Ethnic Supermarkets Continue To Thrive In The U.S., Reports IBISWorld

Growth in immigrant populations has created an environment in which ethnocentric food retailers have thrived; as these populations continue to grow domestically, demand for cultural foods will increase further, according to a new report on the Ethnic Supermarket Industry from IBISWorld.
According to IBISWorld Industry Analyst David Yang, “Demand for the industry’s products is primarily driven by the growing Hispanic and Asian populations in the U.S; together, these markets represent 98.3% of industry sales. Each population has grown more than 40.0% in the past 10 years.”
“As Asian and Hispanic populations continue to grow domestically, demand for cultural foods will increase further,” said Yang. This trend, coupled with per capita disposable income growing in the five years to 2018, will push industry revenue up over the same period. The mounting demand and opportunities for ethnic supermarkets will bring new operators into the industry. The number of store locations is expected to grow as well. The expanding ethnic population is also pushing nonindustry supermarkets to increase their product offerings, which has intensified competition.