Not only is California the most populous state in the union, but the population of Southern California is, by itself, greater than the population of all but two other states, with the Los Angeles Metropolitan Area accounting for more than half of that.

An ongoing trend in the demographics of Southern California is a shift in the ethnic mix. The Hispanic population continues to grow, but so do the Asian and Middle Eastern populations, and their influence on the Los Angeles produce industry, on the product mix and on the retail landscape is increasingly significant.

It is a trend that has been written about and talked about and one that is “continuing to play a significant role in business planning and strategies,” said Bill Vogel, president of Vision Produce Co. in Los Angeles. Importantly, it is not just “the growth of the ethnic marketplace” in general that is significant but “all the variances that it brings to the table.”

There are “all these wide varieties of ethnic groups in Southern California that are becoming more entrenched,” Vogel said. “They are growing populations. Many of them have moved into the middle class. They have money to purchase foods of a wide variety.” That is resulting in “extended business in the restaurant trade and foodservice” as well as at retail.

Along with that, Vogel said, there is “a healthier eating trend going on” in California and increased interest in local and fresh. “We are seeing increasing demand for fresh produce in general” and an ever-larger pool of customers.

The need to cater to the tastes of the various ethnic groups in California has given rise to many independent retail stores and small independent chains, which have competed successfully with the major retail chains, and that trend, too, continues. As an example, many of “what used to be called Hispanic stores are now mainstream supermarkets big time.” They are expanding and becoming “more upscale,” said Ted Kaplan, president of Professional Produce in Vernon, CA. “They continue to take market share away from the big stores.”

At one time, most independent retailers catering to specific ethnic populations had a Latino focus. But now “the independent Asian markets are starting to increase,” and so have stores catering to the Middle Eastern demographic, said Jerry DeFranco, an officer in D. DeFranco & Sons in Los Angeles.

At Consolidated West Distributing Inc. in Los Angeles, “we are trying to concentrate on independents,” said Elvia Menendez, president of the company. “They seem to be on a growth pattern … and it seems like it is going to continue that way. There are a lot of ethnic independents. Some concentrate on the Latinos, some concentrate on the Asian market, and those are growing and expanding. We are trying to get their business and grow with them.”

Many of the growing ethnic groups are increasingly affluent, and when they shop for produce they want “better quality and larger sizes,” Menendez said. “They buy a lot of produce.”

The demand for organic produce from the rising ethnic minorities is just beginning to be felt, according to Rick Lejeune, chief executive officer of Heath & Lejeune Inc. in Commerce, CA.

“We are very aware of the growth of the businesses that are servicing the different ethnicities in Southern California,” and it is true that they are becoming more middle class, he said. But “in our case, we have not seen a huge uptick in demand for organic.” They are “all turned on to fruits and vegetables to a very high degree,” but many of them are “still looking for price” and the higher price of organic produce “is still a little bit of a barrier there. But it is certainly our goal to service them more as they start to incorporate organics.”

Heath & Lejeune is “not selling organic produce yet in any meaningful way to the Hispanic supermarkets for instance,” Lejeune said, but he thinks that may change “a year or two down the line.”

On the other hand, “we do have some Asian clientele buying organics,” he said. “There is slightly more affluence there,” and “they are a little bit ahead of the curve, compared to the Hispanics.”

Apart from being at the heart of the largest market for produce in the country, Los Angeles plays a significant role in the produce industry nationally.

“Los Angeles has always been and will probably continue to be a focal point for servicing the rest of the country,” said Lejeune.

Not only is it proximate to the major fruit and vegetable growing areas of California, but it is a distribution hub for produce coming into the United States from Asia, New Zealand, South and Central America and Mexico, “and that is not likely to end anytime soon. In fact it seems to be increasing in some ways, and particularly in the organic world.”

“Being located in Los Angeles has been a great long-term position” for Progressive Produce Corp. in Los Angeles, said Vice President Jack Gyben. Being “surrounded by 20-plus million people has given us a base” from which to expand nationally and an opportunity to really get to know customers in a way that would have been more difficult if the company were based in a less populous location.