Hispanic Buying Power Is Strong, Growing
Nielsen, a global consumer-insights firm, recently released The State of the Hispanic Consumer: The Hispanic Market Imperative report, which indicates a projected Hispanic buying power of $1 trillion in 2010 that is expected to grow 50% to $1.5 trillion in 2015. Nielsen further notes that the population of Hispanics exceeds 52 million and represents the majority of population growth over the next five years.
“The Hispanic community in the United States is large and growing, and businesses must make strides to understand and engage these consumers,” said Susan Whiting, vice chair of Nielsen. “Due to the general youth of this segment, family focus, strong culture and prevalent Spanish-language use, Hispanic consumers are impacting all areas of work and play and helping to redefine American culture in the 21st century.”
Highlights of the report include the following:
- Rapid Latino population growth will persist; the median age of the segment is 28 years old, nearly 10 years younger than the total market median age of 37.
- Hispanics are the largest immigrant group to exhibit significant culture sustainability, with nine out of 10 Hispanic parents and parents-to-be wanting their children to speak Spanish, but also be fluent in English.
- Technology and media use do not mirror the general market, but have distinct patterns due to language, culture and ownership dynamics. For example, Hispanics spend 68% more time watching video on the Internet and 20% more time watching video on their mobile phones than non-Hispanic Whites.
- Latinos exhibit product-consumption patterns distinct from the broader market. Hispanics make fewer shopping trips per household than non-Hispanics, for instance, and spend more per trip.
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