What’s next: On the strength of its expanding, younger generation, Hispanics will have over $2 trillion of disposable income in 2021.
What this means: Marketers must work to understand Hispanics’ spending patterns to improve their chances of reaching this growing market. Currently, Hispanics account for a small proportion of overall advertising spending.
- Certain industries, especially consumer goods, have an outsized opportunity to capture more shopping dollars from this demographic group. Currently, Hispanics’ spending power is felt most in categories such as groceries, shoes, clothing, and cellphone services. Hispanics will account for 34% of growth in apparel spending in the next five years, exceeding $48.85 billion in future revenue.
Key takeaway: The Hispanic consumer can’t be defined by a singular archetype, given the community’s vast cultural, financial, and social differences. Brands ignore this group at their peril, missing out on opportunities to build relationships with this diverse set of consumers.
Coming up: A second report in this series will address Hispanics’ use of digital tools.