ETHNIC FOODS MARKET ANALYSIS

There are many types of foods that represent different cultures, but the majority are made by people who were born in a different country. Among these foods are Ethiopian cuisine, Chinese food, and Indian fare. Often times, these foods were classified as ethnic in order to differentiate them from the more widely accepted American fare. However, that is no longer the case. The popularity of ethnic foods has increased in recent years, because of the growing foreign population.

Market Statistics:

The global ethnic foods market was valued at US$ 43,948.6 Mn in 2021 and is forecast to reach a value of US$ 88,367.3 Mn by 2030 at a CAGR of 8.1% between 2021 and 2030.

North America held dominant position in the global ethnic foods market in 2021, accounting for 51.7% share in terms of volume, followed by Europe and Asia Pacific, respectively.

Figure 1. Global Ethnic Foods Market Value Share (%), By Region, 2021

To learn more about this report, request a free sample copy

Recent Developments:

1. In April 2018, Ajinomoto’s wholly-owned brand José Olé launched a new range of ready-made rolled taco packs for the US market in a variety of flavors; these are available in four variants named Queso chicken nacho, loaded beef nacho, shredded chicken, and seasoned beef.
2. 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.
3. In October 2021, McCormick & Company Inc. selected Tradepoint Atlantic Industrial Park in Sparrows Point, Maryland, for its state-of-the-art Northeast distribution center.

Market Drivers:

Growing presence of immigrants from Asian countries is expected to foster ethnic foods market growth. As per the United States Census Bureau, with the 1965 Immigration and Nationality Act passage, the number of immigrants from Asian countries in the United States has grown considerably. As of 2019, 14.1 million immigrants from Asia resided in the United States, representing a 29-fold increase from 1960. Additionally, in 2019, Southeast Asia accounted for the largest share of the total Asian immigrant population (4.4 million), followed closely by both South Central Asia (4.3 million) and Eastern Asia (4.2 million).

Expansion of Asian retail chains of stores and other channels in countries such as the United States, United Kingdom, Germany, and Australia is boosting the retail sales of Asian ethnic food products and other ethnic consumer products among their target consumers. For instance, in 2018, Korean chain H Mart had expanded to 66 locations across 12 states in the United States. Each store offers imported Korean and other Asian packaged goods, prepared foods, and general merchandise.

Figure 2. Global Ethnic Food Market Value Share (%), By Distribution Channel, 2021

To learn more about this report, request a free sample copy

Market Restraints:

Growing packaged food safety concerns due to rise in ethnic foodborne illness outbreaks and recalls is expected to hinder growth of the market. For instance, in  October  2021,  the  FDA  made  Cedar’s  Mediterranean  Foods  recall  its  product  “Organic Mediterranean Hommus” as it contained undeclared pine nut, which could be a major allergen among the consumers in the country. Additionally, in October 2021, Ivar’s Soup and Sauce Company was made to recall its “Kettle Classic Clam Chowder with Uncured Bacon,” as the FDA noted it to be a potential source for hard plastic opaque pieces. Increasing number of health conscious consumers looking to avoid synthetic additive in food is again anticipated to restrict the market growth.

Market Opportunities:

Growing sale of ethnic breakfast food products is expected to provide potential growth opportunities over the forecast period. Asian breakfast items, such as banh mi, congee, and morning fried rice, bao, Korean Misugaru Latte, Malaysian Roti Canai and jianbing, are witnessing high demand. Moreover, some of the key global food and beverage companies like MTR Foods, iD Fresh Food and Gits, to name a few, are introducing more local based Asian breakfast food products. For instance, in December 2019, Maggi the flagship brand of Swiss food & beverage giant Nestle SA entered the ethnic food market with its new launches- ready-to-eat “poha”, and “upma

Increasing consumption of easy to cook with longer shelf-life food products is also projected to bring lucrative growth opportunities for the key players. For instance, Nissin Foods, Associated British Foods, Unilever, Nestle SA, and Capital Foods, among others, offer a wide range of long shelf-life products ethnic food products encompassing instant noodles, soups, and curries. Capital Foods’ Ching’s offers an assortment of instant noodles, soups, Hakka noodles, and even sauces and ethnic spice mixes that minimize the amount of efforts put into cooking.

Market Trends/Key Takeaways:

Growing consumption of natural/organic food products, including ready meals, frozen, snack food, among consumers due to rising popularity of organic food products is expected to favour market growth. Product launches with various label claims, such as “no artificial additive,” “non-GMO,” “reduced sugar,” “reduced sodium”, “gluten-free”, and “lactose-free” have been silently benefitting the customers over years is again fostering market growth.

Growing focus of key players to increase the production of ethnic food products to meet the increasing demand is emerging as one of the trend. For instance, in October 2021 Goya Foods, one of the largest Hispanic-owned food company in the United States invested USD 80 million in an expansion of its manufacturing and distribution facility in Brookshire, Texas. The expansion of the company’s North American Processing Center included the purchase of new, state-of-the-art food processing equipment that enabled the company to double production capacity.

Competitive Landscape:

1. Ajinomoto Co. Inc.
2. McCormick & Company Inc.
3. Associated British Foods PLC
4. General Mills Inc.
5. Orkla ASA
6. Aryzta AG
7. Paulig Ltd
8. Asli Fine Foods
9. Capital Foods Pvt. Ltd
10. Bigham’s Limited
11. The Spice Tailor Limited
12. Quality Ethnic Foods Inc.