- Sally Lyons Wyatt
- Dec 17, 2024
- 4 min read
Updated: 3 days ago
By Sally Lyons Wyatt, Global EVP & Chief Advisor, Consumer Goods & Foodservice Insights and Kellie Hardin, Client Insights Consultant
Circana’s Key Takeaways
Hispanic consumers favor in-store shopping, family-owned retailers, and products from their countries of origin while skewing towards dollar and club store channels.
Food and beverage brands need to measure and grow their share among Hispanic shoppers by aligning products with this audience's needs, such as "natural" and "better for you" offerings.
Retailers should create Hispanic-focused shopping experiences that include bilingual staff, signage, and digital tools.
Hispanics make up 20% of the U.S. population, a number the U.S. Census Bureau expects to grow 50% by 2060. This diverse and young group of consumers represents more than two dozen countries in the U.S. and more than 25% of them are from Gen Z. They make more than $180 billion in CPG purchases annually – that accounts for 14% of the total market and 16% of total CPG growth.
Hispanics are driving growth and outpacing non-Hispanics in CPG and food and beverage in both dollars (3.5% vs. 2.6%) and units (7% vs. -0.3%).
If you’re a food and beverage brand or a retailer, understanding these valuable consumers’ spending patterns, channel preferences, cultural influences, preferred flavor profiles, countries of origin, and other purchase drivers will be critical to driving in-store and online engagement.
Hispanic consumer shopping trends
Hispanic consumers are not a monolith – with countries of origin spanning North, Central, and South America, plus countries in the Caribbean, their preferences and shopping patterns are anything but homogenous. But in general, Circana’s research has found they are more likely than non-Hispanics to:
Shop in-store than online
Favor family-owned retailers
Seek food brands from their countries of origin
Shop for larger households
Skew toward the dollar and club channels for food and beverage purchases.
We also found Hispanic CPG spending growth is faster in food and beverage, particularly in units, than it is among non-Hispanics.
How brands can market to Hispanic shoppers
Food and beverage brands should have a Hispanic consumer objective within their brand strategies. As part of this, brands should measure their share among Hispanic consumers on an ongoing basis and develop their strategy around retaining their Hispanic consumers, winning back lost ones, and attracting new Hispanic consumers to drive growth across their portfolios.
Opportunities for brands with high Hispanic penetration: If a brand knows its share of Hispanic consumers is high, the focus should be on maintaining and retaining customers and seeking growth opportunities. For example, the chili-lime seasoning brand Tajin has grown its influence across the store, growing from eight categories four years ago to 11 categories in 2024. Now shoppers can find Tajin-flavored fruit snacks, Tajin-mango sorbet, and Tajin-flavored snack nuts. Tajin dollar sales grew from $55 million to $115 million over the 52 weeks ending October 10, 2024, shown by Circana’s POS, MULO+ with Convenience data.
Co-branding partnerships or entering adjacencies and licensing deals are great ways for Hispanic brands and brands in general to drive growth, expand brand equity, and attract new partners. If a brand doesn’t have attributes that align with Hispanic needs, it should consider mergers and acquisitions to find its way into homes.
Opportunities for brands looking to increase their share of Hispanic customers. Whether a brand’s penetration among Hispanic consumers is high or low, finding growth opportunities requires a multipronged approach. Brands with low penetration should assess whether they have attributes, benefits, or differentiation that align with Hispanics’ needs and attitudes. If the brand believes this is the case, the brand should communicate and promote these attributes and assure availability where Hispanic consumers shop. For example, Hispanics are drawn to products promoted as “natural,” “organic,” and “better for you,” and they seek out flavors like horchata, melon, mango, and limón.
Retailer strategies for increasing Hispanic consumer engagement
Like brands, retailers also need to make capturing Hispanic shoppers a core part of their growth strategy. They can incorporate consistent measurement and objectives built around whether penetration is high, medium, or low. To make the shopping experience more attractive to Hispanic shoppers, retailers should consider:
Targeting assortment to Hispanic consumers’ preferences. Retailers have an opportunity to develop Hispanic-focused store concepts that provide a personalized shopping experience to local Hispanic communities. These stores could incorporate bilingual staff and signage and Hispanic-branded products. Retailers could arrange products by country of origin and sponsor promotions and sales around these items.
Offering bilingual digital experiences. Retailers can take advantage of Hispanics’ preference for in-store shopping by getting creative with digital tools that make walking the store easier. Retailer apps could provide bilingual marketing, call attention to products by Hispanic brands, and highlight keywords and product attributes Hispanic consumers seek.
Align Hispanic social/digital media messaging with preferred language and on key apps. Hispanics over-index in their use of WhatsApp, TikTok, and Snapchat, among other apps. Retailers and brands should test bilingual effectiveness and work to expand language preferences across traditional media and marketing materials.
Do you have any questions for Circana? Email GrowthInsights@circana.com.
Get Access To Circana's Related Consumer Behavior Reports:
Meet the U.S. Hispanic CPG Consumer
Hispanics represent 20% of the U.S. population. They also account for 14% of the total CPG market spending, a share that continues to grow. This report, Part I in a two-part series, explores their more than $180B annual CPG purchases to highlight consumption trends and opportunities to win with these valuable consumers.
Hispanics’ CPG Shopping Trends
14% of U.S. households are Hispanic households, and these consumers are more likely to shop in-store than online. This report, Part II in a two-part series, focuses on U.S. Hispanic retail engagement. It also explores the importance of understanding cultural references and opportunities to activate these valuable shoppers around specific holidays.
