Ethnic Foods Market Size 2024-2028

The ethnic foods market size is projected to increase by USD 26.45 billion, at a CAGR of 9.53% between 2023 and 2028. The market is expected for growth, fueled by increasing demand for Western foods and changing consumer lifestyles. Convenience and grocery store availability drive retail dominance. Despite saturation in Italian, Spanish, French, and Greek products, steady demand persists, particularly for Mexican food. In the UK, rapid urbanization and immigration contribute to rising consumer spending, benefiting department stores and ethnic food products, including fast food. This aligns with market trends and analysis of growing consumption and forecasts suggest continued market expansion, reflecting consumer preferences and market analysis.

Ethnic Foods Market Overview

The market shows an Accelerated CAGR during the forecast period.

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Ethnic Foods Market Dynamics

The market is a vibrant sector reflecting diverse culinary traditions and consumer preferences globally. Cultural or ethnic groups influence the market significantly, promoting multiculturalism and fostering a rich array of international cuisines. Products like frozen and dried ethnic foods cater to varied tastes and convenience needs, while considerations such as age and gender shape consumer choices. The market landscape depends on the cultural or ethnic group, frozen products, dried products, frozen ethnic foods, Energy, Offline retail stores, comfort, importing, smaller businesses, frozen food sector, World Economic Forum, Gulf Cooperation Council, English, BMB, De-Luxe Food Services. Additives and environmental impact are pivotal concerns driving trends towards healthier options and sustainable practices. In retail, the shift from traditional offline stores to e-commerce platforms has expanded accessibility, offering a wider reach for specialty stores and local ethnic food stores. Consumers increasingly prioritize fresh ingredients, authenticity, and consistency in taste, influencing their purchasing decisions. Exotic flavors from Asian cuisine such as Chinese takeout and Indian, along with Tex-Mex and Caribbean influences, resonate with global palates. The market dynamics are further influenced by key players like Patak, Cuisine de France, and Old El Paso, alongside emerging brands like Liven and Takis. As the industry evolves, partnerships and innovations driven by health consciousness and delivery options are set to define the future landscape of the market.

 Market Growth Analysis Driver 

The increasing popularity of Italian cuisine is the key factor driving market growth. Italian dishes such as pasta and pizza are gaining popularity among consumers. Italian expatriates account for nearly 6% of the US population. This has led to a surge in the demand for Italian dishes such as pasta among consumers in the US. The number of Italian restaurants in the US and the UK is increasing, and this factor shows the increasing popularity of Italian cuisine among consumers. California had the highest number of Italian restaurants in the US in 2021, and the number of Italian restaurants in the state is expected to increase.

Moreover, the popularity of Italian cuisine is increasing in APAC in countries such as China, India, and Australia. The increasing popularity of Italian dishes has led consumers to try making these dishes at home, and this will help increase the sales of Italian sauces. The increasing demand for Italian cuisine, including pizza, will help increase the demand for ethnic food products, which, in turn, will fuel the growth of the market during the forecast period.

 Market Growth and Trends 

The introduction of innovative and sustainable packaging by companies is the primary trend shaping market growth. Market players use strategies to achieve a competitive edge in the market. Packaging innovations, apart from attracting consumers, help increase the shelf life and durability of products. Innovative pouch packaging is one such method used by vendors to avoid the loss of nutrients in ethnic foods. Globally, packaging solution providers have started focusing on launching environmentally sustainable packaging solutions such as recyclable packaging, biodegradable packaging, and eco-friendly packaging.

Moreover, market players are offering advanced packaging solutions that are environmentally sustainable. For instance, General Mills, one of the major companies operating in the market, offers products in recycled and recyclable plastic materials. As a result, a greater number of market players have started offering sustainable packaging in the market. This is considered to be a major factor that will support the growth of the market during the forecast period.

Market Challenge 

Consumer demand for fully natural products is a challenge that affects market growth. In recent years, consumers' awareness of the consumption of natural food products has been growing. Ethnic food products must use some edible chemical preservatives to be transported from one country to another. However, as the use of natural ingredients in food products becomes more popular, there may be issues with the need to add chemicals to preserve the products for a longer period of time. Additionally, because the majority of global transportation is by sea, it takes time for products to reach their destination.

Additionally, local manufacturers must collaborate with some of the foreign manufacturers based in various parts of the world to overcome these obstacles. The process of switching from using chemical components to natural ingredients may be challenging given the existence of a large number of small local manufacturers, and this will function as a restricting factor for the growth of the market during the forecast period.

