Marketing
U.S. Hispanic Households to Outspend White Households
The growing demographic is projected to make $2.5 million in average lifetime purchases.
May 07, 2019
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CINCINNATI, Ohio – Now the second-largest demographic group in the United States, Hispanic Americans represent 19.5% of the U.S. population, according to the Claritas Hispanic American Market Report. With more than 64 million members, Hispanic Americans also are the country’s second fastest-growing population segment, with 83% growth since 2000. Currently there are more than 133.2 million multicultural Americans, and Hispanics account for 37.5% of the total multicultural population.
“Only a few decades ago, the Hispanic population was an emerging niche made up primarily of migrant workers in agriculture, factories and in lower-level service occupations. Today, they make up one-fifth of the American population, and Hispanic households are expected to outspend their white majority counterparts during their lifetimes,” said Karthik Iyer, COO at Claritas, in a press release. “That kind of growth, combined with strong lifetime purchasing power, makes Hispanic Americans one of the most attractive targets for marketers today.”
According to the Claritas Hispanic American Market Report, the cumulative lifetime spend of the average Hispanic American household is $2,535,959. That’s $538,636 more than the lifetime spend of the average white American household. With larger families and increasing spending habits, these consumers represent untapped revenue potential for a multitude of products and services from food, automotive and apparel to insurance, technology and banking.
According to the report, Hispanics spend roughly $2,300 annually on apparel—5% more than the average U.S. household. Hispanic households also spend $4,740 annually on food at home—about 1.4% more than the average U.S. household. Hispanic Americans also appear to be do-it-yourselfers, particularly when it comes to their automobiles. Compared with the average U.S. household, Hispanic households spend 18% more on motor oil and 9% more on coolant, additives, brake and transmission fluids.
“Only a few decades ago, the Hispanic population was an emerging niche made up primarily of migrant workers in agriculture, factories and in lower-level service occupations. Today, they make up one-fifth of the American population, and Hispanic households are expected to outspend their white majority counterparts during their lifetimes,” said Karthik Iyer, COO at Claritas, in a press release. “That kind of growth, combined with strong lifetime purchasing power, makes Hispanic Americans one of the most attractive targets for marketers today.”
According to the Claritas Hispanic American Market Report, the cumulative lifetime spend of the average Hispanic American household is $2,535,959. That’s $538,636 more than the lifetime spend of the average white American household. With larger families and increasing spending habits, these consumers represent untapped revenue potential for a multitude of products and services from food, automotive and apparel to insurance, technology and banking.
According to the report, Hispanics spend roughly $2,300 annually on apparel—5% more than the average U.S. household. Hispanic households also spend $4,740 annually on food at home—about 1.4% more than the average U.S. household. Hispanic Americans also appear to be do-it-yourselfers, particularly when it comes to their automobiles. Compared with the average U.S. household, Hispanic households spend 18% more on motor oil and 9% more on coolant, additives, brake and transmission fluids.
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