GA Trade Nov-Dec interactive - page 25

T
he demographic profile of the
United States is likely to change
drastically bymid-century in view of
the ethnic composition of the
population. According to the PEW
Research Center, the percentage of
the populationwithHispanic or
Asian roots will grow rapidly
between 2011 and 2050. Together,
these two groups are likely tomake
up 40% of the population by the end
of said time frame. A deciding
prerequisite for the continuation of
this trend, however, is that the U.S.
immigration policy remains more or
less the same.
In line with this development, the
demand for foods seen as typical for
a culture or a country outside the
U.S. (so-called ethnic food) is rising.
The exact definition for such foods is
in a gray area. Market experts agree
on the great potential for growth.
According toMintel Group, amarket
research institute, revenue generated
with the sale of such foods in
supermarkets increased by a total of
4.5% to US$8.7 billion between 2010
and 2012. Between 2012 and 2017,
themarket is said to continue to
grow in a robust waywith a total
growth of 20.3%.
Food Industry
Prepares for Demand
According toMondeléz International,
one of the world’s largest snack com-
panies, the company is watching the
demographic shift in the U.S. now
more than ever. Its focus here is on
the growing ethnic diversity, which
largely determines the product
portfolio of the company at the
moment. According tomarket
observers, primarily residents of
Hispanic andAsian descent show a
strong interest in foods that are
typical for their respective cultures.
According to different companies in
this sector, due to the increasing
buying power of these ethnic groups,
it is crucial for the food industry to
satisfy their demand bymeans of
new product creations. Especially the
rapidly growing Hispanic population
is becoming increasingly important
as consumer. Between 2011 and
2015, its share in the U.S. population
is likely to increase by 12%. Accord-
ing to the U.S. Census Bureau, it can
be assumed that approximately 128
million residents from this culture
groupwill live in the U.S. by the
middle of the century.
According to Packaged Foods, a
market research institute, themarket
volume of typical Hispanic foods and
beverages is likely to grow from
US$8 billion to US$11 billion
between 2012 and 2017. In 2011,
approximately 63% of the U.S.
population that were of Hispanic
descent had aMexican background.
Analysts especially anticipate a high
potential for growth for foods that
are typical for that country. In the
beverage segment, Jarritos is
becomingmore andmore popular. In
times of decreasing sales figures for
carbonated soft drinks, the sales
volume of theMexican fruit-flavored
soda shows a significant increase.
Demand for the soft drink is not only
coming from specific culture groups.
Young U.S. Americans without a
migrant background support its
market development, showing a keen
interest in the variety of the culinary
portfolio, saysMintel Group.
According to a survey conducted by
themarket research institute in
January 2013, 90% of the surveyed
group age 25 to 34 have prepared
“ethnic food” in the past month.
Among the group age 68 and older
the number amounted to 68%.
According to the survey, the Hispanic
cuisine is themost popular across all
age groups. The expanding range of
products of Cuban, Mexican and
other Latin-American restaurants
provides an incentive to prepare
similar dishes at home, according to
market observers. When it comes to
ethnic food, the product portfolio of
specialized vendors as well as the
ByChristian Janetzke, Germany Tradeand Invest
Translation fromGermanbySandy Jones, GACC
G T A I I N D U S T R Y T A L K
Ethnic Diversity of U.S. Population
Puts Food Industry on the Spot
1960 85 3.5 11 0.5
2011 63 17 12 5
2050 47 29 13 9
White
Hispanic
Black
Asian
Year
Shareof total populationaccording
tomajor ethnicgroups in%
Source: PEWResearchCenter
GermanAmerican TradeNov/Dec 2014
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