The global ethnic food products market was valued at USD 9.3 billion in 2021 and is projected to expand at a CAGR of 10.1% from 2022 to 2030. Ethnic food products are gaining traction in the global market owing to the increasing multicultural population, heightened levels of disposable income, and cultural exchange. Moreover, the rising popularity of various ethnic cuisines, such as Indian, Mexican, and Chinese, has significantly spurred the demand for ethnic food products.

The increased demand for convenience and the rising number of working people are driving the convenience food segment of the market. Ethnic convenience food refers to ready-to-eat or partially prepared food items that are convenient and do not require extensive preparation time. Manufacturers are introducing convenient ethnic food items, such as frozen food items, frozen appetizers, and frozen meals, in the market to cater to the changing consumer preferences. For instance, in December 2021, the frozen food company Van’s Natural Foods launched its new line of frozen ethnic food items, which includes frozen enchiladas, paella, and shawarma.

The growing demand for authentic ethnic cuisine is driving the growth of the ethnic food items segment. Consumers are increasingly looking for authentic ethnic flavors, which is leading to the introduction of various ethnic food items, such as spices, sauces, and condiments. Key players are introducing several new ethnic condiments, sauces, and spices to cater to the increasing demand. For instance, in October 2021, McCormick, a leading manufacturer of condiments and sauces, launched a new line of ethnic sauces, such as a Tandoori Masala Sauce and a Chinese Black Bean Sauce.

The rising popularity of food delivery services, such as GrubHub, Foodpanda, and Deliveroo, is fueling the growth of the market. These services offer easy access to a variety of ethnic food products, which is driving the demand for ethnic food products. Furthermore, the growing trend of online grocery shopping is also propelling the market growth. For instance, in August 2021, Walmart partnered with the online grocery delivery service Instacart and launched a new service, called “Grocery Pickup + Delivery,” which allows customers to shop for ethnic food items from the comfort of their homes.

In addition, the rising number of health-conscious consumers is driving the market growth. Consumers are increasingly shifting their focus toward healthy food items, and manufacturers are introducing various healthy ethnic food items to meet the changing consumer preferences. For instance, in April 2021, the food company Beyond Meat launched its new line of plant-based ethnic food items, such as plant-based chorizo and plant-based beef. This new product launch is expected to increase the scope of the market in the coming years.

The ethnic food products segment is expected to hold the largest share in the market and is anticipated to grow at a CAGR of 5.2% during the forecast period. Growing demand for ethnic dishes across the world is the major factor driving the market. According to an article published in the New York Times, in April 2019, the sales of ethnic food products increased by 5% from the previous year. Furthermore, the rising number of working women, the growing demand for convenience foods, and the increasing disposable income of the population are some of the other factors driving the market growth.

The sauces & condiments segment is estimated to be the fastest-growing segment, registering a CAGR of 8.1% during the forecast period. The increasing consumption of ethnic food products, the growing awareness regarding the health benefits of ethnic condiments, and the rising preference for international cuisines are some of the key factors driving the segment growth. According to an article published in the Food Business News, in April 2019, the sauces and condiments market grew by 7.7% in 2018. In addition, the rising number of restaurants and the increasing demand for foodservice are anticipated to foster the growth of the segment during the forecast period.

The supermarkets and hypermarkets segment held the major share of the overall ethnic food products market in 2022 and is anticipated to continue its dominance over the forecast period. The growth of the segment is mainly driven by the increasing consumer preference for supermarkets & hypermarkets as a primary source to purchase food products. According to a study by MySupermarket in 2020, supermarkets & hypermarkets offer more discounts and promotional offers to attract consumers. Furthermore, the presence of a wide range of ethnic food products in these stores, along with the convenience and accessibility, is expected to fuel the segment growth over the forecast period.

The convenience and specialty stores segment is anticipated to expand at the highest CAGR of 11.4% over the forecast period. These stores provide an exclusive range of ethnic food products for consumers. Moreover, these stores also offer convenience and accessibility to consumers, as they are located in close proximity to residential areas, which is expected to drive the growth of the segment. In 2020, Convenience Food Systems launched a range of ready-to-eat ethnic food products, such as Indian and Mexican dishes.

The packaged segment accounted for the largest revenue share of 63.8% in the year 2022. The surge in the demand for convenience food products among consumers has been a key factor driving the growth of the segment. The increasing number of working women and the increasing number of households with nuclear families are among the major factors driving the growth of this segment. Moreover, the availability of wide range of flavors, and the presence of a variety of ethnic food products in the market are also propelling the growth of this segment.

