The latest study ofUniversity of California, Los Angeles(UCLA), conducted in partnership with the Center for Economic Research and Forecasting at the Lutheran University of California, reveals that Hispanics currently in the United States account for 19.2% of the country's population. This segment accounts for 70% of the annual population increase recorded in the US and represents 41.4% of the real growth of the US GDP since 2019, according to UCLA. The numbers linked to the Hispanic population — highlighting the average of 1 million immigrants from this community entering the country each year, according to thePer 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 Circana survey, a global companydata techfor the analysis of consumer behavior, the Latino population in the US is responsible for 14% of dollar spending on food, a number that has been growing by 0.4 points per year, contrasting with the 0.3 point reduction in consumption by the white population and exceeding the average spending of other communities, such as African-Americans and Asian-Americans.
With an eye on the economic power of this segment, companies such as the drugstore chain CVS Pharmacy and the supermarket franchises Kroger invested in remodeling their units.hispanic-focused, that is, focused on Hispanics. According to the market study by Circana, CVS added theand 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, in turn, remodeled the Houston franchise with signage in Spanish, invested in exclusive products — such as canned ceviche — and also launched theprivate label brand Kroger Mercado, whose products are developed based on ingredients consumed in Latin countries.
Toy, clothing, 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 accounts for 17% of 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, celebrating important dates for the Latin community, highlighting National Hispanic Heritage Month (celebrated in the US from September 15 to October 15), Día de los Muertos (a Mexican calendar date celebrated between November 1 and 2), and Cinco de Mayo (a celebration that dates back to the first battle won by Mexicans).
According to Daniel Morimoto, LATAM Vice President of Circana, Hispanic spending and demands in the retail of food, beverages, and non-food products have increased more than the average, but it is worth noting that overall merchandise consumption declined by 0.1 points, reflecting the performance of the U.S. market itself. For the executive, understanding the exclusive compensations of this community, which is expected to grow by more than 50% over the next 35 years, can help better meet the needs of an increasingly consumption-ready audience. By 2060, the Hispanic population is expected to reach 98 million people in the United States. As a result, one in four residents of the U.S. will be of Latin origin. Therefore, understanding where these consumers' spending is most prevalent by sector, purchasing methods, channel, and categories is a top priority that will help preserve the North American economic dynamics, the executive notes.
To learn more about this and other studies developed by Circana, visit:Unlock Growth with Complete Consumer Insights (circana.com).
