The U.S. Hispanic market is massive – and growing larger at a dizzying rate.
There are more than 130 million multicultural Americans, making up nearly 38 percent of the total population. One out of five of these multicultural Americans is Hispanic. There are nearly 60 million Hispanics living in the U.S. today, and that number will grow by 12 million over the next five years. In fact, by 2050, the U.S. is expected to be the world’s largest Spanish-speaking country.
These are a lot of numbers, but what does it all mean to the average American business?
It means that U.S. brands should have a sense of urgency about creating a strategy to speak to Hispanics, because if they don’t, a competitor will. The U.S. Hispanic market has $1.7 trillion in buying power, a figure that will no doubt increase as the population grows.
Brands have been slow to market to U.S. Hispanics, despite the fact that in 2019, Hispanics account for 10.6 percent of total U.S. buying power. According to AdAge, in 2016, Hispanic major-media spending edged up just 1.2 percent over 2015 to $9.6 billion; the only category that grew significantly was digital, which was up 16.9 percent to $2 billion. In fact, TV spending was down slightly to $6 billion in 2016 from $6.2 billion the previous year.
This will not last long, given that Hispanics were responsible for nearly half of all population growth during the past five years. There is still a massive opportunity for brands to gain a foothold with U.S. Hispanics before others move in.
Here are three essential things businesses should know as they direct their attention toward Hispanic consumers.
1. Hispanic consumers are young: We reported that the most common age among non-Hispanic white Americans in 2018 was 58, whereas the most common age for a multicultural citizen was 27. According to Pew Research, the most common age among Hispanics is a mere 11 years.
According to Nielsen, the average age of U.S. Hispanics is 27, whereas the average age for non-Hispanic whites is 42.
More than 50 percent of the Hispanic population living in the U.S. is under the age of 30. Of all children ages 9 and under living in the U.S., one in four is Hispanic.
These numbers suggest that the U.S. Hispanic market’s $1.7 trillion in buying power is only scratching the surface of what it will ultimately be.
2. The Spanish language matters significantly to U.S. Hispanics: The Pew Research Center says that 82 percent of U.S. Hispanic adults speak Spanish. More than nine out of 10 said it is important to them that their children continue to speak Spanish. Though just over half of U.S. Hispanics are bilingual, the ability to reach out to these consumers in Spanish can be extremely valuable.In fact, about 56 percent of U.S. Hispanics told Experian Simmons Summer that they agree with this statement: “When I hear a company advertise in Spanish, it makes me feel like they respect my heritage and want my business.” Just as many said they feel “much more loyal to companies that show appreciation of our culture by advertising in Spanish.”
3. U.S. Hispanics are far more digitally enabled than the norm: Hispanics are faster to embrace technology than any other consumer group. According to Nielsen, U.S. Hispanics age 18 and older are 9 percent more likely to own a smartphone, 11 percent more likely to own a game console, and 13 percent more likely to own a smartwatch than non-Hispanic whites.
Nielsen reports that 56 percent of U.S. Hispanics shop using their mobile phones versus 33 percent of non-Hispanics; meanwhile, 43 percent of U.S. Hispanics shop using a tablet device versus 25 percent of non-Hispanics.
LanguageLine Can Help
We believe that being understood is empowering. For nearly four decades, LanguageLine has worked with businesses to connect them to the Hispanic market through interpretation , translation and localization services. Please contact us so that we can learn more about your organization.