Hispanic Market & Its Buying Power

“Latinos will change the profile of American society over the next four decades. The Hispanic population will grow much quicker than other population segments, and Hispanic consumers will represent an increasing percentage of the American consumer base.” -Tatjana Meerman, publisher; Packaged Facts research company

To learn more about the Hispanic Buying Power,click here.

Excerpt from The U.S. Hispanic Economy in Transition: Facts, Figures, and Trends

As the U.S. Hispanic economy continues to solidify its growing influence in the 21st century, the ripple effects already have begun to profoundly alter the nation’s political, social, cultural, and economic structures.

As the Hispanic population grows and matures, its structure is changing in almost every way, from educational levels and labor force composition to household characteristics and accumulation of wealth. It is these evolving factors that drive the increasing influence of Hispanics in U.S. consumer markets.

Hispanics account for over 13 percent of the U.S. labor force and are expected to increase to nearly 20 percent by 2030. In addition, higher-paying management and professional occupations are the fastest-growing job categories for Hispanics, propelled by growing educational attainment. All of this comes as Hispanic employment has grown more than 16 percent since 2000, while overall U.S. employment has barely grown 2 percent.

As their educational achievements steadily increase, Hispanics are slowly closing the educational gap with non-Hispanics with each successive generation. Educational gains will play a key role in today’s global economy as Hispanics boost their influence and burgeoning purchasing power. So far, Hispanic purchasing power has increased at a compound annual growth rate of 7.5 percent, more than twice as fast as the 2.8 percent growth for the total U.S. purchasing power. Hispanic purchasing power reached $700 billion in 2004 and is poised to surge to $1 trillion by 2010.

Driving the increased affluence, in part, is Hispanic entrepreneurship. Last year, U.S. Hispanics owned nearly 2 million businesses generating total revenue of $273.8 billion – figures that are expected to grow to 3.2 million and $465.6 billion, respectively, by 2010. As Hispanic-owned companies mature, many have begun to enter the “middle-market” stage, facing one of the key challenges for growing companies: access to capital. For many sectors, this potential growth in Hispanic-owned companies, together with their increasing need for capital, represents an expanding and powerful opportunity.

Excerpt from The U.S. Hispanic Economy in Transition: Facts, Figures, and Trends introduction by Juan B. Solana.

The U.S. Hispanic Economy in Transition: Facts, Figures, and Trends by HispanTelligence, provides a comprehensive examination of the quantitative measures of the Hispanic market and its qualitative characteristics, as well as an interpretation of its expanding impact and implications for the nation’s future.

Learn about the power of the Hispanic consumer online. Click Here. (Source: Scarborough Research)