Top Emerging Trends Of Ethnic Food Market Progress Forecast 2028 |Grand View Research, Inc.

Posted by Mrudula Karmarkar on December 9th, 2022

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.

Covid-19 pandemic outbreak impacted negatively on market growth. During the pandemic, as a result of various lockdowns and restrictions, hotel industry and foodservice sector remained closed and faced serious problems to generate income. Numerous businesses had to close as an aftermath with lack of customers. Some businesses launched home delivery options to stay afloat. However, over the forecast period, market is expected to return to pro-covid conditions and register strong growth over the forecast timeframe.

By type, the Chinese segment contributed highest revenue share of around 40.0% in 2021. The highest segmental share is attributed to the growing demand for Chinese cuisine across the globe. Rising demand for Chinese cuisine from developed region such as Europe is prime factor for the growth of this segment. Furthermore, number of migrants from Asian countries, especially China, owing to higher studies, tourism, and employment opportunities to other nations is higher and continuously rising. This leads to higher consumption of home country cuisines which in turn is augmenting industry demand.

By distribution channel, the online segment is estimated to witness highest CAGR of 9.6% over the forecast period. The increasing dependency on the digital apps and technology is rising tremendously. Online shopping for food items and grocery is also increasing, owing to the increasing consumer preference. Moreover, emergence of new platforms and increasing affordability of smartphones coupled with the rising penetration of internet is facilitating the growth of the online distribution channel over the forecast period.

By region, Europe accounted for the highest revenue share of over 30.0% in 2021. The market share dominance of the region is credited to the presence of majority of migrants in countries such as the U.K., Germany, and France, etc., due to tourism, higher education, and superior employment opportunities. Also rising consumption of nutritious ethnic based food owing to rising health consciousness among people is boosting the growth of the market.

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Market growth was impacted negatively due to the Covid-19 pandemic outbreak. During the peak infection period, various governments’ restricted formal gatherings, imposed lockdowns and prohibited international travel. This had impacted on the hotel and foodservice industry negatively, as many people preferred to stay inside to prevent from the infection. The lack of regular customers, and lack of tourists led to decrease in the consumption of ethnic food through major channels. This also led to quick rise in the online and home deliveries of food items and grocery products. Over the forecast period, the market for ethnic food is expected to recover fast and witness promising growth due to resumption of businesses, tourism and trade activities as well.

Furthermore, rising number of specialized ethnic food supermarket chains in developed regions is driving the market for ethnic food by increasing accessibility and availability of ethnic food items. Growing westernization in developing countries is changing the taste and food experiences of people. More people are opting for eating out and interested in trying exotic and intercontinental food dishes. The consumer’s inclination towards innovative and creative cuisines is increasing as eating good food is being termed as therapeutic. All these factors are expected to drive the market for ethnic food over the forecast period.

Ethnic Food Market Report Highlights

  • Asia Pacific is expected to register the 2nd highest CAGR of 9.2% from 2022 to 2028 owing to increasing demand for ethnic foods such as Chinese, Japanese, etc. from countries such as China, Japan, and India
  • The Mexican segment is expected to register the 2nd highest CAGR 8.8% over the forecast period. Increasing awareness and the high level of popularity in the U.S. is credited for the growth of the Mexican type ethnic food
  • The hypermarkets and supermarkets segment held the largest revenue share of more than 35.0% in 2021. Rapid expansion across world and strong availability of products at hypermarkets and supermarkets are factors credited for the large market share of the segment 

Additionally, growing globalization policies and international travel are further positively propelling market growth. Furthermore, rising immigration for better employment opportunities, also cumulative disposable income has also led to significant upsurge in demand for the ethnic foods.  Growing investment by key players for the introduction of new products coupled with increasing focus among manufacturers on food quality, packaging formats, and cuisine variants will further support the industry sales.

Market growth is mainly restrained by the stringent rules and regulations that hinders the easy and smooth trade of the food products globally. High import and export tariffs also hampering market growth in some regions. For instance, in May 2022, U.S. government announced increasing import tariffs on goods from Mexico making import tariffs 5% and duties 25%, which is expected to impact the prices and sales at restaurants. Rising digital apps and technological improvements is expected to create potential opportunities through online distribution channel across the world. The penetration of online platforms in developing nations in Asia Pacific, Middle East & Africa are expected to provide promising growth opportunity. For instance, as reported on 9th February, 2021, online grocery retailer, Grofers revenue witnessed 111% growth in financial year 2020. 

List of Key Players of Ethnic Food Market

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

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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