The ethnic foods market is estimated to be valued at USD 87.46 Bn in 2024, growing at a CAGR of 7.2% over the forecast period (2024-2031). The market growth can be attributed to rising health consciousness among consumers and growing preference for authentic ethnic flavors. Furthermore, the increasing availability of ethnic foods through retail channels and restaurants is also boosting market expansion.
Rising health awareness is a major driver propelling the growth of the global ethnic foods market. Consumers are increasingly preferring healthy and nutritious food options that promote overall wellness. Ethnic foods, which often incorporate traditional herbs, spices, and cooking styles, are considered healthier alternatives to regular fast food varieties. Moreover, shifting consumer preferences towards authentic flavors from different world cuisines is expanding the demand for ethnic foods. The wide variety of tastes offered through ethnic cuisine satisfies the adventure seeking tastes of millennial consumers. Food product innovation and new product launches further augment the availability of unique ingredients associated with ethnic recipes. Both domestic and international restaurants are also promoting ethnic foods through diverse menus to attract more customers.
Increased Cultural Exposure and Interest in Immigrant Cuisines is Driving the Market Growth
With growing globalization and increasing cultural diversity, people are becoming more exposed to different cultures and their cuisines. There is a rising interest among consumers to try new and unique foods from other parts of the world. Food tourism and traveling abroad have introduced consumers to authentic ethnic dishes from various cultures. This has increased the demand for ethnic foods in supermarkets and restaurants. Food networks and YouTube channels dedicated to international cuisines have also helped popularize various immigrant foods. As people become more curious to experiment with different flavors and cooking styles, the ethnic foods market continues to grow steadily.
Rapid Urbanization in Developing Nations is Expanding the Consumer Base
Rapid urbanization in developing countries like India, China, Brazil, and Southeast Asian nations has exposed large population segments to new foods and lifestyles. As people migrate from rural to urban areas, they adopt contemporary food habits. This has increased the uptake of convenience foods, including ready-to-eat ethnic dishes. Rising disposable incomes coupled with exposure to global cuisines through access to internet and media have made ethnic foods an appealing option for daily meals and social eating occasions. Moreover, the increasing number of expatriate communities relocating to urban areas has also boosted demand for familiar authentic foods from their culture. All these factors tied to urbanization are amplifying the consumer base for ethnic foods globally.
High Prices of Ingredients and Authentic Products Pose a Challenge
Exotic spices, herbs, vegetables, and meats used in international cuisines often demand a premium due to import duties, strategic sourcing costs, and limited availability. This makes finished ethnic food products expensive for average consumers. It discourages experimental cooking at home and occasional purchases at foodservice outlets. It particularly impacts sales in cost-sensitive developing markets. Unless mass production and local sourcing brings down costs over time, high ingredient prices will continue restricting the market growth to some extent.
Complex Recipes and Limited Shelf Life Hinders Mass Adaptation
Most authentic ethnic dishes have complex recipes requiring multiple ingredients and intricate cooking techniques. They do not easily adapt to mass production needed for grocery shelves and restaurants. The elaborate cooking processes are also time-consuming for home chefs. In addition, many ethnic foods have a short shelf life when packaged for retailers due to natural ingredients. This poses challenges for supply chain management, distribution, and storing unsold inventory. Unless simplified recipes and preservative formulations address these issues, mainstream customers unwilling to experiment much in the kitchen may not fully embrace supermarket ethnic foods. Limited shelf life also restrains foodservice business for selected perishable dishes.
Growing Takeout Culture is Boosting the On-The-Go Consumption of Ethnic Food
The fast-paced modern lifestyles with long working hours have increased the consumption of ready-made takeout meals from various cuisine cuisines. With rising health consciousness, people prefer home-delivered meals over deep-fried fast foods. This growing takeout culture provides opportunities for restaurants specializing in international cuisines to conveniently serve authentic and homemade ethnic dishes to time-strapped consumers. The demand for portable ethnic snacks is also on the rise due to an active on-the-go demographic. Food trucks and carts dishing out global street foods have become popular. All these trends are helping drive the overall growth of the ethnic foods market.
Ease of Online Shopping has Opened New Sales Avenues
The digital shift in consumer lifestyles has significantly boosted online ethnic food shopping channels. Websites and apps specializing in sourcing authentic ingredients, sauces, and ready-to-cook meals from various world cuisines have made them easily accessible for home chefs and food enthusiasts. This e-commerce model overcomes the limitations of physical store availability and delivers right to customers’ doorsteps. Moreover, online reviews and tutorials are helping novice home cooks gain confidence in international recipes. Live streaming of cultural cooking shows is also popularizing ethnic cuisines. As internet and smartphone penetration increases worldwide, the online marketplace will continue opening new opportunities for ethnic foods businesses to gain customers beyond physical boundaries.
*Link: https://www.coherentmarketinsights.com/market-insight/ethnic-foods-market-5054
Key Developments
- In 2023, Paulig opened 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 environment-friendly, multi-purpose head office in Australia. This facility also includes a technical innovation center, a logistics center, and new corporate office.
- In 2022, the D2C ethnic food brand, Spice Story partnered with 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
Key Players
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., and The Spice Tailor Limited
