SALES & MARKETING
U.S. Hispanics Propel Real Growth In Food, Beverage And Restaurant Sectors
H
ispanics have become the most im- portant U.S. demographic growth
driver in the food, beverage and res- taurant sectors, according to data pre- sented by Latinum Network (http://
www.latinumnetwork.com). The U.S. Hispanic segment made
up more than 50% of real growth in the midst of a stagnant U.S. consumer economy between 2005 and 2008, with $52 billion of new inflation-adjusted Hispanic spending outpacing $40 bil- lion of new spending by non-Hispan- ics. This growth can be attributed pri- marily to an increase in the number of U.S. Hispanic households, and second- ly to an increase in consumer spend- ing among U.S. Hispanics. In the food, beverage and restaurant business, this new spending offset most (84%) of the real decline in demand across the en- tire $1 trillion sector. This divergence in demand is driven mainly by differ- ences in ethnic preferences, economic and cultural integration, and demo- graphics.
Among Latinum’s key findings:
n Over $9B of new value in Food and Beverage was created by Hispan- ics in otherwise dormant or declining categories such as fish and seafood, fresh fruit juice and dairy products between 2005 and 2008 n $5.9B of new value was created by Hispanics in growing categories where they represent approximately 20% of the growth such as vegetable juices and fruit drinks, meats includ- ing pork, ham and mutton and frozen meals, which represent the highest- growth food category among Hispan- ics. It appears that busy Hispanic professionals are increasingly turning to frozen meals to feed their children. n While health & wellness trends
94 HISPANIC NETWORK MAGAZINE
reduced non-Hispanic consumption of beef, ethnic preferences buoyed Hispanic buying of beef n Hispanics are eating out more while others are cutting back, driving growth in fast food and full-service. In particular, Hispanics are increasingly likely to eat out during the work day, driving new sales in fast-food break- fasts and full-service lunches n The increasing rate of Hispanic home ownership is driving growth in household goods, while non-Hispan- ics are doing the opposite - reducing real estate holdings and their purchase of household goods n Hispanic teens are driving the majority of new growth in deodorant and feminine hygiene and at least 20% of growth in cosmetics and shaving needs.
According to Alexia Howard, Senior
Research Analyst-US Foods at Sanford C. Bernstein, “With total U.S. Hispanic household spending expected to top $1 trillion by 2013, and emerging markets around the world (such as China or In- dia) fraught with political risk and hid- den costs, institutional investors have
Celebrating 18 Years of Diversity
a unique opportunity to look home- ward. We see the growth in food, bev- erage and restaurants here as a partic- ularly interesting opportunity for our investors. Especially with the relative stability of Hispanic demographics, this growth can be reliably predicted through 2050.” Says David Wellisch, co-founder
and principal of Latinum Network, “Clearly, U.S. Hispanics represent a growing market in the midst of a ma- ture U.S. consumer economy, but in or- der to win over this important demo, brands must make an authentic appeal to the unique behaviors and tastes of U.S. Hispanics through distinct prod- ucts, channels, messaging and market- ing strategies.” For example, while younger His-
panics have higher levels of English proficiency and economic achievement due to having more education than their older counterparts, Spanish us- age and preference remain high as con- sumers acculturate, giving companies expanded options for in-language and multichannel advertising and market- ing strategies which appeal to a broad- er portion of the market.
www.hnmagazine.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104