Recent studies prove that spending power by the Hispanic demographic is growing faster than that of non-Latino groups.
The number of Hispanic households is growing faster than ever, making a larger consumer group. This also means that there is a higher spending power among Latinos in America that businesses will model some of their strategies toward.
Between 2012 and 2015, Latino households represented about 40 percent of the growth in spending for household equipment. In the same time period, Hispanic households accounted for 25 percent of the growth in spending for new cars and trucks.
Data for Latino Household Aggregated Spending
Latino household accounted for double-digit shares of growth in aggregated expenditures:
- 20 percent growth in furniture expenses
- 18 percent growth in major household appliances
- 17 percent growth in audio-visual equipment and services
- 16 percent growth in small appliances
Data for Latino Household Use of Financial Services
In the past 10 years, Latino households have accounted for the rapid growth of a wide selection of financial services. Hispanic households have spent more on financial services than any other demographic in the U.S.
Hispanic Contribution to Growth in Financial Industry
Between 2005 and 2015, the use of credit cards by Latinos have grown 11 times faster than it did in non-Latino households. Data shows that it grew by 44 percent, whereas other households only grew by 4 percent.
In the same time period, there were 5.1 million more Latino credit card holders which accounted for about 49 percent of the growth in the total amount of consumers using credit cards.
Hispanic Consumer Trends Impact Foodservice Industry
Not only are Hispanic consumers contributing to the growth of the financial industry, the demographic also makes a huge impact on the foodservice industry.
A recent Hispanic Foodservice Consumer Trend Report says that Latinos are expected to make up nearly 30 percent of the U.S. population. What that means is that, the Latino demographic will shape the growth of the industry because as the population grows, so will its usage of food.
Forty-one percent of Hispanic consumers account for the usage of foodservices twice a week.
Family style eating places benefit the most from Latino consumers since Hispanics generally like to eat meals with their families.
Franchises will benefit from the growth in Latino spending power should they add popular Hispanic meals and flavors to their menus.
Source: Published originally on LatinPost.com Latino Spending Power Reaches All-Time High, Surpasses Non-Latino Groups' , by Claudia Balthazar, August 12, 2016.