The Hispanic market segment is putting the pedal to the metal in the growth of tea, spirits/wine and coffee categories, while it’s putting the brakes on underperforming beverages like bottled water and milk. A similar phenomenon exists at the product level.
“[The] Hispanic [market is] growing so rapidly, that the growth we’ll see in many consumer products will come only from the Hispanic buy, so it’s imperative to target the Hispanic buy now,” says Sabrina Crow, senior vice president/managing director, global client business partner for Univision, Nielsen, during the company’s state of the Hispanic consumer webinar.
Categories claiming the most dollar share from Hispanics include dried vegetables and grains, haircare, shortening oil, baby food, women’s fragrances, grooming aids, disposable diapers, family planning, photographic supplies and baby needs.
Hispanics’ influence in the future of the U.S. economy is great, yet the conversation remains fairly quiet as corporations reportedly grow more uncomfortable with this time-sensitive issue. Corporations know that Hispanics represent the fastest growing population (+$50MM) and workforce community in America. Yet some say they are not being proactive enough to engage with this valuable demographic that will represent 30% of America by 2050. As such, the U.S. economy could be weakening from a lack of investment in the Hispanic community, which will soon dictate new business models.
According to a recent Nielsen study, if U.S. Hispanics were a standalone country, their market buying power would be one of the top 20 economies in the world.
Sources: www.supermarketnews.com, www.huffingtonpost.com
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