Hispanic culture inspires bakery buys: Rich Products
The community’s presence in the U.S. is growing, as is interest in foods with authentic Hispanic tastes.
Courtesy of Rich Products
The diversity of America’s population continues to broaden; at the same time, the array of different foods inspired by other cultures continues to expand. For example, Hispanic consumers are a growing community, and their interest in buying baked goods, snacks, and other foods that evoke the flavors of their home and heritage is influencing the products on store shelves. Snack Food & Wholesale Bakery checked in with Bill Heiler, senior manager of customer marketing with Rich Products, to learn more.
Jenni Spinner: A significant influence on that changing bakery landscape is Hispanic Americans—could you please talk about that demographic, and their buying power in the U.S.?
Bill Heiler: The Hispanic population in the U.S. is rapidly growing, and so too is their buying power. According to the 2023 Pew Census Report, Hispanics wield $3.2 trillion in buying power, and that number is only expected to grow. There are a couple of key drivers impacting the growth of Hispanic-inspired products. Not only are Hispanics at the forefront of the evolving American demographic, but more than half of Hispanics living in the U.S. report being influenced by their culture when making purchase decisions. Additionally, non-Hispanic consumers are increasingly trying and enjoying authentic Hispanic flavors, which is also contributing to this surge in growth.
JS: Can you talk about some types of sweet treats Americans with Hispanic heritage might be putting into their carts?
BH: Celebration is an important part of Hispanic culture, and we see that American households of Hispanic heritage are enjoying everyday occasions with fresh bakery desserts. From decorated cakes and ice cream cakes to cheesecakes and elevated desserts, Hispanic families are driving significant purchases of celebratory centerpieces from in-store bakeries – totaling 20% of all ISB dessert purchases, according to the 85.41 Stratum Data ‘Bakery Products Purchased All HHs vs Hispanic’ report.
JS: What about the rest of American shoppers—are they showing interest in baked goods with Hispanic flavors?
BH: American shoppers love globally inspired desserts, and as a result, in-store fresh bakery retailers have been rapidly growing their Hispanic flavors. These offerings are often paired with traditional classics like chocolate, strawberry, and caramel. Hispanic influence is so prominent that in 2023, the value of Hispanic bakery items in the U.S. reached $114M.
JS: What advice do you have for bakeries, groceries, foodservice operators, and other businesses looking to capture some of that consumer interest?
BH: We advise retailers to start with smaller portion sizes to help encourage trial and then gradually expand to full-size cakes and desserts. Take Tres Leches desserts as an example. The demographic profile for buyers of single-serve Tres Leches desserts is 81% non-Hispanic households, while Hispanic households make up only 19% of purchases of these smaller-sized portions. For larger cakes, Hispanic households make up to 48% of purchases.
JS: Can you talk about some of the solutions your company offers in that arena?
BH: Rich's offers a variety of Hispanic-inspired offerings, including labor-saving Tres Leches style soaks, presoaked cakes, and sponge cakes, as well as ready-to-serve full-size and individual-size Tres Leches style cakes and retail-ready dessert cups. In addition, we offer everyday staples and treats, such as traditional bolillo, telera rolls, and churros. At Rich’s, we’re focused on helping our customers meet the needs of their consumers, especially as they prepare for Hispanic heritage holidays like Rosca de Reyes for January celebrations, Carnaval in the first quarter of the year, or Día de los Muertos in November.
Related: Rich's launches Double Chocolate Filled Donut Bites
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