Hispanic Market: A Trillion Dollar Opportunity

Numbers speak louder than words. Forget that 81% of latinos microblog or  that latinos are probably different than the mainstream business leaders. Don’t pay attention to the fact that mommy bloggers are a huge influence online and that latinas prefer blogging to social networks. Don’t even think about the fact that latinos/as are more brand conscious and become more attached to brands than the mainstream consumer. Forget that we may be the mainstream in a few years. Forget all of that and focus on this:

Hispanics number more than 50 million in the United States, and command $1 trillion in buying power. Yet half of U.S. advertisers, says the report, who acknowledge the cultural impact of Latinos, do not include Hispanics in their marketing efforts.

  • Latinos comprise more than 15% of the U.S. population, and are predicted to rise to 50 million in the 2010 Census, an increase of 42% since the last Census in 2000. In the 2000 report, the Hispanic growth rate of 24.3% was more than three times the growth rate of the total U.S. population, which was 6.1%.
  • Yet the research showed that 82% of respondents have no plans to begin or increase existing efforts aimed at American Hispanics in the next 12 months. This despite the fact that the great majority of respondents agreed that Latinos will impact U.S. companies’ product and service offerings in the next five years, particularly in food tastes, fashion and technology.

Hector Orcí, co-founder and chairman of the agency, says “… for the last 30 years, a minority of companies that have been smart enough to take advantage of engaging Hispanic consumers, have seen their efforts make a difference to their bottomline… ”

The survey also found that 78% of respondents do not use social media to engage Latinos despite the fact that Hispanics are the heaviest users of wireless access through mobile phones and laptops than any other ethnic group. In addition, close to 80% of Latinos engage in some kind of online socializing. Among those companies who do use social media to market to Hispanics, Facebook was the site of choice with Twitter a close second.

“Hispanics are tech savvy, young trend setters with incredible spending power…” Orcí said.

Other key results of the survey include:

  • 89% believe Latinos will somewhat or significantly impact American taste in foods in the next five years
  • 87% believe Latinos will impact fashion and beauty
  • 82% expect Hispanics to impact entertainment
  • 78% believe Hispanics will impact technology/communications

The survey was conducted via email to 9,300 senior marketing and advertising executives of B2B, consumer, small, medium and large Fortune 1000 businesses across the country in February of 2010.

And, according to a recent study by The Nielsen Company released almost simultaneously with the Orci study, America’s demographic profile is undergoing major changes, and describes the potential impact on consumer packaged goods.

The report says that by 2050, more than half of the U.S. population will be non-white (African-American, Asian, Hispanic). This dynamic growth represents not only significant cultural shifts, but also one of the more remarkable marketing opportunities in history. By that 2050 milestone, the economic opportunity for brands in the multicultural CPG space is projected to exceed $500B.

Let us help you tap into it.