Ethnic Foods Market

Ethnic Foods Market Size:

The global ethnic foods market size reached US$ 54.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 110.4 Billion by 2032, exhibiting a growth rate (CAGR) of 8.02% during 2024-2032. The increasing cultural diversity, a surge in international travel, rising experiential dining, the growing health and wellness trend, advancements in food technology, expanding global supply chains, burgeoning immigrant populations, and the influence of social media on food trends are some of the factors fostering the market growth.

Ethnic Foods Market Analysis:

• Market Growth and Size: The ethnic foods market is experiencing a robust growth trajectory due to the increasing per capita income. The market's expansion is reflective of changing demographics and consumer preferences. The size of the market has been expanding steadily, fueled by both the frequency of consumer purchases and the growing range of available products.
• Major Market Drivers: The ethnic foods market is propelled by various new drivers, including rapid urbanization, increasing focus on vegetarian and vegan diets, and collaborations between ethnic food brands and celebrity chefs. Furthermore, the influence of food blogging and vlogging, growing awareness of the benefits of a multicultural diet, increased availability of ethnic food in mainstream grocery stores, shifts in food service industry strategies, evolving consumer preferences towards gourmet and premium ethnic foods, and the rise of home cooking and meal kits tailored to ethnic cuisines are contributing to the market growth.
• Technological Advancements: In the ethnic foods market, technological advancements are revolutionizing product development, distribution, and marketing. Innovations in food processing technology have enhanced the shelf-life and quality of ethnic food products, making them more accessible globally. E-commerce platforms have become vital for market expansion, enabling consumers to easily access a wide variety of ethnic foods from around the world. Additionally, advancements in logistics and cold chain solutions have improved the distribution of fresh and frozen ethnic foods, ensuring they reach consumers in optimal condition.
• Industry Applications: The ethnic foods market has widespread industry applications, extending from retail sectors to food service industries. Supermarkets and grocery stores are expanding their ethnic food aisles, catering to a diverse customer base. The restaurant industry, including both fast-casual and fine dining segments, increasingly incorporates ethnic cuisines into their menus, responding to consumer demand for authentic and diverse dining experiences. Additionally, the catering and event planning industry is integrating ethnic foods into their offerings, reflecting the growing demand for cultural diversity in food choices at events and gatherings.
• Key Market Trends: The key market trends include a rising interest in fusion cuisine, the growing demand for organic and non- genetically modified organism (GMO) ethnic food products, and the rising popularity of street-food inspired ethnic dishes in both retail and food service sectors. Moreover, the growth of food tourism, where individuals travel specifically to experience authentic ethnic cuisines, is also influencing the market. Furthermore, the increasing popularity of cooking shows and online cooking classes focused on ethnic cuisines, surging demand for ethnic snack foods, the use of artificial intelligence (AI) in understanding consumer preferences and developing new products, and the rise of subscription-based ethnic meal kits are significantly driving the market growth.
• Geographical Trends: The Asia Pacific region, is dominating the ethnic foods market due to increasing urbanization and the influence of Western eating habits, coupled with a rich diversity of local ethnic cuisines. Additionally, North America, particularly the United States, also shows the popularity of ethnic foods owing to its diverse population and the increasing acceptance and popularity of various cuisines.
• Competitive Landscape: The competitive landscape of the ethnic foods market is both diverse and dynamic. It includes a mix of large multinational corporations and small to medium-sized enterprises (SME’s) that specialize in specific ethnic cuisines. These companies compete on various fronts, including product innovation, quality, price, and marketing strategies. Strategic partnerships, mergers, and acquisitions are common as companies seek to expand their market reach and product portfolios. The market also witnesses intense competition from local and regional players who offer authentic and traditional ethnic foods.
• Challenges and Opportunities: The ethnic foods market faces challenges such as maintaining authenticity while appealing to a broad consumer base, managing supply chain complexities, especially for imported ingredients, and navigating varying regulatory environments across different regions. However, these challenges also present opportunities. There's potential for innovation in product development and packaging, adapting traditional ethnic recipes to suit contemporary tastes and dietary requirements. The market also offers opportunities for educating consumers about different cultures through food, thus promoting cultural understanding and diversity.
   

Ethnic Foods Market Trends:

Increasing cultural diversity

The surge in cultural diversity, especially in urban areas, is a significant driver of the global ethnic foods market. As cities become more cosmopolitan, they attract people from various cultural backgrounds, creating a melting pot of traditions and cuisines. This demographic shift leads to a natural demand for a wider range of food options that cater to different ethnic tastes. Restaurants, supermarkets, and food vendors respond by offering diverse food choices, from traditional dishes to fusion cuisine. This diversity not only satisfies the culinary preferences of ethnic communities but also introduces new flavors and dishes to a broader audience, expanding the market reach.

