According to the report “The State of the Hispanic consumer – The imperative of the Hispanic market” Nielsen (2012), if Hispanics were a separate country, they would represent one of the world’s 20 major economies. The increasing participation of the Hispanic market in overall consumption, and its youth, position it as a new trend setter.
The most products Hispanics consume in the food and beverage market, are spirits, wine, beer and carbonated beverages.
This pattern of consumption has a logical explanation as Hispanics represent a great portion of the audience at sporting events. Additionally, they spend as much time watching videos on the internet and mobile devices, therefore they have a tendency to accompany the occasion with these type of drinks.
While Latinas represent a great portion of the beauty market, it’s them who have the greater purchasing power in their households such as food, beverages, clothing and pharmaceutical products. In fact, leading brands around the world spend large portions of their budgets trying to attract and seduce Latin women.
The top 10 most popular products in the Hispanic community, according to the Nielsen report, in order of importance, are:
1. Dry vegetables and grains
2. Hair care products
3. Cooking oil
4. Baby food
5. Perfume for women
6. Grooming products
7. Disposable diapers
8. Family planning
9. Photographic supplies
10. Baby products
Follow-up studies indicate that Latinos tend to spend more in proportion to their income in the following product categories:
3. Telephone services
5. Fresh produce
6. Furniture and appliances
Hispanic consumers spend more time gaming, watching videos online and on their mobile phones than the rest of the population of the U.S., according to the Hispanic Fact Pack 2014 based on data from the Digital Consumer report from Nielsen.
Hispanics shopping habits are different from the rest of American consumers. It has been determined that they tend to buy less frequently, but spend more on each purchase. They are also less likely to buy products at promotional prices.
According to the Work Department of the United States, the Hispanic family group is made up of an average of 3.8 persons, with an overall average of 2.6 persons per household. Latinos also have more children, the family group has on average 1.2 children under the age of 18, while the rest only have 0.6, affecting the age segment. Latinos are younger than the rest of the population.
SEE ALSO: Coffee consumption up among Hispanics
An estimate by the Pew Hispanic Center indicates that 52% of Latinos in the United States prefer to speak Spanish than English.
The consulting firm Nielsen points out that 56% of Hispanic adults mainly speak Spanish at home, compared to 40% who prefer English.
However, it has been noted that the second and third generations of Hispanics are composed of professionals who are developing a binational culture. A recent IBIS World study indicates that new generations of Hispanics prefer to communicate in English, yet they keep their Hispanic culture and heritage.