Food Revolution
America's tastes are changing, thanks to new immigrants and a desire for authenticity
America is a land of immigrants, and its food culture has continuously evolved. Yet today, rather than modify foods for the American palette as previous generations did, new immigrants (and their U.S.-born children) are forging a new path, delivering flavors from their homelands for their growing communities and others who crave authenticity. Here’s how the food scene is changing today and the stores driving innovation, growth, and investment nationwide.
PITTSBURGH — Growing up in the suburbs outside of Pittsburgh, Pennsylvania, diverse food options were limited in the '80s and '90s. The local grocery store chain, Giant Eagle, epitomized the hyper-homogenized culture of the time, which was dominated by “American” tastes and industrial food manufacturers like Campbell’s, Kellogg’s, and the hometown favorite, Heinz.
“Ethnic foods” — a market segment that caters to the demand for foods and beverages from various cultures and regions worldwide — were limited to one small section of one aisle in the grocery store, if they were there at all. For the more adventurous shopper, a trip to the Strip District — Pittsburgh’s version of a central market — was in order. However, the food there was mostly limited to Italian, Greek, and Polish cuisines. It wasn’t until 1988 that one of the first non-European specialty grocers, Reyna Foods, which sells Mexican products, opened.
The restaurant scene in the Pittsburgh suburbs wasn’t much better. Friday’s and Chili’s, decidedly American cuisine-wise, dominated the sprawl. If you wanted Mexican food, the option was Chi-Chi’s — a now-defunct restaurant chain from Richfield, Minnesota. How about Chinese? Go to Panda Express at Ross Park Mall. Even the rare immigrant-owned mom-and-pop stores would modify their menus to accommodate the local palate. General Tso’s chicken, anyone?
That’s not so much the case anymore, and the “real thing” is supplanting those Americanized versions. Much has happened to drive this change, including significant population and generational shifts driven partly by immigration. As a result, according to Datassential, a Chicago-based market research firm, a change in national tastes is underway. Millennials were the first generation to say they prefer Mexican food to Italian food, and GenZ’s craving for "authentic” south-of-the-border cuisine is even greater.
A food revolution is underway, introducing new players and driving industry trends and growth.
Here’s what you need to know
According to the World Bank's 2023 World Development Report: Migrants, Refugees and Societies, 184 million people, or 2.3% of the world's population, lived outside of their country of nationality in 2023.
From 1980 to 1990, according to the Migration Policy Center, the immigrant population in the U.S. grew from 6.2% to 7.9% of the total population, or about 14 million to nearly 20 million people, respectively. However, by 2022, the percentage had nearly doubled to 13.9%, reaching just over 46 million.
Immigrants and their U.S.-born children numbered approximately 90.8 million people in 2023, or more than a quarter (27%) of the total civilian noninstitutionalized U.S. population.
Here’s why it matters to you
According to the Immigration Research Initiative, immigrants account for 17% of the U.S. economic output (GDP), even higher than their share of the total population.
The ethnic food market is projected to experience significant growth over the coming years. In 2024, according to Fortune Business Insights, the global market size is expected to be approximately $86.90 billion, with a forecast to reach around $153.21 billion by 2032, representing a compound annual growth rate (CAGR) of 7.34%.
Here are some major players
According to Statista, the sales growth of the top three fastest-growing food and grocery retailers in the United States in 2022 are owned by immigrant families, including Northgate Gonzales Market (Mexican), Patel Brothers (Indian), and H Mart (Korean), which own 40, 52 and 102 stores, respectively. The combined revenue of these three is over $2.5 billion.
Bonchon, the Korean fried chicken hotspot, was founded in 2002 in Busan, Korea, and opened its first U.S. outpost in New York City in 2006. Today, it has 130 restaurant and franchise outposts across the United States and over 340 locations worldwide. According to Franchise Times, the chicken brand had systemwide sales of $327 million in 2022, a 19.5 percent increase over 2021.
Jollibee, the popular Filipino fast-food empire, opened its first U.S. store in Daly City, California, in 1998. Since then, it has grown to 74 locations across the country. Globally, it has over 1,500 stores and reported an annual revenue of $4.44 billion in 2023, a 15.2% increase from the previous year.
The Game is Changing
With all of this growth, ethnic food should be everywhere. But is it?
Frankie Gaw doesn’t think so. He’s a former designer turned food writer and photographer who creates recipes based on his Taiwanese-American upbringing — he’s also the author of First Generation: Recipes from My Taiwanese-American Home and the creator behind @littlefatboyfrankie on TikTok, where he occasionally reimagines American classics like Twinkies with Asian ingredients. “Restaurants have been embracing more Asian ingredients,” he said in a recent interview with NPR. “It feels like grocery stores have remained the same.”
Gaw’s perspective holds a lot of truth, given that from April 2023 to April 2024, sales of items in the “Asian/ethnic aisle” in U.S. grocery stores grew nearly four times more than overall sales, according to the data analytics company Circana, yet their shelf space hasn’t increased at the same rate. Kevin Chang, director of marketing for South Korean instant ramen company Nongshim, shared in an interview with The New York Times earlier this year that there are still challenges for ethnic foods in major retailers. “Without Asian grocery stores, it is extremely hard to get into the mainstream market.”
The restaurant industry has responded to America’s changing tastes differently and, perhaps, more proactively. According to the Pew Research Center, some 12% of all restaurants in the United States now serve Asian foods, and some 11% of restaurants serve Mexican foods. Those shares are slightly higher than the percentage of the U.S. population that is Asian American (7%) or Mexican American (10.7%).
New restaurants, especially local ones owned by immigrants (or the children of those immigrants), are leaning toward delivering authentic flavors to diverse audiences with great success. Others, like those along the Gulf Coast, are fusing together established flavors, like Cajun and Creole cuisines, with those from Korea and Vietnam to create bold and brand-new flavors.
This year’s James Beard Awards took notice, delivering awards to a diverse group of nominees, including Dakar NOLA (Best New Restaurant), Masako Morishita (Best Emerging Chef), Michael Rafidi (Outstanding Chef), and Atsuko Fujimoto (Outstanding Pastry Chef or Baker).
Opportunity Knocks, Innovation Answers
The shifting tastes of American consumers offer an opportunity for new players to enter the market and scale, delivering value propositions conscious of new tastes and price points. Technology is helping drive change for new brands.
One such brand is Tigawok, which opened its first outpost in Los Angeles, California on May 31. It marries traditional authentic Chinese recipes with new technology. Its dishes, which range in price from $2.99 to $5.99, are made by robotic woks in its kitchen, which helps manage costs.
“We enjoy Panda Express and P.F. Chang’s, but we don’t consider it Chinese food. We consider it American food,” said Tigawok co-owner Tomas Su in an interview with Eater LA. “They’re Chinese in concept, but the flavor is designed for the American palate. We think it’s time to popularize more traditional Chinese dishes and educate the mainstream on what Chinese food tastes like to us.”
Established brands should take note of these changes, according to Andrew Criezis, senior vice president and general manager of global SMB for New York-based consumer intelligence company NielsenIQ. “Retailers should go beyond targeting only ethnic or multicultural consumers when promoting global foods,” he shared in an interview with Supermarket News. “They can attract a wider audience by broadening the marketing efforts and showcasing the unique flavors, ingredients, and benefits of these products.”