The Minority-Majority Shift. Two Decades That Will Change America. When It Come To Food Habits, The Future Tastes Like Change

By Isaac Mizrahi / Co-President of ALMA

2020 is the year when the majority of all Americans under seventeen years old will be from a minority background, a process that will culminate with a so-called “minority-majority” population by the mid-2040s. These demographic changes will bring about a significant transformation to Corporate America, and during the next few months I will discuss some of these consequences in each article targeting one specific area of our business environment.

Food has long been a strong pillar of cultural identity. In particular, meals and the habits associated with getting together around a table to break bread. Growing up in Latin America, I did not speak the language or understood the nuances of my grandparents’ lives and their ancestors. But I vividly remember the fabulous dishes they prepared from their homeland for our family gatherings. The same is true in this country, where waves of immigrants over the years have celebrated their culture through food.

And with the accelerated growth of minority segment groups for the years and decades to come, those cultural celebrations will continue to contribute to America’s evolving food scene. Let’s analyze some of the potential consequences of this demographic shift in the country’s food business.

Ethnic Food on the Rise

The growth of the so-called “ethnic food” has been significant over the years, driven by the demographic shifts in America and the strong appeal this type of food has with many non-Hispanic White consumers.

This trend can be related to the belief that these foods are more flavorful, and some are even perceived to be healthier, but most importantly, because they can also bring an emotional benefit as they tend to be perceived as exciting, exotic and unique, attributes so essential in a society that seeks activities that feel more experiential.

According to the Bureau of Labor Statistics, the majority of head cooks and chefs working in restaurants in the U.S. are from the three main minority segments: Hispanic, African American, or Asian. These are the minds influencing America’s palate and food preferences.

Moreover, it’s not a coincidence that, according to the U.S. Census Bureau, almost 50% of start-up businesses under the “Accommodation and Food” sector are minority-owned.

Cross over impact

It is almost impossible to write about the impact of demographics in changing this country’s eating habits without mentioning a case study on how salsa is taking over ketchup as a new American staple. But salsa is merely the tip of the iceberg. Over the past several years, the marketplace has seen significant growth in other items like taco shells and refried beans, and tortillas outselling hot dog buns.

The evidence is also clear in the highly competitive alcoholic beverage industry with the significant growth of Mexican imported beers, Tequila, and Mezcal consumption over the past decade.

For example, in the breakfast business, we have witnessed the trend of Latin flavors infiltrating even the most all-American staples at iconic restaurants like IHOP with their Mexican Tres Leches Pancakes or Spicy Poblano Omelet, and at Denny’s with their Dulce de Leche Crunch Pancakes.

The reality is that the consumption of what was once called “ethnic food” has outgrown the minority segments that introduced these new habits to the country’s mainstream segment. Today, it is almost impossible to find a food or beverage company in the U.S. that doesn’t have an “ethnic food” item in their portfolio or as part of their innovation pipeline.

The Search for Authenticity

Some countries and cultures are associated with food. Italy? You think about pasta or pizza. Mexico? Tacos. Argentina? Steaks (sorry, wine lovers). But the reality is that this is a very narrow view of a vast and rich food environment. As our country becomes more diverse in the next few years, we may witness a process where we will be exposed to more complex and less stereotypical cuisines we thought we knew. For instance, instead of thinking about Mexican cuisine in general, we may see more interest in local food from Oaxaca, Puebla, Yucatán, and Jalisco or learn more about Vietnamese food beyond Pho.

We also see a trend towards more spicy foods and condiments to add to America’s palate, with Middle Eastern food becoming more mainstream, along with the introduction of dishes from Brazil and Portugal.

Food as Culture

Food has always been more than nutrition, and this is a universal truth that’s everlasting. We believe that as America becomes more diverse and multicultural, food can bridge cultural divides.

We believe that in times post COVID-19, food can serve as a short-term substitute for traveling limitations, where people can explore and learn more about other countries, cities, and cultures through their culinary traditions.

Moreover, we are also monitoring the growth of multigenerational households in America, driven mainly by minority segments. We are looking at how grandparents and what is called “multicultural grandparent food” can set new trends in this country.

Another trend we have been observing is the fact that younger consumers are feeling comfortable and unashamed of cooking dishes from the land of their grandparents and using food to forge a closer and stronger bond with these cultures.

A New Paradigm for Access & Distribution

Over the past few years, we have seen two trends in multicultural food distribution in America. First, the growth in the availability of ethnic food choices in mainstream food retail, and second, the expansion of specialized stores, ranging from mom and pop outlets to large chains like HEB.

While we think these trends will continue, we believe that e-commerce will have a significant impact on the way American shoppers buy and discover new food options. For instance, I can buy my favorite Mexican peanuts (Sabritas’ Cacahuates Japanese Style) on Amazon without the need to search for them at my regular food retail store.

Imagine the possibilities for food companies who analyze e-commerce shopping consumption of imported items before deciding to produce these items, or even brick and mortar retailers expanding their offerings without the pressure to find “space” for new SKUs.

If you want to understand the changes in this country’s demographics, start looking at food consumption behaviors is a great starting point. Food is, and will always be, one of the pillars of culture, and the next decades we will all savor the delicious taste like change. Bon Appetit!
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About Author:

Isaac Mizrahi

I am a marketing executive who spent my 29-plus career years working with brands such as Coca-Cola, Bellsouth, Nextel and Sprint, in several different functions covering multiple geographies. I’ve been focused on multicultural marketing for the past 15 years and am excited by how 60 million Latinos can drive meaningful growth to corporate America. Over the past decade, I transitioned from the client side of the business to the agency side, which gave me amazing perspective and allowed me to partner with several leading brands. Besides my day job, I also serve at the board of directors of the Culture Marketing Council – The Voice of Hispanic Marketing, the organization that represents our industry. I was born in Rio de Janeiro, Brazil and have lived in the U.S. since 1999 in beautiful Miami with my wife and two boys. Soccer rules!

 

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