Ethnic Food Market Competition 2028 by Manufacturers

Ethnic Food Market Growth Trends 

The global ethnic food market size is expected to reach USD 70.8 billion by 2028, registering a CAGR of 8.7% over the forecast period, according to a new report by Grand View Research, Inc. The growing demand for ethnic food cuisines in developed regions is propelling the industry demand. Globalization and increasing migration are major factors driving the growth of the market, which is also facilitated by the increasing food promotion via various media platforms. Number of ethnic food consumers is growing worldwide with rising number of migrants around globe. As international trade, tourism, and immigration have increased globally, the part of ethnicity has become more significant not only in business but also in food industry.

Ethnic Food Market Segmentation

Grand View Research has segmented the global ethnic food market on the basis of type, distribution channel, and region:

Based on the Type Insights, the market is segmented into Chinese, Japanese, Mexican, Italian, Others.

• By type, the Chinese segment dominated the market for ethnic food and accounted for the largest revenue share of around 40.0% in 2021. This is significantly attributed to the increasing demand for Chinese cuisine across the globe. Rising demand for Chinese cuisine from developed region such as Europe is leading to rise in market growth. The migration of Chinese students to North American and European countries has increased greatly and continues to increase. According to the Higher Education Statistics Agency, around 35% of non-European students in Europe were Chinese ethnicity in 2020 and the percentile has increased by 56% compared to 2016. This is contributing to the higher demand for Chinese cuisine in the European and North American countries. Furthermore, rising number of migrants from Asian countries owing to higher studies, tourism, and employment opportunities to other nations, leads to rise in consumption of home country cuisines which in turn is augmenting industry demand.
• The Mexican segment is expected to witness lucrative growth over the forecast period. The segment is anticipated to show 2nd highest CAGR of 8.8% over the forecast period. The growth of the segment is attributed to the rising popularity and increasing consumption of Mexican ethnic food in North America, mainly by the U.S. consumers. Spiciness, hot flavor, easy to carry around, and good value for money are the factors that are credited for the increasing popularity among the consumers. Moreover, expansion to the emerging market is expected to support the growth of the segment. For instance, Mexican fast food giant, Taco Bell, is planning to open 600 outlets in India over the span of 10 years, as announced in May 2019. This is expected to increase the consumer awareness and facilitate the growth of the segment.
• The Italian segment is anticipated to register lucrative growth in the market for ethnic food over the forecast period. Italian cuisine has two of the world’s most popular food items, pizza and pasta. The popularity is expected to increase further owing to the increasing penetration of food joints such as Domino’s Pizza, Inc. and Pizza Hut. Both of these giants have aggressive growth plans and are focusing on developing countries, including, India, China, etc. 

Based on the Distribution Channel Insights, the market is segmented into Hypermarkets & Supermarkets, Convenience Stores, Grocery Stores, Online, Others.

• The hypermarkets and supermarkets segment dominated the market for ethnic food and held largest revenue share of over 35.0% in 2021. Developments in the organized retail sector and growing number of hypermarkets and supermarkets across the world is anticipated for the highest market share. Increasing metro cities and migration to the metro cities are the prime factor affecting the growth of this segment. Moreover, high consumer behavior also decides consumer preference due to safety and authenticity of the products through hypermarkets and supermarkets. Furthermore, the rising number of Asian ethnic foods selling supermarkets is also propelling segment growth.
• The online segment is expected to witness a CAGR of 9.6% over the forecast period in the market for ethnic food. Increasing use of smartphone and increasing affordability of internet connection are expected to drive the growth of the segment. According to the World Economic Forum, currently over half of the world’s population are connected to mobile internet, and mobile network data traffic continues to grow. Changing consumer profile is also expected to drive the growth of the segment over the forecast period.

Ethnic Food Regional Outlook

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East and Africa (MEA)

Market Share Insights

• September 2020: Orkla ASA entered into agreement with acquisition of majority of the shares in Eastern Condiments Private Limited and aims to double its market presence in India.

Key Companies Profile & Market Share Insights

The market for ethnic food is characterized by the presence of global key players and local small players. The market is highly fragmented. Key players are focusing on R&D and launching new products with different type of ethnic food cuisines to meet growing demand for variety of cuisines by consumers. Key players are increasingly launching new distribution channels, via own website or increasing presence on other e-commerce retailers.

Some of the prominent players operating in the global ethnic food market include,

• Associated British Foods PLC
• General Mills, Inc.
• Ajinomoto Co. Inc.
• McCormick & Company Inc.
• Orkla ASA
• ARYZTA AG
• Paulig Group
• The Spice Tailor
• Asli Fine Foods

Order a free sample PDF of the Ethnic Food Market Intelligence Study, published by Grand View Research.