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State of the Hispanic Consumer: The Hispanic Market Imperative

Demographics | 04-17-2012
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In over 100 countries around the world, Nielsen provides the most complete understanding of what consumers watch and buy. In the U.S., Nielsen has delivered insights about consumers for almost 90 years. The Hispanic Market Imperative offers a fresh perspective on the Hispanic consumer segment of the U.S. economy. This report highlights the importance of the Latino market and provides insights to help marketers succeed in the opportunities that lie ahead.

The U.S. Hispanic population is the largest minority segment and is growing at a dramatic rate towards ethnic plurality, which has already occurred in the most populous states and is beginning to occur among the U.S. baby population. The future U.S. economy will depend on Hispanics by virtue of demographic change and the social and cultural shifts expected to accompany their continued growth.

It has become increasingly important to challenge commonly held misconceptions about the Latino market that undermine the importance of its size, uniqueness, and value. The topics of this report draw on compelling evidence of market change and the perspective of marketers who have proven success in the Latino marketplace:

  • Latinos are a fundamental component to business success, and not a passing niche on the sidelines.
  • Rapid Latino population growth will persist, even if immigration is completely halted.
  • Latinos have amassed significant buying power, despite perceptions to the contrary.
  • Hispanics are the largest immigrant group to exhibit significant culture sustainability and are not disappearing into the American melting pot.
  • Technology and media use do not mirror the general market but have distinct patterns due to language, culture, and ownership dynamics.
  • Latinos exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market.

Hispanics already account for an important share of consumer expenditures and given their youth, educational advances, and increasing spending capacity, Hispanics are fast becoming preeminent drivers of growth and likely trend setters in the marketplace. Marketers will need to understand the what, where, how and why of their role in tomorrow’s consumption space.

In forecasts of future consumption growth, the Hispanic share is significantly greater than that of non-Hispanics. The evidence for the distinctiveness and sustainability of Hispanic culture is convincing and implies a future American culture with a strong Hispanic flavor.

Finally, it is instructive to recognize that unique and useful vehicles for reaching Hispanics exist around language, media consumption, and technology adoption. Given the total market’s dependence on Hispanics for future growth, tapping Hispanic preferences and purchasing behaviors is essential for any strategy or marketing plan to be successful.

This report provides a general foundation for building effective strategies that will increasingly be the primary drivers of growth in virtually all product and service categories. Understanding the distinctive patterns of demographics, culture, and consumption can lead the way to a sizeable and growing impact on total market share.

Tagged:  MULTICULTURAL
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