Rise in travel and exposure

The rise in travel and exposure has significantly influenced trends in the ethnic foods market. Increased global travel has exposed consumers to a plethora of diverse culinary experiences, fostering a curiosity for authentic ethnic cuisines. Tourists often seek out local flavors, leading to a cross-cultural exchange of culinary ideas. Additionally, the advent of social media platforms and food-related content has enabled individuals to virtually explore and appreciate different cuisines, further driving interest in ethnic foods. I

Shifting trend towards experiential dining

Experiential dining is a trend where consumers seek unique and memorable eating experiences. This shift towards more adventurous dining includes an increased interest in ethnic cuisines, which offer new tastes and dining experiences. Consumers are more willing than ever to explore unfamiliar dishes, ingredients, and cooking techniques, looking for authenticity and a story behind their food. This trend goes beyond just eating; it involves learning about the culture and history associated with the cuisine. Restaurants and food brands that provide an immersive cultural experience alongside their dishes are particularly successful in this growing market segment.

Growing health and wellness movement

The global health and wellness movement has a profound impact on the ethnic foods market. Many consumers now prioritize healthy eating and seek out foods that offer nutritional benefits without compromising on taste. Ethnic cuisines, often perceived as containing fresh, natural, and less processed ingredients, fit well into this paradigm. For instance, Mediterranean and Asian cuisines are popular for their use of healthy fats, whole grains, and fresh vegetables. As consumers become more health-conscious, they are drawn to ethnic foods that align with their dietary preferences and lifestyles, further fueling the market growth. This trend also encourages innovation in product offerings, with many companies reformulating traditional ethnic dishes to make them healthier.

Ethnic Foods Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on cuisine type, food type, and distribution channel.

Breakup by Cuisine Type: 

• American
• Chinese
• Japanese
• Mexican
• Italian
• Others
   

Chinese accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the cuisine type. This includes American, Chinese, Japanese, Mexican, Italian, and others. According to the report, Chinese represented the largest segment.

The Chinese segment is driven by the increasing global interest in regional Chinese cuisines, beyond the typical Cantonese dishes often found in the West. This segment benefits from the growing appreciation for authentic flavors and traditional cooking methods. The rise in popularity of Sichuan and Hunan cuisines, known for their bold flavors and use of spices, plays a significant role. Additionally, the Chinese segment is experiencing growth due to the health benefits associated with certain Chinese foods, like dim sum and steamed dishes, appealing to health-conscious consumers.

The American segment is driven by the increasing popularity of classic comfort foods with a modern twist. This segment thrives on the reinvention of traditional dishes like burgers, BBQ, and macaroni and cheese, incorporating novel ingredients and healthier options. Additionally, the American segment benefits from the rising trend of farm-to-table dining, emphasizing fresh, locally sourced ingredients, which resonates with the growing consumer consciousness about food origin and quality.

The Japanese segment is driven by the growing fascination with Japanese culinary culture, particularly sushi, sashimi, and ramen. The segment capitalizes on the global trend towards clean eating, with Japanese cuisine being perceived as fresh, healthy, and light. The rise of izakaya-style dining outside Japan, offering a variety of small, flavorful dishes, also contributes to this segment's growth.

The Mexican segment is driven by the increasing demand for authentic Mexican cuisine, moving beyond the Tex-Mex adaptations commonly found internationally. This segment is benefiting from the rising popularity of street food-inspired dishes like tacos, enchiladas, and tamales, which offer diverse and rich flavors. The growing appreciation for regional Mexican cuisines, each with its unique flavors and ingredients, also contributes to the segment's growth.

The Italian segment is driven by the enduring popularity of classic Italian dishes like pizza and pasta, combined with a growing interest in regional Italian cuisines and artisanal preparation methods. This segment benefits from the global trend towards Mediterranean diets, known for their health benefits, featuring ingredients like olive oil, fresh vegetables, and seafood. The increasing demand for authentic, high-quality Italian ingredients like cheeses, cured meats, and wines also fuels this market.

Other segments are driven by the increasing curiosity and openness of consumers towards exploring lesser-known cuisines. These segments, which include Middle Eastern, African, and South American cuisines, benefit from the rising trend of culinary exploration and the desire for authentic, culturally rich dining experiences.

Breakup by Food Type: 

• Vegetarian
• Non-Vegetarian
   

Non-vegetarian accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the food type. This includes vegetarian and non-vegetarian. According to the report, non-vegetarian represented the largest segment.

The non-vegetarian segment is driven by the increasing demand for protein-rich diets, diverse culinary preferences, and cultural traditions that emphasize meat consumption. In many regions, meat is an integral part of the diet and is associated with cultural and social practices, sustaining its demand. Additionally, innovations in food processing and preservation have made a wider variety of meat products available to consumers, enhancing convenience and taste. The segment also benefits from a growing middle class in emerging economies, where increased disposable incomes lead to higher meat consumption.

The vegetarian segment is driven by the increasing awareness of health benefits associated with a plant-based diet, environmental concerns, and ethical considerations regarding animal welfare. Consumers are becoming more conscious of the impact of their food choices on their health and the environment, leading to a greater demand for vegetarian options. This shift is also influenced by the availability of a wider variety of appealing and nutritious vegetarian products, including ethnic cuisines that traditionally feature rich vegetarian dishes. Furthermore, social media and celebrity endorsements of vegetarian lifestyles have played a significant role in popularizing this segment.

