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Ethnic food market: A global culinary revolution
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Friday, 25 April, 2025, 16 : 00 PM [IST]
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Vidyesh Swar
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Globalisation & Cultural Integration
With increasing cross-cultural interactions through travel, digital platforms, and immigration, consumers are more open than ever to trying international cuisines. Urbanisation and multicultural societies are making ethnic foods more accessible in mainstream supermarkets and restaurants.
Health-Conscious & Plant-Based Preferences
Consumers are increasingly seeking ethnic food options that are perceived as healthier or more natural. Mediterranean, Indian, and Asian cuisines, for example, offer plant-based, spice-rich, and minimally processed dishes that align with modern dietary trends.
Expansion of Ready-to-Eat (RTE) & Meal Kit Segments
The convenience factor has led to a boom in ready-to-eat ethnic meals and meal kits. These products allow consumers to enjoy authentic flavours without extensive cooking experience or time investment.
Rising Ethnic Populations in Western Countries
Immigrant communities are maintaining demand for traditional foods, while also influencing the culinary preferences of local populations. This has driven a surge in demand across North America and Europe for products like tortillas, curry pastes, soy-based sauces, and Middle Eastern spices.
The Impact of AI on the Ethnic Food Market
AI is revolutionising the ethnic food market by driving product innovation, enhancing personalisation, and optimising supply chains. Through AI, companies can develop new recipes based on consumer preferences and emerging trends, creating tailored ethnic dishes that appeal to local tastes. AI also personalises the customer experience, offering customised meal kits and recommending specific ethnic foods based on individual preferences.
Additionally, AI improves supply chain efficiency by predicting demand, managing inventory, and ensuring the quality of perishable ingredients. It also helps brands with targeted marketing campaigns by analysing consumer data to better engage with customers. With these advancements, AI is streamlining operations, fostering growth, and enabling ethnic food companies to meet evolving consumer demands more effectively.
Future Trends in the Ethnic Food Market
- Fusion Cuisines: The blending of traditional ethnic dishes with local or modern culinary influences is gaining popularity. Fusion cuisines like Korean BBQ tacos or sushi burritos are appealing to a wider audience and fuelling creativity in the kitchen.
- Health-Conscious Innovation: As consumers become more health-conscious, there is increasing demand for healthier ethnic food options, such as plant-based, low-sodium, gluten-free, or organic versions of traditional dishes.
- E-commerce Growth: The convenience of online grocery shopping has opened up new opportunities for ethnic food brands to expand their reach and cater to global consumers. The rise of online platforms has made it easier for consumers to access ethnic products from the comfort of their homes.
- Sustainability: As environmental concerns grow, sustainability in food sourcing and packaging will become a key focus. Ethnic food companies are increasingly adopting eco-friendly practices, such as sustainable farming, reducing food waste, and using recyclable packaging.
Challenges in the Ethnic Food Market
While the ethnic food market is experiencing robust growth, there are several challenges that companies must navigate. One of the primary obstacles is supply chain complexity. Ethnic ingredients, such as specific spices, herbs, and unique grains, often have limited suppliers or are sourced from specific regions. This creates vulnerability in the supply chain, especially in times of political instability or climate change. Companies also face difficulties in sourcing ingredients that meet local regulatory standards while maintaining the authenticity of the food.
Another challenge is consumer education and taste adaptation. Although ethnic foods are gaining popularity, many consumers are still hesitant to try unfamiliar flavours or dishes due to perceived complexities or unfamiliarity with the cuisine. Overcoming these barriers requires effective marketing strategies, taste-testing campaigns, and the introduction of products that blend ethnic flavours with local tastes. Additionally, maintaining product consistency and quality across diverse regions can be a challenge as brands expand internationally.
Regional Analysis of Ethnic Food Market
- North America: The US remains a leading market due to its diverse population and increasing interest in Latin American and Asian cuisines.
- Europe: Demand is growing for Indian, Middle Eastern, and African foods, especially in urban centres with high immigrant populations.
- Asia-Pacific: Home to some of the world's most vibrant ethnic cuisines, the region is seeing internal demand as well as strong export growth.
- Middle East & Africa: A growing hospitality sector and increased international food trade are driving market potential.
Leading Companies in the Ethnic Food Market
Several key players are shaping the future of the ethnic food industry through product innovation, market expansion, and strategic acquisitions: Associated British Foods PLC; General Mills, Inc.; Ajinomoto Co. Inc.; McCormick & Company Inc.; Orkla ASA; ARYZTA AG; Paulig Group; The Spice Tailor; Asli Fine Food; TRS Group. These companies are investing heavily in R&D, expanding global supply chains, and introducing diverse product portfolios that cater to regional and international tastes.
Segments Covered in the Report
By Cuisine – Asian; Italian; Mexican; Others
By Food – Veg; Non-Veg
By Distribution Channel - Hypermarkets/Supermarkets; Convenience Stores; Grocery Stores; Online Sales Channels
By Region - North America; Europe; Asia Pacific; Middle East & Africa; Latin America
(The author is a Senior Research Analyst at Towards Food & Beverages)
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