Global Ethnic Foods Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Ethnic Foods Market Analysis

Growing Immigration is boosting the market for ethnic foods as globalisation has brought the world closer. The increasing global employment opportunities have led to rising immigration across the world. The growth of the ethnic food market is boosted by the huge demand generated by these immigrants who are looking for their local speciality.

Social media has allowed consumers to share their different personal experiences. The trend of sharing exotic food has augmented the demand for ethnic foods. Westernisation has also changed the food experience of developing regions. People have started searching for new and innovative cuisines. This is providing impetus to the growth of the industry.

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Ethnic Foods Market Trends

Burgeoning Popularity of Asian Cuisine

The growth of the immigrant population as well as the rising demand for bold flavours from consumers is a crucial trend of ethnic foods market. As per the data on Yelp’s 2024 Top 100 Places to Eat in the United States, around one-fourth of the independent restaurants on this list serve Asian or Asian fusion food. As per the market reports, the demand for Asian ingredients has witnessed a surge of around 20% in 2024 compared to the previous year across the world. Indian dish, Chicken Biryani is one of the most popular non-vegetarian dishes abroad.

One of the emerging Asian foods is Ramen, or specifically, chilled Ramen, which maintains its integrity for a long time and can be customised between the noodle base, broth, and vegetable, among others. Moreover, Chinese, Japanese, and Thai restaurants are found in every USA state with sushi becoming one of the most popular dishes in the country.

Rising Trend of Health and Wellness

A wide range of Asian dishes are vegan and known for their emphasis on fresh and wholesome ingredients. As per Thomas’s 2024 food trend prediction, the demand for vegan ethnic foods such as vegan eggs and fish is expected to grow in the coming years. Ethnic food brands are further increasingly incorporating plant-based proteins, and products such as tofu, chickpeas, and lentils, among others, due to their high nutritional value and health benefits, which boosts the ethnic foods market value.

Mediterranean and Asian diets are known for their lower risks of chronic diseases compared to other dishes due to their emphasis on fresh ingredients and balanced meals, which makes them popular among health-conscious consumers. Furthermore, several ethnic food companies are offering more gluten-free and organic options in response to the rising demand for cleaner, allergen-free foods. For instance, in 2021, there were around 3.7 million organic producers worldwide with India having the most producers at 1.6 million.

Industry News

August 2024

The prestigious ethnic business awards for migrants and First Nations people in Australia announced that it is launching its alumni association which includes all past winners and finalists.

July 2024

Ahura Restaurants Pvt. Ltd., based in India, announced the international expansion of its flagship brand, Mirch Masala with the opening of its two new Mirch Masala restaurants in Canada, and the USA.

Opportunities in Ethnic Foods Market

The increasing availability of ready-to-eat (RTE) ethnic meals and meal kits has simplified the process for consumers to enjoy international cuisines at home. Several companies in this sector are making efforts in the frozen and packaged foods market to provide authentic dishes that need little preparation. These food products save around 50% of the consumer’s time for meal prep, making them popular among urban regions where the population of working professionals is high, and increases the ethnic foods market revenue.

With the rising demand for halal food, M&S Food (Marks & Spencer) has made a range of 6 halal food authority-certified prepared meals available at 36 M&S stores nationwide. Dishes such as Indian Tikka Masala and East Asian ramen are becoming popular in the frozen and packaged food aisles. Additionally, the ready-to-eat meal kits are also appealing to those who want to experience ethnic cuisine at home without spending much time on meal preparation.

Ethnic Foods Market Restraints

Ethnic cuisines often require specific and authentic ingredients that may not be easily found in local markets, leading to a reliance on imported products. This dependence can disrupt the supply chain, especially due to global events such as trade disputes. A major challenge is the varying levels of acceptance of ethnic foods in different regions. Urban and multicultural areas tend to be more open to trying ethnic dishes, while rural and more homogeneous regions are less likely to try unfamiliar flavours. This difference in acceptance limits market penetration and complicates the efforts of ethnic food brands to expand widely, which can affect the ethnic foods demand forecast.

Furthermore, ethnic food producers may face strict regulations and standards in many areas, particularly in developed markets like the United States. For instance, under the Food Safety Modernisation Act (FSMA), implemented by the FDA, ethnic food producers must adhere to preventive controls that ensure food is safely processed, stored, and transported and can provide hindrance to the market.

