Latinos are key players in the American economy. But while the present U.S. economy benefits from Hispanics, the future U.S. economy is likely to depend on the Hispanic market, according to "State of the Hispanic Consumer: The Hispanic Market Imperative" a report released in April by Nielsen, a global marketing and advertising research company.
According to the report, the Hispanic market’s size and buying power of $1 trillion in 2010 is projected to have a 50 percent increase up to $1.5 trillion by 2015.
Given these numbers, the U.S. Hispanic market is one of the top 10 economies in the world. And despite being hit particularly hard by the recession, Latinos are quickly benefitting from economical improvements in the country. The Latino households in the U.S. that earn $50,000 or above are growing at a faster rate than total households.
A look at the growing and ever changing demographics in the Hispanic population in the country is key to understanding the future of the U.S. economy.
"The Hispanic community in the United States is large and growing, and businesses must make strides to understand and engage these consumers," said Susan Whiting, vice chair of Nielsen, according to Market Watch.
"Due to the general youth of this segment, family focus, strong culture and prevalent Spanish-language use, Hispanic consumers are impacting all areas of work and play and helping to redefine American culture in the 21st century."
A report released in February by the Pew Hispanic Center revealed that 8.1 of Hispanic women in the United States have given birth in the last year, while only 5.9 percent of white women have done the same.
As the largest immigrant group, Hispanics also exhibit culture sustainability and are not disappearing into the American melting pot.
Instead, retro-acculturation is taking place, as many Latinos reach back into their roots for a sense of identity. While second and third generation Hispanics are adapting to U.S. culture and customs, they still maintain strong attachment to Latino traditions and value systems. Hispanics in the U.S. experience a strong sense of cultural pride.
On a similar vein, technology is an important focus given that Hispanics use the same technology and media platforms as the rest of the country but adapt it differently given their cultural and language needs.
As for consumption trends, Nielsen found that Latinos differ in that regards to their white counterparts. While Hispanics tend to shop less often they tend to spend more per trip and are less likely to buy products at promotional prices.
The Pew Hispanic Center report also displayed just how young the Latino population is. The median age of the Latino population is 28 years old and given that the age of new homebuyers is between the age of 26 and 46 years old, Latinos will become an important force in home purchasing over the course of the next ten years.
Data from the Center for American Progress, a nonpartisan think tank, states that out of immigrants that arrived during the 1990s, 70.3 percent are projected to be homeowners by 2030.
Targeting The Hispanic Consumer:
Low-fat cheese wedges made with real queso fresco and chipotle peppers. Flickr Photo by Rabidscottsman
Chile Limon Flavored Potato Chips.
The goodness of the Caribbean with pineapple sorbet and passion fruit swirls.
In 2007, Orbit launched this bubble-gum inspired by one of Cuba's favorite drinks, the mojito. Flickr photo by Maisnon
According to Häagen-Dazs, the flavor was inspired by Latin America's treasured dessert and is made up of a combination of caramel and sweet cream, swirled with ribbons of golden caramel. Flickr Photo by stepherinoo
Starburst "Sweet Fiesta," is described by its creator as an "exotic fruit punch with flavors such as Peach Guava, Strawberry Pineapple, Cherry Mango and Melon Berry." Flickr Photo by SugarPressure.com