Reach the Hispanic consumer

Hispanics make up the largest ethnic minority group in the United States, and those numbers continue to grow. With a buying power totaling $1.4 trillion, the Hispanic consumer carries significant economic clout. To benefit from this demographic, the green industry needs to ditch the heavy Caucasian influence on the hobby of gardening and make it multicultural. 

According to Simmons Research, in 2017, 17.4 percent of Americans aged 6 years and older identified as Hispanic or Latino, up from 15.3 percent in 2010. The Hispanic population is increasing across all age groups, with nearly a quarter of Americans age 6 to 34 today being Hispanic, compared with about 10 percent among those age 50 and older. This points to the continued growth and influence of this segment on the American economy. 

In 2016, U.S. Hispanic buying power was larger than the gross domestic product of Mexico, according to “The Multicultural Economy,” a report from the University of Georgia Terry College of Business published by the Selig Center for Economic Growth. 

“As America grows more diverse, minority groups are reaping great economic dividends, and business owners would do well to pay attention,” says Jeff Humphreys, director of the Selig Center. “Minority buying power is growing at a faster pace than the white consumer market for a number of reasons, such as demographics, increases in educational attainment and entrepreneurial activity.” 

The report states that more than one in six Americans claims Hispanic origin, which helps explain rapid gains over the past few years. From a buying power estimate of $495 billion in 2000, that number has jumped 181 percent to $1.4 trillion in 2016. That accounts for nearly 10 percent of total U.S. buying power in 2016 and means the U.S. Hispanic market is larger than the GDP of Mexico and bigger than the economies of all but 14 countries. 

The report provides national buying power estimates for seven selected groups of Hispanic consumers, with Mexican-Americans representing the largest group and accounting for $797 billion worth of buying power, followed by Puerto Ricans, who account for $146 billion. 

While each of these subset groups has a distinct purchasing trend, their growth has some things in common, Humphreys says. 

Click here to read the full article in our April issue.