Market Dynamics

Ethnic food brands are readily experimenting with fusion cuisines by integrating flavours and culinary methods from various cultures. This trend has become popular in urban environments where a variety of food preferences converge, resulting in the creation of dishes such as Korean-Mexican tacos and Japanese-Peruvian sushi. As cities become hubs of diverse populations, the culinary market is evolving to reflect this wide variety of cultural influence, and boosting the ethnic foods market opportunities. 

Chefs and food entrepreneurs are increasingly experimenting with traditional recipes, blending them with elements from other culinary traditions to create innovative dishes that appeal to a broader audience. For instance, the combination of Korean and Mexican cuisines has led to the creation of dishes such as kimchi quesadillas and bulgogi burritos.  The 2024 International Summit on Fusion Cuisine held in Beijing focused on the creativity and intercultural exchange promoted by fusion cuisine, particularly through the combination of ingredients such as caviar with classic Chinese dishes, including Peking duck.

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Ethnic Foods Industry Segmentation

“Ethnic Foods Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Based on the culture, ethnic foods are classified into:

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

On the basis of type, the industry is segmented into:

• Food Service
• Ready-to-eat

Based on the distribution channel, the market is segmented into:

• Restaurants
• Stores

The stores are further segmented into hypermarkets/supermarkets, convenience stores, and online stores, among others.

Based on region, the market is divided into:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Ethnic Foods Market Share

By Culture Insights

Mexican cuisine accounts for a substantial ethnic foods market share, especially in regions such as North America. It is gaining popularity due to its rich flavours, accessibility, and versatility of dishes such as tacos, burritos, and salsas, which are available across various markets. Italian cuisine has also gained prominence in the market in recent years due to its dishes such as pasta, pizza, and sauces, among others, which are deeply ingrained in several country’s cultures now. The universal appeal of Italian food ensures its strong presence on a global scale.

By Type Insights

The food service segment contributes to the ethnic foods market expansion due to its rising availability across a wide range of venues such as restaurants, cafes, food trucks, catering services, and other dining options outside the home. Ethnic dishes can be found in various settings from full-service restaurants to fast-casual and quick-service establishments. The types of cuisine available can range from traditional, upscale dining experiences to street food-inspired meals. Many ethnic food service providers focus on preparing fresh dishes, often allowing customers to customise their orders, especially in fast-casual restaurants such as burrito bars or customisable noodle bowls.

By Distribution Channel Insights

As per the ethnic foods industry analysis, restaurants account for a significant share of the market and include establishments that offer prepared meals reflecting a variety of cultures and cuisines, catering to consumers who enjoy dining out or using takeout and delivery options. Many ethnic restaurants focus on traditional recipes, ingredients, and cooking methods to provide an authentic dining experience. Additionally, some venues offer fusion cuisine, blending dishes from culinary traditions to appeal to local tastes. Moreover, certain restaurants are innovating by creating fusion dishes that combine ethnic flavours with regional ingredients or cooking styles, attracting adventurous diners.

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Ethnic Foods Market Regional Analysis

Asia Pacific Ethnic Foods Market Dynamics

The Asia Pacific region is anticipated to have the fastest growth rate in the ethnic food industry because of the increasing population and urbanisation. The young generation has increasing disposable income and has to immigrate for better employment opportunities. This leads to a surge in the demand for their ethnic food cuisines which boosts the growth of the ethnic foods industry. The westernisation in nations such as India is changing the food habits of customers with many looking for different tastes.

Recent developments in the market include investments from major food companies such as Kraft Heinz, which has upgraded its production facilities in Indonesia to cater to both local and regional markets. Furthermore, there has been a significant rise in digital and e-commerce platforms offering ethnic food products, enhancing consumer access and promoting growth across the region.

North America Ethnic Foods Market Drivers

North America is also experiencing substantial growth because of the strong demand for ethnic products like Asian sauce. The United States has witnessed a rise in the Asian population and many Asian cuisines such as Thai and Indian have captured people's tastebuds which have further fuelled the ethnic foods demand. Around 85% of U.S. counties have at least one Mexican restaurant, with their highest availability in California and Texas.

Moreover, Chinese Americans account for around a quarter of Asians living in the U.S., whereas Japanese Americans account for around 7% of the U.S. Asian population, which has created lucrative opportunities for Chinese and Japanese food.

Europe Ethnic Foods Market Trends

The ethnic food market in Europe is driven by the growing immigrant population and an increasing interest in diverse culinary experiences. In countries such as the United Kingdom, Germany, and France, consumers are looking for new flavours and healthier options, which boosts the demand of ethnic foods market. Furthermore, the rise of food tourism and the presence of multicultural communities in these areas is aiding the market growth. As of January 1, 2023, 27.3 million people of the European Union (EU) population were non-EU citizens, which has created lucrative opportunities for different kinds of ethnic foods in the region.

