Hispanic Growth is Big for Business

Demographic analysis of the U.S. Hispanic population just keeps producing numbers that are, frankly, staggering and should not be ignored. When opportunity knocks, it would be nice to greet it with a friendly, "hola". CultureSpan is well versed in the language and can help make your introduction to this market segment a little warmer. First, let's dig into the data and see what your next big business opportunity looks like.

The 2010 U.S. Census revealed that Hispanics now represent 15.5% of the total population, up 43% since 2000, and confirming Hispanics for the first time as the largest minority in the country. Indeed, more than half of the growth in the entire population of the United States between 2000 and 2010 was due to the increase in the Hispanic population and Census projections attribute 60% of U.S. growth to 2050 to this group. At that time, it is estimated that Hispanics will represent 24.4% of the population.

Hispanic purchasing power and attractiveness to marketers has also grown with the population, increasing from $210 billion in 1990 to over $957 billion in 2010 and estimated to reach $1.5 trillion in the next three years.

In its recently published “State of the Hispanic Consumer: The Hispanic Market Imperative” report, Nielsen Research has identified several additional characteristics that combine to make Hispanics the largest population group to ever exhibit culture sustainability.

According to the report, “Borderless social networking, unprecedented exchange of goods, technology as a facilitator for cultural exchange, retro acculturation, and new culture generation combine to enable Hispanic culture in the U.S. to be sustainable. In other words, Hispanic culture may evolve but will not go away.” The report also cites a 2011 national survey of Hispanic adults, which found that nine out of ten Hispanic parents and parents-to-be want their children to be able to speak Spanish, even though they also want them to become fluent in English.

Among the key findings of the report is the fact that the overall U.S. population is growing older, while the Hispanic population remains young and is the primary feeder of workforce growth and new consumption. Hispanic median age is 28 years, almost ten years younger than the total market median age of 37 years. “Given that the age for a new home buyer is between 26 and 46 years old, Hispanics will become a force in residential purchasing over the next ten years,” according to Nielsen.

The culture is also more optimistic. The Pew Research Center reported in January that a majority of Hispanics (54%) believe that the U.S. economic downturn that began in 2007 has been harder on them than on other groups. However, the research also found that Hispanics exhibit more optimism than the general population, with 67% expecting their financial situation to improve over the next year, compared to 58% of the total population. Additionally, 66% of Hispanics expect their children to have a better standard of living than they do, vs. 48% of the general public.

With so much research continuing to confirm the growth, sustainability and economic clout of the U.S. Hispanic consumer, why not embrace the facts and get down to business? When you’re ready to join the fiesta, contact CultureSpan. Because it's nice to have a friend on the inside.