A note on language: “Hispanic” refers to someone that comes from or has a background in a Spanish-speaking country. This article only discusses Hispanic consumers that reside in the United States. This is the first of two reports.
The opportunity: Hispanics are a key driver of US population growth, and brands that recognize the increasing influence of this digitally savvy community will be poised to benefit from its immense purchasing power.
Why it’s worth watching: Hispanics are a growing group within the US consumer market, making up almost 20% of the population. They constitute 18.5% and 19.4% of US female and male consumers, respectively, making the community a viable target audience for marketers.
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.
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.