Marketing company Claritas, has released the third report in its New American Mainstream series, The Hispanic American Market Report. The report offers marketers unique insights into how to appeal to Hispanic American consumers, one of the nation’s fastest-growing multicultural subsets.
Now the second-largest demographic group in the United States, Hispanic Americans represent 19.5 percent of the U.S. population. With more than 64 million members, Hispanic Americans are also the country’s second fastest-growing population segment, with 83 percent growth since 2000. Currently, there are more than 133.2 million multicultural Americans, and Hispanics account for 37.5 percent of the total multicultural population.
According to Karthik Iyer, COO at Claritas stated, “Today, Hispanics make up one-fifth of the American population, and Hispanic households are expected to outspend their white majority counterparts during their lifetimes”. That kind of growth, combined with strong lifetime purchasing power, makes Hispanic Americans one of the most attractive targets for marketers today.”
According to the Claritas Hispanic American Market Report, the cumulative lifetime spend of the average Hispanic American household is $2,535,959. That’s $538,636 more than the lifetime spends of the average white American household. With larger families and increasing spending habits, these consumers represent untapped revenue potential for a multitude of products and services from food, automotive, apparel to insurance, technology, and banking.
The Hispanic American Market Report, which provides specific details on the buying, cultural and media usage preferences of America’s Hispanic population. For example, according to the report:
Hispanics spend roughly $2,300 annually on apparel – 5% percent more than the average U.S. household. But they spend even more on specific apparel subcategories. Hispanics spend 28% more than average U.S. households on apparel for children under age 2. Furthermore, Hispanics spend 28% more on footwear for men, boys, women and girls; and 25% more on men’s active sportswear.
Hispanic households also spend $4,740 annually on food at home – about 1.4 % more than the average U.S. household. They’re particularly large spenders on meat and eggs (spending 15% more than the average U.S. household) and on fruits and vegetables (spending 9% more). They also spend 17 % more than other U.S. households on soaps, detergents, and other laundry and cleaning products, making them a potentially attractive target for consumer packaged goods (CPG) companies.
Hispanic Americans also appear to be do-it-yourselfers, particularly when it comes to their automobiles. Compared to the average U.S. household, Hispanic households spend 18% on motor oil and 9 % more on coolant, additives, brake and transmission fluids. But they spend 15 % less on vehicle services (lube, oil change) and 13% less on tune-ups. This indicates that Hispanics are purchasing these products directly and servicing their own vehicles, rather than paying a garage or dealer to perform maintenance on their vehicles. This makes Hispanics an excellent target group for automotive aftermarket retailers and vehicle parts and fluid manufacturers.
When it comes to social media, Hispanics show a preference for Instagram and Snapchat – and they spend the least time on LinkedIn. This is in sharp contrast to Asian Americans, who prefer LinkedIn over other social media channels, according to The Asian American Market Report, which Claritas released last February. Specifically, Hispanics are more than two times LESS likely than the average Asian household to have used LinkedIn in the past 30 days.
Source: globenewswire.com