Hispanic Shoppers Bring Increased Buying Power as Numbers Rise
NEW YORK -- As segments of the population grow, their influence and power grow with them, and that is what retailers have been seeing with the increase of Latinos in the United States.
According to 2010 Census Bureau figures, Hispanics now account for one in every six Americans. Furthermore, the population segment accounted for more than half of the U.S. population increase in the past 10 years. And these numbers cannot be ignored. Publisher Packaged Facts' "Latino Shoppers: Demographic Patterns and Spending Trends among Hispanic Americans, 8th Edition" predicts that Hispanics will continue this trend and will be responsible for more than half of the growth in the country between 2010 and 2015.
Those rising figures turn into rising power at the cash register. Packaged Facts estimates that in 2009 Latinos accounted for more than 9 percent of total buying power, compared to less than 4 percent in 1980. The buying power of Hispanics exceeded $1 trillion in 2010, and the population includes a significant number of high-income households. With an estimated buying power of $616 billion, Latinos of Mexican heritage represent the single most influential segment of the Hispanic market. By 2015, Packaged Facts forecasts the buying power of the Latino population as a whole will reach $1.3 trillion.
"The idea that there's strength in numbers certainly applies to Latinos and what this powerful demographic is poised to achieve over the next several years, especially in regards to the influence Latino consumers will have on retail and how manufacturers market their products," says Don Montuori, publisher of Packaged Facts.
The report further states that high-acculturation Latinos are more likely to own credit cards, take out loans, and have health and life insurance. They are also more aware of in-store promotions and less influenced by advertising and product placements.