The U.S. Hispanic food market is booming, and Hispanic food brands continue to play a relevant role in this growth.
According to Nielsen’s data, this market will grow by 12% in 2023 and reach a value of $140 billion. Euromonitor International projections indicate it will maintain a compound annual growth rate of 4% in the coming years.
Hispanic food brands performed particularly strongly, growing 15% compared to the previous year. This growth was due to some factors, including:
- The increase in the U.S. Hispanic population now represents 18% of the total.
- Growing consumer interest in authentic foods and increasing interest in functional or value elements, such as health or delivering a specific benefit.
- The growing availability of Hispanic food brands in major retail chains, the expansion of Hispanic chains, and the opening of formats focused on the Hispanic market.
KEY ELEMENTS OF SUCCESS
Some of the key elements to stand out this year were:
High-quality, authentic products: These are key differentiators, and the Hispanic market is increasingly valuing them, being willing to pay more for something that genuinely reflects their culture and traditions.
Effective marketing strategies: A strategy must be comprehensive and focused, identifying the target and communication consumption points well. An actual 360, comprising advertising, digital, and PR, helps brands generate awareness, reach the entire target audience, build a positive image, generate trust, and create demand.
Strong relationships with retailers: Working together, understanding their needs, and offering attractive products to their customers helped brands build strong relationships with retailers, reflected in shelf space.
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While Hispanic food brands performed strongly in 2023, they will need to address areas of improvement in 2024 to continue to excel in the market.
Product range expansion: Consumers’ needs are evolving, requiring new products. Offering alternatives for special diets can appeal to broader audiences and grow the consumer base.
Improved customer experience: Making it more accessible to shop through more channels and with more variants and expanding touch points that include clarity and depth of product information.
Innovation: New uses, ingredients, forms of application, ideas, and the tropicalization of other products are endless possibilities that must be constantly pursued. The Hispanic consumer is increasingly open-minded and willing to invest in products that provide additional value.
TO START IN 2024
The U.S. Hispanic food market is a growing market with great potential. Here are some elements to focus on in the coming year:
Faced with a diverse market, where we have different origins and preferences, as well as greater purchasing power and special needs, it is essential to continue expanding the product catalog to provide innovative and targeted alternatives while analyzing the continuity and impact of the products traditionally offered.
Invest in marketing strategies that focus on the customer experience, delving into a genuinely holistic approach and matching the consumer’s touch points and need for information.