Global Ethnic Foods Market is expected to reach USD 80 bn by 2028: Ken Research

The Global Ethnic Foods Market was valued at ~US$ 35 billion in 2017. The demand for ethnic food has been expanding as a result of the rising immigration rates driven by work possibilities, higher education, and tourism. Also, the market is anticipated to grow during the projected period due to rising capital investment in creating healthy, ethnic-based food and rising consumption of nutrient-dense foods. It is estimated to be ~US$ 50 billion in 2022 and is expected to reach a market size of ~US$ 80 billion by 2028 growing at a CAGR of ~8% during 2022-2028.

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Key Growth Drivers

• By increasing the accessibility and availability of ethnic food items, the increasing number of specialized ethnic food supermarket chains in developed nations is driving the market for ethnic food. People’s tastes and dining experiences are changing as developing countries become more advanced.
• The growing millennial generation, which is constantly seeking out new, exotic experiences, is more open to adopting exotic foods and flavors into daily diets, which is anticipated to fuel the expansion of the market for ethnic food throughout the projected period.
• One of the major trends driving the expansion of the ethnic foods market is the adoption of innovative and environmentally friendly packaging by major suppliers. Vendors in the global market for ethnic foods utilize strategies to gain a competitive edge.
• Market expansion is primarily affected by stringent rules and regulations that hinder the easy and smooth global trade of food products. High import and export tariffs are also obstructing market growth in some regions.
• The COVID-19 pandemic outbreak had a negative impact on the market’s growth. Due to the spread of the infection, many people chose to stay indoors, which had a negative effect on the hotel and catering industries. The consumption of ethnic food on major distribution channels declined as a result of fewer frequent consumers and tourists.

Key Trends by Market Segment

By Cuisine Type- the Chinese cuisine segment dominated the market in 2021, due to the growing demand for Chinese food from developed regions like Europe and North America is driving industry expansion

• Chinese food consumption is increasing, which in turn is driving up industry demand, as more people from Asian countries migrate abroad for higher education, tourism, and career possibilities.
• According to the Higher Education Statistics Agency, in 2020 approximately 35% of non-European students in Europe were of Chinese ethnicity, leading to the increased demand for Chinese food in European and North American countries.

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By Food Type- The non-Vegetarian segment accounted for the highest market share in 2021, as consumption is considerably higher than vegetarian consumption worldwide.

• Non-vegetarian cuisine is part of practically every household’s daily diet in Europe, North America, South America, China, and the Middle East.
• Compared to vegetarian meals, non-vegetarian meals make up a higher portion of an individual’s regular diet.

By Application- Restaurants accounted for the highest market share in 2021 as restaurants regularly serve ethnic foods to enhance the dining experience for consumers.

• Customers have the opportunity to explore new cuisines and varieties while dining outside the home.
• Taco Bell, the world’s leading Mexican-inspired restaurant brand, in December 2019 announced that it had reached an important milestone in its India expansion by opening its 50th location.

By Distribution Channel- Hypermarkets/Supermarkets dominated the market in 2021 since the wider public prefers to purchase food and snacks from supermarkets and hypermarkets

• Its dominance can be attributed to consumers’ strong preference to buy items from big supermarkets due to its extensive range of brand and price options.
• Developments in the organized retail sector, as well as a rise in the number of hypermarkets and supermarkets, along with increased metro cities and migration to metro cities, are the primary factors influencing the expansion of the whole segment.

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By Geography: Asia Pacific accounted for the largest market share among all regions in 2021, owing to numerous expansion prospects for ethnic food services businesses that have emerged in the Asia-Pacific region.

• Residents of India and other developing nations are using social media more and more to share their culinary experiences, which encourages customers to try new restaurants and cuisine options based on the ratings given.
• Consumers in the Asia-Pacific region are increasingly interested in trying out new cuisines, both internationally and from genuine regional cuisines. Additionally, producers are working hard to meet consumer demand for novel and distinctive culinary products by including more international classics, greater variety, spices, and strong tastes.

Competitive Landscape

The Global Ethnic Foods Market is highly competitive with ~1,000 players which include globally diversified players, regional players as well as a large number of country-niche players each with their niche in ethnic food. Global players constitute ~10% of competitors, while country niche players represent the largest number of competitors. The market is highly competitive since key players are focusing on R&D and launching new products with different kinds of ethnic food cuisines to meet growing consumer demand for a variety of cuisines and are investing in producing healthy nutritious rich ethnic-based foods as people adopt healthier life. Some of the major players in the market include Ajinomoto Co. Inc., Taco Bell, ARYZTA AG, Asli Fine Foods, McCormick & Company Inc., General Mills, MTR Foods, Wanis International Food, Santa Maria UK Ltd, Nestle. And others.

Recent Developments Related to Major Players

• In October 2021, General Mills expanded its Old El Paso a range of Tex-Mex foods that includes dinner kits, tacos, tortillas, and more, line by offering new flavored taco shells in collaboration with crisp brand Takis in the United States.
• In November 2020, McCormick & Business Inc. announced a definitive agreement to acquire the parent company of Cholula Hot Sauce®, a premium hot sauce brand with authentic Mexican characteristics for US$800 million in cash,

Conclusion

The Global Ethnic Foods Market is anticipated to grow significantly during the projected period (2022-2028) as there is a growing demand for ethnic food as a result of increased employment opportunities, access to higher education, and tourism. Moreover, the market is expected to expand during the forecasted period as a result of increased investment in the production of nutrient-dense foods and healthy ethnic foods. Though the market is competitive with ~1,000 participants, country-niche players control the dominant share and regional players also hold a significant share.

Note: This is a Planned/On-Demand report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients, and the report delivered within a maximum of two working weeks.

Ken Research has recently published report titled, Global Ethnic Foods Market Size, Segments, Outlook, and Revenue Forecast 2022-2028. In addition, the report also covers market size and forecasts for the four regions. The revenue used to size and forecast the market for each segment is US$ Billion

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