Growth Of US Hispanic Buying Power

Incredible Growth In Buying Power

According to a special report by Santa Monica-based market research firm IBISWorld featured in the Examiner, Hispanics  make up about 16.6% of the US population in 2011, representing roughly 56% of total population growth over the past decade. Data in the 2010 Census points to a surging Hispanic presence in the United States, spurring numerous questions about the demographic’s influence on spending and the economy. By 2016, this group will comprise 17.8% of US residents, furthering its impact on the US economy as its presence and buying power climb. For more than two decades, Hispanic buying power growth has outstripped that of the general population. Despite difficulties during and following the recession of 2009, buying power among Hispanics continues to escalate steeply.

  • Overall Hispanic buying power is $1.1 trillion in 2011, 9.5% of the US total*
  • Over the next 5 years, buying power is forecast to grow 48.1% to $1.6 trillion
  • By contrast,  the nation’s buying power will grow only 27.5% to $14.7 trillion.

Young and Hip

The Hispanic population is comprised of a wide variety of ethnic, cultural and socioeconomic backgrounds. Understanding this diversity has been fundamental to various companies’ ability to capture a substantial share of the market. But, there are some unifying characteristics that are distinctive of this group, such as its young age relative to that of the general population and its aforementioned rapid buying power growth.

The “Ad Value Research Study” also reports that the Spanish-speaking and bilingual Hispanic internet user segments are about 10 percent to 15 percent more likely than non-Hispanics to participate in various internet activities, including streaming a major sports or entertainment event (43 percent vs. 31 percent), receiving coupons or special offers from a mobile phone while shopping (40 percent vs. 28 percent) and checking in using location-based mobile apps to broadcast across social networks (32 percent vs. 20 percent).

A Key Health Care Consumer Demographic

A new national survey commissioned by Cultur Health, the Hispanic healthcare communications service of the vox collective and Cooney/Waters Group, suggests health care marketers should target Hispanic women ages 25-35. Why?

  • This rapidly growing demographic are key health care gatekeepers. That means they are managing not only their own health needs, but frequently those of their families, parents, grandparents and other relatives.
  • This age group relies heavily on their families and community stakeholders for health care information and product recommendations, highlighting the importance of engaging all relevant influencers. Health care provider influence and recommendation came in a close second.
  • A 59% majority of Latinas say they go to a doctor for help with a health care concern.
  • 30% named other sources including a relative, spouse, friend or pharmacist.

Personal connections play a large role in purchasing decisions. When asked who influences their decisions to buy consumer or over-the-counter health care products, respondents’ most frequent responses were:

  • Friends, family and neighbors (64 percent)
  • Pharmacist (52%).
  • Only 21% cited advertising.

An 89% majority of women surveyed  percent) reported that they pay for health care expenses through either their own employee insurance, or their spouse’s insurance. “Increasingly, younger Hispanics are insured, and companies that target them will be well positioned now and in the future,” says Fred Lake of Cooney/Waters.

* Source: Selig Center for Economic Growth.