Unleashing the Economic Power of the Hispanic Market in the United States
“It’suptoU.S.companies todotheirduediligence andfamiliarizethemselves withthecommunityin ordertofullyunderstand theirhabitsasconsumers”
LLYC Expedition Strategies
According to the Federal Reserve Board, Hispanic households control $12.8 trillion dollars of household net worth. In addition, affluent Hispanic households have an annual household expenditure that is 16% higher than non-Hispanic households .
Ipsos Affluent Survey Spring 2022
This highlights their substantial economic influence and underscores the importance of understanding their demographics, attitudes, and consumer behavior. With one in five Hispanic American adults considered affluent, this group wields increased influence both within and outside of their Hispanic community. To effectively reach and engage this influential demographic, it is crucial to delve into who they are, their attitudes towards culture and identity, and their consumer behavior across key categories. By gaining a comprehensive understanding of the affluent Hispanic population, businesses can tailor their marketing strategies to effectively connect with this influential consumer segment.
The Latino market in the United States is not only large, but also diverse, dynamic and influential. According to a report by, LLYC and Expedition Strategies the purchasing power of Hispanics in the U.S. could increase to $2.6 trillion over the next three years, making them a driver of the U.S. economy. However, many brands and companies still do not take this market into account, or fail to understand its nuances and preferences.
U.S. Hispanic 5th in World GPD
NBC News / Carmen Sesin / Setp 2022
If U.S. Latinos were an independent country, their gross domestic product would rank fifth in the world, surpassing those of the United Kingdom, India and France, according to a report released by the Latino Donor Collaborative in partnership with Wells Fargo.
FACTS
LATINOS ARE FUELING THE ECONOMY AT A FAST RATE PURCHASING POWER GREW 87% FROM 2010 TO 2020 outpacing the 51% increase in Non-Latino purchasing power over the same time
LATINOS ARE IMPORTANT JOB CREATORS growing their number of employees at a faster rate than Whiteowned employer businesses. Latino-owned employer firms have grown 35% in the last 10 years compared to 4.5% among White-owned businesses. In 2019 alone, Latino-owned businesses generated 2.9 MILLION JOBS representing a 53.6% growth rate since 2007
(Source: Stanford Latino Entrepreneurship Initiative
LATINOS CONTRIBUTE GREATLY TO THE U.S. ECONOMY THROUGH FEDERAL, STATE, AND LOCAL TAXES AND SOCIAL SECURITY $102 Billion to social security and $215 billion in taxes (The Power of the Purse Research) New American Economy.
Hispanic households earned more than $1.2 trillion and paid $308.5 billion in taxes, including $196.5 billion in federal income taxes and more than $112 billion in state and local taxes (2019)
One of the common misconceptions about U.S. Hispanics is that they are a homogeneous group with low income and education levels, and that they only consume media and products in Spanish. This stereotype is far from reality, as Hispanics are the most diverse minority in the U.S., with different origins, cultures, languages and lifestyles. Moreover, Hispanics have significant purchasing power, In 2019, Hispanic households earned more than $1.2 trillion and paid $308.5 billion in taxes, including $196.5 billion in federal income taxes and more than $112 billion in state and local taxes.
Another misconception is that U.S. Hispanics are disconnected from their roots and do not value their heritage. On the contrary, Hispanics are proud of their identity and actively celebrate their culture. They also have a strong sense of community and family, and tend to be loyal to brands that empower their cultural relevance and listen to their needs. Therefore, brands that want to reach this market should not only offer quality products and services, but also show respect, appreciation and understanding of their values and aspirations.
The Latino market in the U.S. is not only a subsegment of a target public, but a key player in the country's society and industry. Their buying power has increased by 69% (compared with 41% among non-Hispanics) since 2010, and they are expected to account for more than 20% of the U.S. population by 2025. They also play a critical role in filling workforce gaps in labor-short industries such as agriculture, hospitality, construction and healthcare, and start and own their own businesses at higher rates than the rest of the population.
“With an economic output of $2.8 trillion and nearly 5 million businesses across the country generating more than $800 billion in annual revenue, Latinos are a prominent consumer base and a growing source of economic activity. “
Stanford Business Latino Entrepreneurship Iniciative
The purchasing power of Hispanics/Latinos is driven by several factors, including population growth, increasing educational attainment, and rising household incomes. As the Hispanic/Latino population grows and becomes more educated, their economic influence is expected to continue expanding.
Furthermore, Hispanics/Latinos have a strong influence on various industries and market segments. They have notable presence and purchasing power in sectors such as food and beverages, household products, personal care items, automotive, and entertainment. Many companies recognize the importance of reaching and engaging with this consumer group and have implemented targeted marketing strategies to cater to their specific preferences and needs.
Shifting the Narrative: Changing Perceptions of the Hispanic/Latino Consumer in the United States for Inclusion and Economic Empowerment
However, despite their growing economic power, Hispanics continue to face negative stereotypes and discrimination. These stereotypes can have a significant impact on the way that Hispanics are treated in the workplace, in the marketplace, and in society as a whole.
There are a number of things that can be done to change the perception of the Hispanic/Latino consumer in the United States.
FIRST
It is important to educate people about the diversity of the Hispanic/Latino community. Hispanics come from a wide range of countries, cultures, and socioeconomic backgrounds. It is important to avoid making generalizations about all Hispanics.
SECOND
It is important to highlight the positive contributions that Hispanics make to the U.S. economy. Hispanics are more likely to start businesses than the general population. They are also more likely to be self-employed. Hispanics are also a major source of innovation in the U.S. economy.
THIRD
It is important to challenge negative stereotypes about Hispanics. These stereotypes are often based on ignorance and prejudice. It is important to speak out against these stereotypes and to educate people about the truth about Hispanics
By changing the perception of the Hispanic/Latino consumer, we can help to create a more inclusive and equitable society.
We can also help to ensure that Hispanics have the opportunity to reach their full potential in the U.S. economy.
Businesses that want to reach this important market need to understand their needs and preferences. They also need to make sure that their marketing materials are in Spanish and that their products and services are tailored to the Hispanic market.
Use Spanish in marketing materials and advertising!
In addition to the marketing strategies, there are a number of other trends that are shaping the Hispanic market. For example, Hispanics are increasingly using technology to research and purchase products and services. They are also more likely to be interested in buying products and services from online retailers. As a result, businesses need to make sure that they are using digital marketing to reach this important demographic.
The Hispanic market is a large and growing market.
By understanding the needs of Hispanic consumers and by using the right marketing strategies, businesses can tap into this market and increase their sales.
