By Malinda Geisler, specialist, AgMRC, Iowa State University, malindag@iastate.edu

Updated March 2008.

The U.S. ethnic foods market is estimated to generate $75 billion in annual sales. It is the equivalent of $1 out of every $7 being spent on groceries. Foodservice accounts for 65 percent of the ethnic food sales, and supermarkets have the remaining 35 percent of the market.

An ethnic market is a group of consumers that share a common cultural background. Many times an ethnic market has a distinctive geographic area.

The U.S. population is older, wealthier, more educated and more ethnically diverse than ever before. The Economic Research Service has identified three general demographic trends expected to shape future U.S. food markets: more diversity, more mature consumers and U.S. population growth.

According to USDA projections, the U.S. population is expected to add between 50 and 80 million people by 2020. There will be greater proportions of Latinos, Blacks and Asians. During the next 20 years, the U.S. Latino population is expected to grow by 1.2 million annually. Population increases for non-Latino Whites are estimated at 500,000 annually. Yearly population growth for Blacks and Asians is estimated at 400,000 each.

The largest and fastest-growing consumer segment of the U.S. population is the 44.3 million Latino population. Blacks accounted for the second largest minority group at 40.2 million followed by Asians at 14.9 million. American Indian and Alaska natives had a population of 4.5 million. Native Hawaiians and other Pacific islanders numbered 1 million.  

Race and Hispanic or Latino Origin for the United States:  2000 to 2006
(Population numbers in 1,000s)

Race*	July 2006	July 2005 (revised)	July 2003	April 2000
Non Hispanic, White Alone	198,744	198,235	197,325	198,500
Black	40,241	39,718	38,749	37,104
AIAN	4,498	4,453	4,366	4,225
Asian	14,907	14,447	13,503	12,007
NHPI	1,007	991	960	907
Hispanic/Latino	44,321	42,872	39,899	35,306

*Race alone or in combination. In combination means in combination with one or more other races. The sum of the five race groups adds to more than the total population because individuals may report more than one race.

Black = Black or African-American

AIAN = American Indian and Alaska Native

NHPI = Native Hawaiian and Other Pacific Islander

Source: U.S. Census Bureau.

The Latino population is projected to grow to nearly 60 million people by 2020, according to the Census Bureau. The Black population is projected to reach more than 45 million in 2020 followed by the Asians with 18 million.
 

According to the U.S. Census Bureau, 67 percent of Latino-origin people have a Mexican background. Another 14 percent are of Central and South American backgrounds. Others can trace their roots to Puerto Rico, Cuba and other locations.

The purchasing power of U.S. Latino families was $686 billion in 2004, according to a report released by the Food Marketing Institute (FMI) in May 2005. This figure is expected to reach $1 trillion by 2010.

Consumers with Mexican heritage are accustomed to a diet rich in complex carbohydrates. This includes corn and corn products, beans, rice and breads. Proteins include beans, eggs, fish and shellfish, beef, pork, poultry and goat. Because frying is a common cooking method, the Mexican diet tends to be higher in fat.

U.S. consumers of Mexican descent eat the largest amount of dry beans, about 34 pounds per capita, compared to non-Latino whites (6 pounds per capita). The type of bean depends on the culture. Cubans, Southern Mexicans, Central Americans and Venezuelans use black beans. Northern Mexicans, Dominicans and Puerto Ricans prefer pinto or pinta beans. Cubans, Central South Americans and Hispanic Caribbeans use red kidney beans. Dominicans and Puerto Ricans also use pigeon peas. Venezuelans and Brazilians use chickpeas or garbanzo beans.

Latino foods are not always spicy. Oregano, tomato, garlic and black pepper are used to flavor foods by cooks from Cuba, Puerto Rico and the Dominican Republic. If chilies are used, they are usually mild.

Compared to the general U.S. shopper, U.S. Latinos shop for groceries three times more per month, an average of 26 trips per month. While they frequent supermarkets for basic grocery purchases, the study indicated Latinos are more likely to also visit bakeries, butcher shops and produce markets on a regular basis. Latinos surveyed also indicated shopping at discount superstores and drugstores for cleaning products, paper goods, personal care items and other necessities.

Latino households tend to spend more each week, $133 on groceries, compared to other shoppers, who spend $92.50 per week. Grocery shopping is viewed as a family affair for Latinos and usually not done alone. They prefer shopping on weekends, with 58 percent shopping on either Saturday or Sunday.

The FMI report indicated Hispanic shoppers were interested in supermarkets that offered
      -    A v ariety of fresh produce, meats and breads;

-        Latino products;

-        Bilingual store signs and packages;

-        Bilingual employees that are knowledgeable about Hispanic products; and

-        Advertisements in Latino and Spanish-language media.

About half of the Latino-origin population lives in California (13.1 million) and Texas (8.4 million). Other states with Latino populations of 1 million or more include New York, Florida, Illinois, Arizona and New Jersey.

An estimated 14.9 million residents say they are Asian or Asian in combination with one or more other race. This includes Chinese, Filipino, Asian Indian, Korean, Vietnamese and Japanese. This group accounts for 5 percent of the total U.S. population. California has the largest Asian-American population with 5 million people.

In a traditional Asian diet, rice is the mainstay and commonly eaten at every meal. Pork and poultry are the primary protein sources. Significant quantities of dried beans and nuts are also eaten. Fruits and vegetables also make up a large portion of the Asian diet.

Cuisine for African-Americans is sometimes referred to as “soul food.” It may include the use of collard greens and other leafy green and yellow vegetables, legumes, beans, rice and potatoes. Food preparation includes frying, barbecuing and service foods with gravy and sauces. Home-baked pies and cakes are common.

If local retail outlets do not carry the desired ethnic foods, consumers can go online to purchase preferred products. For example, www.AsianFoodGrocer.com/ offers online Asian food and cooking supplies and ships products in 24 hours.

About Marketing Solutions, www.aboutmarketingsolutions.com

Cultural Diversity: Eating in America series, Ohio State University, http://ohioline.osu.edu/hyg-fact/5000/

Food Consumption, Economic Research Service, USDA, www.ers.usda.gov/Briefing/Consumption/

Hispanic American Influence on the U.S. Food Industry, USDA, 2002, http://www.nal.usda.gov/outreach/HFood.html

U.S. Census Bureau, www.census.gov