Growth of the Latin population in the United States causes transformations in the country's retail sector

The latest study by the University of California, Los Angeles (UCLA), done in partnership with the Economic Research and Forecasting Center of the Lutheran University of California, reveals that currently Hispanics present in the United States account for 19.2% of the country's population. This segment is responsible for 70% of the population increase recorded annually in the US and accounts for 41.4% of the real growth in the US GDP since 2019, according to UCLA. The numbers related to the Hispanic population — with a highlight on the average of 1 million immigrants from this community entering the country every year, according to the Per Research Center — make it one of the main topics of the electoral debates between Kamala Harris and Donald Trump, candidates for the country's next presidential term.

Beyond the electoral aspect, Hispanics also stand out as a market focus, especially for the food and beverage retail sector. According to the survey by Circana, a global company Data tech --- Note: The term "data tech" is already in English and does not require translation. If you meant to translate a specific phrase or context involving "data tech," please provide more details. For the analysis of consumption behavior, the population of Latin origin present in the USA is responsible for 14% of the spending in dollars on food, a number that has been growing by 0.4 points per year, countering the reduction of 0.3 points in the consumption of the white population and surpassing the average spending of other communities, such as the African Americans and the Asian Americans.

Keeping an eye on the economic power of this segment, companies like the CVS Pharmacy drugstore chain and the Kroger supermarket franchises have invested in remodeling units. Hispanic-focused In other words, focused on Hispanics. As revealed by the Circana market study, CVS added the “"and more"” (“and more” in literal translation), developed specific designs to promote a personalized shopping experience for the Hispanic population, bet on lower prices and hired bilingual employees. Kroger, on the other hand, remodeled the Houston franchise, with signage in Spanish, and invested in exclusive products — such as canned ceviche — in addition to launching the Private label brand --- If you have any more text or specific context you'd like to translate, feel free to provide it! Kroger Mercado, whose products are developed based on ingredients consumed in Latin countries.

Toy, apparel, and beauty brands, such as Target, Kohl’s, Macy’s, Build-A-Bear, and Nike, have also been paying special attention to the segment, which is responsible for 17% of the dollar spending in these sectors and showed a 0.1-point increase in consumption in 2024. In common, these retailers have recently invested in products with commemorative editions, recalling important dates for the Latin population, with highlights being National Hispanic Heritage Month (celebrated in the U.S. between September 15 and October 15), Día de los Muertos (a Mexican calendar date celebrated between November 1 and 2), and Cinco de Mayo (a festivity that dates back to the first battle won by Mexicans).

According to Daniel Morimoto, Circana's LATAM Vice President, Hispanic spending and demands in the food, beverage, and non-food retail sectors have increased more than the average, but it is worth noting that there was a 0.1 point contraction in the consumption of goods in general, which reflects the performance of the U.S. market itself. For the executive, understanding the unique trade-offs of this community, which is expected to grow by over 50% in the next 35 years, can help better meet the needs of an increasingly consumption-ready audience. "In 2060, the Hispanic population is expected to reach 98 million people in the United States. With this, one in four inhabitants of U.S. soil will be of Latin American origin. Thus, understanding where the spending of these consumers is most prevalent by sector, purchase methods, channel, and categories is a top priority that will contribute to preserving the U.S. economic dynamics," the executive points out.

To learn in depth about this and other studies developed by Circana, visit: Unlock Growth with Complete Consumer Insights (circana.com).