Ethnic Foods Market Segmentation by Type

The non-vegetarian segment holds a significant share of the market in 2023. Non-veg food is a part of every diet in the regions such as Europe, North America, and South America. The daily meals of such regions consist of a large amount of non-veg food compared to the veg food. The non-vegetarian food, meat is a valuable source of protein and essential nutrients and also an integral part of many cultural and culinary traditions. Furthermore, the technological advancements in meat processing and preservation techniques and innovations in packaging, including vacuum packaging and others, further enhance the growth of the non-vegetarian segment. Therefore, the non-vegetarian segment is expected to grow in the market during the forecast period.

Ethnic Foods Market Segmentation by Distribution Channel

The offline segment will be significant during the forecast period. Hypermarkets and supermarkets are the key distribution channels for ethnic food products in the offline distribution channel. This segment's dominance is due to the growth of the organized retail industry. As organized retail grows more common, sales of ethnic food products are expanding. The enormous shelf spaces and storage sections of these supermarkets accommodate a diverse array of ethnic food products from a variety of vendors. Consumers prefer supermarkets and hypermarkets because they can find products from all categories in one location, which is impossible to do in smaller stores.

The offline segment was valued at USD 24.54 billion in 2018.

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Additionally, consumers who buy a certain quantity of products at hypermarkets and supermarkets receive discounts and free products, increasing sales through these channels. Convenience stores and discount stores are other types of organized retail. Furthermore, the majority of these shops are located in residential areas. As disposable incomes rise and urbanization accelerates, consumers are gravitating away from small convenience stores and into supermarkets and hypermarkets. Other local ethnic food product manufacturers will benefit from these factors, which will boost the growth of the offline segment during the forecast period.

Regional Analysis

APAC is estimated to contribute 35% to the growth of the global market during the forecast period

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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Expansion in the growth of the European region market is boosted by rising demand for Western foods and the acceptance of Western culture. The changing lifestyles of urban consumers are expected to be one of the key reasons for the growth of the European market. Due to the rising demand for readily available ethnic food products at nearby convenience and grocery stores, the retail segment is expected to dominate the European market during the forecast period.

Moreover, the availability of regional ethnic food products such as Italian, Spanish, French, and Greek products in Europe prevents the exponential expansion of other ethnic food categories in Europe, but demand is still anticipated to increase slowly. Since there has long been a strong demand for Italian and Spanish food, market growth for Mexican cuisine is modest and consistent rather than rapidly rising. Thus, such factors, in turn, drive the regional  market, which will fuel market growth during the market forecast period.

Ethnic Foods Market Players Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.

• Key Offering- Ajinomoto Co. Inc.: The company offers ethnic foods under the brand names Posada, Bernardi, and Golden Tiger.
• Key Offering- Aryzta AG: The company offers ethnic foods under the brand names Hiestaud, Pre Pain, and Mette Mark.

The ethnic foods market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:

Asli Fine Foods, Associated British Foods Plc, B and G Foods Inc., Beyond Meat Inc., Bighams Ltd., Chings, Conagra Brands Inc., General Mills Inc., Mars Inc., McCormick and Co. Inc., Mizkan Holdings Co. Ltd., Nestle SA, Orkla ASA, Paulig Ltd., Premier Foods Plc, The Giggly Pig Co., Vibrant Foods Ltd., and YUM Brands Inc.

The ethnic foods market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The ethnic foods market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as market research and growth, historical data from 2018 to 2022 for the following segments

• Distribution Channel Outlook
  • Offline
  • Online

• Type Outlook
  • Non-vegetarian
  • Vegetarian

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The global market is experiencing significant growth, driven by the increasing demand for ready-to-eat food products, diverse ethnicities, and the fusion of culinary experiences. Factors such as higher education, employment opportunities, and tourism contribute to the rising interest in innovative and creative cuisines from various cultures. In developing countries, the impact of Westernization on tastes and preferences is evident, leading to a diversification of the ethnic food market. The convenience factor, coupled with the emphasis on the quality of food, drives the popularity of cuisine variants offered in diverse packaging formats. The immigrant population plays a crucial role in introducing the fusion of ethnic blends, contributing to the indulgence in authentic regional cuisines. Young populations, especially millennials, are exploring new food options and international favorites, emphasizing bold flavors and spices. Specialty and international food sales have witnessed growth, fueled by factors like international travel and the influence of social media on culinary experiences. The market size continues to expand, with supermarkets/hypermarkets, online stores, and other distribution channels playing key roles. As globalization policies open up opportunities for cross-cultural interactions, the market remains dynamic, offering a rich tapestry of global and authentic regional cuisines to consumers worldwide.

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What are the Key Data Covered in this Ethnic Foods Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market  trends and changes in consumer behavior
• Growth of the market across Europe, APAC, North America, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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