The Hispanic demographic is reshaping the U.S. market landscape with its rich cultural tapestry and unique purchasing behaviors. As this segment grows in influence and purchasing power, it brings forth distinct trends that consumer packaged goods and wellness brands can use to serve this consumer group. As each generation becomes more multicultural, identifying the cultural forces driving shoppers will be paramount to growing CPG brands in the years to come.
Hispanic Consumer Demographics + Preferences
Brightfield Group's Wellness Consumer Insights survey vividly depicts the Hispanic consumer. Predominantly young, with 69% being Millennials or Gen Z, this demographic offers brands a dynamic consumer base with distinct preferences and behaviors. A significant 41% reside in urban settings, compared to 28% of the general population. Furthermore, the group skews female, with women representing 58% of Hispanic consumers in 2023.
56% of Hispanic consumers believe that convenient foods aid in maintaining a healthy lifestyle. This sentiment is higher than the 47% agreement rate in the general population. There's a growing market for products that balance convenience and health. With Brightfield Group’s Wellness Consumer Insights, understanding consumer groups is easier than ever with demographic insights by specific needs and preferences.
Ingredient Over-Indexing: Ginger & Aloe Vera
Among Hispanic consumers, we see an inclination towards certain natural ingredients, with ginger and aloe vera standing out prominently. These preferences reflect cultural ties and a broader trend towards natural, holistic wellness solutions.
Ginger: Revered for its medicinal properties and spicy flavor, ginger has been a staple in many traditional cuisines, including in Latin America. Among Hispanic consumers, 17% reportedly use ginger, surpassing the 14% usage rate in the general population. This preference can be attributed to the ingredient's versatility. Ginger can be found in various dishes, from savory to sweet, and is also commonly used in teas and remedies for its purported health benefits, such as aiding digestion and combating nausea.
Aloe Vera: Aloe vera's popularity among Hispanic consumers is even more pronounced. With 16% of Hispanic consumers using aloe vera, compared to just 9% of the general population, it's evident that this plant holds a special place in their wellness routines. Aloe vera is often associated with skin health and is known for its soothing and moisturizing properties. However, its benefits extend beyond topical applications. Many Hispanic households use aloe vera in beverages and smoothies, valuing its digestive benefits and nutrient-rich profile.
Wellness Consumer Insights also reveals a broader trend of Hispanic consumers seeking "all-natural" foods more than the general population. This suggests value placed on natural, unprocessed ingredients, which often is tied to traditional cooking and holistic health practices.
Beverage Purchasing Habits
The beverage sector provides a window into Hispanic consumers' unique preferences and tastes. A closer look at their choices reveals both cultural influences and broader market trends. While certain categories, such as snacks, meat & dairy, and vitamins, see a lower purchasing rate among Hispanic consumers, there are distinct over-indexes in specific beverage categories that brands should be keenly aware of.
Caffeinated Beverages:
Iced Coffee: A standout preference among Hispanic consumers is iced coffee, with 31% opting for this chilled beverage. This is notably higher than the 23% of the general population who choose iced coffee. The trend suggests a growing affinity for cold brews and other chilled coffee beverages among the Hispanic demographic.
Herbal Tea: Herbal teas also see a higher preference among Hispanic consumers, with 20% choosing them compared to 15% of the general population. This inclination towards herbal teas indicates a broader trend towards beverages that offer both flavor and potential health benefits.
Natural Hydration Options:
Coconut Water: Known for its refreshing taste and rich electrolyte content, coconut water is chosen by 16% of Hispanic consumers. This preference is in stark contrast to the general population, where only 10% opt for coconut water.
Electrolyte Water: Electrolyte water, which helps replenish lost minerals and maintain hydration balance, is preferred by 15% of Hispanic consumers. This is consistent with the broader population, where 10% choose electrolyte water. The slightly higher preference among Hispanic consumers points to a preference for natural and health-centric hydration options.
The beverage choices of Hispanic consumers show an inclination towards natural, flavorful, and health-centric options. Brands aiming to cater to this demographic should take these preferences into account, offering products that resonate with these tastes and values. Understanding these nuances allows brands to connect more authentically with Hispanic consumers and tap into a growing and influential market segment.
Insights in Action: Minute Maid Aguas Frescas
Mainstream beverage brands are recognizing the unique preferences and purchasing power of Hispanic consumers and are introducing tailored products. The Minute Maid Aguas Frescas line is a brilliant example of how mainstream beverage brands are adapting to the purchasing power of Hispanic consumers. This product line draws inspiration from the traditional Latin American beverage, "aguas frescas" which translates to "fresh waters" in English. These beverages are known for their refreshing qualities, often made by blending fruits - like watermelon or cucumber - with sugar and water or another liquid.
The introduction of this line is a clear nod to the growing influence of Hispanic tastes in the broader CPG landscape. By offering a product that resonates with the cultural and taste preferences of Hispanic consumers, Minute Maid is introducing this product to its wider audience while also better serving the Hispanic consumer. Creating a deeper connection with influential consumers like this segment prepares the brand for the multicultural present and an even more diverse future.
Moreover, the initiative by VIZIO to celebrate Hispanic Heritage Month, with Minute Maid Aguas Frescas as the presenting sponsor, further shows the recognition and appreciation of Hispanic culture and its influence on consumer packaged goods. This initiative offers an expansive lineup of premium and free multicultural programming to millions of users, celebrating Hispanic and Latin voices through curated content. By presenting this initiative, Minute Maid showcases a strong commitment to connecting with the Hispanic segment. Through such engagements, Minute Maid is positioning itself as a brand that values and celebrates the rich cultural diversity of its consumer base, thereby fostering a deeper connection with the Hispanic community.
Target Hits the Hispanic Millennial Target
Target, a leading retail giant, has recognized the significant influence of the Hispanic demographic, especially the younger generation. In 2015, the company seamlessly integrated its brand into the popular CW sitcom, "Jane the Virgin," as part of its “Sin Traduccion” (“Without Translation”) campaign. This campaign was designed to resonate with Hispanic millennials by highlighting "untranslatable" moments in their lives, emphasizing the unique cultural experiences this demographic cherishes. The main character, Jane Villanueva, a young Hispanic woman, is portrayed as a regular Target shopper, positioning the brand as a favorite among young Hispanic women.
A notable 57% of Hispanic consumers prefer shopping for food at mass merchandisers, surpassing the 47% who choose traditional grocery stores like Kroger, Publix, and Albertson. This trend indicates the broader shift in shopping habits and the growing influence of mass merchandisers in the food retail sector among Hispanic consumers.
Target's strategic focus on the Hispanic demographic is paying off. Looking to Wellness Consumer Insights, Hispanic consumers are more likely to list Target as a brand they love. A significant 53% of Hispanic consumers express love for Target, compared to only 38% of the general population. This pronounced preference for Target highlights the company's successful efforts to connect authentically with the Hispanic community and celebrate its unique identity.
In conclusion, the Hispanic consumer segment is a force to be reckoned with. Their distinct preferences, behaviors, and purchasing power are driving brands to innovate and cater specifically to their needs. As this demographic continues to grow and influence the U.S. market, understanding their unique characteristics will be crucial for brands aiming to capture a significant share of the market.
Download the Insights: Hispanic Consumer Wellness Trends
Published: 09/25/2023
