Asian grocery brands are moving beyond the “ethnic aisle”

When Candice Choi launched her Korean seaweed snack brand, Geem, in 2023, she thought the company would be aimed strictly at the consumer, with a marketing strategy relying primarily on TikTok.

But within three months, seaweed snacks were on grocery store shelves, including in some Whole Foods stores, where Geem chips sit alongside kale chips and vegetable straws.

“There were so many people really excited about our snacks and stores really willing to take us, it was really, really exciting,” Choi told CNBC. “Traditionally, buyers are gatekeepers, and it takes years and years to develop those relationships, but they saw that the category was growing and we performed well.”

Due to its explosive demand, Geem will launch in Whole Foods stores in Southern California, Nevada, Arizona and Hawaii in July, the company exclusively told CNBC.

Geem’s growth is indicative of a broader trend: As demand for global flavors grows in the United States, Asian groceries are increasingly being emphasized in mainstream grocery stores, signaling a shift beyond the traditional “ethnic aisle” of years past.

These aisles typically included a limited selection of international products, often offering primarily sauces or oils. Grocery stores today are very different.

“People are exposed to new flavors earlier, and it’s no longer this weird snack that maybe you try once and you’re like, ‘No,'” Choi said. “It’s really exciting, and we’re seeing that taste profile really influence consumer demand. And you can see it in the numbers. Asian snacking is expected to reach several billion by the end of 2030, and that’s just snacking.”

A study by global investment banking advisor BDA Partners estimates that the “ethnic aisle” generated $8.8 billion in sales in 2024, with Asian products growing nearly four times faster than overall grocery sales. The Asian American food market is expected to reach $51.3 billion by 2031, with a compound annual growth rate of 4.7%, the BDA said.

According to data from market research firm Circana, Asian grocery sales increased from $1.57 billion in 2021 to more than $2.31 billion this year.

This growth is multifaceted, Circana analyst Sally Wyatt told CNBC. The Pew Research Center reported that the Asian population in the United States has more than doubled since 2000, reaching 7% of the total population. According to Wyatt, as that population grows, so does its influence, introducing new flavors to the rest of the country.

It’s a trend that’s also showing up in restaurants, but at a time when eating out costs 4.3 times more than cooking at home, Wyatt said, the dynamic is more evident in grocery stores.

“Particularly as younger consumers explore, as consumers want to travel but maybe can’t, we’re finding that food and drink is just a perfect way to get a taste of a culture that you might not be able to do every day,” she said. “Flavors therefore offer unique experiences and can enable cultural exploration through food.”

Some of the fastest growing segments are condiments, sauces and frozen foods, Wyatt said. This growth is moving these products out of the traditional “ethnic aisle,” with Asian flavors placed alongside American flavors, as mainstream grocery stores strive to become a one-stop shop for all consumers.

“I could walk down every aisle, and all of them were touched by the ethnicity of the different cultures, flavors and combinations,” Wyatt said. “You’ve started to see them become more mainstream because these retailers want to attract not only the Asian consumer, but also the consumer who wants to enjoy Asian exploration and Asian flavor combinations.”

Specialty grocery stores are also growing rapidly. Chains such as H Mart, Patel Brothers and 99 Ranch Market are opening new locations across the country, offering a wide selection of Asian products.

In the frozen food section, Deep Brands offers Asian flavors to a diverse customer base that reflects the country, not just an Asian population, according to general manager Kiernan Laughlin.

“Our overall goal is to elevate global flavors and make them more accessible to all consumers, regardless of ethnicity,” Laughlin told CNBC. “And what’s really interesting about these trends is that people may initially think that Asian flavors, global flavors, are growing specifically because that population is growing…but that’s independent of ethnicity.”

Deep Brands includes Deep Indian Kitchen, a heritage brand available in more than 25,000 stores, and Thai brand Tem Toa, available at Target. Laughlin said the Indian frozen food brand has grown exponentially and holds 51% of the Indian frozen food market share across the country, meeting the growing demand from high-income millennials and Gen Z members.

Deep Brands products are also sold in traditional grocery aisles, Laughlin added, also serving as easy access points for non-Asian consumers. It expects to surpass $110 million in syndicated retail sales this year, he said.

“If you look at the ‘ethnic aisle’ or the ethnic grocery channel, generally speaking, it’s targeting people of a specific ethnicity, or it’s a multicultural consumer,” Laughlin said. “There’s a business there as well, but our thesis is about Deep Brands and consumers of all ethnicities who want an authentic, premium, global flavor experience. So that’s also where we have a presence in the store, and we’ve had a lot of success with that.”

Amazon‘s Whole Foods has also increased its investments in Asian flavors. Merchant Julie Bandin said the grocery giant has seen demand increase “dramatically” and that it’s also an area seeing a lot of innovation.

Bandin said the growing interest is primarily driven by consumers who want to be more adventurous in the kitchen and are looking for new items to help them.

“We sell products that they can’t find anywhere else, and it’s really a great bridge to our Asian brands,” Bandin said. “Every placement is intentional. It is designed to spark curiosity… [by] bring this product directly to the mouth of the consumer.

She added that the store is seeing Asian flavors emerge across all categories, including drinks, sauces, frozen foods and more. After Indian sauce brand Gymkhana hit stores earlier this year, Bandin said, its explosive growth has empowered the entire subcategory, including some traditional brands that otherwise weren’t seeing gains.

“Radically, throughout the store with these different categories… you just see them marrying together, and that’s my hope: to see more proliferation in these flavor profiles, or in these Asia-specific brands that can be cross-marketed,” Bandin said.

A Target The spokesperson told CNBC that the company has seen demand for the Asian food and beverage category continue to grow. The number of products and storage space have increased, especially with recent additions such as ramen bowls and Asian Oreo flavors.

Choi, the founder of Geem Seaweed Snacks, said seeing her products in mainstream grocery stores meant coming full circle for her experience as an Asian American.

Growing up, Choi said, her parents frequented both an Asian specialty store and a mainstream grocery store to stock their kitchen.

“Now I go with them to Whole Foods and say, ‘Look, my product! Our flavors are on the shelf,'” Choi said. “For them, it’s a real sign that they’ve succeeded… it’s a real acceptance from other cultures of us for who we are, without any excuses.”

— CNBC’s Natalie Rice contributed to this report.