The home-cooked segment is anticipated to expand at the highest CAGR of 8.4% over the forecast period. The increasing number of individuals who are health conscious and have a preference for home-cooked food is driving the growth of this segment. The availability of various ethnic food recipes online is also a major factor driving the growth of this segment. Furthermore, the increasing popularity of cooking shows, television programs, and food blogs that focus on ethnic food is also driving the growth of this segment.

Europe is expected to be the largest market and accounted for the largest revenue share of over 35.9% in 2022. Increasing demand for convenience and packaged food is a key factor driving the growth of the market in the region. The growing number of global travelers and immigrants in Europe has resulted in a surge in the demand for ethnic food products. For instance, in May 2021, the UK-based Halal grocery shop, Asda, launched a range of ethnic food products, including Indian and Mexican sauces.

Asia Pacific is expected to witness the highest growth in the coming years. A rise in the number of middle-class households and the preference for convenience food are some of the key factors driving the growth of the market in the region. For instance, in October 2021, Uni-President China Holdings launched a range of ethnic food products, such as ready-to-cook noodles and rice, to cater to the growing demand for convenience food in the region.

In this part of the ethnic food products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your ethnic food products. Usually, these projections are drafted for a 5-year period.

Revenue Assumptions
The main source of revenues for an ethnic food products business comes from the sale of products, either in a physical store or online. It is important to note that the pricing of the products will depend on the costs incurred in the production, transportation and packaging of the products. Other possible sources of revenue include advertising and sponsorship.

Projecting Expenses
In this section, all the regular expenses related to keeping the ethnic food products business running will be described. The list of operating expenses includes raw materials and ingredients, employee wages, advertising, packaging costs, shipping costs, insurance, utilities, and others.

Some of the key companies operating in the ethnic food market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:

– In May 2022, General Mills launched three new flavors of its ethnic food line, including taco shells, chili con queso, and nachos.

– In June 2022, Kraft Heinz Co. launched a line of ethnic food products, including Mexican-style burritos and tamales, Chinese-style egg rolls, and Indian-style curries.

– In July 2022, Nestle launched a range of ethnic food products, including Indian-style dals and curries, Chinese-style noodles, and Mexican-style enchiladas.

Some of the prominent players in the ethnic food market include:

– General Mills
– Kraft Heinz Co.
– Nestle SA
– The Hillshire Brands Company
– Unilever
– Conagra Brands, Inc.
– B&G Foods
– Tyson Foods, Inc.
– Smithfield Foods, Inc.
– Kellogg Company

This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global ethnic food products market based on product, distribution channel, and region:

1. Product Outlook (Revenue, USD Million, 2017 – 2030)

– Dairy
– Poultry
– Seafood
– Fruits & Vegetables
– Grain & Bakery
– Others

2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)

– Supermarkets & Hypermarkets
– Online
– Others

3. Regional Outlook (Revenue, USD Million, 2017 – 2030)

– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa

[Q]: What is the Potential of Ethnic Food Products?
[A]: The potential of ethnic food products is strong due to the increasing demand for global flavors and cuisines. Consumers are becoming more adventurous and seeking out new flavors and dishes, and the ethnic food market is well-positioned to capitalize on this. The market is expected to grow at a CAGR of 5.2% over the forecast period, driven by the growing demand for convenience and healthy food options, increasing health consciousness and the growing popularity of ethnic dishes.

[Q]: Who are the Key Players in the Ethnic Food Products Market?
[A]: Key players in the market include Nestlé S.A., Unilever, PepsiCo Inc., McCormick & Company, Inc., ConAgra Foods, Inc., Kraft Heinz Company, General Mills, Inc., Cargill, Inc., Associated British Foods, and Kellogg Company.

[Q]: Which Region Offers the Largest Opportunity for Sales of Ethnic Food Products?
[A]: North America is expected to remain the largest market for ethnic food, driven by the increasing demand for global flavors and cuisines. Growing urbanization and the presence of a large number of expatriates in the US are expected to drive market growth in the region.

[Q]: What are the factors driving the Ethnic Food Products market?
[A]: Factors such as the increasing number of ethnic restaurants, the availability of convenient and healthy food options, the growing popularity of global cuisines, and the health consciousness of consumers are expected to drive the market over the forecast period. Furthermore, the increasing demand for organic and gluten-free options is expected to further drive the market.