Scope and Themes
What you need to know
Definition
Segment and data definitions
Data sources
Sales data
Consumer data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Retail ethnic food market experiencing slow down
The market is fueled by a variety of factors
Splintered market fed by competition
The ethnic food consumer
Innovations and marketing emphasize authenticity
Growth may hinge on convenience, health, and heightened retailer activity
Insights and Opportunities
Snack time
A focus on health
Retailers as ambassadors
Inspire Insights
Trend 1: A Simple Balance for Health
Trend 2: Minimize Me
Market Size and Forecast
Key points
Ethnic food category sees slowest growth in five years
Sales and forecast of ethnic food
Figure 1: FDMx sales of ethnic food, at current prices, 2006-16
Figure 2: FDMx sales of ethnic food, at inflation-adjusted prices, 2006-16
Fan-chart forecast
Figure 3: Fan chart forecast of ethnic food, 2006-16
Market Drivers
Interest in ethnic food grows
Figure 4: Ethnic food consumption in and out of the home, October 2011
Increasingly diverse population drives ethnic food growth
Figure 5: Population, by race and Hispanic origin, 2006-16
Figure 6: Foreign-born population, by period of entry and country of birth, 2005-10
Prolonged struggling economy shifts consumer spending patterns
Figure 7: Change in restaurant usage in past year, by gender, May 2011
Competitive Context
Key points
Seeking the skill and convenience of professionals
Ethnic food at restaurants
Food trucks take ethnic food on the move
Segment Performance
Key points
Mexican/Hispanic food continues to dominate the category, but loses share
Sales of ethnic food in FDMx
Figure 8: FDMx sales of ethnic food, by segment, 2009-11
Segment Performance—Mexican/Hispanic Food
Key points
Mexican/Hispanic food sales remain strong
Sales and forecast of Mexican/Hispanic food
Figure 9: FDMx sales of Mexican/Hispanic food, 2006-16
Segment Performance—Asian Food
Key points
A diversified segment lends to growth, but slowly
Sales and forecast of Asian food
Figure 10: FDMx sales and forecast of Asian food, at current prices, 2006-16
Segment Performance—Indian Food
Key points
Convenience foods may benefit segment the most
Sales and forecast of Indian food
Figure 11: FDMx sales and forecast of Indian food, at current prices, 2006-16
Segment Performance—Other Ethnic Food
Key points
Big gains in segment indicate consumer interest in health and convenience
Sales and forecast of other ethnic food
Figure 12: FDMx sales and forecast of other ethnic food, at current prices, 2006-16
Leading Companies
Key points
Snack foods help leading companies maintain lead
FDMx sales of ethnic food by manufacturer
Figure 13: Leading manufacturer FDMx sales of ethnic food in the U.S., 2010 and 2011
Brand Share—Mexican/Hispanic Food
Key points
Segment leaders offer varied product lines, but snacks lead
Manufacturer and brand sales of Mexican/Hispanic food
Figure 14: Selected FDMx brand sales of Mexican/Hispanic food, 2010 and 2011
Brand Share—Asian Food
Key points
Growth in the segment gets no help from leaders
Manufacturer and brand sales of Asian food
Figure 15: Selected FDMx brand sales of Asian food, 2010 and 2011
Brand Share—Indian Food
Key points
Segment leader goes beyond Indian cuisine
Manufacturer and brand sales of Indian food
Figure 16: Selected FDMx brand sales of Indian food, 2010 and 2011
Brand Share—Other Ethnic Food
Key points
Mediterranean dominates the “other” segment
Manufacturer and brand sales of “other” ethnic food
Figure 17: Selected FDMx brand sales of other ethnic food, 2010 and 2011
Innovations and Innovators
Key points
Hispanic/Mexican food innovations down while Indian proliferates
Figure 18: ethnic food product launches, by cuisine type, 2007-11*
A shift in the ethnic food landscape
Figure 19: Top 10 ethnic food product launches, by share % and by category type, 2007-11*
Health claims outpace convenience claims
Figure 20: Ethnic food product launches, by share % and by top claims, 2007-11*
Product innovations
Snacks
BFY
Spicy
Consumer tastes expand
Convenience
Marketing Strategies
Overview of brand landscape
Brand analysis: Near East
Figure 21: Brand analysis of Near East, 2011
Online initiatives
TV presence
Figure 22: Near East TV ad, “A journey,” 2011
Other initiatives
Brand analysis: Kikkoman
Figure 23: Brand analysis of Kikkoman, 2011
Online initiatives
TV presence
Figure 24: Kikkoman TV ad, “Japanese Secret,” 2011
Figure 25: Kikkoman TV ad, “Simple and Delicious,” 2011
Other initiatives
Brand analysis: Old El Paso
Figure 26: Brand analysis of Old El Paso, 2011
Online initiatives
TV presence
Figure 27: Old El Paso TV ad, “Tacos Tonight,” 2011
Social media presence
Figure 28: Social media presence of selected ethnic food brands, Dec. 23, 2011
Frequency of Ethnic Food Preparation at Home
Key points
Rise in ethnic food preparation
Figure 29: Frequency of ethnic food preparation at home, December 2010 and October 2011
Home cooks like to mix it up
Figure 30: Frequency of ethnic food preparation at home, October 2011
Age and presence of children strongest influencers
Figure 31: Frequency of ethnic food preparation at home, by key demographics, October 2011
