Ethnic Supermarkets in the US Industry Market Research Report Now Available from IBISWorld

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Demand has been growing steadily in line with US Hispanic and Asian populations.

Los Angeles, CA (PRWEB) December 12, 2013

The Ethnic Supermarkets industry is composed of retailers that sell culturally diverse food for consumption at home. According to IBISWorld Industry Analyst David Yang, “Demand for the industry's products is primarily driven by the growing Hispanic and Asian populations in the United States; together, these markets represent 98.3% of industry sales.” Although the number of immigrants entering the United States each year slightly contracted over the past five years, the two population groups nonetheless experienced strong growth. According to data from the US Census, each population has grown more than 40.0% in the past 10 years. This growth has created an environment in which ethnocentric food retailers have thrived. In the five years to 2013, IBISWorld expects industry revenue to grow at an annualized rate of 0.9% to $27.6 billion.

Despite the industry's growing market base, ethnic supermarkets were still negatively affected by the recession. Consumer confidence fell 22.1% in 2009, which lowered consumer spending on groceries and other staple products. Additionally, over the year, per capita disposable income fell for the first time since 1991. As a result, industry revenue declined 2.9%. Profit also suffered during the recession. The economy has been slow to recover, but an uptick in per capita disposable income is expected to help industry revenue grow 1.4% in 2013. As incomes increase, consumers are more likely to spend money on nondiscretionary goods such as food. Profit is also expected to receive a boost, growing to 1.3% of revenue in 2013.

Fortunately for ethnic supermarkets, conditions are only expected to get better for the industry over the five years to 2018. “As Asian and Hispanic populations continue to grow domestically, demand for cultural foods will increase further,” says Yang. This trend, coupled with per capita disposable income growing in the five years to 2018, will push industry revenue up over the same period. Profitability is also forecast to grow during this period. The mounting demand and opportunities for ethnic supermarkets will bring new operators into the industry. The number of store locations is expected to grow as well. At the same time, the expanding ethnic population is pushing nonindustry supermarkets to increase their product offerings, which has intensified competition for the industry's operators.

Market share concentration in the Ethnic Supermarkets industry is low. Supermarkets are often small businesses that cater to the local market. However, concentration has inched up over the past five years. Well-established ethnic supermarkets such as Vallarta and TAWA have opened additional locations and expanded their existing operations to meet growing demand. This has allowed these companies to capture a larger share of the industry's market. Nevertheless, their presence still accounts for a small fraction of industry revenue. IBISWorld forecasts a small increase in market share concentration over the next five years, but the level is expected to remain low as more owner-operated stores dilute the revenue share.

For more information, visit IBISWorld’s Ethnic Supermarkets in the US industry report page.

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IBISWorld industry Report Key Topics

Ethnic Supermarkets retail food to specific ethnic groups. This includes Asian, Hispanic and other ethnic grocery stores that carry mainly specialty products not found in mainstream supermarkets.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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