Hispanic Purchasing Power Packs a Punch at the Grocery Store
The purchasing power of the estimated 57 million Hispanics in the United States has soared to heights never before seen, according to the recently issued report, The Why? Behind the Buy U.S. Hispanic Shopper Study, 6th Edition. This is great news for the grocery and CPG sectors of the U.S. economy, as Hispanics have become one of the most sought-after ethnic groups in the retail grocery market – and there are many lucrative reasons why.
Population Growth Translates to Purchasing Power
According to the U.S. Census Bureau, the Hispanic community is the fastest growing ethnic group in the entire nation. By 2030 the Hispanic population is expected to pass the 77 million mark, and by 2024 its purchasing power is expected to reach $2 trillion.
This population growth means that Hispanics are no longer an ancillary target audience for marketers. Quite the contrary: Hispanics are a significant portion of the U.S. economy, and of any marketing strategy, as grocery retailers and CPG manufacturers have begun to take note.
Grocery Shopping has Inherent Cultural Appeal
The Hispanic grocery shopper in particular appeals to retail and CPG businesses for a variety of reasons. Statistics show that Hispanic shoppers are more likely to cook, shop with family members, and try out new products. In fact, 72 percent of U.S. Hispanic shoppers surveyed recently reported they enjoy grocery shopping, compared to 61 percent of total U.S. shoppers.
According to the U.S. Hispanic Shopper Study report, 79 percent of Hispanics grocery shop with someone else (usually a family member), and 60 percent bring their children. Studies show that people who shop with their children tend to spend more at the grocery store. This is true with the U.S. Hispanic market as well.
The Hispanic Shopper is the Dream Consumer for Grocery and CPG Businesses
The grocery shopping habits of Hispanics are a retailer and CPG manufacturer’s dream come true: a shopper who spends a lot, enjoys shopping with the family, and is willing to go outside their cultural comfort zone to try new things and blend flavors. Hispanics are also becoming more health conscious and admitted to shopping for organic groceries one third of the time.
The Hispanic Shopper Outspends Others in All Store Formats
U.S. Hispanic shoppers just flat out shop more than the rest of the country. According to surveys provided in the report, Hispanics outspend their U.S. counterparts in all types of grocery store formats, such as club stores, dollar stores, big box retailers, organic markets and ethnic specialty stores. They spend more in each of these stores than other U.S. shoppers. The Why? Behind the Buy U.S. Hispanic Shopper Study, 6th Edition believes this can be attributed to their love of cooking, frequency of grocery shopping, and their love of grocery shopping in general.
Moving forward, Hispanic shoppers also understand the benefits of digital marketing to enhance their visit to the grocery store. With 6 out of every 10 Hispanic shoppers saying they “enjoy using technology to make my life easier,’’ digital technologies such as digital flyers, mobile coupons, loyalty programs, and other shopping apps are only going to continue to grow within the U.S. Hispanic shopping market.
The message is clear: Whether you’re a general or specialized grocery retailer or CPG manufacturer, large or small, digital or traditional, you have a lot to offer to Hispanic shoppers, and they are ready to spend their money at your store and on your products!