Understanding Immigrant Shopping Habits

As U.S. immigration continues to drive population growth over the next decade, understanding the shopping habits of first-generation households becomes increasingly crucial for brands aiming to capture a significant share of consumer packaged goods (CPG) spend. According to a new report from Numerator, the purchasing power of these households is set to exceed $550 billion in the next ten years, with 40% of the brands favored by these shoppers being imported from their countries of origin.

To effectively engage with these communities, brands and retailers must grasp the unique behaviors and preferences of first-generation immigrant households. The report highlights that ethnic brands hold significant appeal due to a variety of factors beyond nostalgia. Thirty-seven percent of shoppers choose ethnic brands because they believe these products offer better quality than mainstream alternatives, while 35% purchase them to experience flavors that align with their cultural tastes. Additionally, 34% of shoppers are drawn to ethnic brands because they feel connected to their heritage, and 31% prefer products with authentic ingredients.

As a result, grocery chains are beginning to adapt to meet the needs of this growing, diverse demographic. For instance, Kroger is piloting two “Asian Experience” stores in North Texas in 2025, aiming to serve the rapidly growing population in Denton and Collin Counties. This move presents competition for specialty stores such as India Bazaar, Mitsuwa Marketplace, 99 Ranch, and H Mart, which have traditionally catered to immigrant communities.

The surge in Latino immigration has also prompted the launch of Heritage Grocers Group, a new venture established by Apollo Global Management in 2022. The group has already acquired several Latino-focused grocery chains, including Cardenas Markets, Tony’s Fresh Market, and El Rancho Supermercado.

According to Numerator, 45% of first-generation immigrant households are now shopping at non-traditional retailers like these, but they also frequent larger retailers such as Walmart, Costco, and Kroger. First-generation households from different regions have distinct preferences when it comes to where they shop. For example, immigrants from Central and South America, Mexico, and the Caribbean tend to favor Walmart, Costco, and Kroger, while those from India and the Philippines are more likely to shop at Costco, Walmart, and Amazon. Immigrants from China tend to prefer Costco, Albertsons, and Walmart.

Retailers that have successfully catered to these populations include La Bodega Cantina (31% household penetration among Mexican immigrants), Smart & Final (41% penetration among Central and South Americans and Caribbean households), and 99 Ranch Market (47% penetration among Chinese immigrants). Additionally, stores like Apna Bazar and Seafood City have seen significant success among Indian and Filipino communities, respectively.

In conclusion, understanding the preferences of immigrant households, particularly their loyalty to ethnic brands and their shopping behavior across both ethnic and mainstream retailers, is key to capitalizing on the projected growth in CPG spending from these consumers in the coming years.