The Rise of US Hispanic Consumers: How Their Spending Power Has Changed Over the Years

The US Hispanic consumer market, representing over 20% of the total population, has experienced extraordinary growth over the last few years—along with significant changes in spending power.  According to the US Census Bureau, the Hispanic population increased by over 23% between 2010 and 2020, and as this population continues to grow and evolve, there are several significant ways in which their spending habits and behavior are transforming the retail landscape.

The Growing Shift from Blue Collar to White Collar Work

One of the most notable changes is the shift from manual labor-driven occupations to white-collar jobs in the Hispanic consumer market. Educated and middle-class Hispanics are emerging as the new consumer powerhouses, bringing the possibility for more discretionary spending. Given their growing income, Hispanic consumers have more options open to them, such as patronizing a wider selection of brands and retailers.

Along with this economic growth, the US Hispanic consumer population is increasingly utilizing digital platforms to interact with businesses and purchase goods and services. For example, in 2019, Latinos were the heaviest users of mobile phones among all major racial or ethnic groups in the country according to Pew Research Center. From their mobile phones, Hispanic consumers are actively researching potential purchases and making online buys, further propelling their spending power.

Eco-Consciousness is on the Rise

Furthermore, Hispanic consumers have started to embrace the idea of eco-consciousness, with many of them being more eager to purchase goods that feature sustainable packaging and natural ingredients. Consequently, marketers have had to adjust their approaches and account for this new consumer preference.

Loyalty, when Developed, Pays the Bills

Another significant development has come in the form of Hispanic consumer loyalty to particular brands and stores. As Hispanic consumers become more established in their economic positions and make larger purchases, they tend to be more loyal to the brands and stores that serve their needs best—leading to higher sales numbers for those businesses.

Wrapping Up!

Overall, the rise of the US Hispanic consumer is changing who shops and how, and the retail industry, and car dealers in particular, will need to adapt to keep up with these new consumers. With their increasing spending power, propensity for digital shopping, and loyalty to specific brands, marketers have to revise their strategies to stay ahead of the curve and meet the needs of these burgeoning consumers.  But as we always say, if you want to build a strong relationship with the US Hispanic community, market to the culture, not the language.

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If anyone wants to talk about what that last line in the article means, then contact me (Adam Dennis) via email, or 954.507.6468.  

Next, check out our recent article on Marketing to Hispanic Car Shoppers with Cultural Intelligence, and, finally, follow this link if you want to download our Hispanic Car Buying Preferences reports.  You can also find more posts on Dealer Marketing Maganize’s Expert Panelist section.

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