OPINIO
Trade4go
Jul 19th, 2024
Original content
According to insights from the Food Institute, the American supermarket environment has changed dramatically in recent decades, mainly due to the rise of Asian grocery stores. What was once a niche sector has evolved into a cultural phenomenon fueled by an increased desire for various flavors and culinary experiences.
Ramen and other Asian foods have gained an even stronger foothold in the United States (US) in recent decades. A few pioneering Asian grocery stores, such as H Mart and 99 Ranch, persisted and eventually created a dedicated client base. Today, H Mart is a USD 2 billion company with approximately 100 locations across the United States (US). The popularity of these establishments can be traced back to the influx of Asian immigrants in the 1970s and 1980s, who brought with them a rich culinary legacy and a thirst for authentic ingredients.
According to Circana data, an AI-powered market research company, from Apr-23 to Apr-24, sales of items in the "Asian/ethnic" aisle in American grocery stores increased approximately four times faster than overall sales, clearly indicating a significant rise in demand for these products. Mainstream supermarkets have responded by expanding their ethnic cuisine sections. Ingredients like turmeric, Sriracha, and miso, once considered exotic, are now staples in many American grocery stores.
Figure 1: Asian Sauces in US Stores-Aisle Location
Source: Tridge Retail Intelligence
Asian grocery stores played a critical role in this change. They have not only provided access to actual food products, but they have also established "third spaces" for socializing and community development. For example, Asia Mall in Minneapolis has a varied selection of dining options, from Vietnamese restaurants to Korean barbecue, as well as items and produce often seen in smaller Asian stores. This mall shows how Asian grocery stores adapt to the increasing demand for varied culinary experiences.
The economic implications of this development are enormous. According to Technomic, a renowned provider of foodservice industry insights, sales of Asian casual dining chains increased by more than 24% year-on-year (YoY) in 2023, roughly six times the average. Additionally, it is expected that the global casual dining market will grow at a compound annual growth rate (CAGR) of 4.9%, reaching a value of USD 122.50 billion by 2030, according to the Future Data Stats. This growth reflects a broader shift in customer tastes for Asian flavors and dining experiences.
The growing demand for Asian foods has impacted price and trade dynamics. Importing Asian ingredients has increased, resulting in more competitive costs and availability. However, this has raised worries about the products' sustainability and genuineness. As the market grows, retailers must strike a balance between profitability and retaining the quality and originality of their products. The increasing demand for Asian food items has also influenced prices.
Figure 1: Price/product overview of Ramen, Sriracha, and Turmeric
Source: Various online platforms
To capitalize on the growing Asian grocery industry, suppliers should focus on high-demand products like ramen noodles, kimchi, and sushi components. Expanding the availability of popular commodities like matcha, mochi, and specialty sauces (such as soy sauce, hoisin sauce, and sriracha) will help to meet the growing demand for Asian flavors. Health-conscious products such as organic tofu, gluten-free soy sauce, and low-sodium miso can also help attract customers. Emphasizing quality, authenticity, and imaginative packaging can help products stand out in a competitive market. By aligning with current consumer trends and tastes, Asian suppliers may efficiently address the needs of American retailers and consumers, resulting in growth and success in the Asian grocery industry.
Tridge believes that retailers and consumers should prepare for ongoing change and innovation in the Asian grocery sector. The trend of fusion cuisine and incorporating Asian cuisines into mainstream American diets is expected to continue, driving market development and diversification. The emergence of Asian grocery stores in America demonstrates the strength of cultural interaction and developing consumer tastes. As these businesses grow and innovate, they are changing the grocery landscape and increasing the gastronomic experiences of millions of Americans. The future is positive, with further expansion and new prospects.
Read more relevant content
Recommended suppliers for you
What to read next
