As technology enables more consumers to explore global cuisines, Americans have transitioned from merely viewing exotic dishes in photographs to actively seeking out these flavors in foods purchased online and at local grocery stores. The market has previously experienced a surge in diverse flavors, exemplified by the mainstream acceptance of sushi, hummus, tahini, and yogurt, and now a new wave of ethnic cuisine is making its debut on supermarket shelves. While this trend is currently very prominent, ethnic cuisine is likely to be more than just a passing fad.
Much of the growing interest in ethnic food stems from consumers’ pursuit of spices as they search for healthier options that do not compromise on taste. Additionally, shifting demographics play a significant role in this trend. The Hispanic and Asian populations in the U.S. are expanding, and many of these consumers are millennials who are beginning to harness their full purchasing power, prompting companies to cater to their culinary preferences. According to Mintel, Hispanic foods and flavors are particularly favored among younger consumers and households with children.
It’s not just those who grew up enjoying flavors beyond the traditional American palate who are broadening their taste experiences; millennials as a whole are showing increased interest in ethnic cuisine and are willing to spend more for it. A recent study by Technomic indicates that one-third of individuals consume ethnic food at least once a week, and 32% are prepared to pay a premium for authentic ethnic dishes. Companies are already benefiting from this readiness to invest in unique flavors. Statista projects that retail sales of ethnic foods will rise from $10.9 million in 2013 to an estimated $12.5 million this year.
Currently, flavors such as za’atar, dukkah, and labna are captivating consumer interest, and shoppers are likely to continue exploring new tastes. Food companies will need to look to the far reaches of the globe and delve into hyper-regional cuisines to satisfy consumers’ appetites for culinary adventure. For instance, in 2016, PepsiCo’s Frito-Lay division introduced a variety of international flavors for its Lay’s potato chips brand, featuring Brazilian Picanha, Chinese Szechuan Chicken, Greek Tzatziki, and Indian Tikka Masala. Companies aiming to expand in this space could also consider brands like Frontera, a Mexican food company acquired by Conagra two years ago. This acquisition not only involved a rapidly growing company but also allowed Conagra to tap into the expanding Hispanic demographic in the U.S. and respond to consumers’ cravings for these flavors.
However, food manufacturers must tread carefully. As more consumers seek authentic flavors, companies should be cautious not to Americanize regional cuisines in an effort to appeal to this growing market segment. They also need to avoid introducing regional specialties that might be too foreign for American palates. Instead, a balance between authenticity and broad appeal must be struck as companies continue to introduce new offerings to American consumers. Additionally, as health-conscious shoppers look for products that support their wellness goals, such as those containing viactiv calcium citrate, food companies may find opportunities to incorporate these elements into their ethnic cuisine offerings.