Top 10 Industries Set to Benefit from the Growing Hispanic Population
dents, while the nation’s buying power is projected to grow 27.5 percent to $14.7 trillion. The Hispanic population’s buying power is forecast to grow a whopping 48.1 percent to $1.6 trillion. Industry research firm IBISWorld analyzed the Hispanic pop- ulation’s contribution to numerous indus- tries between 2011 and 2016 and identified the top 10 U.S. industries in which Hispan- ic market share is growing the fastest. “Despite difficulties during and follow-
B
ing the recession of 2009, buying power among Hispanics continues to escalate steeply,” explained IBISWorld analyst Bri- an Bueno. “Companies across all sectors are eager to claim a piece of this pie.” Retail industries are some of the main beneficiaries of growing Hispanic buying power. Hispanics are major purchasers of children’s and infants’ clothing, accounting for about 19.2 percent of industry sales in 2011. Moreover, according to the Bureau
Industry
Consumer Electronics Stores
Men’s Clothing Stores
Children’s & Infants’ Clothing Stores
Car & Automobile Manufacturing
Advertising Agencies
Single Location Full Service Restaurants
Credit Card Processing & Money Transferring
Trade & Technical Schools Department Stores Sports Franchises
www.hnmagazine.com
y 2016, the Hispanic demographic will comprise 17.8 percent of U.S. resi-
of Labor Statistics, Hispanic men spend 7.0 percent more than non-Hispanic men on clothing on a per capita basis. In terms of consumer electronics, Hispanics are 7.0 percent more likely than the general popu- lation to own a smart phone, download mu- sic online, use mobile video, use e-mail, and send or receive text messages. Additionally, Hispanics encompass a quickly expanding share of the market for automobiles. By 2016, Hispanics will con- tribute roughly $14.0 billion to the car and automobile manufacturing industry, repre- senting an annual growth of 7.4 percent from 2011 to 2016. Restaurants across all food types have
also benefited from the growing Hispanic population. Social factors, such as the ten- dency to dine out with the entire family, give this group a substantial 11.4 percent share of the single location full-service res- taurants industry. From 2011 to 2016, Hispanic contribu- tion to the credit card processing and mon-
Hispanic Contribution
2011 ($ million) $9,671
$1,168 $1,869
$9,787 $2,979 $10,406 $5,243 $2,059
$22,131 $1,862
Hispanic Market Share 2011 (%)
12.1
12.9 19.2
11.8
10.2 11.4
12.0
12.4 11.5 7.7
Source: IBISWorld, Census Bureau, Bureau of Labor Statistics, Pew Hispanic Research Center and industry surveys Celebrating 19 Years of Diversity HISPANIC NETWORK MAGAZINE 55
ey transferring industries will grow at an annual rate of 7.2 percent, faster than the industry’s revenue growth. Credit cards and checking and savings accounts are in- creasingly being opened by Hispanics, thanks to major promotional and develop- ment efforts by banks. Hispanics are leading higher-education enrollment growth among racial groups, according to the Pew Research Center. With a large share of the Hispanic popula- tion that has yet to enter college, the group’s contribution to the education sec- tor is projected to grow rapidly over the coming years. Entertainment providers have long been
catering to the Hispanic market, but there is still a lot of room for industries such as sports franchises to grow. Also, as compa- nies expand their investments in attracting the market, advertising agencies are set to benefit substantially.
Source: IBISWorld, Inc.
Hispanic Market Share 2016 (%)
15.0
15.2 21.2
13.7
12.1 13.1
13.7
14.1 13.1 9.2
Absolute Change In Market Share 2011–2016 (%)
2.9
2.3 2.0
1.9
1.9 1.7
1.7
1.7 1.6 1.5
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