Affluents prepare most cuisine types with greater frequency
Figure 32: Frequency of ethnic food preparation at home, by household income, October 2011
Importance of multicultural distribution evident in preparation frequency
Figure 33: Frequency of ethnic food preparation at home, by region, October 2011
Ethnic Food Found in the Home
Key points
Fresh popular among frequent food preparers
Figure 34: Ethnic food found in the home, by age, October 2011
Highest-income households most likely to have most types of ethnic food
Figure 35: Ethnic food found in the home, by household income, October 2011
Midwesterners could use a little cajoling
Figure 36: Ethnic food found in the home, by region, October 2011
Shopping Behavior for Ethnic Meal Preparation at Home
Key points
Scratch cooking down as interest in time-saving, convenience food grows
Figure 37: Shopping behavior for ethnic meal preparation at home, by employment, December 2010 vs. October 2011
Oldest consumers might be reached through pre-made meals
Figure 38: Shopping behavior for ethnic meal preparation at home, by age, October 2011
Important Ethnic Food Characteristics
Key points
Authenticity is most important ethnic food characteristic
Figure 39: Important ethnic food characteristics, by gender, October 2011
Oldest respondents prioritize health-related characteristics
Figure 40: Important ethnic food characteristics, by age, October 2011
Highest income households prioritize quality
Figure 41: Important ethnic food characteristics, by household income, October 2011
Ethnic Food Usage Outside the Home
Key points
Consumption of ethnic food away from home on the rise
Figure 42: Ethnic food consumption frequency away from home, October 2011
Variety plays a role in eating out
Figure 43: Ethnic food consumption frequency away from home, October 2011
A look at who’s eating ethnic food away from home
Figure 44: Ethnic food consumption frequency away from home, by key demographics, October 2011
Away-from-home consumption varies by household income
Figure 45: Ethnic food consumption frequency away from home, by household income, October 2011
Where consumers eat ethnic food away from home
Independent restaurants popular with high-frequency diners
Figure 46: Where consumers eat ethnic food away from home, by age, October 2011
Figure 47: Where consumers eat ethnic food away from home, by household income, October 2011
Drivers for Ethnic Food Usage
Key points
Younger respondents more open to suggestions
Figure 48: Drivers for ethnic food usage, by age, October 2011
Lowest income earners not easily influenced
Figure 49: Drivers for ethnic food usage, by household income, October 2011
Impact of Race and Hispanic Origin
Key points
Asian respondents are the highest-frequency ethnic food preparers
Figure 50: Frequency of ethnic food preparation at home, by race/Hispanic origin, October 2011
Figure 51: Median household income, by race and Hispanic origin of householder, 2010
Asian respondents most likely to cook from scratch
Figure 52: Shopping behavior for ethnic meal preparation at home, by race/Hispanic origin, October 2011
Asian respondents prioritize most food characteristics
Figure 53: Important ethnic food characteristics, by race/Hispanic origin, October 2011
Asian respondents influenced by a variety of factors
Figure 54: Drivers for ethnic food usage, by race/Hispanic origin, October 2011
Custom Consumer Groups
Key points
Usage and attitudes of ethnic food, by meal preparation group
Italian and Mexican food are user friendly, consumers seek help with others
Figure 55: Ethnic food consumption frequency at home, October 2011
Away-from-home Asian cuisine consumption indicates preparation anxiety
Figure 56: Ethnic food consumption frequency away from home, October 2011
Convenient Meals group doesn’t eschew BFY
Figure 57: Important ethnic food characteristics, October 2011
Usage of and attitudes towards ethnic food, by home user frequency
Encouraging Lows and Mediums to go High
Figure 58: Ethnic food consumption frequency at home, by custom groups, October 2011
Attracting the Medium group with convenience foods
Figure 59: Shopping behavior for ethnic meal preparation at home, by custom groups, October 2011
Appendix: Other Useful Consumer Tables
Food shopping and meal preparation
Figure 60: Food shopping and meal preparation, by gender, October 2011
Figure 61: Food shopping and meal preparation, by age, October 2011
Figure 62: Food shopping and meal preparation, by household income, October 2011
Figure 63: Food shopping and meal preparation, by household size, October 2011
Figure 64: Food shopping and meal preparation, by urban area, October 2011
Figure 65: Frequency of ethnic food preparation at home, by gender, October 2011
Figure 66: Frequency of ethnic food preparation at home, by age, October 2011
Figure 67: Frequency of ethnic food preparation at home, by presence of children in household, October 2011
Figure 68: Important ethnic food characteristics, by presence of children in household, October 2011
Figure 69: Drivers for ethnic food usage, by gender, October 2011
Appendix: Trade Associations