Hispanic Market, Growth Opportunity?

According to the US Census Bureau the Hispanic population was about 57.5 million as of July 1, 2016, making people of Hispanic origin the nation’s largest ethnic or racial minority. Hispanics constituted 17.8 percent of the nation’s total population with a 2.0% percentage growth in the Hispanic population between 2015 and 2016. Furthermore, the number of Hispanic-owned firms have increased placing California on the first place with 68,563 Hispanic business owners, followed by Florida with 68,563 and Texas with 51,849 (Source: US Census Bureau, October 03, 2017)

Hispanic audiences have become a visible and voiced element of the American society, having enormous influence and purchasing power. According to MediaPost, 2018 is expected to be the year where major brands will implement shifts in relation to Hispanic markets. More budget will be allocated to a growing part of the Hispanic population. According to Forbes, what was once considered to be a “niche” opportunity, the U.S. Hispanic population today is about 59 million strong, generating purchasing power levels of at least $1.5 trillion a year.

Some key aspects about the Hispanic culture could be noticed in the sports and music sectors. For example, Hispanics possess an extreme passion towards sports, especially soccer. According to a 2016 Univision study, 84 percent of Hispanics confirmed to be soccer fans, compared to 47% of the non-Hispanic population; furthermore, Hispanic fans watch nearly three times the amount of soccer as their non-Hispanic counterparts. The music industry is also a great example of not only how much Hispanics can be influenced by music (and how much they like dancing), but also how a great song can influence the rest of the world. A great example is the enormous popularity of Despacito’s remix version with Justin Bieber among non-Hispanics… and not to mention the 2014 song “La Gasolina” by Daddy Yankee (which by the way I heard while walking by a bar in Tokyo, Japan in 2007).

There is also another important segment in the marketplace. U.S. millennials, which represent a population of about 75 million people, and of which almost 25 percent are Hispanic. These consumers, while displaying similarities with other non-Hispanic millennials when it comes to attitudes and behaviors, also demonstrate a strong connection to the Latino culture. For marketers, when these cultural nuances are in play, unique marketing opportunities are created.

According to Forbes, Hispanic millennials differentiate themselves from the non-Hispanic ones when it comes to paying more attention to commercials, their desire to have their own business one day, and their tendency to build a family and have kids at a relatively young age. Also, Hispanic millennials lean towards spending more on purchases such as clothing, apparel, grooming essentials and alcoholic beverages.

These might seem simple psychographics and statistics, but it certainly give brands important insights about the Hispanic population. Leveraging these type of insights can make a brand successful in the planning and implementation of their marketing strategies and provide them with a competitive advantage over their competitors. Successful brands will be able to leverage these kind of insights and also include key information on other areas such as education, community, food, and language. Advertisers and marketers must develop an effective strategy that is aligned with cultural and psychographic data about the Hispanic market, which will allow them to reach this market segment more effectively.

If you would like to know more about how your business could generate leads and implement growth strategies within the Hispanic market, then contact us for a consultation.

Online Data Sources: Forbes, MediaPost, Census.Gov, PewResearch

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