Although the growth of the Hispanic American market is well documented in the U.S., it is worth closely monitoring its evolution, given its size and implications for business strategies. The following is a summary of highlights from a recent survey by the consulting firm NielsenIQ.
Hispanic American households are a young and growing population. They represent 19% of the U.S. population, more than 62 million people, and growing. The Hispanic American population will increase to 111 million by 2060, rising from 19% of the population to 28%.
On the younger demographic of the group, 47% of Latinos are considered millennials, with an average Hispanic consumer age of 42 and an average household income of $55,000.
- 39% of Hispanic Americans have a college degree or higher, compared to 33% of Americans overall.
- 49% of Hispanic American households have children under the age of 18.
- Hispanic Americans are 1.5 times more likely to care for their grandparents.
Related Article: The Evolution of Consumer Seasons for Hispanics
More than half of Hispanic consumers surveyed identify as Mexican, but many cultures reflect the diversity within the group.
Diversity in the U.S. is undeniable and evident in its changing population. However, for too long, Hispanic consumers have been viewed as a single segment. Hispanic consumers are a large and diverse group with different backgrounds and experiences.
According to NielsenIQ data, more than half (51%) of shoppers surveyed identified themselves as Mexican. Still, many other nationalities and cultures were recognized, including Puerto Rican, South American, Cuban, Central American, Dominican, and Spanish.
- Mexicans, 51%
- Puerto Ricans, 16%
- South Americans, 9%
- Cubans, 8%
- Central Americans, 6%
- Dominicans, 5%
- Spaniards, 4%
Their Purchasing Power is Strong
The growth of Hispanic Americans in the U.S. is not a hidden secret. Companies that understand the differences and similarities between the growing Latino population and the overall U.S. population will be better able to support customers with the products they want.
Hispanic shoppers alone contributed more than $1.9 billion in 2020. Hispanic American consumers were also the most prominent minority market with purchasing power in 2020, growing 87% over the past ten years.
Where Do Hispanic American Consumers Shop?
76% of Hispanic consumers say they prefer shopping in-store versus online. However, these preferences are category specific. General merchandise, pet care, health and beauty care, and baby care are the most popular choices for online shopping. Hispanic consumers prefer to buy alcohol, food, and floral products in stores.
Department stores (43%) and grocery stores (31%) are the most popular channels for Latino shoppers. While supermarkets and department stores remain reliable options, there is also promising growth in the department and specialty beauty store channels. The average Hispanic American purchase size for department store channels increased by 8% over the last year. The beauty channel’s purchase size increased by 6%.
How Can Companies Reach Hispanic American Consumers?
Hispanic American consumers are not only looking for products that meet their wants and needs but also products that align with their culture. More than 71% of Latinos feel strongly connected to their country of origin, and cultural identity is critical in purchasing decisions.
Therefore, in 2023, brands and manufacturers should consider buying patterns and cultural aspects when developing products and campaigns to market to Hispanic American consumers.