The Heartbeat of Immigrant Communities: The Importance of Ethnic Stores

Ethnic stores are more than just places to buy groceries – they are cultural havens, community hubs, and vital resources for immigrant communities in the United States. For Asian Americans, Hispanics, Arab Americans, and other ethnic groups, these stores connect people to their heritage, offering more than just products but also a sense of belonging and familiarity.

For new immigrants, these stores serve as a bridge to their homeland, providing not only familiar flavors, but also cultural comfort. According to a New York Times article, Asian grocery stores have become "symbols of community and resilience" for Asian Americans, representing much more than a shopping destination. Whether it's Hmart (a pan-American supermarket chain with over 75 locations) or Patel Brothers (a leading Indian grocery chain), ethnic stores serve as cultural strongholds across the country. In Hispanic markets, stores like Sedano’s or La Michoacana Meat Market offer authentic products, but they also become centers of cultural exchange. Similarly, African communities rely on stores like African Food Market and Caribbean Food Delights to maintain their traditions.

Marketers targeting these communities must consider the cultural significance of these stores. For example, Arab Americans, with a mean income 27% higher than national average (Arab American Institute Foundation), rely on trusted ethnic grocers for halal-certified products and specific spices that are integral to their cooking traditions. The same holds true for Asian and African immigrant groups, where dietary laws or unique cooking practices require particular ingredients.

The growth of ethnic stores parallels the rapid rise of immigrant-owned businesses. Between 2007 and 2017, Asian-owned businesses grew by 49%, and Middle Eastern-owned businesses by 45%, according to the U.S. Census Bureau. Today, the U.S. is home to over 50,000 Asian grocery stores and 10,000 Middle Eastern markets. These numbers reflect a growing appetite for international flavors, with mainstream consumers increasingly embracing ethnic foods.

But these stores don’t only benefit immigrant communities. Immigrants typically shop across three types of stores: ethnic stores for cultural staples, value stores like Costco for bulk items, and mainstream stores like Kroger and Safeway for everyday essentials. What’s critical for marketers to recognize is that ethnic stores sit at the intersection of both culture and commerce. Asian American households, for instance, spend 39% more on food at home than non-Hispanic White households, which underscores the power of culturally relevant offerings in driving consumer spending.

Recent data shows that 75% of Americans aged 25-34 have tried international cuisines, and 60% of non-Hispanic White consumers report purchasing ethnic foods at least once a month (FMI, 2020). Ethnic food sales grew 14% between 2019 and 2020, outpacing overall grocery sales growth (Statista, 2020). This rise is driven not only by the growing immigrant population but also by mainstream consumers' evolving tastes for global culinary experiences.

Mainstream retailers are taking note of the growing interest in ethnic cuisines. The projected U.S. retail sales of ethnic foods are expected to reach $12.51 billion. Moreover, 65% of non-ethnic shoppers indicated they would cook ethnic foods more frequently if their main grocery store offered a better variety of ethnic products (Mintel, 2020). Key ethnic food categories include Italian, Mexican, Chinese, and regional American cuisines.

The demand for authentic and diverse food options presents a lucrative opportunity for consumer packaged goods (CPG) brands. By stocking ethnic staples or collaborating with ethnic stores, mainstream retailers can cater to both immigrant communities and a broader consumer base eager for global flavors.