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The Grocery Aisle Grows More Multicultural
The year 2060 is expected to see a U.S. population that’s considerably larger—more than 447 million, compared to 333 million currently—and considerably more diverse. That in turn has strong implications for the grocery sector in particular as well as retail in general, writes Colliers’ Anjee Solanki.
“With non-Hispanic white populations in decline, the focus will be placed on young multi-ethnic ‘Super Consumers’ with buying power,” Solanki blogs on the Colliers website. “Representing the top 10% of multicultural households who drive at least 30% of sales, 40% of growth and 50% of profits, this new type of consumer composed of Asian-Americans, African Americans and Hispanics will be the holy grail of future retail strategies.”
Citing findings from Acosta Strategic Advisors, Solanki says that multicultural American consumers will play a key role in influencing and reshaping the U.S. grocery industry.
“These discerning consumers are more likely to seek brands that socially align with their self-image and aspirations,” Solanki writes. “Brands that incorporate natural and organic products and promote healthier lifestyles and eating habits are high on that list.”
She adds that they enjoy grocery shopping, especially if food products are culturally aligned. According to Acosta, 49% of U.S. Hispanic and 46% of Asian-American shoppers are more likely to buy brands authentic to their ethnic heritage.
The demand for ethnic-inspired products has driven the expansion of specialty supermarkets across the nation, no longer relegating products to a single, “ethnic grocery” aisle. Instead, mainstream grocery stores are expanding their offerings and, in some cases, hiring specialized buyers to ensure available products appeal to the multicultural consumer.
On a recent podcast, Colliers SVP James Rodriguez shared how the grocery store category has a distinct advantage to connect and build brand loyalty across multiple generations, especially with those Hispanic consumers who are U.S.-born. “There’s going to be an acceleration of assimilation, from the second, third, fourth generations of a family,” Rodriguez said.
The concept of multigenerational influence holds true for Asian-Americans as well. Solanki cites 99 Ranch and H Mart, both longstanding mainstays of diverse Asian-American communities that cater to young consumers with “a palate that blends Western and Asian flavors.”
- ◦Economy
