Statistics confirming the overall growth of Hispanics within the U.S. population and their spending power are readily available and frequently cited, but quantifying the Hispanic market’s impact on specific consumer goods categories and industries can prove more elusive. A new analysis of Census Bureau and Bureau of Labor Statistics Consumer Expenditure Survey data for 2005 to 2008 by Latinum Network sheds light on the true monetary impact of the Hispanic market on the food and beverage and restaurant industries.
Latinum, a for-profit business network that helps brands market to the Hispanic market through collaboration, networking and research, currently has more than 30 major marketer company members. The group presented its analysis during a recent Sanford C. Bernstein investor conference call.
Some of the findings:
- Between 2005 and 2008, new Hispanic spending offset 84% of the decline in real demand across the entire food, beverage, and restaurant industries. Total U.S. food sales grew by $15 billion (to $469 billion), beverage sales grew by $1 billion (to $114 billion), and restaurant sales declined by $19 billion (to $325 billion), for a combined loss of $2.9 billion (-0.003%). Within that total, sales generated by non-Hispanic consumers declined by $17.7 billion, or 2.4%, while Hispanic consumer sales rose by $14.8 billion, or 18.
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