Latino Buying Power
So what is the Latino Buying Power and how Big is the Latino Market?
The latest Census data reveals that there are 50.5 Million Latinos living in the United States. That seems like a big number but to really put this into perspective and realize just how big 50.5 Million really is… consider this: There are more Latinos living in the United States than there are Canadians living in Canada. That’s some serious Latino buying power!
Another way to look at is to consider that for every 6 people in the U.S., one is Latino and for every 4 children in the U.S. one is Latino. By 2020 the adult population of Latinos is projected to increase to one in five. Many of the larger companies have already realized the potential this market can bring to their companies bottom line and are already making strides to reach this lucrative market. To learn more about these businesses visit our case studies page.
Important Latino Facts:
Although Hispanics only represent 12% of the total population they represent nearly half of the growth in consumer spending. So why is it that Hispanics spend so much more? For starters consider the incredible growth in the Hispanic population – it has grown 7 times faster than any other group in the U.S. – that is 43% growth from 2000 to 2010 while the non-Hispanic group only grew 4.9%.
Hispanics have larger families and tend to live longer. The average median income for Hispanics is increasing which leads to our final point that Hispanics spend more of their disposable income than any other group.
According to Global Insight, Hispanic consumers had $1.04 trillion in disposable income in 2009, which they say accounts for 10% of U.S. disposable income and makes them equivalent to the 15th-largest consumer market place in the world.
As the young Latino adults begin to enter the workforce or move up in their careers, the Hispanic spending power is only going to increase. Experts are projecting that by 2017 Hispanic disposable income will increase by 76% to $1.8 Trillion and they attribute most of this growth to the fact that Hispanics have larger families. The average Hispanic family size is 3.4 as compared to 2.4 of non-Hispanics.
For businesses, marketing to the enormous Latino buying power can mean the difference between surviving and thriving! If you want to reach women with children, 21% of U.S. moms are Hispanic and in some of the larger cities this number grows to almost 50%. If your target is young males consider this fact, in the past 5 years the Hispanic male population ages 18-34 has grown 23% vs. 2% for non-Hispanic males.
If your still not sure where to spend your marketing dollars, take into consideration the brand loyalty of this group. For Latinos, relationships, both personal and professional, are central in their life. This value of human interaction naturally carries over when purchasing a product or even requesting information. As a result, when a Latino consumer is attended to with high quality customer service, they easily form a relationship of trust and loyalty with that brand. And just as importantly they can be your biggest referral source because they will share their experiences (both good and bad) with family and friends.