By now, most marketers know the numbers when it comes to Hispanic growth in America. The segment is 52 million strong and will likely represent the majority of population growth over the coming decade. Their buying power is estimated to have been $1 trillion in 2010 that is projected to grow 50 percent to $1.5 trillion in 2015. And a new report from Nielsen adds another characteristic to the Hispanic market—cultural sustainability.
In State of the Hispanic Consumer, The Hispanic Market Imperative, Nielsen has identified several unique circumstances that combine to make Hispanics the largest population group to exhibit culture sustainability—including borderless social networking, retro acculturation, technology as a facilitator for cultural exchange and an emerging generation that combines Hispanic and U.S. cultures.
Key findings from the study include:
The overall U.S. population is graying, but the Latino population remains young and the primary feeder of workforce growth and new consumption. The median age of the Latino population is 28 years old, nearly ten years younger than the total market median age of 37 years. Given that the age for a new home buyer is between 26 and 46 years old, Latinos will become a force in residential purchasing over the next 10 years, the report contends.
Technology and media use do not mirror the general market but have distinct patterns due to language, culture, and ownership dynamics. For example, Hispanics spend 68 percent more time watching video on the Internet and 20 percent more time watching video on their mobile phones than non-Hispanic whites.
Latinos exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market. Hispanics make fewer shopping trips per household than non-Hispanics, for instance, and spend more per trip.
Rapid Latino population growth will persist. Between 2000 and 2011, Hispanics accounted for more than half of the U.S. population increase; their 10-year increase was slightly greater than that of all other non-Hispanics combined. Hispanics will contribute an even greater share (60 percent or higher) of all population growth over the next five years, the report forecasts.