Breakup by Distribution Channel: 

• Food Services
• Retail Stores
   

Retail Stores accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the distribution channel. This includes food services and retail stores. According to the report, retail stores represented the largest segment.

The retail stores segment is driven by the increasing consumer preference for convenience, diversity, and health-conscious choices in their shopping habits. Supermarkets and grocery stores are expanding their range to include a wider variety of ethnic, organic, and specialty foods to cater to diverse consumer tastes and dietary needs. The growing trend of home cooking, spurred by digital platforms offering recipes and cooking tips, also contributes to this segment's growth. The integration of technology for personalized shopping experiences, such as through apps and loyalty programs, further enhances customer engagement and drives sales in this sector.

The food services segment is driven by the increasing consumer demand for convenience and variety, alongside a growing interest in experiential dining. This sector sees growth as customers seek quick, diverse, and quality food options that align with their busy lifestyles. The emphasis on experience leads to a surge in themed restaurants and cafes that offer unique and immersive dining experiences. Additionally, the rise of digital platforms for food delivery and ordering enhances accessibility and customer reach, further propelling the growth of this segment.

Breakup by Region: 

• North America 
  • United States 
  • Canada 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain 
  • Russia 
  • Others
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest ethnic foods market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

The Asia Pacific ethnic foods market is driven by the increasing influence of Western eating habits combined with a strong desire to maintain traditional cuisines. Rapid urbanization, a growing middle class, and the youth demographic’s openness to experimenting with new food trends significantly contribute to market growth. The region’s rich culinary diversity and the global popularity of Asian cuisines, such as Chinese, Japanese, and Indian, are also key growth drivers.

The North America ethnic foods market is driven by the increasing diversity of its population and a growing appetite for authentic and varied culinary experiences. The presence of immigrant communities, particularly in urban areas, has played a pivotal role in introducing and popularizing ethnic foods. The trend towards health-conscious eating, coupled with a curiosity for new flavors and ingredients, also fuels market expansion. The region’s robust distribution networks and the widespread availability of ethnic foods in mainstream grocery stores further support market growth.

The Europe ethnic foods market is driven by the increasing multiculturalism within the region, primarily due to migration and the European Union’s open borders policy. The growing demand for new and exotic cuisines among European consumers, along with the rising popularity of street food culture, are significant factors. Additionally, the trend towards healthier eating habits is encouraging consumers to explore ethnic foods that offer both flavor and nutritional benefits.

The Latin America ethnic foods market is driven by the increasing globalization of food culture and the rising middle-class population seeking diverse culinary experiences. The region’s rich cultural heritage and the fusion of indigenous and European cuisines create a unique and varied food landscape. Increased urbanization and the influence of North American eating habits also contribute to the market’s growth.

The Middle East and Africa ethnic foods market is driven by the increasing demand for traditional and authentic cuisines both within and outside the region. The rich culinary heritage, combined with a growing interest in Middle Eastern and African cuisines globally, drives market expansion. Additionally, the increasing urbanization and the young demographic in these regions are more open to experimenting with new and diverse food options, further propelling market growth.

Leading Key Players in the Ethnic Foods Industry:

Key players in the ethnic foods market are engaging in a range of strategic initiatives to strengthen their market position and meet the evolving demands of consumers. These companies are heavily investing in research and development (R&D) to innovate and diversify their product portfolios, incorporating authentic flavors with a modern twist to appeal to a broader consumer base. Many are forming strategic partnerships and collaborations with local businesses in various regions to ensure authenticity and tap into local expertise. To expand their global footprint, these players are also focusing on mergers and acquisitions, which allow them to enter new markets and leverage existing distribution networks. In response to the growing health consciousness among consumers, there's a significant shift towards offering healthier, organic, or non-GMO versions of traditional ethnic foods. Additionally, leveraging digital marketing and social media platforms to reach a wider audience and enhance brand visibility is a common strategy. The emphasis on sustainable and ethical sourcing practices is also increasingly becoming a priority to cater to environmentally conscious consumers.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Ajinomoto Co. Inc.
• Asli Fine Foods
• McCormick & Company Inc.
• MTR Foods Pvt. Ltd. (Orkla ASA)
• Natco Foods Ltd.
• Old El Paso (General Mills)
• Santa Maria UK Ltd. (Paulig Group)
• TRS Ltd.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• In November 2023: Ajinomoto Group acquired Forge Biologics, a U.S.-based Gene Therapy CDMO (Contract Development and Manufacturing Organization) for approximately JPY 82.8 billion. This acquisition marks a significant expansion into the gene therapy business, highlighting the company's strategy to diversify beyond its traditional food business and explore growth in healthcare.
• In July 2021: Old El Paso, a brand owned by General Mills, expanded its product line with new additions aimed at bringing restaurant flavors into home kitchens. This expansion included the introduction of Burrito Bowl Kits, Street Taco Kits, Squeeze Sauces, and a new rice dish.
• In August 2021: Natco Foods Ltd. unveiled a series of innovative ready-to-cook meal kits inspired by traditional Indian cuisine, capitalizing on the rising trend of convenient and authentic ethnic dining experiences at home.

Ethnic Foods Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the ethnic foods market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global ethnic foods market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the ethnic foods industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.