A growing segment: Why it is important to understand Hispanic consumers

By Natalia Infante Caylor | November 7, 2023

Reading time: 3 minutes

Seven Important Things To Know About Hispanic Consumers Ideas Updates Email — Natalia Infante Caylor gives seven reasons why to understand and market to the Hispanic consumer.

Abstract

The Hispanic population is predicted to double in size by 2060, which makes it important to understand this segment of consumers. According to researcher Natalia Infante Caylor, there are seven main reasons why it is important to understand and market to the Hispanic consumer.

Research Topics:: Diversity Equity & Inclusion (DEI) | Market Segmentation Studies | Marketing Research-General | Segmentation Studies
Industry/Market Focus:: Hispanic | Research Industry
Content Type: Research Industry Voices

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Seven important things to know about Hispanic consumers

Diversity in marketing research recruitment is critically important for brands. And, according to the U.S. Census Bureau, the U.S. Hispanic population is predicted to almost double in size by 2060.

Although insights into what products and services resonate with this segment can more accurately inform product development and marketing strategies, it is also important to recognize the diversity of this segment.

Here are seven reasons why it’s important to understand and market to Hispanic consumers.

Hispanic consumers represent a large amount of purchasing power

Hispanics’ purchasing power as of 2021 was $3.2 Trillion, as reported by UCLA. Their economic impact on various industries, including retail, health care, CPG and entertainment, is substantial.

Brands and organizations that overlook this demographic are missing out on a significant opportunity.

Hispanic consumers are known for their extreme loyalty

Hispanics are known for being loyal to products and services they like and trust. Coming from a collectivistic set of values, they tend to place a strong emphasis on family recommendations and peer reviews.

Thus, understanding the factors that influence their loyalty can be crucial for brand success.

Young and rapidly growing population

The Hispanic population is one of the youngest and fastest-growing segments in the U.S. Therefore, understanding and catering to this growing market is crucial for brands looking to grow and remain competitive.

A lot of cultural diversity within the segment

The Hispanic population is not a monolithic segment. For example, even though Hispanics have Spanish as a common language, it has approximately 10 dialects. The Hispanic culture is based on a wide range of microcultures and rich traditions, different types of food, music and dances.

Successful brands with effective market research recognize this diversity and tailor their products, services and marketing strategies accordingly.

Need to know languages spoken in this bilingual segment

Many Hispanic consumers are bilingual or multilingual. This could present unique opportunities and challenges for brands and organizations in terms of marketing and communication strategies.

However, this is another reason why it’s important to learn about Hispanic consumers, as with any segment there is not a one size fits all, but tremendous opportunities.

Important to long-term success of a business

The Hispanic population is relatively young, with a median age of 29.5 in 2021 according to Pew Research. This represents a higher percentage of young consumers compared to the general population.

Understanding the buying preferences and behaviors of this youthful demographic is essential for long-term business planning.

Need to understand cultural nuances

To connect with Hispanic consumers, businesses must create culturally relevant and sensitive marketing campaigns, which requires a deep understanding of cultural nuances and language.

Developing culturally sensitive, relevant messaging and products can be achieved by working with a knowledgeable team familiar with the culture, language and nuances of this growing segment.

The Hispanic population wants to participate in market research

One of the main comments I hear when interviewing Hispanic consumers or participants is how eager they are to participate, to express their opinions about products and services, to see themselves represented in research studies and how grateful they are for the opportunities to make an impact.

I hope more brands will consider connecting with Hispanic consumers as they are an essential and influential market segment. The impact of Hispanic consumers cannot be overstated. Understanding their unique cultural, economic and demographic factors is crucial for brands that want to succeed in a diverse and rapidly changing market.