Marketing to Hispanics to Achieve Growth

See Why Hispanic Marketing is Essential to your company's Growth and Profitability.

The Hispanic population in the United States is the second-largest ethnic group, and its purchasing power has steadily increased over the years. As a result, marketers have been paying close attention to this growing market, and for good reason. In this blog, we will explore the importance of marketing to Hispanics in the United States, including their buying power, brand loyalty, and the larger size of their households.

According to the U.S. Census Bureau, Hispanics accounted for 18.7% of the U.S. population in 2020, making them the second-largest ethnic group in the country. In terms of buying power, Hispanics are projected to reach $1.9 trillion by 2023, a 25% increase from 2018. This represents a significant opportunity for businesses to tap into this growing market and capitalize on the potential for increased revenue.

One reason marketing to Hispanics is so important is their tendency to be more brand loyal than other demographic groups. This loyalty is particularly evident in the food and beverage industry, where Hispanic consumers tend to prefer brands that are familiar to them. For example, a Hispanic family may purchase a specific brand of beans or tortillas they have been using for generations rather than trying a new one. This presents a unique challenge for businesses looking to expand their market share. Still, it also represents a tremendous opportunity for those that are successful in establishing a loyal customer base among Hispanic consumers.

Another factor that makes marketing to Hispanics important is the fact that their households tend to be larger than those of other demographic groups. According to the Pew Research Center, the average Hispanic household had 3.7 members in 2019, compared to 2.3 members for non-Hispanic households. This means that businesses that target Hispanic consumers have the potential to reach a larger audience with each marketing campaign.

In addition to their larger households, Hispanics also tend to have a strong sense of community and family ties. This means that marketing campaigns focusing on family values, community involvement, and cultural heritage will likely resonate strongly with Hispanic consumers. For example, a business that sponsors a local community event or festival that celebrates Hispanic culture is likely to be well-received by Hispanic community members.

To effectively market to Hispanics, it is crucial to understand their cultural background and values. For example, Hispanic consumers tend to value family, respect, and tradition highly. They also tend to be highly social, with a preference for face-to-face interactions rather than digital communication. Businesses that can successfully incorporate these values into their marketing campaigns will likely see a positive response from Hispanic consumers.

In addition to understanding the cultural values of Hispanic consumers, it is also important to consider the language barrier that may exist for some members of this demographic group. While many Hispanic consumers are bilingual or speak English fluently, many still speak Spanish. To effectively reach these consumers, businesses may need to develop marketing materials in Spanish or work with expert Spanish-dominant marketers to ensure their message is accurately conveyed culturally vs. only a translation.

Finally, it is important to note that marketing to Hispanics is not just about reaching a specific demographic group. By creating marketing campaigns that resonate with Hispanic consumers, businesses can reach a broader audience that includes non-Hispanic consumers attracted to the brand's cultural values and community involvement. This means that marketing to Hispanics can be a sound business decision that benefits the company as a whole, not just a specific demographic group.

In conclusion, the importance of marketing to Hispanics in the United States cannot be overstated. With a growing population and increasing purchasing power, Hispanic consumers represent a significant opportunity for businesses to expand their market share and increase revenue. By understanding Hispanic consumers' cultural values and preferences and developing marketing campaigns that resonate with this demographic group, businesses can establish a solid presence with these consumers and grow exponentially.