Latin America Ethnic Foods Market Growth

Latin America is experiencing a rise in the consumption of ethnic foods, driven by a growing awareness of health issues. For instance, foods that are organic, non-GMO, or gluten-free are gaining popularity among consumers. Moreover, Universities in Latin America, such as the National University of Colombia, the University of Antioquia, and the University of Berkeley, have developed courses in organic production, which is expected to aid the growth of organic food, including ethnic foods.

As a greater number of Latin Americans embrace healthier living, they are increasingly drawn to international cuisines that align with their dietary choices, aiding the ethnic foods demand growth.

Middle East and Africa Ethnic Foods Market Outlook

In the Middle East and Africa, the growing population of expatriates and tourists has led to a surge in demand for ethnic cuisine. For instance, Saudi Arabia has a large population of expats, with 41.6% of its residents being immigrants. The majority of expats in the country are from India, Pakistan and Bangladesh, with a smaller number from North America and Europe.

As per the ethnic foods market dynamics and trends, major cities like Dubai have become hubs for diverse culinary experiences, catering to a wide range of demographics. Additionally, the rise of supermarket chains and online shopping platforms has greatly enhanced the availability of ethnic foods.

Innovative Startups in Ethnic Foods Market

Startups are increasingly focusing on clean-label, non-GMO, organic, and sustainably sourced ingredients. Due to the rising demand from health-conscious consumers for ethnic cuisine, these companies are adapting traditional recipes to offer gluten-free, vegan, and low-sodium versions of classic dishes to enhance their appeal. Many businesses and startups in the ethnic foods market are also focusing on authenticity in their branding and storytelling. By showcasing the cultural heritage, history, and culinary traditions linked to their products, they appeal to consumers looking for more than just a meal.

Omsom

Established in 2020, Omsom is a startup based in New York that specialises in providing authentic Asian pantry essentials and meal starter kits. The brand is dedicated to offering genuine, robust Asian flavours which are inspired by Vietnamese, Thai, and Korean culinary traditions. Omsom partners with esteemed chefs from these regions to ensure the authenticity of its meals. Its meal starters enable consumers to effortlessly prepare traditional Asian dishes at home while maintaining exceptional taste and quality.

Diaspora Co.

Diaspora Co., a spice startup launched in 2017, aims to launch sustainably sourced, premium Indian spices to the international market. The company collaborates directly with farmers in India, ensuring fair trade practices and supplying fresh, single-origin spices. The company prioritises transparency, ethical sourcing, and the support of traditional farming techniques, establishing itself as a prominent company in the market.

Competitive Landscape

The report gives a detailed analysis of the following key players in the ethnic foods market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Ethnic food companies are expanding their product lines to include a wide variety of authentic and culturally diverse options which includes ready-to-eat meals, spice blends, sauces, frozen products, and packaged meal kits, among others, which consist of traditional recipes from various regions. Furthermore, some companies are collaborating with local chefs and culinary experts to maintain authenticity.

Key Industry Players

Ajinomoto Co. Inc.

Ajinomoto Co., Inc. is a prominent Japanese food and biotechnology company, with its headquarters in Tokyo, Japan. Founded in 1909, the company is well-known for its production of food seasonings, especially monosodium glutamate (MSG), which has contributed significantly to its global reputation.

McCormick & Company, Incorporated

McCormick & Company, Incorporated is a leading American multinational food corporation in the ethnic foods market, based in Hunt Valley, Maryland. Established in 1889, the company focuses on the manufacturing, marketing, and distribution of spices, seasoning blends, condiments, and flavouring products, catering to both retail and food service markets.

Associated British Foods PLC

Associated British Foods PLC (ABF) is a British multinational company for food processing and retail, with its headquarters in London, UK. It was founded in 1935 and since then ABF has diversified its operations across various sectors, including sugar production, grocery items, agriculture, and food ingredients, among others.

Other major ethnic foods market players are General Mills, Inc., Paulig Group, among others.

Recent Developments

March 2024

Omsom, an Asian food startup, aims to expand its range of Asian cooking sauces and packaged spicy noodles in America. As of March 2024, the startup had sold more than 4 million products since its launch in 2020.

April 2022

Foo Foods, a value-added food product brand, was aiming to enhance the availability of ethnic foods by expanding its presence in online retail stores.