Recently, I came across a press release published in Abasto, and other mainstream media, by the good folks at Package Facts, a world renowned producer of market studies and solid research for the food and beverage industry.
Package Facts stated in “Hispanic Food and Beverage in the U.S., 6th Edition”, that the Latino food and beverage market, for a specific set of Hispanic food and beverage packaged products (which include tortillas and salsa), was reaching $18 billion USD and was growing at a pace of four percent a year.
Eighteen billion sounds like a very respectable figure and it represents a lot of tortillas, but we should look at the whole market to understand where the total Hispanic food and beverage market is at.
For example, a recent Pew Hispanic Research Center study estimated that in 2015 Hispanic purchasing power had reached $1.5 trillion dollars.
This figure is ratified by the results presented by the Selig Center for Economic Growth at the University of Georgia Terry College of Business. Their 2013 study Multicultural Economy Report stated: “At $1.3 trillion, the 2014 Hispanic market is larger than the economy of all but 15 countries in the world”.
The U.S. market as a whole has a “purchasing power parity” of $18 trillion USD. Expenditures in food and beverages were estimated to be around $1.5 trillion USD in 2013 by Global Strategy, Inc. in “United States of America Food & Beverage Market Study”, a study publicly available on the Internet. Others have estimated that Americans spent roughly 11% of their money on food and beverages (around 7 percent at home, and the rest “eating out”).
If we apply these same proportions to the Hispanic market, assuming a “purchasing power parity’ or buying power of $1.5 trillion USD (with no consideration of a 2013 NDP Group Report which found Hispanics spend in groceries 29 percent more than non-Hispanics, and that Latino families are larger than non-Latino families), then Latino expenditures in food and beverages should be around $170 billion per year, at minimum.
This consumption figure is as big as the combined economies of Costa Rica, Panama, Honduras, Nicaragua, and Guatemala. Imagine that!
So, we ask marketers, as Packaged Facts argued in their press release, to be wise and aggressively fill their shelves with those items Hispanic consumers are looking for.
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