All indicators point to sustained growth in the U.S. Hispanic food sector. The data we will see below support this growth and other interesting facts. Still, first, I would like to share some empirical observations that help point to the degree to which the turnaround is being seen concerning some Hispanic food preferences.
I live in South Florida, where the Hispanic culture dominates, and its food is predominant. My wife teaches in a school for children in grades one through eight, where almost all the children bring their lunch.
The Palate of The Younger Generation
She says that there have been sometimes heated debates about which empanadas are the best in Latin American countries for several years. The great contenders are Colombian and Argentinean empanadas.
Regarding cheese snacks, the fight is usually between Venezuelan tequeños and Colombian “pan de Bono,” although lately, Brazilian “pao de queijo” has received an honorable mention.
The Cuban “pastelito de guayaba” is the undisputed ruler of desserts. What’s more impressive is that these preferences are expressed by non-Hispanic children!
As the Hispanic population in the U.S. continues to grow (it is expected to surpass 74 million by 2028, nearly 22% of the total population), so does their purchasing power.
Related Article: Who is the Hispanic American Consumer?
This has important implications for Hispanic-focused grocery retailers and brands. In addition, the popularity of Hispanic food continues to increase among non-Hispanic Americans.
This is driving changes in consumer buying behavior, and grocery players are already reacting.
For example, mainstream grocery stores are increasingly selling Hispanic brands as they seek to broaden their appeal. In addition, some Hispanic brands are trying to move away from the ethnic food aisle into more mainstream grocery aisles.
Hispanic Food Shopping Behavior
Hispanic consumer shopping behavior revolves around multigenerational family dynamics.
They prefer foods authentic to their native culture, which means that younger generations are more familiar with the brands their parents and grandparents use in their cooking. As such, brands should focus on highlighting unique customs and heritages with colloquial marketing language.
While they shop at a wider variety of grocery stores than other ethnicities, Hispanic consumers also prefer to buy more traditional items and authentic brands at Hispanic grocery stores rather than conventional grocery stores.
This makes it essential for authentic Hispanic brands to target and gain distribution in Hispanic grocery stores primarily.
Growing Investments
The Hispanic grocery space is even more fragmented than the conventional one, although some consolidation occurs. Here are some examples of transaction activity: HHG, the parent group of Cardenas Markets, acquired El Rancho Supermercado in June 2023, and El Super/Bodega Latina acquired the Fiesta Mart chain in 2018.
In addition, consolidation occurs through the growth of the chain’s new stores.
Together, growth among Hispanic consumers and the changing American palate provide tremendous growth opportunities for Hispanic food brands, retailers, and potential investors.