of food type, the veg segment contributes 62.4% share due to growing consumer health consciousness and demand for diverse plant-based dishes in 2024. Ethnic vegetable preparations tend to be perceived as more nutritious alternatives to meat-heavy Western recipes. Their complex, robust flavors satisfy even without meat proteins. Additionally, religions espousing vegetarianism like Hinduism, Buddhism, and certain sects encourage innovative vegetable-focused ethnic cooking. Cuisines like Indian, Thai, Ethiopian, and Middle Eastern emphasize vegetables, grains, and legumes in delightful curries, stir fries, and stews. Iconic dishes like saag paneer, thai green curries, and tajines feature seasonal produce prominently. This variety sparks home chefs' interest in creating exciting veg-centered meals instead of relying on the same old standards. Supermarkets dedicate more shelf space to international produce and ingredients to meet the rising preference. Additionally, environmental and ethical concerns galvanize more flexible, plant-based diets. Younger generations seeking to reduce meat consumption are especially attracted to flavorful veg ethnic foods. As these options proliferate commercially and popularity rises, their appeal will likely carry over to health-conscious Western palates for balanced, satisfying fare minus the meat. The numerous veg-focused options across world cuisines maintain this segment's strong market presence.

Insights by Distribution Channel: Hypermarkets' expansive variety and convenience drives largest distribution share

In terms of distribution channel, hypermarkets/supermarkets contribute 37.8% share to the ethnic foods market due to unmatched product range and shopping convenience in 2024. Their large store formats allow featuring entire international food sections with global ingredients and preparations together. Shoppers benefit from comparing and selecting from a comprehensive assortment under one roof. Consistently stocking staple ethnic ingredients also appeals to time-starved consumers who occasionally cook international dishes. Hypermarkets focus on deep assortments to attract greater footfall from different customer profiles. Their buying power means importing larger quantities directly from culturally authentic brands. This ensures best quality and prices. Compelling product displays, promotions, and recipes further stimulate impulse buys and return shopping trips dedicated to ethnic cooking essentials. Consumers doing major top-up shops for relatives or entertaining value hypermarket infrastructure like specialized deli and fresh food counters too. Staff expertise guides novices among eclectic offerings. Overall, the one-stop shopping experience and guarantee of globally diverse supplies drives this channel's dominance in the multicultural sector. Retailers pledge ongoing new market and supplier partnerships to stay ahead curating cuisine experiences for growing customer bases.

Regional Insights

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North America has established itself as the dominant region in the global ethnic foods market with 37.8% share in 2024. With its large and diverse immigrant population from around the world, the demand for authentic ethnic cuisine is very high. The U.S., in particular, has a well-developed ethnic foods industry catering to Latin American, Asian, African, and European tastes. Major cities like New York, Los Angeles, Chicago, and Miami have thriving ethnic enclaves that produce and sell a wide variety of international products. In addition, most mainstream grocery stores now have extensive world foods sections stocked with ingredients from all over the globe.  The availability of ethnic foods has made popular cuisines like Mexican, Chinese, Indian, and Italian a staple part of the American diet. This has benefited food companies that offer authentic products of high quality at competitive prices. Moreover, many ethnic entrepreneurs have established successful food brands in the country. The regional market is also boosted by the large number of restaurants specializing in global cuisine. North America thus provides a lucrative opportunity for both domestic and international food producers to access a massive consumer base.

Another notable growth region is Asia Pacific. Countries like Indonesia, Thailand, Malaysia, the Philippines, and Vietnam have seen sizable growth in their ethnic foods markets in recent times. This growth can be attributed to rising affluence, western influences, urbanization, and evolving tastes among the region's large population. Domestic consumption of Asian ethnic foods is rising as more native cuisines are gaining acceptance on a national and regional level.  At the same time, several Southeast Asian ethnic foods like Vietnamese spring rolls, Malaysian laksa, Thai green curry, and Filipino adobo have become increasingly popular globally. Major food exporters in the region have recognized this demand and expanded their international sales. The vibrant food cultures unique to each Southeast Asian nation represent a significant strength for the regional ethnic foods industry going forward.

Market Report Scope

Key Developments

• In 2023, Paulig opens a new 3D snacks production line in Spain
• In February 2022, Aryzta, the Swiss-Irish food group that operates the Cuisine de France brand, acquired the bakery, equipment, and land of its co-manufacturer De-Luxe Food Services from Envictus International Holdings Limited. The acquisition more than doubled Aryzta's manufacturing capacity in Malaysia and strengthened its position in bakery products in the country
• In December 2021. McCormick & Company Inc. was set to open a new environmentally-friendly, multi-purpose head office in Australia. This facility also includes a technical innovation center, a logistics center, and new corporate offices
• In 2022, D2C ethnic food brand Spice Story partners Jayanti Herbs for offline expansion
• In October 2021, McCormick & Company Inc. selected Tradepoint Atlantic Industrial Park in Sparrows Point, Maryland, for its state-of-the-art Northeast distribution center

*Definition: The global ethnic foods market offers a wide variety of traditional cuisine options from cultures around the world. Consumers can find authentic recipes and ingredients sourced directly from different regions. The market provides exotic snacks, herbs, seasonings, cereals, sauces, beverages, and complete meal kits representing international flavors from places like Asia Pacific, Africa, Latin America, the Middle East, and others. It aims to introduce people to new tastes while satisfying their curiosity about world foods.

Market Segmentation

•  Cuisine Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Asian
  • Italian
  • Mexican
  • Others
•  Food Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Veg
  • Non-Veg
•  Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
  • Hypermarkets/Supermarkets
  • Convenience Stores
  • Grocery Stores
  • Online Sales Channels
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Nestle SA
  • Kikkoman Corporation
  • Mars Inc.
  • General Mills Inc
  • Ajinomoto Co., Inc.
  • ConAgra Brands Inc.
  • Tyson Foods Inc.
  • Hormel Foods Corporation
  • Indofood Sukses Makmur Tbk
  • Tingyi (Cayman Islands) Holding Corp.
  • Jinmailang Foods Co. Ltd.
  • San Miguel Pure Foods Company Inc.
  • Nissin Foods Holdings Co. Ltd.
  • McCain Foods Limited
  • Campbell Soup Company
  • JFC International Inc.
  • Quality Ethnic Foods Inc.
  • The Spice Tailor Limited