Hispanic women business owners are one of the fastest-growing segments of the U.S. business community. According to the National Women’s Business Council, more than two million businesses are owned by Latina women, representing an 87% growth since 2007.
This trend is particularly apparent in the food retail sector, where Hispanic women increasingly take on leadership roles and launch their own ventures.
These entrepreneurs bring fresh perspectives to the industry, often blending traditional Hispanic culinary traditions with modern business practices. Their success is fueled by a deep understanding of their target market and a commitment to authenticity.
Buying Power is Female
Hispanic women are the decision-makers for over 80% of purchases in U.S. Hispanic households, already making them a commanding force in the retail landscape.
This influence is particularly pronounced in the grocery sector, where Hispanic shoppers demonstrate unique behaviors and preferences.
Hispanic shoppers, especially women, are at the forefront of digital adoption in grocery shopping.
According to a recent survey, they are 49% more likely to consider the quality of a store’s app or website important when selecting their primary store.
This digital savviness extends to pre-shopping activities, with 38% of Hispanic shoppers searching for deals online before making a trip, reported IRI (now Circana) in its recent HispanicLink study.
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It is important to note that brands that authentically acknowledge Hispanic culture and traditions are gaining traction.
According to research firm Kantar, a striking 64% of Hispanic consumers seek out such brands, compared to 48% of the general population. This allows retailers to create culturally relevant marketing campaigns and product offerings.
Hispanic shoppers, particularly women, view grocery shopping as a joyful, family-oriented activity. A significant 74% report enjoying grocery shopping, reports Acosta in its U.S. Hispanic Shopping Study, which is 16 percentage points higher than the total U.S. shopper population.
Retailers respond by creating more engaging in-store experiences, including expanded product sampling and family-friendly layouts.
This means that the more Hispanic retailers can connect with the increasingly important shopper demographic of Latina women, the more successful they will be. An important way to attract this key audience to the stores and online is to have people who look like them in leadership positions.
Hispanic Women and Entrepreneurs
Hispanic women still face several key challenges in the food retailing business. For instance, self-employed Latina women disproportionately face financial difficulties in paying household expenses, including food, rent, car payments, and medical expenses.
About 39% of Latina women reported such difficulties, reported The UCLA Latino Policy & Politics Institute, which is over 16 percentage points more than white women and men.
Despite showing a greater need, Latina business owners are also less likely to receive information about and apply for state and federal loans and pandemic assistance. This lack of financial resources can significantly impact their ability to sustain and grow their businesses.
Still, Hispanic women persevere. And for good reason. They know Latina business owners, and Hispanic women leaders in particular, will drive much of the growth in the retail food industry over the next decade and that those companies understanding this trend will be best positioned for future success.