Tracking the Growing FMCG Buying Power of Hispanic Consumers
According to the latest report by Nielsen, 57 million Hispanic people are residents of the United States. In fact, this is the largest Hispanic population in the world after Mexico.
The Hispanic community has not only made great contributions to American culture and life, but they’ve also made major contributions to the Gross Domestic Product of the country.
With a deep affinity for consumption, frequent interaction with media channels, and buying power that’s growing exponentially, the community has been crucial for America’s long-term economic success.
Let’s see how:
How much does the Average Hispanic consumer spend?
In the year 2017, the average Hispanic consumer’s spending grew by 0.7%, while the same for non-Hispanic consumer shrunk by 0.1%. As per the same report, most of this spending took place during Easter 2017.
Another important insight from the consumer spending patterns of the Hispanic community is that their buying power is growing at triple the rate of inflation. This means that they have the financial buffer to withstand inflationary pressures. Their buying patterns are also inelastic, which means they don’t get affected as prices increase.
What FMCGs do Hispanic people buy?
Over the past few years, the Hispanic community has outspent the rest of US citizens in 12 out of 16 FMCG categories.
Hispanic people are generally very close-knit, which means that they prefer buying large SKUs of product which can be shared across the family. On the other hand, the rest of the US population is more inclined toward small product sizes.
One category that the Hispanic community prefers buying in bulk is paper products. When asked, bilingual Hispanic respondents stated that they also buy vegetables and fruits in bulk to suit the size of the entire family.
Another important point for FMCG business owners is store format. Most Hispanic people are more comfortable doing their FMCG shopping at discount stores, dollar stores, and small grocery stores.
How do Spanish and English-speaking Hispanic people differ?
Although the purchasing power of English and Spanish-speaking Hispanic people doesn’t differ much, they’re quite different in terms of what and how they buy.
When it comes to the FMCGs, the Spanish population isn’t too fond of buying FMCG goods online. This population also isn’t too fond of spending on branded goods. The retailers however need to think through their retailing decision according to the Hispanic segment that they’re targeting.
If you’re on the lookout of a multicultural advertising agency that can help you monitor your sales in the Hispanic community, get in touch with Go Diversity. Our portfolio comprises a wide range of some of the key players in the FMCG industry. Contact us now.
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