Our newly released study, The Hispanic Market Opportunity, profiles the 57 million Hispanics in the United States and the food industry opportunity they represent. This study is the third in our series exploring the major trends in the US food business. Our fourth study, Private Label brands, will be available mid-summer. For details on all of our studies, please refer to our website www.cstconsultingpartners.com.
The Hispanic opportunity is driven by growth. We expect Hispanics to grow from 17% to 21% of the U.S. population by 2030 and 28% by 2060. Understanding the rate of assimilation of Hispanics (fairly rapid), their language preferences for media and advertising (evolving more slowly), the degree to which they prefer different in-store marketing tools, their category preferences, and receptivity to private label brands are crucial for retailers and food manufacturers alike.
Many of the major food manufacturers have been responsive to the cross-over appeal of Hispanic-style foods to non-Hispanics, and have made a series of acquisitions over the past 30 years, including B&G Foods/Ortega, Campbells/Pace, ConAgra/Frontera, as well as the joint venture between Hormel and Herdez known as Megamex. A smaller number of Hispanic companies with roots in Mexico such as Gruma/Mission and Goya with roots in Puerto Rico have rapidly expanded with facilities in the U.S. and have concentrated on “authentic” items.
The study provides depth on:
- The projected growth of Hispanics over the next 30 years, including by age group, to drive out their particular importance for products targeting children, adolescents, and teens.
- How much of the growth in supermarket food and beverage sales will be driven by Hispanics: nearly 50%
- The assimilation of Hispanics into the larger American society: which is ongoing on all cultural and language dimensions
- How astute retailers are marketing in-store, and the role of websites and digital advertising in attracting and stimulating Hispanic consumers: more can be done on company websites and digital advertising
- Private label relevance
- The size and profitability of the Hispanic Food market: approximately $20 billion in supermarket sales
- The major producers and marketers of Hispanic Foods: including the product lines and manufacturing facilities of Gruma/Mission (tortillas), Megamex/Hormel/Herdez (sauces, canned/jarred vegetables), General Mills/Old El Paso (meal kits, taco shells/seasonings), Goya (canned beans, dried beans, juices, sauces, and a myriad of other products)